Business of the web Matthew Buckland, GM: M&G Online www.mg.co.za www.matthewbuckland.com [email_address]

Matthew Buckland, GM: M&G Online

www.mg.co.za

www.matthewbuckland.com

[email_address]

About M&G Online Monthly audited 500,000 UBs | 4,000,000 PIs Separate division Online advertising Most of the time profitable 60% increase in online advertising revenues y-o-y 3X readership; but generates 1/10 revenue of paper

Monthly audited 500,000 UBs | 4,000,000 PIs

Separate division

Online advertising

Most of the time profitable

60% increase in online advertising revenues y-o-y

3X readership; but generates 1/10 revenue of paper

Internet audience nearing 4,000,000 is entire population of Ireland SA’s big websites attract almost 8,100,000

Internet audience nearing 4,000,000 is entire population of Ireland

SA’s big websites attract almost 8,100,000

Online advertising in SA Main revenue stream for online media Worth R180m , 1% of ad pie Google likely doing double that (with no local office ) Competing models: CPM vs CPC vs CPA Centralised stats & demographics under OPA

Main revenue stream for online media

Worth R180m , 1% of ad pie

Google likely doing double that (with no local office )

Competing models: CPM vs CPC vs CPA

Centralised stats & demographics under OPA

Types of advertising Banner advertising (iab.net) Sponsorships Classifieds/jobs Contextual search Links Advertorials

Banner advertising (iab.net)

Sponsorships

Classifieds/jobs

Contextual search

Links

Advertorials

Is banner is dead? Online advertising: Unsophisticated Hit & miss Clickthrough rate of 0.3% a success (Ridiculous actually) Below potential Problem is: Resembles traditional/print advertising model

Online advertising: Unsophisticated

Hit & miss

Clickthrough rate of 0.3% a success (Ridiculous actually)

Below potential

Problem is: Resembles traditional/print advertising model

… no, it’s just terribly “web 1.0” Targeted advertising (user profiles, reg data) Relevant advertising is useful, does not irritate 99,7% Less wastage, less hit-and-miss Multimedia: Convergence of TV & online advertising Globalisation: Facebook SA advertising Networked advertising models

Targeted advertising (user profiles, reg data)

Relevant advertising is useful, does not irritate 99,7%

Less wastage, less hit-and-miss

Multimedia: Convergence of TV & online advertising

Globalisation: Facebook SA advertising

Networked advertising models

SA blogosphere 25,037 active blogs 621,204 USs, 5,198,693 PIs Similar in size to the M&G Online Puts in top 10 of SA’s publishers www.thoughtleader.co.za/ arthurgoldstuck

25,037 active blogs

621,204 USs, 5,198,693 PIs

Similar in size to the M&G Online

Puts in top 10 of SA’s publishers

How can bloggers cash in? Can be more influential than MSM Influencing purchasing decisions Technology, motoring, news & current affairs Often more trust than MSM? (US, Zim Media)

Can be more influential than MSM

Influencing purchasing decisions

Technology, motoring, news & current affairs

Often more trust than MSM? (US, Zim Media)

Reader power Small individually, but powerful as group Most blog for leisure, not make money (Pew) Those that do start behaving more like formal media Google Adsense – not touch sides for many Future is in aggregated/networked advertising models

Small individually, but powerful as group

Most blog for leisure, not make money (Pew)

Those that do start behaving more like formal media

Google Adsense – not touch sides for many

Future is in aggregated/networked advertising models

Questions? He must be very ignorant for he answers every question he is asked - Voltaire Contact: [email_address]

Questions?

He must be very ignorant for he answers

every question he is asked - Voltaire

Contact: [email_address]