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Online monetization models for websites

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Presentation for Podcamp Halifax in Jan 2009 (Nova Scotia, Canada)

Presentation for Podcamp Halifax in Jan 2009 (Nova Scotia, Canada)

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  • 1. 25 January 2009 Online Monetization Models
  • 2. Website Online Ads Online Consumers (B2C) Business Clients (B2B) 3rd party Partners (B2B) Email Marketing Lead Generation Service Subscription eCommerce Service Subscription Affiliate Programs 25 January 2009
  • 3. 1 . Online Advertizing (B2B)
    • Goal: Ad display revenue
    • Model: Subscription base
    • Model: Cost-Per-Mille (CPM) base
    • Model: Cost-Per-Clic (CPC) base
    • KPI: unique visitors, page views, time spent on site, number of clickthroughs
    25 January 2009
  • 4. 1 . Online Advertizing (B2B)
    • Expected revenue
    • CPM:
      • Mainstream site: $2 to $5 CPM
      • Niche sites: $5 to $15 CPM
    • CPC:
      • Mainstream site: $0.25 to $1 CPC
      • Niche sites: $1 to $3 CPC
    25 January 2009
  • 5. 1 . Online Advertizing (B2B)
    • Expected revenue for
    • 10,000 pageviews / month
    • CPM:
      • Mainstream site: $5 x 10 = $50
      • Niche sites: $15 x 10 = $150
    • CPC (0.25% of traffic):
      • Mainstream site: $1 x 25 = $25
      • Niche sites: $3 x 25 = $75
    25 January 2009
  • 6. http://www.kikabink.com/news/382/banner-advertising-whats-a-good-click-through-rate/ A study by MarketingSherpa reveals different average CTRs for different banner sizes: 160 x 600: 0.14 percent 300 x 250: 0.37 percent 120 x 600: 0.18 percent 728 x 90: 0.27 percent 468 x 60: 0.10 percent Overall average: 0.21 percent So now you have some benchmarks. But remember, a lot will also depend on your target market, where you run your ad, and the placement of your ad on a given website and webpage, among other things. Source:  MarketingSherpa, “Banner Ad Size and Click Rate: Bigger a Bit Better, But It’s Clicks that Count”, MarketingSherpa, September 16, 2008 25 January 2009
  • 7. 2 . Email Marketing (B2B)
    • Goal: Lead generation revenue
    • Goal: Advertising revenue
    • Model: Contests, Coupons
    • Model: Advertising, Sponsorship
    • KPI: number of subscribers, number of opened emails, number of clickthroughs
    25 January 2009
  • 8. http://directmag.com/email/1014-email-roi-dma/ 25 January 2009 2 . Email Marketing (B2B) Still the highest performing ROI 2008 Direct Marketing Association (DMA) study found that email's ROI in 2008 was $45.06 for every dollar spent on it. This compares to $48.34 last year, and a projected $43.52 in 2009, according to the annual study.
  • 9. 3 . eCommerce (B2C)
    • Goal: product sales revenue
    • Goal: revenue sharing (3 rd party)
    • Model: ex: Paypal, Yahoo shopping cart
    • Model: ex: Amazon Associates
    • KPI: number of products sold, shopping cart abandonment
    25 January 2009
  • 10. 25 January 2009 3 . eCommerce (B2C) Online sales conversions
  • 11. 25 January 2009
    • eCommerce revenue for
    • 1,000 Unique Visitors (UV) / month
    • 2,5%  25 UV who would buy / month
    • Hypothesis for a shopping basket of: $30
    • $750 / month
    • $9,000 / year
    eCommerce sales equation 3 . eCommerce (B2C)
  • 12. 25 January 2009 Here are the top 10 converting websites for May 2008*. These are based on Nielson Panel data and are calculators by toolbar user to final conversion. 1. ProFlowers 35.70 % 2. Office Depot 31.40 % 3. Blair.com 23.80% 4. FTD.com 21.30% 5. QVC 18.70% 6. CDW 17.90% 7. Lands End 17.50% 8. 1800flowers.com 16.80% 9. Drugstore.com 16.20% 10. HSN.com 15.80% Learn from eCommerce over performers 3 . eCommerce (B2C)
  • 13. 25 January 2009 More eCommerce competitive data 3 . eCommerce (B2C)
    • Online sales for Web sales from 2007 to 2004
    • Conversion rates for 2007
    • Average sales tickets on web
    • List of web site features & functions
    • Monthly web traffic and unique visitors
    • Percentage of traffic from search engines, 2007 & 2006
    • Paid and natural search engine rankings by category
    • Merchandising categories
    • Number of SKUs on the site
    • etc.
    Top 500 online retailer Guide 2008 This guide will reveal the sales and conversion rates of the best 500 online retailers in the US
  • 14. 4 . Lead Generation (B2B)
    • Goal: performance based revenue
    • Revenue linked to conversion (required to set goals)
    • Model: Cost per Click Through
    • Model: Indirect revenue (ex: sales)
    • KPI: clickthroughs, goals reached, number of conversions
    25 January 2009
  • 15. 5 . Service Subscription (B2B & B2C)
    • Goal: recurrent service revenue
    • Model: membership
    • Model: offer tools
    • Model: offer discounts
    • Model: offer premium content
    • KPI: number of subscribed members, subscription renewals
    25 January 2009
  • 16. 6 . Affiliate Programs (B2B)
    • Goal: revenue through 3 rd party
    • Model: ex: Google AdSense
    • Model: 3 rd party widgets
    • KPI: clickthroughs
    25 January 2009
  • 17. 25 January 2009 6 . Affiliate Programs (B2B) Example with Adsense revenue Adsense revenue = Traffic x Click Through Rate x Average Revenue per click Average Revenue per click = about 50% of CPC cost of for Google AdWords adverstiser If CPC = $1 for the advertiser, then about 50c go to you. Read more: http://adsense4money.com/AdSense/pricing-model.php
  • 18. 25 January 2009 6 . Affiliate Programs (B2B) Dan’s experience with Adsense revenue Average of $100 revenue for 40,000 impressions Yield $2.5 CPM With 100,000 page views (inpressions)  $250
  • 19. 25 January 2009 Stéphane Lagrange www. web target .ca info @ web target .ca
  • 20. Thank You Merci Grazie Gracias Obrigado Danke Japanese French Russian German Italian Spanish Brazilian Portuguese Arabic Traditional Chinese Simplified Chinese Hindi Tamil Thai Korean Shalom 25 January 2009