Transcript CIS 370 Powerpoint

The Fall of Traditional Media Publisher
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Like many of the nation's biggest
newspapers, the Boston Globe is
threatening to fire workers and cut costs
as advertising sales and circulation
numbers decline.
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Newspapers that flourished for over a
hundred years are now going out of
business. In March 2009, the 146-year-old
Seattle Post-Intelligencer put out its last
print edition and Denver's Rocky
Mountain News shut down its presses
after close to 150 years of putting out a
daily paper.
Economy, Online Trends Threaten Newspaper Industry
As more Americans turn to online news and the recession eats away at
advertising dollars, some newspapers are going out of business and others are
struggling to stay afloat.
Newspapers Adapting to the Web
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Newspapers are having trouble
adapting to the Internet
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Although newspapers like the New
York Times have successful Web
sites with free content, they have
trouble collecting enough revenue
through online advertising.
What about a new way to read news?
The Kindle can display books and
newspapers on its large screen. And
Amazon has made a deal with the
Washington Post and the New York
Times to give people a discount on the
device if they sign up for a Kindle
subscription to one of their
newspapers.
Key News Audiences Blend Online and Traditional Sources
• Overall, 37% of public get news online.
• 35% of internet users went online at
least three days a week.
Source: 2008 survey, Pew
Research Center for the
People and Press
NEW MEDIA
The Evolution of Online Advertisement
The Ad Networks
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The Middle Man
* The bridge between advertisers and publishers
The Major Networks
* Google Double Click and Google AdSense,
* Yahoo! Publisher Network
Link Aggregators
* ValueClick
* LinkShare
* Commission Junction
Smaller Ad Networks
* The Long Tail
* The OpenX
The Major Ad Networks
Google Double Click
* Offers technology product (DART) & website services
to advertisers and publishers.
Google AdSense
* Offers ad serving application to website owners.
* Advertisements are administered by Google.
* Generate revenue on per-click or per-impression basis.
Yahoo! Publisher Network
* Ad serving provides cost per-click contextual.
* Various tools & services to publishers.
The Link Aggregators
ValueClick
* Provides advertising campaigns & programs to
advertisers in the U.S. and overseas.
* They operate in four segments: Media, Affiliate
Marketing, Comparison Shopping, and Technology.
LinkShare
* Provides e-commerce sites a programmable pay-peraction marketing network & patented techonology.
Commission Junction (owned by ValueClick)
* Provides advertisers & publishers two key metrics:
average earnings per 100 clicks (EPC) and network
earnings
Types of Online Advertising
• Banner Ads – Most popular, Many Shapes
and Sizes
• Text Ads – Google Ads, links, etc
• Pop-Up Ads – Annoys web surfers
• Contextual Ads – Within content and
targetted
• Site Takeovers – MySpace Promotions
• Application space – Facebook, Myspace,
• Mobile Applications – iPhone & Blackberry
Common Forms
Banner Ads
Text Ads
Site Takeovers
Application Ads
Mobile Applications Ads
Web Analytics
• Analytics - measurement, collection,
analysis and reporting of internet data for
purposes of understanding and optimizing
web usage.
• Gives web publishers and advertisers a
criteria to settle on price
• Users – The number of users a site or
network has.
• Measured by unique ip addresses or site
membership statistics
• Pageviews – Pages rendered by a website
• Generally lots of users means lots of pageviews
• A common quantifiable measurement
• Can help guage how “sticky” a site is
• Impressions - The number of times an
advertisement was rendered in a page view
• One page view may contain as many impressions as
the web publisher wants
• b) Impressions are another quantifiable meausurement
and are directly tied to monetization
• c) Impressions are typically counted by the mil (1000).
For every 1000 impressions a site recieves the CPM
The Analytics Companies
• Measure users and pageviews for public
consumption
• a) Google Analytics/Doubleclick - Provides
code to enter into any website to track its
pageviews
• Purchased the largest ad network, Doubleclick
• b) Omniture - Just purchased by Adobe
earlier this week
SEO - Search Engine
Optimization
• SEO - Search Engine Optimization
– 1.) Optimizing web sites for higher ranks in search
engines to generate higher page views
– 2.) Niche Markets - Small community oriented web
sites
• a) Targeted Audiences - (Poker Sites, Music Sites,
Gaming Sites, etc...)
• b) Can command large commissions if the analytics
are right
Monetization
Monetization process begins
with evaluating possibilities.
Players involved are:
• advertisers,
• publishers,
• and the middlemen
Possible payouts are in
• Micropayments
• CPM (Cost per Mil, 1000)
• CPC (Cost per Click)
• CPA (Cost per Action)
• Signups, Surveys, etc…
• Or fixed pricing.
Methods of
Monetization
• Sponsorship
• Cross Advertisement
• Paid Content and
Advertorials
• Syndication of
Content
• Affiliations
• Links
Less Aggressive Methods
• Donations
– Loyalty
– Responsibility
• Conversion
– Indirect Revenue
– Generate Interest from
Activities that
Eventually Result in
Sales
Emerging Markets:
Globalization
Mobile Space: The Next Big
Platform
• New cell phone
technology
• E-Commerce
• Internet on-the-go
India and China
• Critical mass of online users in the next
ten years
• Monetizing these markets will be tricky but
will have huge rewards
• New millionaires and billionaires will be
made in this space
Nanotechnology
• Dictionary: Any fabrication technology in which objects are
designed and built by the specification and placement of individual
atoms or molecules or where at least one dimension is on a scale of
nanometers.
• In their ongoing quest to improve existing products by creating
smaller components and better performance materials, all at a lower
cost, the number of companies that will manufacture "nanoproducts"
will grow very fast and soon make up the majority of all companies
across many industries.
Other Technology
• Who knows what the
future will bring…