Nick Nick Goggans

Lytiks Launches New Release, New 30-Day Free Trial Includes 2 Free Phone Lines

September 15th, 2010 by Nick Goggans

BOSTON, MA – Lytiks announced today the launch of a new release of its web-based marketing performance software, Lytiks. The new version introduces additional tracking features beyond web analytics and call tracking. Lytiks now also includes video tracking, web-forms, and a lead management tool. Further, Lytiks has improved its ability to push new releases and has a rapid deployment schedule over the next six weeks. These improvements will include: custom segmenting abilities in the web analytics feature and improved UI for the web-forms.

“It is an exciting time to be able to finally release a major step of our vision today,” said President, Nick Goggans. “We believe these steps are critical building blocks to tracking overall marketing performance both on the web, but also incorporating tools that can demonstrate offline activity or the impact, say, of a radio campaign to search marketing results.”

With these changes, Lytiks is able to provide a full-featured 30-day free trial.

Posted in Lytiks Release Notes, News | No Comments »

Petya Petya Miteva

Startups with Potential at WebInno27

September 14th, 2010 by Petya Miteva

From the three main dish demos at the 27th Web Innovators gathering at the Sonesta Hotel, Cambridge, yesterday, AisleBuyer impressed me as the one with the most potential for growth. AisleBuyer designed and launched about three weeks ago the first virtual mobile self-checkout application. It allows you to use your smartphone to scan barcodes while shopping and then pay online with your credit card, again on your smartphone, and just walk out of the store straight past the long lines of shoppers at the cash registers. Brilliant idea. With the increasing popularity of smartphones and busy schedules, mobile self-checkout has the potential to become a mainstream practice. Unfortunately, currently the application is only available for iPhone, and not many stores have signed up for it. Some challenges for AisleBuyer as a startup might be to convince as many retailers as possible to partner up with it. It would only be useful if it becomes mainstream. Some other technical challenges include perfecting the self-checkout process to accommodate any type of product. AisleBuyer is working on making the app suitable for use at Fast Food shops as well.

AisleBuyer - First Mobile Self-Checkout System

AisleBuyer - First Mobile Self-Checkout System

Despite the obvious practicality of AisleBuyer, the audience of WebInno27 was more attracted to the fun elements in the other startup presenting, TurningArt, and chose it as its favorite. The idea behind TurningArt is simple: people pay a subscription fee to get prints of original artwork on a rotation basis, while earning credit towards buying an original piece. Currently, the artwork available is only from contemporary artists, so for those who like Van Gogh, sorry, not available. I also wonder, how long would it take to earn enough credit to buy a painting and what if it’s not available any more at that time? TurningArt presenter did not mention how big the market is, but judging from the response of the audience, enthusiasts aren’t missing.

TurningArt - Art Exchange

TurningArt - Art Exchange

The third company to present, play140, has developed word games for Twitter, instant messaging, SMS, and MMS. With its word games, play140 is trying to revive traditional values.

play140 on Twitter - Word Games

play140 on Twitter - Word Games

Posted in Innovation and Entrepreneurship, News | No Comments »

Petya Petya Miteva

Is it a good idea to have a Facebook Business Page?

September 13th, 2010 by Petya Miteva

To use Facebook or not to use Facebook. This is the question many companies ask themselves. Facebook offers businesses space on its network in the form of Official (Business) Pages. However, a lot of companies (including us in Lytiks) have been wary of using it because Facebook is still considered “personal” space.

Questions that need answers

  1. Does our company belong on Facebook?
  2. Do all employees have to list the company’s Facebook Page as their employer?
  3. Do all employees have to be friends on Facebook?

The third question seems the easiest to answer. Simply, no. No company can force its employees to be friends. We all agree that it should be a matter of personal choice whether to share private life details with co-workers.

The answers to the first two questions are much less clear-cut. Any social media network could contribute considerably to a branding campaign to reach out to more people at a low cost. The facts are simple: Facebook has over 500 million active users, half of whom log onto their accounts on any given day. The average user has used it for a couple of years and is likely to have a couple hundred friends. Imagine how many people can hear about your company or product if you use this network that is already in place and easily accessible for FREE! The question is, how does being on Facebook affect your business’ image? Is it detrimental to the company to mix the corporate profile with personal information?

A lot of professionals worry that some compromising photo from their college days might turn a client away or create an “unprofessional” image for the company. After all, Facebook is predominantly “personal” social media. People use it to connect to “friends” and not to foster business connections. That is what LinkedIn is for, many will argue. Is that really the case?

First, there is ample misunderstanding of the structure of Facebook. Some key points to keep in mind:

  1. Nobody can see who manages a business page, not even your friends.
  2. Even if you’ve linked your employer information to your company’s page, your profile will not show on the page itself.
  3. If your profile privacy settings are restricted, non-friends will not be able to access it through your employer info.

This means that only your friends can see information about your company through your profile, but business contacts can’t reach your profile through your company’s page. Unless, of course, your profile is completely public. In that case, you are exposed even to google searches and should take full responsibility for any consequences this might have for the company. Having a company Facebook page doesn’t change this. If your profile is public, any client can just google your name and browse freely through your personal information that you are broadcasting to the world. Can your employer force you to make your Facebook profile private? Probably not. But common sense dictates it, so that you can benefit from the enormous network of people you can reach for free through your existing Facebook connections. The math is simple: LinkedIn has 75 million users, Facebook has 500.

Unfortunately, this discussion does not end here. Broader questions about privacy arise from it, such as, Does privacy really exists and COULD it exist in the modern communication era? According to Mark Zuckerberg, founder of Facebook, “That social norm is just something that has evolved over time.” Whether Zuckerberg is right or not, Facebook remains the borderline between personal and business and companies and employees should be careful when using it, but definitely not neglect its power to connect altogether.

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Jamie Jamie Quella

Google O(w)n Your Brain?

September 10th, 2010 by Jamie Quella

At Google’s search event on September 8th, at which Google released Google Instant, Sergey Brin offered the following juicy soundbyte: “We want Google to be the third half of your brain.” What does he even mean?

Ambition Powered by Innovation

It’s already clear through their recent acquisitions and new technologies–Google Instant being the most current example–Google aims to become synonymous with searching on the internet (to a large extent, they have already achieved that goal since “to google something” is already a widely-used verb). But I think Brin’s quote hints at an even more ambitious goal: to integrate themselves with people’s conception of personal knowledge.

As evidenced by how crowded the Trivia Night Contests are at Newtowne Grill every Thursday, many folks pride themselves on their knowledge of bits of trivia they’ve picked up and remembered over the years. But how often do you find yourself saying “Oh, I’ll just google it” when a piece of information needs to be found out? And with smart phone use increasing daily, it’s becoming easier and easier to do just that when a question needs to be answered.

Google’s Next Move?

A trend is certainly developing toward making the goal of Google’s co-founder come true; the more people incorporate Google into their personal font of knowledge, the more difficult it will be to divorce that source from what people actually know and what people can look up quickly at any time. And while I definitely do not believe that Google will be releasing the pre-cogs (see here for reference) anytime soon, it will be very interesting to see what they do next.

Posted in Google AdWords | 1 Comment »

Nick Nick Goggans

Lytiks closes $850,000 Round From Angels

September 9th, 2010 by Nick Goggans

Boston, MA – Lytiks announces the closing an $850k round of financing from angel investors, including locally based investors Sundar Subramaniam, Peter B. Kroon, and John P. Kelly, Senior Director Office of the CTO at Symantec of Seattle. Mr. Kroon, has assumed duties as Chairman and CEO. Lytiks retains two co-founders, Nick Goggans as President, and Andrew Maillet, as CTO.

Lytiks, known briefly as Conversion Innovations after acquiring Conversion Associates in April 2010, is also renaming itself Lytiks after its flagship web-based marketing performance software that combines web analytics and call tracking features to help companies track the performance of multi-media advertising campaigns. Target customers will include small to mid-sized businesses and advertising agencies. Lytiks will also continue to offer the analytics services it was previously known for in addition to the software offerings.

Mr. Kroon comes to Lytiks with over 30-years in entrepreneurial experience founding two companies HealthTrax and Twin Oaks Software, and also being an angel investor himself. “After completing our new Lytiks release on schedule for the fall, and are excited to secure this funding to accelerate our marketing and development efforts,” said CEO Kroon. “We have hired programmers and trained more analysts over the summer, this fall we will launching new initiatives with a few choice technology and agency partners as we extend performance tracking beyond the web analytics and phone call-tracking that have been in the works over the summer.”

“As a Boston-born company the local tech community really helped us make this happen as our exposure at MassInno, WebInno, and also taking Lytiks to SxSw in the spring representing Boston, helped us find angels demonstrate Lytiks’s potential,” said Goggans. When asked further about the market opportunity for Lytiks, Goggans said, “I think what we see is that there is a growing market demand for making marketing performance data that is simply easier to understand, this is our mission: simplicity. We’re certainly seeing lots of acquisitions in the top of the analytics space this summer, with IBM’s acquiring Coremetrics and Unica, but we continue to see an underserved market between the free Google Analytics and the top line Adobe-Omniture or IBM offerings. We aim to serve these businesses with Lytiks and with training and support when required.”

ABOUT LYTIKS
Lytiks, provides businesses, agencies, and publishers a web-based platform that allows users to easily set, edit, and report on marketing goals by combining web analytics and phone call tracking solutions in one platform. In addition to the Lytiks platform, Lytiks also provides services to help marketing professionals and business owners incorporate advanced analytics strategies to help their businesses improve marketing efficiency. Lytiks is based in Boston, MA

ABOUT CONVERSION ASSOCIATES
Founded in 2005, Conversion Associates is a digital analytics company. Our goal is to lead in the innovation, development, and production of software applications to make digital analytics easier and more impactful to business decision making.

Conversion Associates was named “A Start-Up to Watch,” by Mass High Tech in the fall of 2009, and additional recognition by Boston’s Mayor, Thomas M. Menino, as one of Boston’s “entrepreneurial success stories.”

COVERAGE
Marketing Software Supplier Lytiks Takes Name, $850,000, and CEO” by Jim Connolly – Thursday, September 9, 2010

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Jamie Jamie Quella

It’s like this Wile E: Explaining Google AdWords Keyword Bidding Structure

August 27th, 2010 by Jamie Quella

When more than one keyword matches a search query, which keyword gets used?

Like many good campaign managers who follow best practices for a Google Search Network campaign on Google AdWords, you probably have the same keyword in all three match types (or four, since Google came out with a new match type recently).

So what happens when a search query matches more than one keyword in a campaign?

For queries that match more than one keyword in the same ad group:

Here’s the breakdown of the hierarchy of which keyword Google AdWords prefers in this scenario:

  1. Use the keyword that exactly matches the search query. Example: Someone searches using the query “heavy anvil.” This query matches the broad match keyword “buy heavy anvil” as well as the phrase match keyword “heavy anvil.” Because the phrase-matched keyword matches the search query exactly, Google AdWords will use this keyword.
  2. Use the keyword with the most restrictive match type if the keywords are the same. Example: Someone searches using the query “buy anvil,” which you have as broad, phrase and exact match keywords. Since exact match is the most restrictive match type, the keyword [buy anvil] will be the one used for bidding.
  3. Use the keyword with the highest Ad Rank (remember, Ad Rank = Keyword Quality Score * max. cost-per-click bid). Example: The search query “get rid of road runner” triggers two possible keywords:
    • Keyword 1, “eliminate road runner”, which has an Ad Rank of 3.
    • Keyword 2, “destroy road runner”, which has an Ad Rank of 2.5.

    Keyword 1 Ad Rank = 6 * $0.50 = 3

    Keyword 2 Ad Rank = 5 * $0.50 = 2.5

In this instance, Keyword 1 will be used by Google AdWords because it has a higher Ad Rank.

For search queries that match more than one keyword across different ad groups:

The rules above apply for only keywords in the same ad group. What about a search query that matches multiple keywords across different ad groups? The preference order is listed as follows:

  1. The first two rules are in exactly the same order as above. If a search query triggers keywords in two different ad groups, the same criteria as before apply, with the preference given in the exact same order as if they were in the same ad group.
  2. Use the keyword from the campaign whose geographical location targeting is the most specific. Example: A search query of “buy heavy anvil” triggers keywords in two campaigns–one which geographically targets the state of Arizona, and one which targets a small custom area, part of the desert in southern Nevada. The keyword in the custom area campaign of the Nevada desert will be triggered because it is a more specific locational target than the entire state of Arizona.

    A more specific Custom Location Target triggers keyword over a wider general location

  3. Use the keyword with the highest Ad Rank (remember, Ad Rank = Keyword Quality Score * max. cost-per-click bid). The same rules apply here as they did above, but this preference now comes after the geographical location targeting preference when the keywords triggered by the search query are in different ad groups.

Check back to the Lytiks blog next week when I will explore the few exceptions to these rules.

Posted in Google AdWords | No Comments »

Nick Nick Goggans

The Logical Limitation of Google Analytics

August 26th, 2010 by Nick Goggans

Two distinct modes of scientific thought: “one roughly adapted to that of perception and the imagination : the other at a remove from it”. – Claude Levi-Strauss, The Savage Mind

“Any classification is superior to chaos, and even a classification at the level of sensible properties is a step towards rational ordering”

In a recent New York Times book review of Ken Auletta’s new book, titled Googled, Columbia Law Professor Tim Wu is quoted as saying, “If Google were a person it would have all the flaws and all of the virtues of a classic Silicon Valley geek.” In other words, and perhaps to define “a classic Silicon Valley geek” (I will not use my own definitions), that this, in Auletta’s construct, is a composition of the following attitudes: brilliant, with a tendency towards being socially inept, naive and arrogant. Indeed Ken (may I add rich?).

From my perspective, as one who analyzes web data and frequently uses Google Analytics to do so, I think that this personality set – or line of thinking – has pervaded the Google Analytics product and has potential detrimental side effects to the flourishing of greater understanding of the practical use of web analytics for business or individuals. Now, before I explain this, let me state that I also believe for advanced users the tool is innovating at a strong pace (yet seems to have lost some of the classic “google-ness” – I mean it’s not as simple as it thinks it is). In classic “don’t be evil” positioning, it’s free! and it’s going to help you whether you are an individual or a enterprise. It’s fantastic, it’s easy, and you know you need it right?

Let’s stop there for a second. Why is there a need for web analytics? To answer this question, let’s take a step back and review some basic anthropology (painless), and turn to Claude Levi-Strauss, and his classic, The Savage Mind.


virtuvian man

The Anthropological Case for Web Analytics
In a general sense we find that humans don’t do well with chaos. The first need is to create order, and language is one area where this can be studied across cultures. Early anthropologists, for example, tended to believe that the “savage/primitive” cultures reserved language for flora and fauna that possessed a form of utility, such as food, medicine, or ritual. Further study, and differing understandings of earlier data, Levi-Strauss maintains that in fact there are many examples of societies where non-functional flora and fauna are named. What this expresses is a fundamental need to classify, such that the simple need for classification itself (and the performance assigning names) is utility: the creation of order to simplify experience perhaps. Levi-Strauss explains it this way: “…animals and plants are not known as a result of their usefulness; they are deemed to be useful or interesting because they are first of all known.”

Thus, existing in the 21st century, we find ourselves extending into another environment beyond our former village/jungle/desert/city to a digital world where the equivalent “flora”, “fauna”, and “geography” – and connections and associations between – are not easily defined. This makes us unsettled, just as it would if I dropped you off in a foreign landscape where you didn’t understand the language. In a way, our extension into the digital world creates an existential wild west: where am I, and how do I relate and impress this digital environment (whether ‘I’ is a company or individual). So we turn to tools that may help to order this chaos, and find our place.

Thus, we turn to web analytics not really with a practical drive (i.e. in satisfying practical needs like “I need more sales” or “I want to be more popular”), but through an intellectual drive (“where do I exist?” within the rest of the digital world and “how I am connected to it?”).

This is where we get to the solution and the problem with Google Analytics. Google Analytics does a fantastic job at solving the intellectual problem, I know my general results, how people find me, etc. However, it seems to be failing at scaling the next level for many practitioners, that of satisfying needs.

Now, of course Google Analytics is capable of reporting practical needs through setting up goals and monitoring their performance, but this is not how most people are using it. It is this question that led to this entry, which is “Why don’t more people use the goal setting capabilities in Google Analytics?” Is it a design issue? A marketing issue? (Yes, many people do establish goals, some even use these to make decisions, but most users do not from my observation and discussions with other analytics professionals).

So what is the issue? I think it has little to do with the design or marketing – though I initially thought it was a UI issue as the goal setting could be easier and integrated within the reporting pages, but that’s another discussion.

The reason I believe that the use of goal setting features is the exception not the rule of application of Google Analytics came through the combination of Levi-Strauss and reading the book review on Auletta’s book. It is that the Google culture has created a product that allows for productivity of a certain kind of analytic mind, at the exclusion of the other the kind of mind that is more intuitive than methodical, which as we see historically accounts for probably an equal amount of major scientific discoveries as the scientific method approach, which is a modern construct (see examples of intuitive discovery process neolithic innovations to something like finding the right filament for the light bulb (carbon over cotton), which was a true study in not so much scientific method but savvy application of an understanding of what elements in the natural world to try out).


periodic table

The DNA of Google Analytics Too Structured to Produce True Problem Solving At Scale

Google Analytics, by design, because its DNA is so highly scientific (being a system built by engineers for data analysts), does not easily allow (especially if it becomes industry standard) for what Levi-Strauss calls the “science of the concrete”, (and I call “messing around with tools and things you know to solve problems you’re presented”) described here: “discoveries…authorized from the starting point of a speculative organization and exploration of the sensible world in sensible terms. This science of the concrete was necessarily restricted by its essence to results other than those destined to be achieved by the exact natural sciences but it was no less scientific and its results no less genuine.”

Google Analytics is largely created to presuppose and establish a universal order and lexicon to the study of digitally created causes and effects within websites (and digital advertising). I do not believe that this application of universals can take hold before users are able to apply very basic custom analytics solutions according to their “local/personal” needs, which will have their own lexicon and will at first seen as disorder, but it is in truth the way that this data will be looked at – and is inherently a more evolutionary approach to the application of web analytics to create actions and knowledge, rather than the “intelligent design” approach that we get thrown into with Google Analytics (and trying to establish our own systems into other businesses”benchmarks”.)

Google Analytics is a full digital taxonomy applied to users who may not have a need to classify digital events to the same level of detail that the system allows by default. Users, presented to this deep system of metrics and filters then become paralyzed to use the data to solve “practical data issues”, thus resorting back to simply using the system to look at basic data on web visitors or total pageviews – not leveraging the great segmentation reports available.

As Levi-Strauss explains with language, that a wider sort of classification, does not mean a higher understanding or a more enlightened mind. For example, if I have a word for “tree” but not “oak, birch, magnolia, etc” that doesn’t mean per se that I am less off from both an intellectual or practical sense. Taking this to web analytics, I think the basic problem is too many people trying to sort out ‘what’s an oak;”, ‘what’s a birch?’, rather than ‘what’s a tree’? Or to carry the analogy into the system, instead of “I want to track .pdfs, or facebook entries, etc.” to step back, “what’s a goal?” and then define it.

Thus, in an effort to advance web analytics as a discipline (and yes even a scientific discipline), there is a need to discover more tools and applications that allow a localized/individual (meaning, answering: “What do I need to know?”) not a universal, an intuitive rather than scientific approach to acquiring, presenting, and analyzing web analytics in the short term. It is this step that we must return to, in my mind, to begin to build out to a potentially universal method and lexicon to web analytics. Another way of saying this: get your house in order before worrying about what your competitor is doing. They are probably producing data at this point that is not apples to apples to you (i.e. each company may have wildly different definitions of what a “conversion” is).

There is a need for companies and individuals to understand their digital impression. Further, more questions need to be asked upon the data being collected in websites, social networks, cell phones, etc. What we need is to start asking more questions to measure with what we have – not to assume that the great Google Analytics system becomes our default order for all digital data, which, if it were to occur would bring them even more leverage than exists with search.

Lastly, I want to leave with the notion that the best thinking and the greatest innovations occur at that marriage of intuition and the scientific approach – as seen in the examples below. For our digital age, we are at the beginning and it will be interesting.


Mark Lombardi - George W. Bush, Harken Energy and Jackson Stevens

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Jamie Jamie Quella

Modified Broad Match: The New Google AdWords Match Type

August 23rd, 2010 by Jamie Quella

In May, Google announced the release of their broad match modifier. It was beta tested in the UK and Canada but as of July it is available to AdWords customers everywhere. Many are singing its praises, and while it certainly has some advantages, the change is a bit deceptive as a new cure-all for keyword woes.

The modified broad match is not a new “official” match type in Google AdWords, but rather a new “AdWords targeting feature”, as Google puts it. By adding a plus symbol (+) directly in front of one or more words in your broad match keyword phrase, your keyword will trigger ads only when the word with the plus symbol (+) or a “close variant” appear in the search query. Close variants include common misspellings, singular/plural forms and stemmings such as the –ing and –er endings of words, but synonyms are not included. A modified broad match keyword of “wood +floor”, for example, would make the ad trigger for searches of “hardwood flooring,” “wood floor” and “bamboo flooring.” Using the new type for the keyword phrase “+wood +floor” would only trigger the ad for search queries of “wood floors,” “wood floorer” and not “polished pine floors.”

Google AdWords Modified Broad Match

An example of synonym variants appearing for a broad match keyword search query

The Return of Traditional Broad Match

Longtime AdWords experts, such as Andrew Goodman, are hailing the broad match modifier as the return of the “old school” broad match, harkening back to a time before Google switched to the expanded broad match type that was introduced in 2006. The traditional broad match meant that Google served ads only when the words in your bidded keyword appeared in the user’s search query in any order. The expanded broad match widened the net even further by showing your ad on even more terms that Google deemed related to your keyword. Many advertisers have complained of the expanded broad match has yielded wild results for keyword searches that are irrelevant to their ads. The result is ads that produce a low CTR and similarly low conversion rate, they say. These advertisers contend that the modified broad match allows them to avoid their ad popping up next to unwanted searches by requiring certain words be in the search query.

Don’t Let it Fool You: Using the Modified Broad Match Smartly

What the new match type may subvert is the best practice of diligently refining and optimizing your keywords by using all three match types. Brad Geddes gives great advice on how the new match type should be used–carefully and intelligently. What he suggests is basically a split test: create a new ad group which uses the new modifiers on a current ad group’s keywords, run them both for a while to collect enough data, and then run a search query report to examine the variations to determine which ones lead to higher conversion rates, and change bids accordingly. It’s worth noting that if you can find exact match keywords that work, these will almost always convert higher than the other, less restrictive match types, including the new one (which Google says is nestled somewhere between broad match and phrase match).

The new broad match modifier may lower the barrier to entry to Google AdWords for those traditional advertisers who are not as well-versed in the match type tricks or savvy on the keyword variation best practices by making the keyword list building process easier. But it remains to be seen whether it will hamper those new advertisers’ success in the long run by letting them skip the Google AdWords warrior’s initiation of learning that the only way to run a successful ad campaign is to tirelessly refine and optimize keywords by using all three match types.

Related Posts:

New Keyword Targeting Feature – Google AdWords blog

Modified Broad Match = Old School Broad Match – Andrew Goodman

Google’s New Match Type Now Live – Brad Geddes

Posted in Google AdWords | 1 Comment »

Nick Nick Goggans

What is Free Content?

July 25th, 2010 by Nick Goggans

Throughout the year there has been much talk surrounding media, specifically newspapers (but also television, see Time Warner v News Corp), about how they won’t be giving “free” content anymore, or that the “free” access is killing them. But what are they talking about, and how are they defining “free”?

I suppose the convention is that “free” means that the reader/viewer of content does not pay a price up front to experience the content. The issue here is that the logic doesn’t follow that this means that a) the producer loses a sale of a price of admission, or b) that the producer loses money. In fact, where there is a large concentration of readers/viewers the “free” model is at its best – see US network television over the last 50 years. But as we know, this audience size is getting steadily smaller, and funneling ever so slowly into tighter niches (e.g. the Golf Channel).

Again, I think you saw the music industry struggle with this. Because I download a Metallica song for free, did not mean I was going to buy the album for $15, and in those pre-iTunes Napster days, it may have meant that I was actually just trying to sample some songs from my dorm before buying it on Amazon (I mean really, does a 30 second sample do anything?). And of course there is the argument that the increased exposure gained by offering the recordings free has proven in some cases to generate more money in other areas – like touring (a great example is the band Radiohead, which released an album at name your price).

Indeed the publishing industry is not the music business. But, I do believe that when we consider what “free” is we need to be careful. Free for whom? If a publisher puts ads next to content, that isn’t free content because the publisher is harvesting my eyes for revenue, so you’re welcome. So, Rupert, the Wall Street Journal, because it is free in some areas, gains more readers, which means your impressions are higher, and you could charge more for advertising to the larger audience. So the question then becomes, if I charge and reduce the visitors and impressions, can I increase revenue of the lost impression value through subscription revenue? Probably not, yet, I think what becomes interesting is that by creating this Wall Street Journal paid subscriber class, you can basically create a club. This club has a higher value than those that would view free content, why?

It comes down to what the real value of online publications should be – repeat visitors and average engagement in the medium of that class. Total viewers is still interesting, but as an advertiser I want to reach a specific demographic consistently, I’m going to want highly engaged classes that have a higher likelihood of seeing my ad more. Further, proving this to an advertiser online is very easy, the Wall Street Journal using web analytics can effectively be over the shoulder of different classes of readers (based on subscription/non-subscriber, male/female, etc.)

Because of this notion of identifying deeper engagement through demographic and “readership class”, what follows may be obvious. The key shift needs to become that a publisher or a producer no longer needs a large audience to generate value to an advertiser. In fact, often a concentrated and specific audience is more valuable as the advertiser’s message is not only directed with precision and accuracy, but also in these cases of specific match of advertisement and content, ads begin to lose that “interrupt” vibe, and can, dare we say it – begin to be truly informative.

It’s no longer about finding the mass of eyes, it’s about finding critical mass of the right eyes – and having the tools to do it. The publishers and agencies that understand and execute this first will win the century. When simple performance based / lead generation models can proliferate (as you see in the pay-per-click of AdWords, or the pay-per-lead model of a site like Trip Advisor) you start to see an incredible amount of opportunity for the entire publishing industry.

Posted in Future of Journalism | No Comments »

Nick Nick Goggans

Newspapers: Go Offensive!

July 16th, 2010 by Nick Goggans

A look back almost a year and we continue to doubt whether innovation can come from within existing newspaper organizations.  One of the key problems is a continued defensive stance, well articulated in a Sept. 2009 article in Advertising Age, Good Newspapers Can Survive if They Break Their Old Culture, raises the point that the future of daily newspapers is one where they exist but on a smaller capital base and the key is to cut costs, “We can certainly save newspapers, but only if we continue to cut costs,” says Mr. Klein.

While cutting fixed costs is important, the present dialogue surrounding newspaper business models seems to be lacking in the idea of increasing revenues as well. Further, where ideas are being sprung with regards to revenue generation, he focus seems to be reserved to two options: 1) to charge higher subscription fees, and 2) produce a model of micro-payments on content articles (see Google suggestion at Harvard’s Neiman lab here). While each of these strategies are an important, what seems to be left behind is the simple fact: charge more for digital inventories.

Our data suggests that performance of traffic from either major publisher (i.e. nytimes.com, or wsj.com), or hyper-local/hyper-niche publications can produce at or better rates of conversion and action than even search based traffic for many different companies. Further, display ads to audiences is an especially critical piece of marketing for companies, especially those with new products, where product/service lexicons are too young to produce viable search terms. There the best option is to educate through clever display campaigns in a specific demographic.

The barrier to publishers’ abilities to charge more and increase revenues per impression or click (even action), have two distinct barriers that we see. These two barriers are uniquely linked and we are seeing some models that are evolving that suggest that these is true opportunity to revolutionize the unsustainable digital display content status quo. The main culprit hurting publishers are the ad networks which control content display ads. In the basics of this model a publisher pays for a 3rd party network to serve ads on the content of its pages. At this point there is a revenue split for the ad servicing, so the publisher is already losing revenue. Secondly, the publisher loses because there does not exist a relationship between the advertiser and the publisher. Further, because the advertiser is in negotiations with the Ad Network to produce as many impressions as possible, often times the advertiser never receives a list of results broken down by individual publishers. So publihsers whose content and inventory widly outperforms others – which is more likely than not – where the content is better, and generally more expensive to produce, the Ad Network reporting systems put the publisher at the mercy of their reporting. Do we see this often in print?

Yet, where this model really gets nasty is with the actual fact that the creative – and the research that could result – suffers. The present industry standard click through rate (clicks from a served ad) is .02%. In our experience, where we have designed ads specific for a publisher (like the nytimes.com) we open with click trough rates at .12% sometimes higher – that is over a 600% improvement in visitors, which is especially important if the advertiser purchased the inventory on a CPM model. Instead, in much of today’s model, the publisher’s ENTIRE inventory gets devalued because ads are either irrelevant to the demographic, or cheapen the publisher’s valued content by cheap-o creative (have you ever seen one of those “click the monkey” ads on the New York Times?)

Publishers: Take Control of Your Inventories, Own Your Clients, and Help them get more out of your inventory.

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