Ken Hayes

President, Nami Media Inc.

www.kbhayes.com

Ken@kbhayes.com

“Monetizing New Media – how is it done?”

Surviving Internet Advertising

Ken Hayes

Personal Mission since 1994: Make commercial sense of new media

President, Nami Media Inc. Internet advertising technology company Build and sell pick-axes

Founder / CEO, IMS Learning A/S European web-based training company

Member, Pasadena Angels Investment group in 45+ tech/web startups

Economic Forces on Internet

Size of Internet Advertising

Source: IAB / PricewaterhouseCoopers LLP, compiled by Oversee.net

Ad Formats($ in millions) 2005A

$ % of Total % Growth

Search (e.g. Google) $5,142 41% 33.6%

Display Advertising 4,264 34% 13.6%

Classifieds 2,132 17% 23.0%

Referrals / Lead Generation 753 6% 290.2%

E-Mail 251 2% 161.5%

Total $12,542 100% 30.3%

Website Ad ModelUsers:

“Traffic”

Organicand / or

Paid

Content Sources:

- UGC

- Editorial

- Scraped / Syndicated

Site’s Added-Values:

- Look’n’Feel

- Functionality

- Organization

Advertisers:- Flat Rate

- CPM- CPC- CPA

Publishers

One Link in the Chain

Content is King? Not! Traffic is King “Own your traffic” – Lawrence Ng Where do you get your users?

- At what cost? River

Drops of water = users Dams and generators = websites Electricity = ad revenue, merchandising Once the drop flows by, lost your chance

Explosion of choice, fragmentationpurpose – not just entertain / inform.

Content Challenges

Your content will get hijacked / scraped. Content must contain the ability to

monetize itself. e.g. embedded links

Revenue share w/content creators? Maybe / maybe not How to measure?

Value created may not necessarily be in the re-broadcast of a work.

About.com - NYT

Other Revenue Sources

Besides Advertising… Subscription (e.g. WSJ) Merchandise (Zazzle, Cafepress) Build lists (e.g. About.com) Services (e.g. JibJab)

“Ultimately, Monetize the Brand, Not the Content”