INT2016 - Dave Hendricks (Livelntent, Inc) - Is it the end of Freemium?
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INT2016 - Dave Hendricks (Livelntent, Inc) - Is it the end of Freemium?
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INT2016 - Dave Hendricks (Livelntent, Inc) - Is it the end of Freemium?
- 1. Is it the end of Freemium? Are paywalls and subscription coming to rescue the human experience?
- 2. A great idea for whom?
- 4. Internet is under attack
- 5. Ad Blockers Undermine Freemium @davehendricks
- 6. The Rise of Mobile Frustrates Freemium @davehendricks
- 7. The Rise of Mobile Frustrates Freemium @davehendricks
- 8. Most Mobile Spend goes to 2 players @davehendricks
- 9. Yet Publishers flock to content distribution • Facebook Instant Articles • Apple News • Content Studios @davehendricks
- 10. Subscription-based media companies thrive @davehendricks
- 11. While ad-supported media companies flail @davehendricks
- 13. Anonymous = Sub Prime? @davehendricks
- 14. Sub Prime = Freemium Internet? @davehendricks
- 15. Are we ’over our skis’? @davehendricks
- 16. Back to the Future? @davehendricks
- 17. Is there a path out of Freemium? @davehendricks
- 19. Is quality worth paying for?
- 20. Does Subscription mean no Ad Tech?
- 21. Subscription = Login = Lock-in
- 22. Subscription enables New Ad Tech Entrants! @davehendricks
- 23. CRM data + Login = People Based Marketing + @davehendricks
- 24. CRM Retargeting = People, brands + publishers CRM data LiveIntent Audience Using anonymised CRM data, LiveAudience allows Brands to reach THEIR Customers within the LiveIntent Platform via real time 1st party bid matching. Salesforce launches Active Audiences Agencies Brands @davehendricks
- 25. People-based marketing is based on a form of consent that is similar to ‘two-factor authentication. It doesn’t work on Robots and it could fix the relationship between people, publishers and brands. @davehendricks
- 26. People-based Marketing can solve for Freemium @davehendricks Dave Hendricks, Managing Director LiveIntent
Editor's Notes
- The Internet is under attack The current dynamic doesn’t work for publishers Too few subscribers pay the costs for everyone else And that doesn’t even cover the costs
- But Freemium Requires Scale The Freemium model requires mass adoption That’s really not the reality
- Add into that fake traffic, and publishers have no idea where they stand It’s estimated that Robot traffic, meaning machines consuming ads on publisher websites under the guise of humanity, consist of as much as 60% of all traffic. This is traffic that will never buy anything, will never convert, never subscribe, and never ‘make it up in volume’
- Mobile ad blockers such as Disconnect and 1Blocker operate under a “freemium” model, which allow you to download the service, but then charges for certain options like being able to block more than one irritant at a time It’s not just bots Publishers are under attack from ad blockers From PageFair/Adobe Ad blocking is estimated to cost publishers nearly $22 billion during 2015. There are now 198 million active adblock users around the world. Ad blocking grew by 41% globally in the last 12 months. US ad blocking grew by 48% to reach 45 million active users in 12 months up to June 2015. Germany has one of the highest ad-blocking rates in Europe along with Poland and Portugal, with 42 percent of 16- to 34-year-olds online using an ad blocker, according to GlobalWebIndex
- Adblocking is most often employed on mobile devices. Why? Because load times and page sizes are so large that it impacts users’ data usage and wastes their data plans As traffic increases, so do the problems
- Adblocking is most often employed on mobile devices. Why? Because load times and page sizes are so large that it impacts users’ data usage and wastes their data plans As traffic increases, so do the problems
- Most mobile spend goes to Google and Facebook. What do they have? Logged-in audiences. That’s why most estimates are that they make 10x off of each user than your average publisher
- Yet Publishers continue to flock to solutions that host their content outside of their property Facebook and Apple are not your friends
- Meanwhile, those companies that capitalize on subscribers are thriving. Netflix Amazon Prime Subscribers offer you a relationship with your audience, one that you can build off of
- While those feeding articles to bots and ads to ad blockers are faltering. Mashable doesn’t even collect email addresses on its site. Can you imagine your telcom company working without an address?
- Does the Freemium concept pose an existential hazard to publishers?
- Are Growth Hacking and Content Distribution Strategies acutally Ponzi schemes?
- How can publishers sustain lofty valuations when it is clear that so much of their web traffic is anonymous ad blocking humans or robots? What’s the Answer?
- How can publishers sustain lofty valuations when it is clear that so much of their web traffic is anonymous ad blocking humans or robots? What’s the Answer?
- Are publishers running out of tricks? In his smart post in Medium (a publisher/platform that itself has raised over $100 million in the last year and has no revenues). You can read it yourself, but he said: “Video will not save your media business. Nor will bots, newsletters, a “morning briefing” app, a “lean back” iPad experience, Slack integration, a Snapchat channel, or a great partnership with Twitter. All of these things together might help, but even then, you will not be saved by the magical New Thing that everyone else in the media community is convinced will be the answer to The Problem.”
- Rather than the new thing, perhaps we should start with the basics. Coinsent.
- The most successful online publishers have made a decent transition from 100% print to majority digital. They are doing this not with clickbait, but with CONSENT.
- And they do it with paywalls. People use paywalls to consent to view premium content.
- But that’s not all. They also leverage powerful ad technologies that are activated post-login. It’s rare to find publishers who run subscription based models – in print or online – who do not also run ad tech behind their paywall. And they get much better CPMs.
- Subscription is a form of lock-in, but not for users as much as it is for advertising dollars. The subscription audience is clearly stickier. Facebook recently reported reaching 1.5 billion users per month. 2/3rds of them visit every day. They are not counting cookies, They are counting logins, and there are no duplicates there.
- Subscriptions and login are the force behind two of the most recent entrants into the marketing technology space: Salesforce and Oracle.
- Salesforce and Oracle are joining Facebook and Google and getting into the business of CRM Retargeting….otherwise known as ‘People Based Marketing. People based marketing is the process of using CRM data – typically email addresses – for the purposes of buying media.
- How People Based Marketing Works.
- How People Based Marketing Works.
- Salesforce and Oracle are joining Facebook and Google and getting into the business of CRM Retargeting….otherwise known as ‘People Based Marketing. People based marketing is the process of using CRM data – typically email addresses – for the purposes of buying media.