The document provides an overview of different digital advertising and content monetization models. It discusses how advertising dollars are shifting online and the dominance of Google and Facebook in online advertising. It then examines various business models for generating revenue from digital content like the freemium, custom content, syndication, content farm, and amateur models. The key takeaway is that there are many approaches to monetizing online content but success requires finding the right balance between editorial, advertiser, and consumer needs.

1. A
Digital
Adver-sing
Primer
And
Other
Get
Rich
Slow
(or
Never)
Schemes
for
Journalists
1
February
10,
2011

2. Digital
Content
Between
a
Rock
and
a
Hard
Place
“Informa-on
wants
to
be
free.
It
also
wants
to
be
expensive.”
-­‐
Stewart
Brand
“Adver-sing
sucks.
The
only
thing
that
sucks
more
than
adver-sing
is
paying
for
content.”
-­‐
Some
Kid
(Somewhere)

3. US
Ad
Spend
Dollars
ShiKing,
Market
Declining
§ Ad
spending
grows
and
declines
with
the
overall
economy
§ Spending
is
flat
to
declining
over
the
past
decade
–
but
compe::on
for
these
dollars
is
growing
§ Spend
is
shi<ing
away
from
newspapers,
magazines
and
radio
and
towards
the
Internet
§ This
is
the
primary
pool
from
which
ad-­‐supported
content
ventures
draw
their
revenue
3

4. Behind
the
Numbers
Google
and
Facebook
Rule
§ Search
adver:sing
dominates
the
online
ad
spending
with
nearly
50%
share
§ Social
media
adver:sing
is
growing
most
quickly
and
becoming
the
lion’s
share
of
the
display
ad
market
§ Google
and
Facebook
rule
4

5. 5

6. Who
Wants
What?
6

7. Digital
Marketers
Challenged
to
Think
Like
Publishers
7

8. Digital
Adver-sing
A
Simplified
Landscape
8

9. Digital
Adver-sing
A
Complex
Landscape
9

10. The
ABC’s
Cost
per
Impression
(CPM)
ü Display
and
rich
media
Cost
per
Click
(CPC)
ü Search
Cost
per
Engagement
(CPE)
ü In-­‐text
Cost
per
Performance
(CPP)
ü Leads/name
acquisi:on
10

11. Ad
Rates
What
Drives
Value
in
Digital
Adver-sing
Ad
Custom
Hulu
Network
Facebook
Content
$1
$10
CPM
$25
CPM
$100
CPM
CPM
Abundant
Supply
Untargeted
Scarce
Supply
Poor
Placement
Highly
Targeted
Sta:c
Ad
Formats
Impact
Placement
Innova:ve
Ad
Formats
11

12. Let’s
Look
At
Some
Models
1. The
Freemium
Model
2. The
Whatever
you
Want
Model
3. The
SyndicaBon
Model
4. The
Olive
Garden
Model
5. The
Random
Dudes
Model
6. The
Network
Model
7. The
I’ll
Build
My
Own
Damn
Content
Model
8. The
UBlity
Model
9. The
Content
=
Commerce
Model
10. The
Altruism
Model
12

13. Freemium
Wall
Street
Journal
and
Economist
§ Primarily
ad-­‐revenue
supported
§ Some
“free”
content
§ Premium
access
requires
subscrip:on
and/or
a
la
carte
fees
§ Delivers
highest
quality
content
difficult
to
find
elsewhere
§ Heavy
investment
in
brand,
exclusivity,
technology,
and
adver:sing
formats
§ Takeaway
=
Premium
brands
command
pricing
power
13

14. Have
it
Your
Way
Weather.com
and
UsWeekly
§ Custom
content
development
and
editorial
integra:on
can
drive
ad
rates
and
program
costs
higher
§ Big
brand
adver:sers
are
always
looking
for
more
than
“just
ads”
§ Weather.com
develops
custom
“forecast”
programs
for
the
sole
purpose
of
selling
them
adver:sers
§ UsWeekly
implemented
a
new
editorial
feature
(print
and
online)
based
on
idea
from
Enlighten
§ Takeaway
=
Custom
content
can
be
great
for
revenue
but
you
need
to
find
the
right
balance
between
editorial,
adver-ser
and
consumer
needs
14

15. Syndica-on
All
Music
Guide
and
TechCrunch
§ Content
start-­‐ups
can
generate
revenue
by
going
narrow
and
deep
in
a
par:cular
area
§ All
Music
Guide
expands
revenue
beyond
adver:sing
by
licensing
deep
database
of
content
to
other
publishers
§ TechCrunch
grows
revenue
by
syndica:ng
brand
to
custom
research
and
events
§ Takeaway
=
Look
for
opportuni-es
to
turn
content
depth
in
to
addi-onal
revenue
streams
15

16. Content
Farm
Demand
Media
and
Associated
Content
§ Mountains
of
free
content
(and
you
get
what
you
pay
for…
kind
of
like
the
bo_omless
salad
and
breads:cks
at
Olive
Garden)
§ Content
is
sourced
from
independent
contributors
–
contributors
are
either
paid
for
content
or
share
in
ad
revenue
§ Sophis:cated
search
marke:ng,
demand
forecas:ng
and
auc:on-­‐
based
content
sourcing
§ Content
Farms
produce
commodity
content
at
commodity
prices.
§ Takeaway
=
Use
data
to
ra-onalize
cost
of
content
produc-on
16

17. Random
Dudes
Smosh
Wins
Big
with
Google
and
KraK
§ Smosh.com
makes
humorous
videos
for
teen/tween
audience
§ Par:cipa:on
in
Google’s
AdSense
program
delivers
almost
$1
MM
in
annual
revenue
§ Web
celebrity
status
lands
branded
content
gig
with
Kra<
§ Takeaway
=
Amateurs
with
a
low-­‐
cost
produc-on
model
can
make
money
online
17

18. The
Network
Effect
Gawker
and
Federated
§ Networks
focused
on
niche,
independent
content
have
build
strong
businesses
§ Gawker
Media
owns
a
network
of
8
blogs
focused
tech,
media,
fashion
and
pop
culture
and
reaching
20
MM
readers
§ Federated
Media
has
created
a
powerful
network
of
independent
content
sites
delivering
450
MM
page
views
a
month
§ Takeaway
=
Building
niche
networks
or
“federa-ons”
enable
a
powerful
balance
between
reach/scale
and
independence
18

19. Rouge
Marketers
P&G,
J&J
and
American
Express
§ Given
the
cost
and
distribu:on
dynamics
of
the
web,
marketers
have
explored
crea:ng
their
own
content
des:na:ons
§ P&G
developed
a
des:na:on
for
young
girls
(Being
Girl)
§ J&J
created
a
des:na:on
for
moms
(Baby
Center)
§ American
Express
launched
a
des:na:on
for
business
owners
(OPEN
Forum)
§ Takeaway
=
Adver-sers
have
the
resources
to
build
own
media
but
s-ll
look
for
audience
scale
19

20. Lead
Genera-on
Car
&
Driver
§ Car
&
Driver
sat
on
top
of
a
gold
mine
of
content
but
was
s:ll
gejng
beat
online
by
sites
like
Edmunds
and
KBB
§ Ad
revenue
was
not
enough
§ Developed
“Buyers
Guide”
feature
and
“Get
a
Quote”
feature
to
offer
more
u:lity
to
consumers
and
expand
revenue
steam
§ Takeaway
=
Think
about
ways
you
can
add
u-lity
to
content
20

21. Content
=
Commerce
The
Sugar
Network
&
Kaboodle
§ Social
shopping
is
a
growth
area
–
content
sites
that
blend
social
features,
content
and
eCommerce
§ Kaboodle
supports
key
content
areas
with
blogs
(Dwell,
Indie,
Posh),
community
par:cipa:on
and
retailer
integra:on
§ The
Sugar
Network
extends
content
with
retail
and
social
gaming
integra:on
§ Takeaway
=
Revenue
sharing
on
commerce
can
be
away
to
extend
content
business
21

22. Tip
Jar
Salon.com,
Wikipedia,
NPR
and
More
§ Sadly,
there
can
o<en
be
an
inverse
rela:onship
to
the
caliber
of
journalism
and
the
ability
to
generate
revenue
§ Commercial
ventures
such
as
Salon.com,
open
source
ventures
like
Wikipedia
and
quasi-­‐public
ventures
like
NPR
rely
on
the
“:p
jar”
concept
to
close
funding
gaps
§ Consumer
generosity
has
serious
limits
§ Takeaway
=
If
you
want
to
work
for
-ps,
wai-ng
tables,
tending
bar
or
driving
a
cab
may
be
more
lucra-ve
22

23. A
Par-ng
Thought
Who
Will
Start
The
Next
Small
Thing?
23

24. Thank
You!
Tom
Beck
President
Enlighten
734.929.1924
tbeck@enlighten.com
24