Tag Archive for: Networks

10 general questions on web monetization 2.0

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Brainstorming… ! This is a project which needs your help in order to start saving the future of the web in all its facets…

A post for you, me and all of us platform owners, web maniacs, companies, advertisers, affiliates, social medians and web workers to do some brainstorming and share some thoughts on the future of monetization.

In a lot of discussions, talks and chats with partners, clients and friends, we came across these questions. It is time to find some answers…

Please, tackle this project with me and give as much feedback as possible. We all want to participate in the future of the web. So, let’s do some work…

10 Questions on web monetization 2.0

What if…
1. … all companies respect that platform owners (social networks, media publications, portals, etc.) start their web activities in order to monetize their business like they do?
2. … web platform owners never had started using the measurement argumentation versus the former print world?
3. … companies accept that web platform owners start their business model to earn money – not just to be a service provider?
4. … web platform owners never had started the price competition in order to ‘drag away’ clients from each other – resulting in cpm values of cent amounts?
5. … companies had not overrated the measurement options and tried to buy ROI value (leads, orders & revenue) only – than simply the ‘best price’?
6. … web platform owners never had started cpx payment, let’s call this ‘performance payment’, but were using the old advertising model: ‘pay for play’?
7. … companies suddenly stop advertising the ‘pay for play’ way and just strive for performance payment?
8. … web platform owners need to go for ‘free-mium’ or premium service payment for users, as they cannot afford to run their business any longer without the support of the ad industry from the last 5 years?
9. … companies could finance, sponsor or take over the costs for those ‘free-mium’ or premium service payment for certain target groups?
10. … finally, we users all understand that without web platforms owners generating any revenue, the internet is nothing more than a shell without pearls?

Pick a question, share your views and posts and give us some answers.

Looking forward to your comments…

Ad Effectiveness – Mixing Apples & Eggs?

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Sometimes you read a study and think: “Ah, this is interesting information”. So, you write about it in a News Update.

And then, you stumble upon it again, and think twice about the research. This happened to me with the ‘Ad Effectiveness study’ conducted by Forbes. And browsing through it again, my feeling was that the title of this eMarketer article reflected the result, but the study itself mixes apples and eggs in some way…

Still, the main statement of the study remains an important trend in online marketing, and is an even more important praise for the work of online publishers (yes, probably a bit self-referential for Forbes).

“Respondents were by far the least happy with ad networks, with half saying that the results did not meet expectations” (…) “Ad network spending is all about demand fulfillment while direct-to-publisher display is much aligned with the traditional advertising goals of demand creation,” said Forbes.com president and CEO Jim Spanfeller.

However, it has to be said that ‘ad networks’ is not a tactic for generating conversion. It is a supplier that offers ‘cheap space’ by bundling platforms into offers in most cases. Platform owners have a much deeper understanding of their target group and can definitely do a better consulting in terms of converting their target group into potentials for their clients. Absolutely, I agree with that statement, having done this for years…

BUT: Taking my view on the study, the set up of the study is in some way irritating. When the marketing executives were asked on budget allocations the results were these…

…and what they see as most effective tactics for generating conversion? Site or page sponsorship and SEO were considered the most effective ways online.

Thinking about the answering options (and bearing in mind my brand theme ‘tools, tactics, trends’) that were given to the responding marketers though, these options need to be separated from each other…

The question, I was asking myself is… Is viral marketing really an ad tactic? In my eyes it is not. It is a strategic communication tactic which integrates viral ads as some relevant online marketing tool.

So, this study set up seems to be a comparison of apple and eggs. Viral marketing is done in social networks. It is the way in which brand awareness other marketing objectives can be increased. Viral ads is the tool that may be spread like a computer virus by the users. It cannot be influenced like banner or text ads. Nor can it be bought. So, it is a modern marketing trend with little historical definition or proven success.

And, maybe such a study should think about: What can be bought by marketers, and what cannot in our times of social media.

Spot on!
The following summary is meant to make clear what steps have to be done first by marketers to create the conversation results their bosses appreciate… and it is a guideline for the chronology of setting up an online marketing strategy.

1.) Tactics
At first, marketers have to think about the tactics they can choose from…
SEO, e-mail and e-newsletter, site and page sponsorship, corporate web TV or viral marketing.

2.) Tools
Then, they have to decide on the tools that can be used to make these tactics efficient…
good texts (I am missing this most interesting option), banners, or viral ads.

3.) Trends
And finally, we have options that might create powerful conversion…
The use of ad networks, behavioral targeting and pay per ‘x’ models (x=impression, unique user, sales, click etc.)

If the online industry continues to publish studies that mix apples and eggs, it is no wonder that 57% of respondents said they still spend less than 25% of their marketing budgets online.

It is still early days in online marketing, it seems…

Report says, social networks not used for purchase decisions

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Social networks ‘rule’ our days. Nevertheless, their monetization outlooks may be hit by some news, I came across yesterday. A recent study by Knowledge Networks reveals that only 5% of users enter social networks for guidance on purchase decisions in any of nine product/service categories.

Everybody is talking about ways for companies to promote their services, products and brands. It seems that companies cannot exist anymore if they don’t integrate social media tools (Twitter, Facebook, MySpace, etc.) into their web strategy. And seeing the results of the study this seems to make sense. It shows that 83% of all internet users between 13-45 use social networks (47% regularly).

However, only 5% of the respondents say they are influenced in their purchasing decisions and seek guidance from social networks. Also, only 16% are more likely to purchase products from companies that advertise on social networking sites.

“Our findings show that marketers need to be prudent and people-centric in how they approach social media,” said David Tice, vice president and group account director, Knowledge Networks. “Social media users do not have a strong association between these sites and purchase decisions; they see them as being more about personal connection – so finding ways to embrace that powerful function is key. The fact that they are using social media more now than a year ago is a strong indicator that the influence of these sites and features is here to stay.”

Spot On!
The private aspect and the main intention of “staying connected” with friends and family is still the most important feature of social media. When people log in social networks it seems as if they switch to an atmosphere of privacy – and they don’t want intensive ads to interfere with peer interaction. Although the majority of users believe that ads on social networking sites are a “fair price to pay” in return to use the services for free.

People on social networks need to understand that operating a social network costs money and is not altruism business – and social networks operator should make this clear to their target group. Maybe the social networks should give people the option to either pay for access or accept ads, right from the registration process (or group together like the Social Globe). This might be a way to stop the ‘cost free web’ atmosphere…

PS.
Companies, to my experience, know that it makes definitely sense engaging in social networks. Nevertheless, there is still not enough knowledge and expertise on why, how and in which way to use social networks. Finding the right web strategy and the appropriate approach on how many and which social network activity makes sense, becomes the biggest challenge for them in the future. Rethinking their marketing, PR and sales processes is a must have to make way for an integration of social media into their company strategy. And Dell has proven that social networks are used for purchase decisions…

Study: How women use blogs and social networking…

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A recent study Women in Social Media from BlogHer, iVillage and Compass Partners, shows that the motivation of women using blogs and social networking differs. Blogs for women follow the purpose to find the right information while social networking platforms have the ‘mere’ sense to connect.

The results state that US women are nearly twice as likely to use blogs than social networking sites. Blogs are seen especially valuable as a source of information (64%), advice and recommendations (43%), and opinion-sharing (55%). Social networking sites are more used to share their strong affinity to connect and to entertain themselves.

Women show much more interest and increase their activity in social media. So, women are turning to blogs (55%), social networks (75%) and online status updating (20%) to satisfy their interest.

The new study found that women spend less and less time engaging in traditional media activities like watching TV, listening to the radio, or reading magazines or newspapers.

And for women blogs are becoming more and more important as a trendsetting and purchase sources of information. Seeing the influence of blogs on purchase decisions, the study makes clear that women are more likely to buy a product after reading a customer post or reports about the item. 45% of survey respondents bought a product after reading about it on a blog.

“The scale of social media usage among US women continues to grow, and blogs remain the go-to resource for those who want to gather information, share ideas and get reliable advice,” said Elisa Camahort Page, BlogHer co-founder and COO. “At a time when the economy is top-of-mind for more than 70% of these active social media participants, women who blog are turning to online resources, including blogs, to help them make their day-to-day purchasing decisions.”

Spot On!
The influence of blogs on purchase decisions shows the importance for companies to evaluate blogs as a new important part for their media plans. Reading about the habits and attitudes, the study revealed that half of the survey respondents participate in social media activity daily and weekly or more often. When we think of the 42 million women participating in social media weekly, 55% of women do some form of blogging activity; 75% participate in social networks (i.e. Facebook or MySpace) and 20% are using Twitter. The data provided shows the change in the media landscape. While traditional platform face a decrease of importance, social media is on an all time high. The time seems right to rethink traditional and digital media planning.

UK: Internet users love browsing social media – less shopping

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A recent study by Hitwise reveales that UK Internet users are spending more time browsing online media than ‘going’ online shopping. In March 2009 9.8% of all UK Internet visits were directed to social networking websites and 8.6% to online retail websites. Compared to 2008, the figures turned around (online retailers 9.7% – social networks 8.2%).

In the passed year, online retailers sawe a downsize in traffic from paid search like sponsored or paid for links on search engines (i.e. like Google, Yahoo!, Live and Ask) – 2009: 8.9% and 2008: 10,1% of visits to online retailers came from a paid search listing.

“The growth of social networking, online video and the continuing popularity of news websites has meant that an increasing proportion of consumer’s online time in the UK has been devoted to online media,” commented Robin Goad, Hitwise’s Director of Research.

The traffic that Facebook, Twitter, MySpace, YouTube and the likes generates for online retailers increased in one year from 5.2% to 7.1%. And social networks now generate 58.3% more traffic than webmail providers (Hotmail, Yahoo! Mail and GoogleMail). The best performing categories in 2009 were Auctions, Fashion and Department Stores.

“Social networks are a relatively small but fast growing source of traffic for online retailers,” commented Goad. “At present, only a minority of retailers pick up a significant amount of traffic from social networks, but many of those that do have seen a positive impact on traffic. For example, fashion retailer ASOS has a strong presence on Facebook and in March received 13.3% of its traffic from the social network. Another example – in a very different market – is online bookseller Abebooks, which currently receives a quarter of all its UK Internet traffic from social networks, more than it gets from search engines.”

Spot On!
Is this showing a trend that people are willing to buy products in social networks? In the UK, it sounds possible. It could be the next step. We all know that the easy purchase process is a winner – for companies and customers. Thinking of the future of social networks, companies should consider engaging with customers much more on social networks while also integrating ‘light’ e-commerce opportunities in their Facebook Fan pages or in their company profiles at XING. Or at least indicate and lead the way for customers to some good offers or marketing activities. And re-thinking efforts on big spendings for paid search is definitely something that needs to be thought about…

News Update – Best of the Day

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If you have a vision for some trend or future business, it makes you happy to see that people pick up similar thoughts and spread them on the web. When I had the idea of creating the personal web manager, I thought this will be ‘utopia’. Now, Virgina Heffernan writes about the ‘necessity’ of Twitter and finalizes…

“I wish I was rich and had personal assistants.” Right on. And those assistants, presumably, could do our Twitterwork for us.

Thank you Virgina, this is just what I want to see. The New York Times blog supporting my vision… ace.

Internet Protocol TV (IP TV) is winning in recession times in the States. Sites like Hulu, iTunes, Amazon Video and TV.com are on the rise and changing the common world of the television industry. AdAge interviewed Verizon CMO John Stratton on the future of TV – and asking if IP TV is a threat for the old TV industry.

Will Internet users be paying for content in the future? Chris Poley throws in a thought that the web world will not touch – but definitely should focus on in the future.

“The economy has forced the Internet’s hand to act as a serious business, with all the responsibilities that go with success. For us as end users, it will take some getting used to, buying the milk when the cow was once free. But in these troubled times, we have little choice but to accept the inevitable. As President Obama’s chief of staff is credited with saying, “Never let a serious crisis go to waste.”

PS: This reminds me of my ‘The Social Globe‘ idea…

News Update – Best of the Day

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Twitter is hiring a VIP concierge. Not true… yes it is.

The internet is the world of freebies? Not anymore and there are good reasons for it. The Economist refocuses the old strategic approach on paid services on the internet which is a great wake-up call for the web world – and again reminds me of the Social Globe.

Ultimately, though, every business needs revenues—and advertising, it transpires, is not going to provide enough. Free content and services were a beguiling idea. But the lesson of two internet bubbles is that somebody somewhere is going to have to pick up the tab for lunch.

What is the future of PR? Will agencies look after communities or brands? Jeremiah Owyang thinks that communities will gain more and more power as are aggregating decision making, support each other and share lifestyle.

With communities in the driver seat over product, a shift will happen as communities can define the spec of future products and therefore multiple brands will bid for their business. As a result, we should expect the agency model to flip over, where PR agencies start to represent communities of customers –rather than brands.

Will Facebook tackle Google? Doubt it…

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The investment bank RBC Capital Markets sees Facebook in three years leading the online market – and leaving Google behind. Their argument: traffic. When watching the Google traffic, it becomes obvious that almost 20% of the Google traffic comes from social networks, RBC thinks.

Facebook is growing and growing, in January Facebook had already 175 million users. In the last months the average increase was somewhere at 20 million users a month. Now, the investment bank’s outlook says that if the increase stays stable, Facebook could be facing more unique users than the online giant Google in 2012. At least Ross Sandler from RBC Capital Markets states that…

Isn’t this statement a bit overestimated?
So, is traffic the right argument? Which platforms really does drive traffic here? How does Facebook drive traffic to Google? Where are the Facebook links that push users to Google? The ‘back button’ cannot be so powerful, right?! Search? Ads? Back-links? What else? Sorry, I cannot find the point…

There is no Google search box on Facebook. Maybe it is the social graph that has it’s effect on targeting, personalization or the digital identity of users might influence the power of Facebook on Google in the future. But traffic sounds like an superficial invalid argument, don’t you think…

Nielsen: Facebook best in reach, MySpace in ads

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The recent Nielsen study ‘Global Faces and Networked Plazes‘ focuses on the increase of social networks in terms of worldwide reach and extension. The results emphazise the rise and importance of communities but also the dynamic of the intention to grap more market share.

Talking of reach, Facebook -the worldwide leader in the social network market- is showing the strongest user base and has replaced MySpace as the world’s most popular social network. Classmates comes in third, followed by Orkut and LinkedIn. The reasons for the facebook success are obvious. According to the study and Nielsen measurement, the win of the Facebook tactic is based on the ‘simple design, broad demographic appeal and a focus on connecting’.

Reports estimate that in 2008 Facebook earned around $US300 million in ad revenue compared to around $US1 billion for MySpace. If Facebook has made a conscious choice to go for the quantity vs. quality strategy it has yet to overtake MySpace in the all-important revenue metric.

So, monetization is still not Facebook best business activity. MySpace attracts more advertisers and gets twice as much campaigns than the ‘Zuckerberg team’.
The Nielsen view on the reasons is that “MySpace’s offering possibly makes its inventory – of which there is a lot more compared to Facebook – easier to monetize, particularly in terms of immersive advertising.”

Finally important, the use of social networks has outdated email as the first way of online communication: 67% of the users show a regular activity in communities.

News Update – Best of the Day

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Die richtigen Strategien für Social Media zu finden, ist derzeit ein Versuch von zahlreichen RP- und Marketingexperten. Geoff Livingston, ein bekannter amerikanischer PR Stratege, bringt die Komplexität der Thematik in seinem Post ‘Five Social Media Strategies‘ kurz und prägnant auf den Punkt.

Es gibt viele Leitfäden für die Planung einer Webseite – aber nicht viele für die Planung der perfekten. MintTwist, eine Internetberatungsfirma aus UK, hat eine sehr interessanten Planungs-Leitfaden abgeliefert. Einfach mal durchlesen und selbst prüfen, ob die bestehenden Elemente der Planung, dem Design und der Aussagekarft der Webseite entspricht.

Nach seinem erfolgreichen Post über Personal Branding 101, hat der Autor des Buches ‘Me 2.0’, Dan Schwabel, nun seinen zweiten Teil abermals bei Mashable veröffentlicht. Personal Branding 102. Wer sich diesen Post durchliest, macht sich danach sofort an das Auffrischen seiner Digital DNA und seiner Kontakte in seinen Social Media Netzwerken.

______________________ Spot On!

Wenn Sie einen aktuellen Report zum Thema Social Networking haben möchten, bietet diese Studie Ihnen die Option dazu. Die Studie will herausfinden, wie wir Social Networks im Business-Kontext nutzen, welche wir bevorzugen und wieviel Zeit wir dort investieren. Nehmen Sie sich die Zeit und sein Sie einer der ersten, der die Studie bekommt.