ken hayes president, nami media inc. [email protected] “monetizing new media – how is it done?”...
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Ken Hayes
President, Nami Media Inc.
www.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”