Here are two presentations I liked best at Next Media – Monetizing Digital Media conference -= Shelly Palmer’s “Will ‘free’ save the future?” and Marina Mann’s talk on affiliate marketing. I also tremendously liked Ilona Posner’s workshop on usability. It was fun!
You can find notes for other presentations in David Peralty’s blog.
Read on for notes on Shelly Palmer’s and Marina Mann’s presentations.
Economic Meltdown? Will ‘Free’ Save the Future?
I spend $3000 daily on producing a 2-minute clip. I just cannot do it for less money. If I could do it for $2500, I would. Why do I do it at all?
Online, there are other currencies than money:
If the music industry understood this, they would have been able to build bigger brands, rather than kill their business.
There will never be a YouTube killer. There are and were better technologies and sites for video distribution, but none will be the hit that YouTube is today.
Monetizing is essentially making money but they did not want me to say “making money” because it somehow sounds bad. But if your purpose is not to make money then what you do is not a business, it is a hobby.
There is no such thing as “free”. There are only three business models:
1. I pay
2. You pay
3. Somebody else pays.
There are several possible value chains
– videosnack (like YouTube)
– pay-per-view (this includes traditional movie theatres)
Engagement is not a currency, because it cannot be quantified.
Once someone clicks on smth., I can quantify it.
It is impossible or difficult to create scarcity on the Internet. E.g. on TV there is only one time slot from 9.58 to 10.00, but on the Internet there is overabundance of content and people can come back to any resource any number of times. There are some scarce resources (i.e. a place on Yahoo’s front page) but not many of them.
The phases of the purchase funnel are described by AIDA acronym:
awareness -> interest -> desire -> action
What we do, we build a translation engine to translate awareness into action/money.
direct | call to action | brand advertising
Awareness only, as in brand advertising, does not always lead to action (e.g. everybody knows BMW but not everybody buys it)
direct is the most measurable (you advertise smth. on TV and give a phone number to order the product, you can count how many people responded by buying)
Affiliate Marketing: A Powerful Way of Driving Traffic And Revenue
How to make money and do it right
Affiliate marketing programs are free for online publishers. Retailers pay you a commission on sales or a cost-per-acquisition (CPA) generated.
Affiliate marketing is underhyped in Canada. It should not be, especially in economic slowdown. E-commerce ecosystem – word of mouth (or mouse)
The advertiser is not in the business of generating traffic. Publishers create content and context for referrals.
|CRM payment and orders||Pays commission||Paid per performance||Receives value|
Top advertisers use affiliates as a virtual sales force.
Network is a connector.
Each advertiser is a little bit different but all pay for performance.
You can choose more than one advertiser to work with.
B2B in affiliate marketing – people exchange opinions, recommendations.
Affiliate displays a link, a visitor clicks on the link and makes a purchase, the affiliate earns a commission.
Ebates.com – transparency – cash back shopping model
WestJet had 850 affiliates in their first year and generated over $20M in sales
Most merchant don’t like you buying their keywords because then you are competing with them.
Apparel and office supplies were highest last year (according to CJ)
According to comscore data, videogames grew 60% last year, sports and fitness 40%
Books and music were most down (17-29%)
If you send people to site, make sure their experience is good
Strategically set up a niche site
Create content to generate inbound traffic and links
Creating contextual contents
Video is very powerful: find a good video on YouTube and make a video response to it
It is not easy money!
Only top 20% affiliate marketers make substantial income.
CPA fraud: ask yourself, “who is this affilate who came from nowhere and became my biggest producer?”
These are great tools:
– Mobile couponing
– real-time SMS
Affiliate marketing wil thrive in tough times!
Try and test
Deliver context and relevancy
Your integrity rules
The complete presentation available at Marina Mann’s website