Turning trust into money

10 – 12 October 2011, Vienna, Reed Messe Wien

Media Port
Session: Innovative Advertising
Title: Turning trust into money
Speaker: Grig Davidovitz, CEO, RGB Media, Israel

TURNING TRUST INTO MONEY
A NEW REVENUE MODEL FOR
ONLINE NEWSPAPERS

Grig Davidovitz
October 2011

Mittwoch, 12. Oktober 2011

Turning Trust into Money: A New Revenue Model for Online Newspapers | Grig Davidovitz



Google



Google
Doesn’t try to blindly convert eyeballs into money



Google
Developed a revenue model that is connected to it’s core business
and unique advantage: SEARCH


Google
Developed a revenue model that is connected to their core business



Google
Developed a revenue model that is connected to their core business
The principle: “We know what you’re searching for, and we can match
the best ads for your search”


Newspapers



Newspapers
The need: to develop an revenue model that leverages the core
business/unique advantage of newspapers.



What is the newspapers’ core business/unique advantage?




C R E D I B I L I TY




“Truth agents” of the society (core business).




A primary source of information about the world (core business).




A primary source of information about the world (core business).
More credible than most other sites (unique advantage).



How can credibility be turned into revenue?

Integrating newspapers in the customer’s cycle





First question: What is the best
value for money in the category?





Second question: What is the best
price for the products/services
recommended?





recommended?
Third question: How can I buy?





First question: What is the best Newspapers: best agents
value for money in the category? to answer the ﬁrst
Second question: What is the best question
recommended?





price for the products/services • Have credibility
recommended?





recommended? • Have the information/
methodology to obtain it





• Have the SEO juice





After answering the ﬁrst
question - answer the
next





next

Reader → Consumer = Revenue



Newspapers: best agents
to answer the ﬁrst
question
• Have credibility
• Have the information/
• Have the SEO power
next




An example

Newspapers: best agents
to answer the ﬁrst
question
next




An example

laptop? to answer the ﬁrst
question
next




An example

question
Google - Searches/month in the US
next




An example

question
Best laptop: 246,000
next




An example

question
Laptop reviews: 110,000 methodology to obtain it
next




An example

question
Laptop reviews: 110,000 methodology to obtain it
Laptops: 1,830,000 • Have the SEO power
next




An example

laptop?
Laptop reviews: 110,000
Laptops: 1,830,000




An example

laptop?
Laptops: 1,830,000

Solution: create landing pages
according to the users’ queries




An example

laptop?
Laptops: 1,830,000
according to the customers’ queries




An example

laptop?
Laptops: 1,830,000
according to the customers’ queries

(Once establishing brand recognition, users will also start coming
directly to the review section)



An example




An example

recommended?




An example

recommended?
Solution: different ecommerce links,
including links from price
comparison sites




An example

Third question: How to buy?




An example

Solution: Monetization links




An example

1. Price comparison




An example

1. Price comparison
2. Amazon and other afﬁliates




An example

1. Price comparison
2. Afﬁliates (Amazon)
3. Contextual ads (AdSense, etc)




An example

1. Price comparison
2. Afﬁliates (Amazon)
3. Contextual ads (AdSense, etc)
Highly effective - not everybody buys!



How to create the content?




1. Many times it already exists




... but - is this the right headline?




2. Rearrange information that
was already created




was already created
Best theater shows, according to
the existing expert ranking




was already created
3. Ask your expert to create
the content




was already created
the content
What are the best laptops?




was already created
the content
4. Aggregate




was already created
the content
4. Aggregate
5. Buy it


What about existing actionable content?




Monetization widget




Monetization widget
Every article with relevant
products/services has a
monetization widget that
enables users to act on what
they read




Monetization widget
they read

Fly to Porto
Expedia - from 195
BA - from 295
IBERIA - from 255

Packages to Porto




Monetization widget
they read
Experiment: 2% click through
rate (+ 5% conversion rate)

Fly to Porto
Expedia - from 195
BA - from 295
IBERIA - from 255

Packages to Porto




Monetization widget
they read
Aggressive AdSense
implementation Fly to Porto
Expedia - from 195
BA - from 295
IBERIA - from 255

Packages to Porto




Monetization widget
they read
Aggressive AdSense
Expedia - from 195

But... Accidental consumption BA - from 295
IBERIA - from 255

is NOT the main stream of Packages to Porto

revenue



Monetization widget
they read
Aggressive AdSense
Expedia - from 195

But... Incidental consumption BA - from 295
IBERIA - from 255

is NOT the main revenue Packages to Porto

stream



Monetization widget
they read Not enough!
Aggressive AdSense
Expedia - from 195

But... Incidental consumption BA - from 295
IBERIA - from 255

is NOT the main revenue Packages to Porto

stream


Advantages



Advantages

1. Creating a new, substantial revenue stream



Advantages

Average online newspaper RPM in US: $8-10



Advantages

Average review site RPM in US: $40



Advantages

In some verticals (online brokers, ﬁtness
equipment): over $100



Advantages

In some verticals (online brokers, ﬁtness On top of display!
equipment): over $100



Advantages

2. Diversifying the monetization model



Advantages

Pay per View Pay per Click Pay per Action



Advantages


The risk for the advertiser



Advantages



Maximal



Advantages



Maximal ZERO!



Advantages

3. Access to a new pie: the sales pie



Advantages

Traditional revenue sources



Advantages

Online - Google
Online - others
15% All the rest

15%
70%

Advertising pie


Advantages

Online - Google
Online - others
15% All the rest

15% + Selling
70% information

Advertising pie


Advantages

Traditional revenue sources The new revenue model
Online - Google
Online - others
15% All the rest

15% + Selling
70% information

Advertising pie


Advantages

Traditional revenue sources The new revenue model
Online - Google
Online - others
15% All the rest 2%

15% + Selling
70% information
98%

Advertising pie Sales pie


Advantages

4. Solving one of the biggest problems
online: too much information to choose
from



Advantages

from
What is the best laptop for me?



?
Advantages

from
Who can I trust
What is the best laptop for me?



Advantages

today: too much information to choose
from



Advantages

from
5. Improving the user experience



Advantages

from
5. Improving the user experience
I wanna buy this book!



It starts happening...
Consumer Search was
acquired by The New
York Times for 33
million dollars



Consumer Search was
acquired by The New
York Times for 33
million dollars
The New York Times
holiday gift guide



Consumer Search was
acquired by The New
York Times for 33
million dollars
The New York Times
holiday gift guide

CNET



Consumer Search was
acquired by The New
York Times for 33
million dollars
The New York Times
holiday gift guide

CNET

Fashion Telegraph



(if it were a newspaper)



TURN TRUST
INTO MONEY
A NEW REVENUE
MODEL FOR
ONLINE
NEWSPAPERS

(if it were a newspaper)


Turning trust into money

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