Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Monetising your startup from the word go with advertising & affiliates


Published on

presentation from @digijoe at Techcrunch UK Geek n Rolla on how early stage startups should approach monetisation, from an advertising and affiliate perspective.

(Skimlinks is a simplified affiliate marketing service so we've got experience helping web publishers & startups add affiliate to their revenue strategy)

Published in: Business, Technology
  • Sex in your area is here: ♥♥♥ ♥♥♥
    Are you sure you want to  Yes  No
    Your message goes here
  • Follow the link, new dating source: ♥♥♥ ♥♥♥
    Are you sure you want to  Yes  No
    Your message goes here

Monetising your startup from the word go with advertising & affiliates

  1. Money! Monetising your startup from the word go with advertising and affiliates
  2. Name 2.0
  3. The weblebrity formerly known as digijoe @
  4. Monetising is an oft-abused word <ul><li>Over-used/hyped </li></ul><ul><li>Often spelt wrong </li></ul><ul><li>Embarrassing to use in front of your friends </li></ul><ul><li>But it ’ s a clear definition: “how can we take this thing we already have (traffic, users) and convert it into money?” </li></ul><ul><li>A nd its back in fashion … </li></ul>
  5. Monetisation can’t work without acquisition <ul><li> Get traffic (as cheaply as possible) </li></ul><ul><li> Convert your traffic </li></ul><ul><li> Get a good price for your traffic </li></ul><ul><li>This means don’t forget </li></ul><ul><ul><li>M arketing (SEO, Email, Social media marketing) </li></ul></ul><ul><ul><li>PR/Buzz </li></ul></ul><ul><li>Zero cost acquisition makes your job easier </li></ul>Acquisition Monetisation
  6. How we startups currently monetise <ul><li>Subscription </li></ul><ul><ul><li>Fixed (magazine/newspaper) </li></ul></ul><ul><ul><li>Variable (e.g. Freemium) </li></ul></ul><ul><li>Third-party supported </li></ul><ul><ul><li>Advertising </li></ul></ul><ul><ul><li>Sponsorships </li></ul></ul><ul><ul><li>Affiliate </li></ul></ul><ul><ul><li>Paid Content (advertorial style) </li></ul></ul><ul><ul><li>Paid Placement (premium listings) </li></ul></ul><ul><ul><li>License Content </li></ul></ul>Source: Dan Zambonini <ul><li>Payments </li></ul><ul><ul><li>Pay per use </li></ul></ul><ul><ul><li>Purchases (physical/virtual) </li></ul></ul><ul><ul><li>Donations </li></ul></ul><ul><li>Long-term revenue </li></ul><ul><ul><li>Sell customer data </li></ul></ul><ul><ul><li>Exit </li></ul></ul><ul><li>Hybrid of the above </li></ul>
  7. Popularity based on top 100 web apps <ul><li>Third-party supported model is prevalent (48%) </li></ul><ul><li>Advertising is heavily relied upon (34%) </li></ul>Source: Not Techcrunch
  8. But what is the trend in advertising? Source: IAB/PricewaterhouseCoopers
  9. 5 Practical Steps to Early Stage Monetisation Glory
  10. 1. Don’t rely on advertising! <ul><li>Display advertising CPM rates lowest for years </li></ul><ul><li>Network deals expect £0.50 CPM </li></ul><ul><li>1m impressions needed to pay for your £500/month serviced office desk </li></ul><ul><li>CPC advertising often poorly targeted, low EPCs </li></ul><ul><li>Leaves money on the table </li></ul>
  11. 2. If you are going to do advertising <ul><li>Go direct – monthly tenancy with targeted sponsors </li></ul><ul><li>Look for sponsorship opportunities e.g. themed home page, sponsored sections, email </li></ul><ul><li>Choose sponsors you are genuinely passionate about </li></ul><ul><li>Create interactive promotions whereby the audience participates – contest, discounts (think what’s in it for the advertiser) </li></ul>
  12. 3. Affiliate is your friend <ul><li>Low barriers to entry, quick to get going, works with lower traffic volumes </li></ul><ul><li>Level playing field, get the same deals as larger sites </li></ul><ul><li>13% growth this year vs 9% overall online advertising </li></ul><ul><li>Text-links convert the best (top ranked linking method by affiliates) and get rid of eyesore ad units </li></ul><ul><li>Allows more creativity, and tighter, integrated approach </li></ul><ul><li>Use tools such as voucher codes, product feeds, APIs </li></ul>Source:Jupiter Research and eMarketer and eConsultancy
  13. Affiliate Example – Merchant text links
  14. Affiliate Example – Mashery Mashups
  15. 4. Social Media / UGC can convert well <ul><li>User opinions/recommendations drive the buying decision </li></ul><ul><li>So powerful that FTC is putting holds on word of mouth marketing (WOMM) </li></ul><ul><li>Affiliate links to retailers from forums/blogs can have up to 10% conversion rate </li></ul><ul><li>Twitter/IM even higher </li></ul><ul><li>Be considerate of the users </li></ul><ul><ul><li>Beware of user backlash </li></ul></ul><ul><ul><li>E thical usage / disclosure </li></ul></ul>“ A consumer survey ranked consumer content as the #1 aid to a buying decision, cited by 91% of respondents.” (JC Williams Group, 2006)
  16. Further Reading <ul><li>Copyblogger Blog Monetisation Post </li></ul><ul><li>Affiliate Tip Blog (Affiliate) </li></ul><ul><li>SEOBook (Internet marketing) </li></ul><ul><li>Online Marketing Blog (Social media) </li></ul><ul><li>Follow on Twitter @mattb811, @matthewwood, @affiliatetip, @mediatrustpete, @copyblogger, @tedmurphy </li></ul>