Online Advertising & Analytics for the Writer

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Internet Advertising & AnalyticsInternet Advertising & Analytics

Online Writing & Editing (PB 590C)Online Writing & Editing (PB 590C)

Summer Session II 2010Summer Session II 2010

Internet Advertising & AnalyticsInternet Advertising & Analytics

Online Writing & Editing (PB 590C)Online Writing & Editing (PB 590C)

Summer Session II 2010Summer Session II 2010

Internet Advertising & AnalyticsInternet Advertising & Analytics

Online Writing & Editing (PB 590C)Online Writing & Editing (PB 590C)

Summer Session II 2010Summer Session II 2010

Tom HaneyTom Haneyhaney270@gmail.comtomfinder.comtomfinder.com

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Agenda

4. Implications for the Writer

3. Online Analytics

2. Advertising Deal Structures

1. Internet Business models

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Who Does Content Serve?

Visitor(Reader) Publisher

Content

Marketer(Advertiser)

TrafficSources(search)

AdvertisingAgencies

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Old Media Versus New Media

Internet 1.0 Web 2.0

GlobalMeasurableInteractiveTransactional

SocialDistributedMobileLocal

Topic 1Internet Business Models

Business, that's easily defined - it's other people's money.

Peter Drucker

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SEO = Search Engine Optimization

SEM = Search Engine Marketing

Costs of acquiring traffic

• Paying writers and other staff

• Paying for distribution

“Hit” content versus “long tail” content

Is SEO degrading the integrity of writing and journalism?

Acquiring Traffic – SEO, SEM

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Primary Online Business Models

Business Model = How a company makes money.

PricePerUser

Ecommerce Advertising Freemium VirtualGoods

One time – apps

Recurring – Subscription (premium)

Merchandising

Transactions

CPM – cost per impressionCPC – cost per clickCPA – cost per acquisitionCPL – cost per lead

Part free, part premium

Upsell

Growing

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Traits of Successful Online Businesses

Get Big or Get Expensive

Get Big – grow the audience and sell advertising. Size and scale are key to success.

Get Expensive – charge users. OR

Topic 2Advertising Deal Structures

A magazine is simply a device to induce people to read advertising.

James Collins

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Advertising Acronyms

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CPM – Cost Per Thousand Impressions

Visitor(Reader)Audience

Publisher

Content

Marketer(Advertiser)

Page View = Impression

M = Roman number for one thousand

$

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eCPM

CPM is the historical standard

* Primary model for television

* Cost per click and other models get translatedto effective CPM to facilitate comparison across models

e = effectiveeCPM = effective cost per thousand

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Conversion Funnel

LEAD MEASUR

Is something we can influence.

Impressions

Clicks

Engaged

ConversionsClicks / impressions =Click thru rate aka CTR

Conversions / clicks =Conversion rate

Engage means the user didn't “bounce”. She viewed more than the one page.

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Dollar Metrics

LEAD MEASUR

Is something we can influence.

Impressions

Clicks

Engaged

Converted

Impressions 2000

clicks 10

Click-thru rate (CTR)

.05%

Converted 1

Conversion Rate

10%

CPM $0.50

Cost $1.00

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Cost Per Click, Cost Per Acquisition

LEAD MEASUR

Is something we can influence.

Impressions 2000

clicks 10

Click-thru rate (CTR)

.05%

Converted 1

Conversion Rate

10%

CPM $0.50

Cost $1.00

Cost per Click =Cost / clicks

$1.00 / 10 = $0.10

Cost per Acquisition =Cost / conversions

$1.00 / 1 = $1.00

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Cost Per Lead or other Action

LEAD MEASUR

Is something we can influence.

Acquisition can be any action for which the marketer is wiling to pay.

Cost per Acquisition =Cost / conversions

$1.00 / 1 = $1.00

For example:Sign-up for servicePurchase a ProductStart a free trialSubmit an e-mail addressBecome a qualified lead

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Differences in the Models

The main difference is how the advertiser pays for the marketing.

CPM – is paid by the impression. Most risk to the advertiser.

CPC – is paid by the click. Risk is shared.

CPA – is paid by the action (or acquisition). Most risk to the publisher.

eCPM – is the effective CPM if paid by click or action.

The supporting key metrics are the same in each case.

Topic 3

People play differently when they’re keeping score.

Online Analytics

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Why use online Analytics?

Publisher Advertiser Writer

Better serve the audience.

Increase click-thru rates CPM.

Evaluate traffic sources.

Determine hit stories.

Optimize click thru and conversion rates.

Calculate dollar metrics.

Evaluate various publishers.

Improve engagement.

Understand what readers like.

Better sell to publishers and advertisers.

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Google Analytics

Traffic Engagement

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Traffic Sources

Organic = search terms that were not paid search.

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Football Passing Tree

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Keyword Sources

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The Advertisers' View

Campaign was run on the CPC model of Google Adwords.

Cost per conversion is key. Cost per conversion needs to be lower than the lifetime value of acquiring the customer.

LTV CPA

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Demographics

Demographics are key for advertisers

(and agencies)

Demographics on Emerson.edu from quantcast.com

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Social Media Analytics

Measures the effectiveness of tweets, re-tweets, follower strategies

Engage your audience

hootsuite.com

socialoomph.com

Topic 4Implications for the Writer

That's not writing, that's typing.

Truman Capote

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Key Takeaway

Content

is

King

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Challenges

Church&

StateContent

&Advertising

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The Role of the Writer

Drive traffic to create adverting dollarsBring value to the freemium model

Engage and entertain users for repeat visitsJustify premium pricing on subscription sites

Build your reputation and personal audience

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Building a Reputation

* Write your own blog* Define your voice and showcase your talent* Contribute to higher profile sites, even if they don't pay much* Promote your own content on Facebook and Twitter

You are your own brand and traffic generator

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Crush It – Gary Vaynerchuck

The key to monetizing online

* Differentiation from others in a niche

* Take advantage of genuine personality

* The more developed one's personal brand is, the greater the awareness, the greater the business opportunities available.

No longer need to play in traditional structures. Gatekeepers are being eliminated.

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Recap of Topics

4. Implications for the Writer

3. Online Analytics

2. Advertising Deal Structures

1. Internet Business models

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Questions?

Don't hesitate to get in touch:

Tom Haney

haney270@gmail.com

http://www.tomfinder.com

513-876-5439