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Surviving Internet Advertising: Monetizing New Media

Learn about internet advertising economics, ad formats, website ad models, content challenges, and revenue sources beyond ads. Understand how to monetize your brand effectively in the digital landscape.

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Surviving Internet Advertising: Monetizing New Media

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  1. Ken Hayes President, Nami Media Inc. www.kbhayes.com Ken@kbhayes.com Surviving Internet Advertising “Monetizing New Media – how is it done?”

  2. 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

  3. Economic Forces on Internet

  4. Size of Internet Advertising Ad Formats 2005A ($ in millions) $ % 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% Source: IAB / PricewaterhouseCoopers LLP, compiled by Oversee.net

  5. Website Ad Model Users:“Traffic” Publishers • Content Sources: • - UGC • Editorial • Scraped / Syndicated • Site’s Added-Values: • - Look’n’Feel • Functionality • Organization Organicand / orPaid Advertisers:- Flat Rate- CPM- CPC- CPA One Link in the Chain

  6. 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.

  7. 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.

  8. About.com - NYT

  9. 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”

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