Internet Advertising & Analytics
Online Writing & Editing (PB 590C)
Summer Session II 2010
Facilitated by
Tom Haney
haney270@gmail.com
tomfinder.com

Slideshare Audio
This presentation has
audio.
This
To listen, navigate with
the play button
below (rather than the hand
on the right).
i 1 2 3 4

Agenda
1. Internet Business models
2. Advertising Deal Structures
3. Online Analytics
4. Implications for the Writer
i 1 2 3 4

Who Does Content Serve?
Visitor Marketer
(Reader) Publisher (Advertiser)
Content
Traffic Advertising
Sources Agencies
(search)
i 1 2 3 4

Old Media Versus New Media
Internet 1.0 Web 2.0
Global Social
Measurable Distributed
Interactive Mobile
Transactional Local
i 1 2 3 4

Topic 1
Internet Business Models
Business, that's easily defined - it's other people's money.
Peter Drucker

Acquiring Traffic – SEO, SEM
SEO = Search Engine Optimization
SEM = Search Engine Marketing
Costs of acquiring traffic
• Paying writers and other staff
• Paying for distribution
“Hit” content versus “long tail” content
Is SEO degrading the integrity of writing and journalism?
i 1 2 3 4

Primary Online Business Models
Business Model = How a company makes money.
Price Ecommerce Advertising Freemium Virtual
Per Goods
User
One time – Merchandising CPM – cost Part free, Growing
apps per impression part premium
Transactions CPC – cost
Recurring – per click Upsell
Subscription CPA – cost
(premium) per acquisition
CPL – cost
per lead
i 1 2 3 4

Traits of Successful Online Businesses
Get Big or Get Expensive
Get Big – grow the audience and sell advertising.
Size and scale are key to success.
OR
Get Expensive – charge users.
i 1 2 3 4

Topic 2
Advertising Deal Structures
A magazine is simply a device to induce people to read
advertising.
James Collins

Advertising Acronyms
i 1 2 3 4

CPM – Cost Per Thousand Impressions
$
Publisher Marketer
Visitor
(Advertiser)
(Reader)
Content
Audience
Page View = Impression
M = Roman number for one thousand
i 1 2 3 4

eCPM
CPM is the historical standard
* Primary model for television
* Cost per click and other models get translated
to effective CPM to facilitate comparison
across models
e = effective
eCPM = effective cost per thousand
i 1 2 3 4

Conversion Funnel
Impressions
LEAD MEASUR
Clicks
Is something we can
Engaged influence.
Conversions
Clicks / impressions = Conversions / clicks =
Click thru rate aka CTR Conversion rate
Engage means the user didn't “bounce”. She viewed more than the one page.
i 1 2 3 4

Dollar Metrics
Impressions 2000
Impressions
clicks 10 MEASUR
LEAD
Clicks
Click-thru .05%
Engaged
rate (CTR) Is something we can
influence.
Converted Converted 1
Conversion 10%
Rate
CPM $0.50
Cost $1.00
i 1 2 3 4

Cost Per Click, Cost Per Acquisition
Impressions 2000
Cost per Click =
clicks 10 CostLEAD MEASUR
/ clicks
Click-thru .05%
$1.00 / 10 = $0.10
rate (CTR) Is something we can
influence.
Converted 1 Cost per Acquisition =
Cost / conversions
Conversion 10%
Rate
$1.00 / 1 = $1.00
CPM $0.50
Cost $1.00
i 1 2 3 4

Cost Per Lead or other Action
Acquisition can be any action for which
the marketer is wiling to pay. LEAD MEASUR
Cost per Acquisition =
Is something we can
Cost / conversions
influence.
For example:
Sign-up for service $1.00 / 1 = $1.00
Purchase a Product
Start a free trial
Submit an e-mail address
Become a qualified lead
i 1 2 3 4

Differences in the Models
The main difference is how the advertiser pays for
the marketing.
CPM – is paid by the impression. Most risk to the
advertiser.
CPC – is paid by the click. Risk is shared.
CPA – is paid by the action (or acquisition). Most
risk to the publisher.
eCPM – is the effective CPM if paid by click or
action.
The supporting key metrics are the same in each
case.
i 1 2 3 4

Topic 3
Online Analytics
People play differently when they’re keeping score.

Why use online Analytics?
Publisher Advertiser Writer
Better serve the Optimize click Improve
audience. thru and engagement.
conversion
Increase click- Understand
thru rates rates. what readers
CPM. Calculate dollar like.
metrics.
Evaluate traffic Better sell to
sources. Evaluate publishers and
Determine hit various advertisers.
publishers.
stories.
i 1 2 3 4

Google Analytics
Traffic Engagement
i 1 2 3 4

Traffic Sources
Organic = search terms that were not paid search.
i 1 2 3 4

Football Passing Tree
i 1 2 3 4

Keyword Sources
i 1 2 3 4

The Advertisers' View
Campaign was run on the CPC model of Google
Adwords.
Cost per conversion is key. Cost per conversion
needs to be lower than the lifetime value of
acquiring the customer.
LTV CPA
i 1 2 3 4

Demographics
Demographics are key for advertisers
(and agencies)
Demographics on Emerson.edu from quantcast.com
i 1 2 3 4

Social Media Analytics
Measures the effectiveness of tweets, re-
tweets, follower strategies
Engage your audience
hootsuite.com
socialoomph.com
i 1 2 3 4

Topic 4
Implications for the Writer
That's not writing, that's typing.
Truman Capote

Key Takeaway
Content
is
King
i 1 2 3 4

Challenges
Church
&
State
Content
&
Advertising
i 1 2 3 4

The Role of the Writer
Drive traffic to create adverting dollars
Bring value to the freemium model
Engage and entertain users for repeat visits
Justify premium pricing on subscription sites
Build your reputation and personal audience
i 1 2 3 4

Building a Reputation
* Write your own blog
* Define your voice and showcase your talent
* Contribute to higher profile sites, even if they
don't pay much
* Promote your own content on Facebook and
Twitter
You are your own brand and traffic generator
i 1 2 3 4

Crush It – Gary Vaynerchuck
The key to monetizing online
* Differentiation from others in a
niche
* Take advantage of genuine
personality
* The more developed one's
personal brand is, the greater
the awareness, the greater
the business opportunities
available.
No longer need to play in traditional structures. Gatekeepers are being eliminated.
i 1 2 3 4

Recap of Topics
1. Internet Business models
2. Advertising Deal Structures
3. Online Analytics
4. Implications for the Writer
i 1 2 3 4

Questions?
Don't hesitate to get in touch:
Tom Haney
haney270@gmail.com
http://www.tomfinder.com
513-876-5439
i 1 2 3 4