the third class in untangling the web - advertising, business model canvas, and some stories

1. UNTANGLING THE WEB
CLASS 3:
SOME VISITS AND STORIES OF BUSINESS ON THE WEB
ADVERTISING ON THE WEB
STARTING TO PLAN YOUR WEB BUSINESS – AN INTRODUCTION TO LEAN LAUNCHPAD AND THE BUSINESS MODEL
CANVAS

2. AGENDA
• HOMEWORKS AND DUE DATES, DISCUSSION OF HOMEWORKS 1 AND 2
• JIM HEDGER VISIT – WEBMASTER AND SEO SPECIALIST FROM TORONTO
• GARRETT TOWNSEND – STARTING A WEB BUSINESS
• SERVICE REVENUES, LIFETIME CUSTOMER VALUE
• ADVERTISING – GOOGLE ADWORDS, FACEBOOK, BUYING CLICKS, SOCIAL MEDIA
• LEAN LAUNCHPAD AND THE BUSINESS MODEL CANVAS

3. HOMEWORK
• ASSIGNMENT 1 WAS GREAT. GOOD ANSWERS AND NICELY DONE, BUT MANY FOLKS DIDN’T
MENTION THE ROLE OF THE ROUTER AND THERE WAS SOME CONFUSION ON HOW A FRONT
END DEVELOPER RESPONSE MIGHT DIFFER FROM A NETWORKING RESPONSE.
• ASSIGNMENT 2 WAS ALSO GOOD. PRETTY EASY TO CRITIQUE A POOR WEBSITE! GETS HARDER
WHEN THEY ARE BETTER, BUT I WANT YOU TO KEEP A COUPLE THINGS I MIND – ACTIONABLE
AND SPECIFIC COMMENTS
• LATE ASSIGNMENTS – DUE AT THE START OF CLASS, OTHERWISE:
• UP UNTIL MIDNIGHT THE DAY AFTER – 10% PENALTY
• 2ND DAY 20%
• 3RD DAY 40%
• 4TH DAY 80%
• AFTER 4TH DAY, ZERO BUT I’M STILL HAPPY TO GIVE FEEDBACK
• IF YOU KNOW YOU WILL HAVE A PROBLEM WITH THE DUE DATE TALK TO ME IN ADVANCE!

4. JIM HEDGER
• JIM WENT TO UVIC
• NOW LIVES IN TORONTO
• WEBMASTER AND SEO SPECIALIST FOR OVER 15 YEARS
• RUNS A TECHNOLOGY PODCAST CALLED WEBCOLOGY
• HTTP://CRANBERRY.FM/SHOWS/WEBCOLOGY
• ALSO LOOK FOR HIM AT HTTP://WWW.DIGITALALWAYSMEDIA.COM/

5. GARRETT TOWNSEND
• FIRST HAD SUCCESS ON THE WEB WITH A FAN WEBSITE
• ALSO INVOLVED WITH PURPOSE SOCIAL
• GARRETT IS A PSYCH MAJOR, SO CASE IN POINT THAT CS IS NOT THE ONLY
ROUTE IN TO SUCCESS ON THE WEB

6. SERVICE REVENUES
• SaaS AND PaaS
• SOFTWARE AS A SERVICE
• MANY EXAMPLES.. EMAIL, VIDEO SITES SUCH AS PLURALSIGHT, MAILCHIMP, FEEDLY, DRIP
• ANYTHING CHARGING A REGULARLY RECURRING FEE FOR A SERVICE
• PLATFORM AS A SERVICE
• HEROKU
• NITROUS.IO
• WEEBLY
• ANYTHING CHARGING A FEE FOR A PLACE YOU CAN BUILD A WEB OFFERING

7. LIFETIME CUSTOMER VALUE
• EASY FOR SERVICE BUSINESSES – IT IS SIMPLY THE MONTHLY FEE TIMES THE
AVERAGE LENGTH SOMEONE IS A CUSTOMER
• HARDER FOR PURE SALES SITES SINCE DIFFERENT CAMPAIGNS MAY ATTRACT
DIFFERENT TYPES OF CUSTOMER
• VERY HARD WHEN YOUR BUSINESS IS VERY NEW

8. STARTUPS FOR THE REST OF US
• HTTP://WWW.STARTUPSFORTHERESTOFUS.C
OM/EPISODES/EPISODE-294-BACK-OF-THE-
ENVELOPE-BUSINESS-MODEL-TEST
• WE STARTED IN CLASS AT 5:55 AND
LISTENED FOR A FEW MINUTES

9. ADVERTISING ON THE WEB
• DON’T BE THIS GUY!!!

10. MAKING SURE YOUR AUDIENCE IS INTERESTED
• I SOLICIT ADVERTISEMENTS TO MY INBOX
• REALLY! THERE ARE SOME THAT I WANT IN THERE – BIOTECH PRODUCTS, AUCTION
NOTICES, NVIDIA
• BUT WHEN SOMEBODY SELLS MY INFO AND I GET SPAM FOR THINGS I DON’T CARE
ABOUT… WATCH OUT!
• WHO KNOWS WHAT I WANT?
• GOOGLE DOES
• TO A LESSER EXTENT FACEBOOK DOES
• MY FRIEND GROUPS CERTAINLY DO
• AD BLOCKERS

11. GOOGLE ADWORDS
• ADWORDS VERSUS ADWORDS EXPRESS
• PAY PER CLICK
• MORE SPECIFIC SEARCH TERMS ARE CHEAPER
• HTTPS://WWW.YOUTUBE.COM/WATCH?V=CU3X9Q_4ROG

12. FACEBOOK ADS
• THERE IS A LOT OF SCEPTICISM OVER THE VALUE OF FACEBOOK ADS
• FACEBOOK TARGETS TYPES, GOOGLE TARGETS BUYING MOMENTS (IE. WHEN YOU’RE
SEARCHING)
• BUT FACEBOOK CPC (COST PER CLICK) IS WAY LOWER THAN GOOGLE
• AND FACEBOOK KNOWS DIFFERENT THINGS THAN GOOGLE DOES
• WHO YOUR FRIENDS ARE
• YOUR PICTURES AND INTEREST GROUPS
• MORE COMMENT HISTORY
• HTTP://WWW.DIPOLL.COM/BLOG/2010/11/SIX-STEPS-TO-RUN-CHEAP-AND-
SUCCESSFUL-FACEBOOK-ADVERTISING-CAMPAIGNS/

13. DEEP TARGETING
• HTTP://GHOSTINFLUENCE.COM/THE-ULTIMATE-RETALIATION-PRANKING-MY-
ROOMMATE-WITH-TARGETED-FACEBOOK-ADS/

14. BUYING CLICKS AND VIEWS
• FOR THE MOST PART, DON’T DO IT!
• KIND OF LIKE BUYING LINKS, WHAT YOU BUY WON’T BE GOOD QUALITY
• FOR CERTAIN PURPOSES THERE MAY BE A BENEFIT TO BUYING PROMOTION OF A
PARTICULAR CAMPAIGN, THOUGH
• FOR INSTANCE, HTTP://QUUUPROMOTE.CO

15. SOCIAL MEDIA
• BIG THING IS TO SPEAK LIKE A NATIVE, SO SERVICES LIKE QUUU WHICH PUSH
MULTIPLE PLACES MAY BE LESS EFFECTIVE
• HOOTSUITE AND SITES LIKE THAT LEAD TO THE SAME PROBLEM
• BRIAN, THE FELLOW ON THE FACEBOOK PRANK, ACTUALLY STYLED HIMSELF A
REDDIT MARKETER FOR A WHILE. WHAT’S THAT?
• HTTP://GHOSTINFLUENCE.COM/JEDI-MIND-TRICKS/

16. EXERCISES
• 1. GOOGLE ADWORDS CAMPAIGN FOR A NON-PROFIT
• MAKERSPACE GETS $10K PER MONTH, UP TO $2 PER CLICK AND $329 IN TOTAL
CLICK DOLLARS
• HOW CAN WE MAKE BEST USE OF THIS?
• 2. SOCIAL MEDIA CAMPAIGN FOR A HOUSE CLEANING COMPANY
• ONLINE SCHEDULING
• CLEANERS WEAR BODYCAMS STREAMED ONLINE SO YOU CAN WATCH AND CHAT
WHILE YOU’RE AWAY AT WORK
• CAN SPEND $3K PER MONTH ON ADVERTISING FOR THE VANCOUVER MARKET

17. LEAN LAUNCHPAD
• MOVING INTO THE BUSINESS STRATEGY SIDE OF THE COURSE AND SETTING UP
FOR PROJECT 1
• STEVE BLANK
• HTTPS://WWW.YOUTUBE.COM/WATCH?V=M733S5PNPWC
• ERIC RIES

18. BUSINESS MODEL CANVAS
• HTTPS://YOUTU.BE/QOAOZMTLP5S

20. VALUE PROPOSITION CANVAS
• HTTPS://YOUTU.BE/AN36ECTE54Q

22. MORE IN DEPTH LOOK AT THE BUSINESS
MODEL CANVAS
• WE DON’T HAVE TIME TO WATCH IN CLASS, BUT PLEASE WATCH AS YOU’RE
THINKING ABOUT YOUR PROJECT
• HTTPS://YOUTU.BE/SLIMK6Z2JLA

23. EXERCISES
• 1. VALUE PROPOSITION CANVAS FOR OUR HOUSE CLEANING COMPANY WITH
VISITS SCHEDULED ONLINE
• TAKE 15 MINUTES IN GROUPS THEN WE’LL COME PRESENT RESULTS FROM 2 GROUPS
• 2. BUSINESS MODEL CANVAS FOR THAT COMPANY
• TAKE 15 MINUTES IN GROUPS AND THEN WE’LL COME PRESENT RESULTS FROM 2
GROUPS

24. HOMEWORK #3
• DUE WED SEPT 28TH AT THE START OF CLASS
• PLEASE EMAIL TO DEREKJA@GMAIL.COM
• YOU HAVE A WEB BUSINESS SELLING STAR WARS TOYS, YOU GET THEM FROM A
SUPPLIER AND THEY AREN’T QUITE APPROVED TOYS SO THEY CAN’T BE CALLED
STAR WARS, BUT THEY ARE PLAINLY DRAWN FROM THE SAME UNIVERSE. THEY SEEM
TO APPEAL MOST TO PRE-TEEN BOYS, BUT YOU HAVE A SIGNIFICANT SECONDARY
FOLLOWING AMONG GAMERS OF ALL GENDERS SINCE THE CHARACTERS HAVE
FOUND THEIR WAY INTO AN ONLINE ROLE PLAYING GAME.
• 1 DESIGN A WEB MARKETING PLAN FOR THESE TOYS, YOU HAVE $1000 A MONTH TO
SPEND. WHAT KEYWORDS DO YOU BUY? HOW ELSE DO YOU SPEND YOUR MONEY?
• 2 SKETCH OUT A BUSINESS MODEL CANVAS OUTLINING THE FUNDAMENTALS OF THIS
BUSINESS