Bob Melk, Publisher, IDG Overview of the Web

Does Your Brand have a Website?

25 20 15 10 5 0 Yes No

Source: 2007 IRMA Conference Study

Does Your Publications Site Offer Dynamic Content

14 4 2 0 12 10 8 6 Yes No

Source: 2007 IRMA Conference Study

How Often Do You Update Your Site Content

6 5 4 1 0 3 2 Daily Weekly Monthly Bi Monthly Quarterly Content

Source: 2007 IRMA Conference Study

Do You Measure Traffic On Your Site

18 16 14 12 10 2 0 8 6 4 1st Qtr Yes No

Source: 2007 IRMA Conference Study

Do You Sell Advertising On Your Site

14 4 2 0 12 10 8 6 Yes No

Source: 2007 IRMA Conference Study

Do You Sell Advertising 9 - no 11- yes

4 3.5

3 2.5

2 1.5

1 0.5

0 Monthly Banner CPM Rotation Flat Rate Annually Fixed Rotation Ad Sales

Source: 2007 IRMA Conference Study

Do You Post Vendor Generated Content 18-no, 3-yes

2 1.8

1.6

1.4

1.2

1 0.8

0.6

0.4

0.2

0 Vendor White papers Brouchure Microsites Webcasts Podcasts

Source: 2007 IRMA Conference Study

Do Your Advertisers See Value in Online Advertising

18 16 14 12 10 2 0 8 6 4 Value Yes No

Source: 2007 IRMA Conference Study

Is Your Site Currently Profitable

14 4 2 0 12 10 8 6 Yes No Profitable

Source: 2007 IRMA Conference Study

Two Things You’d Like To Learn Today

• • • • • • • • • • • • • • • • • • • • How do you find a person to develop your site Will usage of print products be expected to decline as people move online?

What is the future of print products and how can we evolve to online How can we sell online How to keep a site lively to encourage traffic How to merge a web audience with a print audience to solicit more subscribers from the web. Where are regional websites headed Business Model for our type of enterprise Are blogs a good idea? Is there success?

Benchmark Rates, successful programs How to price advertising and balance advertising and content Microsite development Can videos generate income from sponsored advertising How many sites have a paid subscriber model How can we generate online subscriptions How do you establish online ad rates What are the favorite ad types Best Practices for online publishing How to integrate web advertising without stealing from the magazine Creative ways to add more content to the site when you don’t have staff Source: 2007 IRMA Conference Study

Web Growth & Internet Access Growth is Staggering

Among Americans in the middle-income range - those whose household incomes are between $40,000 and $50,000 per year - home high-speed penetration grew by 68 percent from 2005 to 2006.

2006 1 billion 1996 100,000

How Big is the World Wide Web

Global population: 6.4 billion Internet usage in 2006: 1.1 billion 200% growth 2000-2006 Internet usage in 2010: 1.6 billion 16.7% of the world’s population is online Source: NOTES: (1) Internet Usage and World Population Statistics were updated for Sept. 18, 2006. (3) Demographic (Population) numbers are based on data contained in the world-gazetteer website. (4) Internet usage information comes from data published by Nielsen//NetRatings , by the International Telecommunications Union , by local NICs, and other reliable sources. (5) For definitions, disclaimer, and navigation help, see the Site Surfing Guide . (6) Information from this site may be cited, giving due credit and establishing an active link back to www.internetworldstats.com

. © Copyright 2006, Miniwatts Marketing Group. All rights reserved worldwide.

Spending on Media in 2006

1.

2.

3.

Direct Mail, $55m up 5.8% Newspaper, $47m up 1.5

Broadcast TV, $44m down 4.3% 4.

5.

Cable TV, $23m up 9.9% Yellow pages, $14m up 1.6% 6.

Magazines, $12,847 up 4.9% 7. Internet, $7.7m up 13.3% Source: Advertising Age Jan 1, 2007

Email Penetration Among Internet Users

• Email penetration is at an all-time high of 91 percent among Internet users between the ages of 18 and 64, as reported by eMarketer. Search has the second highest penetration among Internet users.

The Good News – Print Lives!

The Bad News – Advertisers Don’t Care

• • • • Marketers are shifting more spending ‘down the purchase funnel’ and away from brand building Huge Premiums are being paid for finding ‘in market’ consumers through search and other ad models. Shifting metrics from cost per impression to cost per action Investing heavily in new consumer insight capabilities to better measure market impact

Focus on Measurability also driving shift to below line marketing

Many Categories have yet to Migrate Spending Online

Quotes to live by…. CEO of major publishing company…

1996

, “The Internet is a fad.”

1997 1998 1999 2000

, “The Internet is just no fast enough to keep people happy.” , “We have included the Internet in our plans, but we are not counting on any revenue for many years.” , “The Internet requires a wire, print wins hands down. Try taking your computer into the bathroom. HAHA.” , “The net will never replace magazines.”

2001 2002

, “I stake my career on this, the Internet will not hurt our bottom line.” , “As my last memo from the top I say, “The Internet really snuck up on us all.”

A Brave New World

Bob Melk, Publisher, IDG Beginning Web Strategies

Advertising Building Blocks

• • • • • • • Site Metrics Terminology Media Math Ad Units Targeting Ad Serving Measurement

Site Metrics

• • Site Metrics and Traffic » Various measures of the amount and type pages served, number of site visitors, sources of traffic, time spent, referrals and other indicators of the web site activities » Site metrics and analysis from the log files and software Auditing of Site Metrics » » Validation of usage (not audience characteristics) Levels the playing field

Site Metrics – Page Views

• Page Views » » » Requests to load a single HTML page Demand for Content • Driven by events, seasonality, editorial, marketing efforts One of the most important criteria for media buyers

Site Metrics – Unique Visitors

• • • Unique Visitors (Browsers) » Individuals who have visited a web site at least once in a fixed period of reporting (typically 30 days) Counting Unique Visitors » » » Cookies IP Address Registration Proxy for Print Readership

Site Metrics – Sessions/Visits

• Session Data » Session or Visits » » • Number of times each unique visitor goes to the site in a month Session or Hold Time • Minutes spent in each session Proxy for Loyalty

Terminology

• • • Ad Impressions (Avails or Publishers Inventory) » » » Total ads avaialbe to sell in a given time period Countrs of ads being served/delivered to an HTML page Ad programs sold by ‘packaging’ impressions or the number of ads to be served Ad Impresions (Counted) » Counts of ads delivered to the users browsers from the ad server » Can also count ‘views’ Impressions Priced and Sold on a CPM basis

Terminology – Click-Throughs

• • • • Clicks » User initiated action • Clicks In- Unit • Mouse –Over Click – Through » Clicking on an ad and causing a redirect to another page » Tracked by the ad server Click-Through Rate (CTR) » The average number of click-throughs per hundred ad impressions, expressed as a percentage De Facto Measure of Success » Proxy for ‘opening the envelope’ » » Does not measure ‘post click’ activity In simplest form, many factors not accounted for • Creative, targeting, messaging, offer, etc.

Terminology – View-Throughs

• View-Throughs » Count of actions taken after viewing an ad without clicking » • Cookie the browser when ad is viewed Ads can contain an electronic image (called a ‘single pixel GIF’ or ‘web beacon’ The Web Beacon reports back to the ad server that it has been displayed.

» » Allows the ad server to count the number of users who have seen the ad not clicked Issues: • Cookie Deleting • Setting appropriate time-frame for measuring activity, e.g., 1 day, 7 days, 30 days, 60 days, +

Terminology – Conversion Rates

• • Conversion Rate » The percentage of visitors who take a desired action after clicking » » Key determinate in ROI calculations Examples are filled in survey, download white paper, signing for a webinar, filling in the lead form. Issues: » » » What are conversion factors Clients role in tracking conversion (sales funnel) Data collection/sharing

Terminology – Cost-Per-Click

• • Cost Per Click (CPC) » Ad model where the advertiser pays for clicks not impressions Importance » » » Used in acquisition campaigns Used in campaign optimization Post-Campaign metric (total spend against total clicks)

Terminology – Run of Site

• • Run-of-site (ROS) » Ad buying options in which ad placements may appear on any pages on sites within an ad network » » » » » » Lowest CPMs • Base CPM No Targeting ROS Buys… Bonus impressions for a larger buy/sponsorship Large ROS buys generate high freqency levels Lower net effective CPM Lower response rates, not targeted

Terminology – Placements & Ad Types

• • • Above the Fold » » » The section of a web page that is visible without scrolling Generally higher response rates from this position Generally higher CPMs if mulActionle above/below the fold positions Contextual Placement or Ad » Ad placement targeting by the content (words) on the page Interstitial » Full screen ad unit that is delivered between content pages or over a page.

Terminology – Ad Deliverables

• • • Frequency Cap » Restriction on the amount of times a specific visitor is shown a particular advertisment » Used to control delivery of over content or pop up ads Impression Guarantees » Number of impressions guaranteed to be delivered in a campaign Under Delivery » Delivery of less impressions, visitors, or conversions than contracted for a specific period of time • Caused by too many tageting criteria or poor inventory forecasting » » Agencies will ask for ‘make good’ Some sites will ‘short rate’

Terminology – Cookies

• • Cookies » » » » Code placed in a browser so that the browser activity is recorded, e.g. visiting a page, and ‘remembered’ when the browser returns to the site or another ad is served.

A ‘marker’ No personal information is captured Used for ad serving, sequencing ads, targeting, frequency caps, counting unique visitors, affiliate tracking Issues » » Users deleting cookie files Targeting, measurement and tracking problems

Terminology - Sponsorship

• Sponsorship » Advertising that seeks to establish a deeper association and integration between an advertiser and a publisher » » » » Often involves fixed ad or logo positions, sequenced ad units, exclusivity of ads in a section, take-overs, custom publishing Can be long – or short-term Integral part of buyers considerations Usually requested for a brand campaign.

Media Math – Calculate the Numbers

• What the Numbers mean » » » » CPM – Cost Per Thousand Impressions CPC – Cost Per Click Impressions – Ads Served or ads delivered to page/user ROI – Return on Investment

Media Math – CPM, Impressions, Media Costs

• CPM – Cost Per Thousand Impressions » CPM = Media Cost/Impressions x 1000 • Number of Impressions » Impressions = Media Cost/CPM x 1000 • Media Cost – Cost for the total number of impressions » Media Cost = Impressions/1000 x CPM

Media Math – Click Throughs (CTR) & Conversion Rates

• Click Through Rate (CTR) » CTR = (Clicks/Impressions) x 100 • Conversion Rates » Conversion Rate = (Conversions/clicks) x 100

Media Math

• Calculate the CTR, Conversions and ROAS » » » » » » » » » » Total Campaign Costs CPM Impressions CTR Number of Clicks Cost Per Click (Cost/Clicks) Conversions (Conversion Rate = 10%) Cost per Conversion (Cost/Conversion) Revenue Generated ($50 per item) ROAS (Revenue – Cost) $6,000 $15.00

Internet Advertising Standards

• Internet Advertising Bureau ( www.iab.net

) » Standard Ad Units • Banners & Buttons • Squares & Rectangles • Skyscrappers

Ad Unit Best Practice

• • • • • Shift to Larger Ad Units » » Universal Ad Package 728X90 Preplacing 468x60 Limit Clutter » 2-3 Large ads per page Utilize Home Page » Premium Ad Programs Placement » Integrate with Content Targeting & Relevancy » Drives Effectiveness

728x90 336x280

Video Ads

Other Ad Units

• • • • • • Floating Ads Expanding Ads Text Ads Interstitials Peel Ads Viral Campaigns

When to Use Targeting Criteria

• • • • • Browser/Operating System » Mac versus Windows OS Regional Targeting » » Weather trigger Product Availability Day Parts » Specific Usage or Avail Behavorial » Drive Efficiency, Utilization of Inventory Contextual » Drive Response Objectives

Best Practice – Targeting

• • Advantages » » Higher CPMs Higher Response Rates Disadvantages » » Ability to collect and manage targeting criteria Availability of inventory and making guarantees

Counting & Tracking Ads

• • • Clicking on Ads » Measures the ‘click thru’ rate Placing Cookies » » Count users who have seen ad Manage Ad frequency (no. of times a user sees the ad) View – Throughs » » Ads can contain an electronic image (called a single pixel GIF or web beacon). The Web Beacon reports back to the ad server that it has been displayed Allows the ad server to count the number of users who have seen the ad not clicked

How the Internet is Measured

3 rd Party Ad Servers Ad Clicks, Data Mining Web Servers Session Tracking Registration, Purchases Ad Clicks Internet Secondary Research Trends, Industry Analysis Panel Research Internet Usage, Demographics Custom Research Branding Effectiveness, Attitude Data

Media Research & Measurement Tools

• • • • Syndicated Research Services Proprietary Audience Research Audits, Site Traffic and Metric Reports Cross Media & Ad Effectiveness Research

Media Planning Tools

• • • • Site Research & Composition » Nielsen/Net Ratings @ Plan » ComScore AiM, Media Metrix Competitive Analysis » Neilsen/Net Ratings AdRelevance » TNS Media Intelligence, Evaliant Site Directories » Ad Servers, e.g. Dart, Atlas » SRDS Site Audits » ABC Interactive » » I/Pro, BPAi IM Services, Media Rating Council • • • Research Tools » Jupiter Media » » » Forrester eMarketer Cyberatlas Proprietary Data » Many sites have response tracking data » Internal Customer Research surveys Branding Ad Effectiveness » Dynamic Logic » » Milward Brown Marketing Evolution

Site-Based Audience Research

• Audience Profile Data » » » » Marketing Department developed Third Party Administered research • E.g., Insight Express, Audience Profiler Site Registration Syndicated Panels • Small Sites not included

Audience Surveys

• Create questions that demonstrate interest in content and willingness to purchase » » Which website do you most rely on for xxx?

Which of the following offers or incentives would make you more likely to respond to an advertisers call to action?

• Ad Banner • • • • • • Product Vide or Webcast Podcast Sweeps or chance to win something Monetary Reward Other Don’t know

Ad Effectiveness Research

• Dynamic Logic Market/Norms » Optimal Frequency » » Impact of technology – e.g. rich media vs. gif Impact of ad format – e.g. skyscrappers vs. banners » Valuable in-depth data filters • Age • Freqency • • • • • • • Brand Attributes Geo Creative Atributes Gender Income Creative Technology Industry

Online Media Measurement

• • Many Online Campaigns are measured by the ‘immediate’ response » The Click!

New Focus Beyond ‘the click’ » » Post click activity • Actions on landing pages • • Download Sign up, register Actions on Site • Click Streams • Time spent

ROI and Online Media

• Other Considerations » Creative has to support performance » » » • • • • Copy ‘click here’ ‘click now’ ‘free’ ‘win’ Distinct benefit for call to action Testing creative: What drives the highest response Testing offer variables, premiums Targeting • Higher response rates from targeted audience • Lower response rates from broad audience reach Frequency Offline Support – Cross Referencing Across Media

Online Media Accountability

• • • Increased Site Traffic » Need benchmark data Cost Per Click – CPC Cost Per Action/Acquisition (CPA) Cost Per Lead, Inquiry » Whitepaper download, webinar/webcas sign up, lead form or data collected, surveys completed, contest/promotion entered

Bob Melk, Publisher, IDG Intermediate Web Strategies

Action #1: Expanding Your Brand Online Keep your image consistent cyber vs. fiber • • • • • • Web must reflect print image Publish with out page limitations Allow writers to expand online Do not accept your audience grow it Use bulletin boards to grow share Do not assume you know your users

Action #2: Web extras, Digital Sidebars Drive readers to the web for more.

• • • • • • Put valuable data online not fluff Expand article with online video Web allows experts to ramble on Publish full interviews Drive with more photos, allow the photographer to carry video too. Get ready for digital readers

Sony Digital Reader, $299-$499

• • • • • Action #3: Promotions are key to success driving traffic! No contest, no data, no revenue!

Collect data to grow list Contests are not a gimmick Keep it simple and collect a lot Advertisers supply prizes, you get the data Use solid technology exacttarget.com, email-publisher.com, constantcontact.com

Action #4: Collecting Data is key Newsletters drive community and ad sales • • • • • • Collect data to grow list Do not sell it cheap DRIVE SUBS! Drive special offers. Day does matter… Wednesday wins.

Demand that people not test your audience Use solid technology exacttarget.com, email-publisher.com, constantcontact.com

Interactive Media Spending by Consumers

TYPE

Music Online TV Movies

2006

$1,924m $432m $35m

2010

$4.9m

$2.1b

$651m Source: emarketer.com, http://www.emarketer.com/Reports/All/Em_downloads_jan07.aspx?src=report1_home

57 million listeners…

In a July 2005 study of the US market performed by the US market research institute The Diffusion Group, it was determined that growth in the penetration of podcasting technology can be directly tied to the expanding use of portable digital audio players. Based on this, the institute projected that the number of podcast listeners is expected grow from 15% to 75% of portable digital audio player users between 2004 and 2010. Backing this into numbers, the institute further projected that the number of podcast listeners in the US alone will increase to around 57 million within the next few years. [http://www.podspider.com]

Action #5: Pod casting Who, what, where and why? • • • • • • 121,000,000 results for “podcasts” Become the expert or else!

Do not sell it cheap Free, free, free.

http://www.apple.com/itunes/store/podcasts.html

http://www.speedofcreativity.org/podcast-resources

Action #6: Get found or go broke. Search is key to your success.

• • • Google’s Secret Formula Relevant text + number of high ranking sites that link to you + number of people that clicked = page rank.

Thus, it may take a few months to get to the top. Search “google Actions” for more.

“G.O.D. is in the details” –The Donald

G -Google O - or D - Die

Search Optimization is Critical

Action #7: Searching archives Archives are very important to online success.

• • • • • Get global author rights up front Use Google search to increase ranking PDF reproductions of print not very good Use template so archives have no legacy issues Use key words to get search results in title tags

Action #8: Content Management systems CMS makes life easier for publisher • • • • • • CMS means simple updates CMS allows editorial access CMS makes life easier CMS drives archives CMS keeps it fresh CMS builds RSS in and out Drupal.org, joomla.org, hotbanana.com

Action #9: Online reader surveys Reduce costs and increase results • • • • • Reader survey online increases yield 54% No limit on print costs Ask more questions Collect data E-surveymaker.com, snapsurveys.com, keysurvey.com

Hits stands for '

H

ow

I

diots

T

rack

S

uccess'"

Avinash Kaushik, Director of Web Research & Analytics, Intuit

Action #10: Reading web traffic Simple explanation for publishers • • • • • What to know is important What are page impressions?

What are unique users?

Where are users coming from?

Where are they looking online?

http://visibility.tv/Actions/stats.html

Hits aren’t it

On this page… HITS= 77 IMPRESSIONS=1

HIT HIT HIT HIT HIT HIT HIT, etc.

Action #11: Photo Galleries User Contributed Content wins!

• • • • • • Perfect for niche sites and publishers Do not sell it cheap People are passionate when they are allowed to participate Photos, BBS, not old school for niche Use solid technology – plogger.org, gallery.menalto.com

• • • • • Action #12: ePush for Success Newsletters drive community and ad sales Collect data to grow list Do not sell it cheap Day does matter… Wednesday is "Opening Day" In the first three quarters of 2005, Wednesday was the most popular day for opening emails, followed by Tuesday. In Q3, 62.1% of emails were opened between Tuesday and Thursday, while only 9.1% were opened on weekends.

Wednesday's open popularity is clearly driven by the "hangover effect" and results from nearly 48.7% of messages being sent on Tuesday and Wednesday. On Wednesdays recipients will open emails sent that day as well as the emails from Tuesday, the day they most likely received the highest number in their inbox. It is interesting to note that a significantly higher percentage of emails are opened on the weekends, than are sent by email marketers on Saturday and Sunday.

Action #12: ePush for Success Newsletters drive community and ad sales • • • • • • Collect data to grow list Do not sell it cheap Day does matter… Demand that people not test your audience Use solid technology exacttarget.com, email-publisher.com, constantcontact.com

Do not SPAM

Action #13: Web casting Technology Unique events draw huge crowds online • • • • • Simple concept, tricky execution Do not sell it cheap Test it, test it, test it!

Use solid technology – avweb.com , upstreamnetworks.com, streamhoster.com

KISS

Web casting

eMarketer forecasts that US consumer spending on digital music, movies and television will approach $7.8 billion in 2010, up from $1.3 billion in 2005.

Action #14: Online Videos People want to watch… YIKES!

• • • • • • YouTube, need I say more?

Do not sell it cheap Give people a reason to come back Great way to demo from static articles Free, free, free.

Use solid technology – avweb.com , upstreamnetworks.com, streamhoster.com

WAP Growth Rates

65,000,000 40,000,000 Jan 2006 Dec 2006 About M:Metrics M:Metrics is the mobile industry authority on the measurement of the consumption, availability and feasibility of mobile content and applications. M:Metrics’ monthly syndicated data services benchmark the performance of carriers, handset OEMs, platform vendors and content providers, empowering decision makers with highly granular, verifiable measures of subscriber consumption, content availability and pricing and handset capabilities. M:Metrics, Inc. is a private, venture-funded corporation headquartered in Seattle, Washington with offices in San Francisco, California.

Action #15: WAP this! Wireless Application Protocal- Go mobile!

• • • • • • Mobile consumption is on the rise Do not sell it cheap Be the expert or be gone Get right now and get found later Develop for niche!

Use solid technology – wap2.igris.com, yospace.com, palowireless.com/wap/devtools.asp

Action #16: UCC is here to stay! Bulletin boards drive traffic hot!

• • • • • • Perfect for niche sites and publishers Do not sell it cheap The ultimate sounding board Conversations Create Community Drive editorial from the boards Use solid technology – joomla.org, phpbb.com, discusware.com

Action #17: Photo Galleries User Contributed Content wins!

• • • • • Perfect for niche sites and publishers Do not sell it cheap People are passionate when they are allowed to participate Photos, BBS, not old school for niche Use solid technology – plogger.org, gallery.menalto.com

Action #18: Demo’s Drive Dollars Do you

REALLY

know your demo?

• • • • • User online surveys to get down to the nitty and the gritty Do not sell it cheap Give them what the

REALLY

want.

Do not accept your audience, build it.

Use solid technology – esurveymaker.com

365,000,000 blogs pull from a Google search… What is the US population again?

Action #19: Beware the BLOG Blogs are not a fad and they should be watched!

• • • • • • • • • Community forums are growing faster than offline communities HorseCity.com has over 300,000 active posts Youtube, Google video and video blogs allow people to match video with rumor. Good, bad or in-different.

Proof is in the pudding. Stories of abuse or misfortune are being documented online The Internet will become the “jury” of the future Web prophets see actual trial juries from across the nation linked up via the web to find a truly impartial jury. Drug testing gets easier and drug violations get more publicity Neighborhood watch to the next level Good or bad? The debate is out.

Marketing Communications Strategy

Most Effective Lead Generation Methods Website House List Email Seminars Webcasts Telemarketing Paid Search Direct Mail Trade Show Search Engine White Paper Affiliate Rented email Newsletters 0.0% 30.0% 60.0%

Source: MarketingSherpa IT Marketing Metrics Survey (05/04)

90.0% 82.8% 81.9% 80.7% 73.6% 72.0% 67.7% 65.9% 64.6% 64.5% 64.2% 61.8% 55.0% 50.0%