Monetize your assets


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Monetize your assets

  1. 1. Monetize Your Users Joel A. Kline Consultant & Associate Professor/Director of Digital Communications, Lebanon Valley College
  2. 2. What is Monetization? <ul><li>Conversion of digital assets, most likely information or users, to money </li></ul><ul><li>The lingua franca of the digital economy </li></ul><ul><li>Nothing new for most publishing or media companies </li></ul><ul><li>Requires planning on how to customize and target </li></ul><ul><li>Spending money to make money still holds true </li></ul>
  3. 3. Why the term Users ? <ul><li>Your target market uses the information and offers you provide. </li></ul><ul><li>We understand that users are people who use products or software. </li></ul><ul><li>Many companies in traditional publishing or marketing call them “customers”, “clients”, or sometimes “viewers”. </li></ul><ul><li>Because channels of communication are now interactive, all customers are users. </li></ul><ul><li>If they only “view” information, you have failed! </li></ul>
  4. 4. Execution <ul><li>The strategy and success is not in the concept…but in the execution. Consider three strategies of monetization for the following example… </li></ul>
  5. 5. <ul><li>You cultivate and build an opt-in email list of customers who regularly visit local restaurants. These patrons are willing to receive information from restaurants via email. Do you: </li></ul><ul><li>Charge different local restaurants a fee to send coupons bi-weekly to this email list. </li></ul><ul><li>Sell this list of cultivated restaurant goers to a direct marketing company. </li></ul><ul><li>Deliver various email marketing to this list because they have opted-in </li></ul>… which I term the good, the bad, the ugly
  6. 6. The Good <ul><li>1. Charge local restaurants a fee to send coupons to this email list bi-weekly. </li></ul><ul><li>This example provides value (coupon) to a targeted group (restaurant goers) using an acceptable frequency. </li></ul>
  7. 7. The Bad <ul><li>2. Sell this list of cultivated restaurant goers to a direct marketing company. </li></ul><ul><li>Your users will be bombarded with all types of advertising that has no value to them </li></ul><ul><li>You’ll have no control over the frequency. </li></ul><ul><li>The preferred channel (email) will be abused, along with other channels (if provided) </li></ul>
  8. 8. The Ugly <ul><li>3. Deliver a variety of email marketing to this list because the customers have opted-in. </li></ul><ul><li>This allows you to retain control. However, problems can occur in value and frequency. Restaurant-goers get offers for something else (not targeted). With limited lists, there is a tendency to oversend offers (frequency). </li></ul>
  9. 9. 4 C’s of Monetization <ul><li>Customers </li></ul><ul><li>Content </li></ul><ul><li>Connections </li></ul><ul><li>Customization </li></ul>
  10. 10. Monetization Equation <ul><li>(Value + Frequency) * Target = Success </li></ul>
  11. 11. What Have We Learned - Value <ul><li>Deliver something of value </li></ul><ul><li>If you have trouble determining if something is valuable then ask customers. </li></ul><ul><li>I’ve personally witnessed the terms “Special Offers” and “Promotions” used to include a lot of junk. </li></ul><ul><li>If you’re building a list, explain what value you’ll deliver: updates on industry policy, coupons, tips on risk prevention, savings on car rentals, etc. </li></ul>
  12. 12. What We Have Learned - Frequency <ul><li>There is a sweet spot of frequency for most people </li></ul><ul><li>Start with critical questions: </li></ul><ul><ul><li>“ Would users like industry news daily (maybe), weekly (probably), or monthly (too stale)?” </li></ul></ul><ul><ul><li>“ Do users need rental car coupons daily (NO) </li></ul></ul><ul><li>Strike a balance between oversaturation and infrequency </li></ul>
  13. 13. What We Have Learned - Targeting <ul><li>Use the power of information technology to harness targeting </li></ul><ul><li>Missing the target is missing the point: your users take time to read a message. Any non-targeted message consumes user time and destroys your relationship </li></ul><ul><li>Provide value for obtaining personal information. Consider how provides lists, reviews, and purchase recommendations after you’ve created a profile. </li></ul>
  14. 14. Questions ? Joel Kline [email_address]