For the past few days, I’ve been working on an online media plan for a client. It has been almost 5 years since I had actively been involved in making media plans. I realize nothing much has changed – then & now…
Media planning, we have been made to believe, is a mixture of art + science. What the ratio of the secret mixture is like the Coke recipe formula – everyone knows it is there, but no-one is aware what exactly it is.
5 years back, media planning was mostly about impressions (CPM), Clicks (CPC), and Leads…. The ROI’s were mostly about Click through Rates (CTRs) and effective CPCs… It still is.
5 years back, the tags and weight of the creative were an issue with most publishers… it still is. A normal flash file of 25KB to 35KB is what most of the publisher accepts. It seems like the broadband penetration has done nothing good to the quality of ads that can be served.
5 years back most ad serving tools reported the performance, basis the type of inventory, time, geo, etc. it still does the same, mostly.
5 years back campaign optimization was mostly based on ad inventory placement, frequency capping, creative refresh, or value adds…. It still is
5 years back most innovations were limited to roadblocks, interstitials, shoshkeles, page take overs… It still is
5 years back, search marketing (Google PPC campaign) played an important role in optimizing the performance of campaign… it still does
They say 6 months is too long in digital marketing… but, when it comes to digital media planning, 5 years does not seem like a long period. Well, to be fair, the use of 3rd party reports have increased – ComScore and Vizisense gives the media planner a sense of the media consumption amongst the TG. Things like audience duplicity, is all important information that goes into media planning…
However, the media planning formula hasn’t changed much… Maybe, the ratio would have changed a bit… if previously, it was 75% art and 25% science… now it would be 70% art and 30% science
Cheers
Santosh
Tampilkan postingan dengan label Online advertising. Tampilkan semua postingan
Tampilkan postingan dengan label Online advertising. Tampilkan semua postingan
Minggu, 14 Agustus 2011
Digital Media Planning – Then and Now
For the past few days, I’ve been working on an online media plan for a client. It has been almost 5 years since I had actively been involved in making media plans. I realize nothing much has changed – then & now…
Media planning, we have been made to believe, is a mixture of art + science. What the ratio of the secret mixture is like the Coke recipe formula – everyone knows it is there, but no-one is aware what exactly it is.
5 years back, media planning was mostly about impressions (CPM), Clicks (CPC), and Leads…. The ROI’s were mostly about Click through Rates (CTRs) and effective CPCs… It still is.
5 years back, the tags and weight of the creative were an issue with most publishers… it still is. A normal flash file of 25KB to 35KB is what most of the publisher accepts. It seems like the broadband penetration has done nothing good to the quality of ads that can be served.
5 years back most ad serving tools reported the performance, basis the type of inventory, time, geo, etc. it still does the same, mostly.
5 years back campaign optimization was mostly based on ad inventory placement, frequency capping, creative refresh, or value adds…. It still is
5 years back most innovations were limited to roadblocks, interstitials, shoshkeles, page take overs… It still is
5 years back, search marketing (Google PPC campaign) played an important role in optimizing the performance of campaign… it still does
They say 6 months is too long in digital marketing… but, when it comes to digital media planning, 5 years does not seem like a long period. Well, to be fair, the use of 3rd party reports have increased – ComScore and Vizisense gives the media planner a sense of the media consumption amongst the TG. Things like audience duplicity, is all important information that goes into media planning…
However, the media planning formula hasn’t changed much… Maybe, the ratio would have changed a bit… if previously, it was 75% art and 25% science… now it would be 70% art and 30% science
Cheers
Santosh
Media planning, we have been made to believe, is a mixture of art + science. What the ratio of the secret mixture is like the Coke recipe formula – everyone knows it is there, but no-one is aware what exactly it is.
5 years back, media planning was mostly about impressions (CPM), Clicks (CPC), and Leads…. The ROI’s were mostly about Click through Rates (CTRs) and effective CPCs… It still is.
5 years back, the tags and weight of the creative were an issue with most publishers… it still is. A normal flash file of 25KB to 35KB is what most of the publisher accepts. It seems like the broadband penetration has done nothing good to the quality of ads that can be served.
5 years back most ad serving tools reported the performance, basis the type of inventory, time, geo, etc. it still does the same, mostly.
5 years back campaign optimization was mostly based on ad inventory placement, frequency capping, creative refresh, or value adds…. It still is
5 years back most innovations were limited to roadblocks, interstitials, shoshkeles, page take overs… It still is
5 years back, search marketing (Google PPC campaign) played an important role in optimizing the performance of campaign… it still does
They say 6 months is too long in digital marketing… but, when it comes to digital media planning, 5 years does not seem like a long period. Well, to be fair, the use of 3rd party reports have increased – ComScore and Vizisense gives the media planner a sense of the media consumption amongst the TG. Things like audience duplicity, is all important information that goes into media planning…
However, the media planning formula hasn’t changed much… Maybe, the ratio would have changed a bit… if previously, it was 75% art and 25% science… now it would be 70% art and 30% science
Cheers
Santosh
Digital Media Planning – Then and Now
For the past few days, I’ve been working on an online media plan for a client. It has been almost 5 years since I had actively been involved in making media plans. I realize nothing much has changed – then & now…
Media planning, we have been made to believe, is a mixture of art + science. What the ratio of the secret mixture is like the Coke recipe formula – everyone knows it is there, but no-one is aware what exactly it is.
5 years back, media planning was mostly about impressions (CPM), Clicks (CPC), and Leads…. The ROI’s were mostly about Click through Rates (CTRs) and effective CPCs… It still is.
5 years back, the tags and weight of the creative were an issue with most publishers… it still is. A normal flash file of 25KB to 35KB is what most of the publisher accepts. It seems like the broadband penetration has done nothing good to the quality of ads that can be served.
5 years back most ad serving tools reported the performance, basis the type of inventory, time, geo, etc. it still does the same, mostly.
5 years back campaign optimization was mostly based on ad inventory placement, frequency capping, creative refresh, or value adds…. It still is
5 years back most innovations were limited to roadblocks, interstitials, shoshkeles, page take overs… It still is
5 years back, search marketing (Google PPC campaign) played an important role in optimizing the performance of campaign… it still does
They say 6 months is too long in digital marketing… but, when it comes to digital media planning, 5 years does not seem like a long period. Well, to be fair, the use of 3rd party reports have increased – ComScore and Vizisense gives the media planner a sense of the media consumption amongst the TG. Things like audience duplicity, is all important information that goes into media planning…
However, the media planning formula hasn’t changed much… Maybe, the ratio would have changed a bit… if previously, it was 75% art and 25% science… now it would be 70% art and 30% science
Cheers
Santosh
Media planning, we have been made to believe, is a mixture of art + science. What the ratio of the secret mixture is like the Coke recipe formula – everyone knows it is there, but no-one is aware what exactly it is.
5 years back, media planning was mostly about impressions (CPM), Clicks (CPC), and Leads…. The ROI’s were mostly about Click through Rates (CTRs) and effective CPCs… It still is.
5 years back, the tags and weight of the creative were an issue with most publishers… it still is. A normal flash file of 25KB to 35KB is what most of the publisher accepts. It seems like the broadband penetration has done nothing good to the quality of ads that can be served.
5 years back most ad serving tools reported the performance, basis the type of inventory, time, geo, etc. it still does the same, mostly.
5 years back campaign optimization was mostly based on ad inventory placement, frequency capping, creative refresh, or value adds…. It still is
5 years back most innovations were limited to roadblocks, interstitials, shoshkeles, page take overs… It still is
5 years back, search marketing (Google PPC campaign) played an important role in optimizing the performance of campaign… it still does
They say 6 months is too long in digital marketing… but, when it comes to digital media planning, 5 years does not seem like a long period. Well, to be fair, the use of 3rd party reports have increased – ComScore and Vizisense gives the media planner a sense of the media consumption amongst the TG. Things like audience duplicity, is all important information that goes into media planning…
However, the media planning formula hasn’t changed much… Maybe, the ratio would have changed a bit… if previously, it was 75% art and 25% science… now it would be 70% art and 30% science
Cheers
Santosh
Senin, 25 Mei 2009
What ails Internet advertising in India?
Some random thoughts on what ails Internet advertising in India -
1) Internet advertising always comes as an after thought in client's campaign
2) few publishers control most of the traffic and ad revenue
3) Always have been sold on 'performance' parameter... branding was never considered as an option
4) In India Internet has been synonymous with 'Free' - even the marketers demand it
5) Penetration has been a perennial problem
6) cost per reach is still higher compared to other mediums
7) Tracking and optimizing the campaign is expensive... and client's mostly are not willing to invest or pay for the same
8) No standards - in rates, measurements - varies from publisher to publisher
9) success stories of internet advertising are by and far few & rare
10) Most restaurants (digital ad agencies) believes in the presentation (creative) not the cooking (science/strategy) of what they serve
10.a) Most of the online campaigns are half cooked dishes served to the client... and many clients complain about indigestion after their campaign :)
11) Most (clients and agencies) believe "what is West, is Best"
12) Only a few good men :)
Any more....add on...
Cheers
Santosh
1) Internet advertising always comes as an after thought in client's campaign
2) few publishers control most of the traffic and ad revenue
3) Always have been sold on 'performance' parameter... branding was never considered as an option
4) In India Internet has been synonymous with 'Free' - even the marketers demand it
5) Penetration has been a perennial problem
6) cost per reach is still higher compared to other mediums
7) Tracking and optimizing the campaign is expensive... and client's mostly are not willing to invest or pay for the same
8) No standards - in rates, measurements - varies from publisher to publisher
9) success stories of internet advertising are by and far few & rare
10) Most restaurants (digital ad agencies) believes in the presentation (creative) not the cooking (science/strategy) of what they serve
10.a) Most of the online campaigns are half cooked dishes served to the client... and many clients complain about indigestion after their campaign :)
11) Most (clients and agencies) believe "what is West, is Best"
12) Only a few good men :)
Any more....add on...
Cheers
Santosh
What ails Internet advertising in India?
Some random thoughts on what ails Internet advertising in India -
1) Internet advertising always comes as an after thought in client's campaign
2) few publishers control most of the traffic and ad revenue
3) Always have been sold on 'performance' parameter... branding was never considered as an option
4) In India Internet has been synonymous with 'Free' - even the marketers demand it
5) Penetration has been a perennial problem
6) cost per reach is still higher compared to other mediums
7) Tracking and optimizing the campaign is expensive... and client's mostly are not willing to invest or pay for the same
8) No standards - in rates, measurements - varies from publisher to publisher
9) success stories of internet advertising are by and far few & rare
10) Most restaurants (digital ad agencies) believes in the presentation (creative) not the cooking (science/strategy) of what they serve
10.a) Most of the online campaigns are half cooked dishes served to the client... and many clients complain about indigestion after their campaign :)
11) Most (clients and agencies) believe "what is West, is Best"
12) Only a few good men :)
Any more....add on...
Cheers
Santosh
1) Internet advertising always comes as an after thought in client's campaign
2) few publishers control most of the traffic and ad revenue
3) Always have been sold on 'performance' parameter... branding was never considered as an option
4) In India Internet has been synonymous with 'Free' - even the marketers demand it
5) Penetration has been a perennial problem
6) cost per reach is still higher compared to other mediums
7) Tracking and optimizing the campaign is expensive... and client's mostly are not willing to invest or pay for the same
8) No standards - in rates, measurements - varies from publisher to publisher
9) success stories of internet advertising are by and far few & rare
10) Most restaurants (digital ad agencies) believes in the presentation (creative) not the cooking (science/strategy) of what they serve
10.a) Most of the online campaigns are half cooked dishes served to the client... and many clients complain about indigestion after their campaign :)
11) Most (clients and agencies) believe "what is West, is Best"
12) Only a few good men :)
Any more....add on...
Cheers
Santosh
What ails Internet advertising in India?
Some random thoughts on what ails Internet advertising in India -
1) Internet advertising always comes as an after thought in client's campaign
2) few publishers control most of the traffic and ad revenue
3) Always have been sold on 'performance' parameter... branding was never considered as an option
4) In India Internet has been synonymous with 'Free' - even the marketers demand it
5) Penetration has been a perennial problem
6) cost per reach is still higher compared to other mediums
7) Tracking and optimizing the campaign is expensive... and client's mostly are not willing to invest or pay for the same
8) No standards - in rates, measurements - varies from publisher to publisher
9) success stories of internet advertising are by and far few & rare
10) Most restaurants (digital ad agencies) believes in the presentation (creative) not the cooking (science/strategy) of what they serve
10.a) Most of the online campaigns are half cooked dishes served to the client... and many clients complain about indigestion after their campaign :)
11) Most (clients and agencies) believe "what is West, is Best"
12) Only a few good men :)
Any more....add on...
Cheers
Santosh
1) Internet advertising always comes as an after thought in client's campaign
2) few publishers control most of the traffic and ad revenue
3) Always have been sold on 'performance' parameter... branding was never considered as an option
4) In India Internet has been synonymous with 'Free' - even the marketers demand it
5) Penetration has been a perennial problem
6) cost per reach is still higher compared to other mediums
7) Tracking and optimizing the campaign is expensive... and client's mostly are not willing to invest or pay for the same
8) No standards - in rates, measurements - varies from publisher to publisher
9) success stories of internet advertising are by and far few & rare
10) Most restaurants (digital ad agencies) believes in the presentation (creative) not the cooking (science/strategy) of what they serve
10.a) Most of the online campaigns are half cooked dishes served to the client... and many clients complain about indigestion after their campaign :)
11) Most (clients and agencies) believe "what is West, is Best"
12) Only a few good men :)
Any more....add on...
Cheers
Santosh
Rabu, 21 Januari 2009
Sign of things to come
techTribe Says Referral Job Site Not Working Out, Looking For A Buyer
techTribe, backed by Canaan Partners, is now exploring options like finding a strategic partner or a buyer.
The business model for online recruitment based on referrals is not “working out”, techTribe CEO and Founder Rohit Agarwal admitted in an interview to VCCircle. The company is now exploring options like a strategic partner or a buyer.
San Francisco and New Delhi-based techTribe was founded by serial entrepreneur Rohit Agarwal, in 2006. Before starting techTribes, Agarwal was co-founder and VP of marketing and business development at Webify Solutions, which got acquired by IBM in July 2006.
The company hoped to make money by becoming a referral job portal. It had received an undisclosed amount of funding from Canaan Partners, US-based Miven Venture Partners and The Entrepreneur Funds in 2007.
“The model for referral recruitment as we had planned is not working out,” said Agarwal.
Read more
Will we be looking at the second bubble burst now? I am skeptical on the online players who entered the market in the past couple of years, on VC funding exclusively. It would be especially worrying times for players who are focusing on Social Media/Networking sites, wherein they do not have a proper revenue model, nor the critical mass of users..
- Santosh
Sign of things to come
techTribe Says Referral Job Site Not Working Out, Looking For A Buyer
techTribe, backed by Canaan Partners, is now exploring options like finding a strategic partner or a buyer.
The business model for online recruitment based on referrals is not “working out”, techTribe CEO and Founder Rohit Agarwal admitted in an interview to VCCircle. The company is now exploring options like a strategic partner or a buyer.
San Francisco and New Delhi-based techTribe was founded by serial entrepreneur Rohit Agarwal, in 2006. Before starting techTribes, Agarwal was co-founder and VP of marketing and business development at Webify Solutions, which got acquired by IBM in July 2006.
The company hoped to make money by becoming a referral job portal. It had received an undisclosed amount of funding from Canaan Partners, US-based Miven Venture Partners and The Entrepreneur Funds in 2007.
“The model for referral recruitment as we had planned is not working out,” said Agarwal.
Read more
Will we be looking at the second bubble burst now? I am skeptical on the online players who entered the market in the past couple of years, on VC funding exclusively. It would be especially worrying times for players who are focusing on Social Media/Networking sites, wherein they do not have a proper revenue model, nor the critical mass of users..
- Santosh
Sign of things to come
techTribe Says Referral Job Site Not Working Out, Looking For A Buyer
techTribe, backed by Canaan Partners, is now exploring options like finding a strategic partner or a buyer.
The business model for online recruitment based on referrals is not “working out”, techTribe CEO and Founder Rohit Agarwal admitted in an interview to VCCircle. The company is now exploring options like a strategic partner or a buyer.
San Francisco and New Delhi-based techTribe was founded by serial entrepreneur Rohit Agarwal, in 2006. Before starting techTribes, Agarwal was co-founder and VP of marketing and business development at Webify Solutions, which got acquired by IBM in July 2006.
The company hoped to make money by becoming a referral job portal. It had received an undisclosed amount of funding from Canaan Partners, US-based Miven Venture Partners and The Entrepreneur Funds in 2007.
“The model for referral recruitment as we had planned is not working out,” said Agarwal.
Read more
Will we be looking at the second bubble burst now? I am skeptical on the online players who entered the market in the past couple of years, on VC funding exclusively. It would be especially worrying times for players who are focusing on Social Media/Networking sites, wherein they do not have a proper revenue model, nor the critical mass of users..
- Santosh
Rabu, 29 Oktober 2008
What makes Web shoppers click “Buy” or “Bye”?
There’s big money being spent in the Internet marketplace. Last year, more than $175 billion passed through the Internet in the form of airline tickets, insurance premiums, online bill payments and paperback books, among thousands of other items. But for many consumers, at some point in the process, the online transaction came to a screeching halt. Perhaps, the customer became frustrated with the typing in their shipping information. Maybe the person got cold feet just as it came time to type in a credit card number. Maybe the customer was never able to find the right product in a vast catalog of products.
TeaLeaf, a San Francisco startup that analyzes online consumer behavior, has released a study that looks closely at e-commerce stop points - the place in the online process where a potential customer “walks away” from the sale. Clearly, TeaLeaf has reason to commission such a study - but it was interesting that the company looked beyond the stop-points of a sale - which is its sweet spot of data. Instead, it broadened its research to dive deeper into behavioral patterns - not just why they stopped but what they did after the lost sale. The survey found that 58 percent of consumers who experienced a problem with an online transaction said they would be less likely to buy from the company offline.
That’s a big number but an even bigger - and scarier - number is the 84 percent who have problems with a transaction are likely to share that experience with someone - think Yelp, Yahoo message boards, Facebook and Epinions.
This is valuable information, right? After all, if you’re running an e-commerce business, you probably want to know that, after Web site security, ease of completing the transaction is what’s most important to customers, followed by ease of navigation. According to TeaLeaf, the biggest problem experienced by customers
is difficulty with navigation.
The company ought to know - it tracks consumer behavior for some of the biggest names in online sales: walmart.com, hotels.com, esurance, priceline.com and others.
But more important than knowing what’s important to customers, isn’t is just as important to know what’s wrong with your e-commerce site? It might be time for a re-design.
The actual article appeared here
TeaLeaf, a San Francisco startup that analyzes online consumer behavior, has released a study that looks closely at e-commerce stop points - the place in the online process where a potential customer “walks away” from the sale. Clearly, TeaLeaf has reason to commission such a study - but it was interesting that the company looked beyond the stop-points of a sale - which is its sweet spot of data. Instead, it broadened its research to dive deeper into behavioral patterns - not just why they stopped but what they did after the lost sale. The survey found that 58 percent of consumers who experienced a problem with an online transaction said they would be less likely to buy from the company offline.
That’s a big number but an even bigger - and scarier - number is the 84 percent who have problems with a transaction are likely to share that experience with someone - think Yelp, Yahoo message boards, Facebook and Epinions.
This is valuable information, right? After all, if you’re running an e-commerce business, you probably want to know that, after Web site security, ease of completing the transaction is what’s most important to customers, followed by ease of navigation. According to TeaLeaf, the biggest problem experienced by customers
is difficulty with navigation.
The company ought to know - it tracks consumer behavior for some of the biggest names in online sales: walmart.com, hotels.com, esurance, priceline.com and others.
But more important than knowing what’s important to customers, isn’t is just as important to know what’s wrong with your e-commerce site? It might be time for a re-design.
The actual article appeared here
What makes Web shoppers click “Buy” or “Bye”?
There’s big money being spent in the Internet marketplace. Last year, more than $175 billion passed through the Internet in the form of airline tickets, insurance premiums, online bill payments and paperback books, among thousands of other items. But for many consumers, at some point in the process, the online transaction came to a screeching halt. Perhaps, the customer became frustrated with the typing in their shipping information. Maybe the person got cold feet just as it came time to type in a credit card number. Maybe the customer was never able to find the right product in a vast catalog of products.
TeaLeaf, a San Francisco startup that analyzes online consumer behavior, has released a study that looks closely at e-commerce stop points - the place in the online process where a potential customer “walks away” from the sale. Clearly, TeaLeaf has reason to commission such a study - but it was interesting that the company looked beyond the stop-points of a sale - which is its sweet spot of data. Instead, it broadened its research to dive deeper into behavioral patterns - not just why they stopped but what they did after the lost sale. The survey found that 58 percent of consumers who experienced a problem with an online transaction said they would be less likely to buy from the company offline.
That’s a big number but an even bigger - and scarier - number is the 84 percent who have problems with a transaction are likely to share that experience with someone - think Yelp, Yahoo message boards, Facebook and Epinions.
This is valuable information, right? After all, if you’re running an e-commerce business, you probably want to know that, after Web site security, ease of completing the transaction is what’s most important to customers, followed by ease of navigation. According to TeaLeaf, the biggest problem experienced by customers
is difficulty with navigation.
The company ought to know - it tracks consumer behavior for some of the biggest names in online sales: walmart.com, hotels.com, esurance, priceline.com and others.
But more important than knowing what’s important to customers, isn’t is just as important to know what’s wrong with your e-commerce site? It might be time for a re-design.
The actual article appeared here
TeaLeaf, a San Francisco startup that analyzes online consumer behavior, has released a study that looks closely at e-commerce stop points - the place in the online process where a potential customer “walks away” from the sale. Clearly, TeaLeaf has reason to commission such a study - but it was interesting that the company looked beyond the stop-points of a sale - which is its sweet spot of data. Instead, it broadened its research to dive deeper into behavioral patterns - not just why they stopped but what they did after the lost sale. The survey found that 58 percent of consumers who experienced a problem with an online transaction said they would be less likely to buy from the company offline.
That’s a big number but an even bigger - and scarier - number is the 84 percent who have problems with a transaction are likely to share that experience with someone - think Yelp, Yahoo message boards, Facebook and Epinions.
This is valuable information, right? After all, if you’re running an e-commerce business, you probably want to know that, after Web site security, ease of completing the transaction is what’s most important to customers, followed by ease of navigation. According to TeaLeaf, the biggest problem experienced by customers
is difficulty with navigation.
The company ought to know - it tracks consumer behavior for some of the biggest names in online sales: walmart.com, hotels.com, esurance, priceline.com and others.
But more important than knowing what’s important to customers, isn’t is just as important to know what’s wrong with your e-commerce site? It might be time for a re-design.
The actual article appeared here
What makes Web shoppers click “Buy” or “Bye”?
There’s big money being spent in the Internet marketplace. Last year, more than $175 billion passed through the Internet in the form of airline tickets, insurance premiums, online bill payments and paperback books, among thousands of other items. But for many consumers, at some point in the process, the online transaction came to a screeching halt. Perhaps, the customer became frustrated with the typing in their shipping information. Maybe the person got cold feet just as it came time to type in a credit card number. Maybe the customer was never able to find the right product in a vast catalog of products.
TeaLeaf, a San Francisco startup that analyzes online consumer behavior, has released a study that looks closely at e-commerce stop points - the place in the online process where a potential customer “walks away” from the sale. Clearly, TeaLeaf has reason to commission such a study - but it was interesting that the company looked beyond the stop-points of a sale - which is its sweet spot of data. Instead, it broadened its research to dive deeper into behavioral patterns - not just why they stopped but what they did after the lost sale. The survey found that 58 percent of consumers who experienced a problem with an online transaction said they would be less likely to buy from the company offline.
That’s a big number but an even bigger - and scarier - number is the 84 percent who have problems with a transaction are likely to share that experience with someone - think Yelp, Yahoo message boards, Facebook and Epinions.
This is valuable information, right? After all, if you’re running an e-commerce business, you probably want to know that, after Web site security, ease of completing the transaction is what’s most important to customers, followed by ease of navigation. According to TeaLeaf, the biggest problem experienced by customers
is difficulty with navigation.
The company ought to know - it tracks consumer behavior for some of the biggest names in online sales: walmart.com, hotels.com, esurance, priceline.com and others.
But more important than knowing what’s important to customers, isn’t is just as important to know what’s wrong with your e-commerce site? It might be time for a re-design.
The actual article appeared here
TeaLeaf, a San Francisco startup that analyzes online consumer behavior, has released a study that looks closely at e-commerce stop points - the place in the online process where a potential customer “walks away” from the sale. Clearly, TeaLeaf has reason to commission such a study - but it was interesting that the company looked beyond the stop-points of a sale - which is its sweet spot of data. Instead, it broadened its research to dive deeper into behavioral patterns - not just why they stopped but what they did after the lost sale. The survey found that 58 percent of consumers who experienced a problem with an online transaction said they would be less likely to buy from the company offline.
That’s a big number but an even bigger - and scarier - number is the 84 percent who have problems with a transaction are likely to share that experience with someone - think Yelp, Yahoo message boards, Facebook and Epinions.
This is valuable information, right? After all, if you’re running an e-commerce business, you probably want to know that, after Web site security, ease of completing the transaction is what’s most important to customers, followed by ease of navigation. According to TeaLeaf, the biggest problem experienced by customers
is difficulty with navigation.
The company ought to know - it tracks consumer behavior for some of the biggest names in online sales: walmart.com, hotels.com, esurance, priceline.com and others.
But more important than knowing what’s important to customers, isn’t is just as important to know what’s wrong with your e-commerce site? It might be time for a re-design.
The actual article appeared here
Rabu, 28 November 2007
10 Lessons for Marketers Using Viral Videos
In this Adage article, Kevin Nalts, explains how you can help your brand thrive online.
Online video is changing the way we market, and it requires skill sets they don't teach in business school (at least they didn't a decade ago, but now I'm dating myself). On one hand we have marketers believing their "unique selling proposition" is as interesting as the "Numa Numa" kid. On the other, we have today's ADHD-prone video viewers demanding short entertainment whether it is promotional or not. So the rules are fairly simple: Keep your promotion short, interesting, edgy and give us a surprise that makes us want to forward your clip. After all, it's not a "viral video" if nobody wants to share it.
Lesson one: Tap into the video community
We online-video creators and watchers are a community that's not shrinking and not growing slowly. Your customers are among us unless you're targeting the maybe 10%-20% of people that haven't watched an online video. We'll watch your advertising and even spread it for you -- unless you promote gratuitously, insult us or, worse yet, bore us. Some of us amateurs have built audiences, and when they entertain or market, each video is guaranteed to get 10,000-100,000 views. That's not a huge number relative to TV's reach, but try getting that many views with a video you upload yourself to YouTube. And here's the best kept secret. Some of us will promote a brand for a modest fee. While some YouTubers are certifiably nuts, others can be your spokesperson and a way to connect with large audiences. And some video creators will make a promotional video for less than your agency bills you for that lunch meeting; others will do it for free product samples. Although the scalability of these programs is currently limited (unless you create one of the extremely rare viral sensations), the return on investment is often better than paid search.
Lesson two: Quality of the video is not what determines its popularity
My most popular videos are far from my best. Almost every day my videos rank in the "highest rated" section of the comedy category, and yet I'm far from the funniest creator on YouTube. When I featured a 14-year-old using a fart machine in a public library, I never dreamed "Farting in Public" would get nearly 4 million views. Though popular videos tend to be short, funny and shocking, there are other variables that have as much influence on getting the video seen. Many second and third-tier sites will give entertaining sponsored videos preferred placement for relatively small amounts of media spend. Got $10,000? Use the money to help get a clever sponsored video seen instead of pouring it into a black hole of unseen banner ads.
Lesson three: A video of a dog skateboarding can get 3 million views, but that doesn't mean your commercial will
While some clever advertisements (with surprise endings, humor or sex) do become viral, most ads don't translate online, and it's a rare promotional video that gets millions of views. The smarter play is to sponsor popular video creators to create entertainment with product placement. This requires brands to let go of overt marketing messages and trust the instincts of creators to please their audiences.
Lesson four: Online-video marketing is not just about contests
While contests are pervasive tools to engage online video creators and audiences, they're just one tactic of many. Smarter brands are connecting directly with prominent viral video creators. These folks have huge subscriber bases and fans, and are often delighted to get paid relatively small amounts for a sponsored video. I'm perplexed why some of the "most subscribed" video creators on YouTube don't have sponsors breaking their doors down. I have seen brands pay well into the six figures for videos that get fewer views than some of these creators get each time they post a video.
Lesson five: "Tagging" your video with keywords doesn't get them seen
Keywords may get your video to rank in searches, but there are far more effective ways to get your videos seen, such as title and thumbnail. A short funny video with a surprise ending will be exponentially more viral. That said, well-tagged videos can help brands in search. Do a Google search for "Healies" (a misspelling of the shoe called "Heely's) and you'll find my "Poor Man's Healies" videos near the top of the results page. Meanwhile, Zappos and Dick's Sporting Goods are bidding against the keyword and paying for each click.
Lesson six: Consumers might see your video, but that doesn't mean they'll visit your site and buy
I learned this the hard way. The conversion rate from viewing a video to visiting your site is not much better than the low-single digits of direct response. That means you either need metrics for the "worth" of a view or hope your video is seen millions of times so the direct-response metrics aren't embarrassing.
Lesson seven: Paying for a well-produced video won't necessarily increase your brand's ROI
A $250,000 production cost makes a return on investment difficult. Since fewer than 2% of people will visit a website after a video, a good ROI requires a low production cost and the highest number of views possible.
Lesson eight: Not all video portals are created equal
The vast majority of online viewing occurs on YouTube. Putting your videos on a bloated-product.com site is the online equivalent to running television commercials on a kiosk hidden in an abandoned cemetery.
Lesson nine: You may be a conservative organization, but don't let that keep you from this medium
Conservative legal and public-relations policies have prevented many marketers from entering into a dialogue with prominent video creators. Most marketers have seen at least a few videos that mention their own brands or those of competitors, but some brands remain squeamish about something as simple as an online-video contest. Doritos, Dove, Heinz and Mr. Clean were just a few of the brands that invited consumers to submit to contests to win cash, prizes, fame or a chance to be on TV.
Some brands fear running a contest because they don't want to be ridiculed. But brands will be bashed by disgruntled consumers via online video whether or not their companies dabble in the space. Quietly watching from the sidelines is no insurance policy and certainly won't grow revenue. So refraining from online video in fear is no smarter than those companies that were afraid to market online back in 1998.
Lesson 10: This medium will become measurable
As it matures, it will become as measurable as search. But for the time being, the most controllable variables are cost of production and total views. I've had sponsors beg for their URL to appear pervasively through a video, but that tends to alienate viewers and reduce the total views. And the rate of viewers that visit the website is a difficult variable to change (unless there's a provocative reason for the viewer to interrupt their online-viewing experience).
Online video is changing the way we market, and it requires skill sets they don't teach in business school (at least they didn't a decade ago, but now I'm dating myself). On one hand we have marketers believing their "unique selling proposition" is as interesting as the "Numa Numa" kid. On the other, we have today's ADHD-prone video viewers demanding short entertainment whether it is promotional or not. So the rules are fairly simple: Keep your promotion short, interesting, edgy and give us a surprise that makes us want to forward your clip. After all, it's not a "viral video" if nobody wants to share it.
Lesson one: Tap into the video community
We online-video creators and watchers are a community that's not shrinking and not growing slowly. Your customers are among us unless you're targeting the maybe 10%-20% of people that haven't watched an online video. We'll watch your advertising and even spread it for you -- unless you promote gratuitously, insult us or, worse yet, bore us. Some of us amateurs have built audiences, and when they entertain or market, each video is guaranteed to get 10,000-100,000 views. That's not a huge number relative to TV's reach, but try getting that many views with a video you upload yourself to YouTube. And here's the best kept secret. Some of us will promote a brand for a modest fee. While some YouTubers are certifiably nuts, others can be your spokesperson and a way to connect with large audiences. And some video creators will make a promotional video for less than your agency bills you for that lunch meeting; others will do it for free product samples. Although the scalability of these programs is currently limited (unless you create one of the extremely rare viral sensations), the return on investment is often better than paid search.
Lesson two: Quality of the video is not what determines its popularity
My most popular videos are far from my best. Almost every day my videos rank in the "highest rated" section of the comedy category, and yet I'm far from the funniest creator on YouTube. When I featured a 14-year-old using a fart machine in a public library, I never dreamed "Farting in Public" would get nearly 4 million views. Though popular videos tend to be short, funny and shocking, there are other variables that have as much influence on getting the video seen. Many second and third-tier sites will give entertaining sponsored videos preferred placement for relatively small amounts of media spend. Got $10,000? Use the money to help get a clever sponsored video seen instead of pouring it into a black hole of unseen banner ads.
Lesson three: A video of a dog skateboarding can get 3 million views, but that doesn't mean your commercial will
While some clever advertisements (with surprise endings, humor or sex) do become viral, most ads don't translate online, and it's a rare promotional video that gets millions of views. The smarter play is to sponsor popular video creators to create entertainment with product placement. This requires brands to let go of overt marketing messages and trust the instincts of creators to please their audiences.
Lesson four: Online-video marketing is not just about contests
While contests are pervasive tools to engage online video creators and audiences, they're just one tactic of many. Smarter brands are connecting directly with prominent viral video creators. These folks have huge subscriber bases and fans, and are often delighted to get paid relatively small amounts for a sponsored video. I'm perplexed why some of the "most subscribed" video creators on YouTube don't have sponsors breaking their doors down. I have seen brands pay well into the six figures for videos that get fewer views than some of these creators get each time they post a video.
Lesson five: "Tagging" your video with keywords doesn't get them seen
Keywords may get your video to rank in searches, but there are far more effective ways to get your videos seen, such as title and thumbnail. A short funny video with a surprise ending will be exponentially more viral. That said, well-tagged videos can help brands in search. Do a Google search for "Healies" (a misspelling of the shoe called "Heely's) and you'll find my "Poor Man's Healies" videos near the top of the results page. Meanwhile, Zappos and Dick's Sporting Goods are bidding against the keyword and paying for each click.
Lesson six: Consumers might see your video, but that doesn't mean they'll visit your site and buy
I learned this the hard way. The conversion rate from viewing a video to visiting your site is not much better than the low-single digits of direct response. That means you either need metrics for the "worth" of a view or hope your video is seen millions of times so the direct-response metrics aren't embarrassing.
Lesson seven: Paying for a well-produced video won't necessarily increase your brand's ROI
A $250,000 production cost makes a return on investment difficult. Since fewer than 2% of people will visit a website after a video, a good ROI requires a low production cost and the highest number of views possible.
Lesson eight: Not all video portals are created equal
The vast majority of online viewing occurs on YouTube. Putting your videos on a bloated-product.com site is the online equivalent to running television commercials on a kiosk hidden in an abandoned cemetery.
Lesson nine: You may be a conservative organization, but don't let that keep you from this medium
Conservative legal and public-relations policies have prevented many marketers from entering into a dialogue with prominent video creators. Most marketers have seen at least a few videos that mention their own brands or those of competitors, but some brands remain squeamish about something as simple as an online-video contest. Doritos, Dove, Heinz and Mr. Clean were just a few of the brands that invited consumers to submit to contests to win cash, prizes, fame or a chance to be on TV.
Some brands fear running a contest because they don't want to be ridiculed. But brands will be bashed by disgruntled consumers via online video whether or not their companies dabble in the space. Quietly watching from the sidelines is no insurance policy and certainly won't grow revenue. So refraining from online video in fear is no smarter than those companies that were afraid to market online back in 1998.
Lesson 10: This medium will become measurable
As it matures, it will become as measurable as search. But for the time being, the most controllable variables are cost of production and total views. I've had sponsors beg for their URL to appear pervasively through a video, but that tends to alienate viewers and reduce the total views. And the rate of viewers that visit the website is a difficult variable to change (unless there's a provocative reason for the viewer to interrupt their online-viewing experience).
10 Lessons for Marketers Using Viral Videos
In this Adage article, Kevin Nalts, explains how you can help your brand thrive online.
Online video is changing the way we market, and it requires skill sets they don't teach in business school (at least they didn't a decade ago, but now I'm dating myself). On one hand we have marketers believing their "unique selling proposition" is as interesting as the "Numa Numa" kid. On the other, we have today's ADHD-prone video viewers demanding short entertainment whether it is promotional or not. So the rules are fairly simple: Keep your promotion short, interesting, edgy and give us a surprise that makes us want to forward your clip. After all, it's not a "viral video" if nobody wants to share it.
Lesson one: Tap into the video community
We online-video creators and watchers are a community that's not shrinking and not growing slowly. Your customers are among us unless you're targeting the maybe 10%-20% of people that haven't watched an online video. We'll watch your advertising and even spread it for you -- unless you promote gratuitously, insult us or, worse yet, bore us. Some of us amateurs have built audiences, and when they entertain or market, each video is guaranteed to get 10,000-100,000 views. That's not a huge number relative to TV's reach, but try getting that many views with a video you upload yourself to YouTube. And here's the best kept secret. Some of us will promote a brand for a modest fee. While some YouTubers are certifiably nuts, others can be your spokesperson and a way to connect with large audiences. And some video creators will make a promotional video for less than your agency bills you for that lunch meeting; others will do it for free product samples. Although the scalability of these programs is currently limited (unless you create one of the extremely rare viral sensations), the return on investment is often better than paid search.
Lesson two: Quality of the video is not what determines its popularity
My most popular videos are far from my best. Almost every day my videos rank in the "highest rated" section of the comedy category, and yet I'm far from the funniest creator on YouTube. When I featured a 14-year-old using a fart machine in a public library, I never dreamed "Farting in Public" would get nearly 4 million views. Though popular videos tend to be short, funny and shocking, there are other variables that have as much influence on getting the video seen. Many second and third-tier sites will give entertaining sponsored videos preferred placement for relatively small amounts of media spend. Got $10,000? Use the money to help get a clever sponsored video seen instead of pouring it into a black hole of unseen banner ads.
Lesson three: A video of a dog skateboarding can get 3 million views, but that doesn't mean your commercial will
While some clever advertisements (with surprise endings, humor or sex) do become viral, most ads don't translate online, and it's a rare promotional video that gets millions of views. The smarter play is to sponsor popular video creators to create entertainment with product placement. This requires brands to let go of overt marketing messages and trust the instincts of creators to please their audiences.
Lesson four: Online-video marketing is not just about contests
While contests are pervasive tools to engage online video creators and audiences, they're just one tactic of many. Smarter brands are connecting directly with prominent viral video creators. These folks have huge subscriber bases and fans, and are often delighted to get paid relatively small amounts for a sponsored video. I'm perplexed why some of the "most subscribed" video creators on YouTube don't have sponsors breaking their doors down. I have seen brands pay well into the six figures for videos that get fewer views than some of these creators get each time they post a video.
Lesson five: "Tagging" your video with keywords doesn't get them seen
Keywords may get your video to rank in searches, but there are far more effective ways to get your videos seen, such as title and thumbnail. A short funny video with a surprise ending will be exponentially more viral. That said, well-tagged videos can help brands in search. Do a Google search for "Healies" (a misspelling of the shoe called "Heely's) and you'll find my "Poor Man's Healies" videos near the top of the results page. Meanwhile, Zappos and Dick's Sporting Goods are bidding against the keyword and paying for each click.
Lesson six: Consumers might see your video, but that doesn't mean they'll visit your site and buy
I learned this the hard way. The conversion rate from viewing a video to visiting your site is not much better than the low-single digits of direct response. That means you either need metrics for the "worth" of a view or hope your video is seen millions of times so the direct-response metrics aren't embarrassing.
Lesson seven: Paying for a well-produced video won't necessarily increase your brand's ROI
A $250,000 production cost makes a return on investment difficult. Since fewer than 2% of people will visit a website after a video, a good ROI requires a low production cost and the highest number of views possible.
Lesson eight: Not all video portals are created equal
The vast majority of online viewing occurs on YouTube. Putting your videos on a bloated-product.com site is the online equivalent to running television commercials on a kiosk hidden in an abandoned cemetery.
Lesson nine: You may be a conservative organization, but don't let that keep you from this medium
Conservative legal and public-relations policies have prevented many marketers from entering into a dialogue with prominent video creators. Most marketers have seen at least a few videos that mention their own brands or those of competitors, but some brands remain squeamish about something as simple as an online-video contest. Doritos, Dove, Heinz and Mr. Clean were just a few of the brands that invited consumers to submit to contests to win cash, prizes, fame or a chance to be on TV.
Some brands fear running a contest because they don't want to be ridiculed. But brands will be bashed by disgruntled consumers via online video whether or not their companies dabble in the space. Quietly watching from the sidelines is no insurance policy and certainly won't grow revenue. So refraining from online video in fear is no smarter than those companies that were afraid to market online back in 1998.
Lesson 10: This medium will become measurable
As it matures, it will become as measurable as search. But for the time being, the most controllable variables are cost of production and total views. I've had sponsors beg for their URL to appear pervasively through a video, but that tends to alienate viewers and reduce the total views. And the rate of viewers that visit the website is a difficult variable to change (unless there's a provocative reason for the viewer to interrupt their online-viewing experience).
Online video is changing the way we market, and it requires skill sets they don't teach in business school (at least they didn't a decade ago, but now I'm dating myself). On one hand we have marketers believing their "unique selling proposition" is as interesting as the "Numa Numa" kid. On the other, we have today's ADHD-prone video viewers demanding short entertainment whether it is promotional or not. So the rules are fairly simple: Keep your promotion short, interesting, edgy and give us a surprise that makes us want to forward your clip. After all, it's not a "viral video" if nobody wants to share it.
Lesson one: Tap into the video community
We online-video creators and watchers are a community that's not shrinking and not growing slowly. Your customers are among us unless you're targeting the maybe 10%-20% of people that haven't watched an online video. We'll watch your advertising and even spread it for you -- unless you promote gratuitously, insult us or, worse yet, bore us. Some of us amateurs have built audiences, and when they entertain or market, each video is guaranteed to get 10,000-100,000 views. That's not a huge number relative to TV's reach, but try getting that many views with a video you upload yourself to YouTube. And here's the best kept secret. Some of us will promote a brand for a modest fee. While some YouTubers are certifiably nuts, others can be your spokesperson and a way to connect with large audiences. And some video creators will make a promotional video for less than your agency bills you for that lunch meeting; others will do it for free product samples. Although the scalability of these programs is currently limited (unless you create one of the extremely rare viral sensations), the return on investment is often better than paid search.
Lesson two: Quality of the video is not what determines its popularity
My most popular videos are far from my best. Almost every day my videos rank in the "highest rated" section of the comedy category, and yet I'm far from the funniest creator on YouTube. When I featured a 14-year-old using a fart machine in a public library, I never dreamed "Farting in Public" would get nearly 4 million views. Though popular videos tend to be short, funny and shocking, there are other variables that have as much influence on getting the video seen. Many second and third-tier sites will give entertaining sponsored videos preferred placement for relatively small amounts of media spend. Got $10,000? Use the money to help get a clever sponsored video seen instead of pouring it into a black hole of unseen banner ads.
Lesson three: A video of a dog skateboarding can get 3 million views, but that doesn't mean your commercial will
While some clever advertisements (with surprise endings, humor or sex) do become viral, most ads don't translate online, and it's a rare promotional video that gets millions of views. The smarter play is to sponsor popular video creators to create entertainment with product placement. This requires brands to let go of overt marketing messages and trust the instincts of creators to please their audiences.
Lesson four: Online-video marketing is not just about contests
While contests are pervasive tools to engage online video creators and audiences, they're just one tactic of many. Smarter brands are connecting directly with prominent viral video creators. These folks have huge subscriber bases and fans, and are often delighted to get paid relatively small amounts for a sponsored video. I'm perplexed why some of the "most subscribed" video creators on YouTube don't have sponsors breaking their doors down. I have seen brands pay well into the six figures for videos that get fewer views than some of these creators get each time they post a video.
Lesson five: "Tagging" your video with keywords doesn't get them seen
Keywords may get your video to rank in searches, but there are far more effective ways to get your videos seen, such as title and thumbnail. A short funny video with a surprise ending will be exponentially more viral. That said, well-tagged videos can help brands in search. Do a Google search for "Healies" (a misspelling of the shoe called "Heely's) and you'll find my "Poor Man's Healies" videos near the top of the results page. Meanwhile, Zappos and Dick's Sporting Goods are bidding against the keyword and paying for each click.
Lesson six: Consumers might see your video, but that doesn't mean they'll visit your site and buy
I learned this the hard way. The conversion rate from viewing a video to visiting your site is not much better than the low-single digits of direct response. That means you either need metrics for the "worth" of a view or hope your video is seen millions of times so the direct-response metrics aren't embarrassing.
Lesson seven: Paying for a well-produced video won't necessarily increase your brand's ROI
A $250,000 production cost makes a return on investment difficult. Since fewer than 2% of people will visit a website after a video, a good ROI requires a low production cost and the highest number of views possible.
Lesson eight: Not all video portals are created equal
The vast majority of online viewing occurs on YouTube. Putting your videos on a bloated-product.com site is the online equivalent to running television commercials on a kiosk hidden in an abandoned cemetery.
Lesson nine: You may be a conservative organization, but don't let that keep you from this medium
Conservative legal and public-relations policies have prevented many marketers from entering into a dialogue with prominent video creators. Most marketers have seen at least a few videos that mention their own brands or those of competitors, but some brands remain squeamish about something as simple as an online-video contest. Doritos, Dove, Heinz and Mr. Clean were just a few of the brands that invited consumers to submit to contests to win cash, prizes, fame or a chance to be on TV.
Some brands fear running a contest because they don't want to be ridiculed. But brands will be bashed by disgruntled consumers via online video whether or not their companies dabble in the space. Quietly watching from the sidelines is no insurance policy and certainly won't grow revenue. So refraining from online video in fear is no smarter than those companies that were afraid to market online back in 1998.
Lesson 10: This medium will become measurable
As it matures, it will become as measurable as search. But for the time being, the most controllable variables are cost of production and total views. I've had sponsors beg for their URL to appear pervasively through a video, but that tends to alienate viewers and reduce the total views. And the rate of viewers that visit the website is a difficult variable to change (unless there's a provocative reason for the viewer to interrupt their online-viewing experience).
10 Lessons for Marketers Using Viral Videos
In this Adage article, Kevin Nalts, explains how you can help your brand thrive online.
Online video is changing the way we market, and it requires skill sets they don't teach in business school (at least they didn't a decade ago, but now I'm dating myself). On one hand we have marketers believing their "unique selling proposition" is as interesting as the "Numa Numa" kid. On the other, we have today's ADHD-prone video viewers demanding short entertainment whether it is promotional or not. So the rules are fairly simple: Keep your promotion short, interesting, edgy and give us a surprise that makes us want to forward your clip. After all, it's not a "viral video" if nobody wants to share it.
Lesson one: Tap into the video community
We online-video creators and watchers are a community that's not shrinking and not growing slowly. Your customers are among us unless you're targeting the maybe 10%-20% of people that haven't watched an online video. We'll watch your advertising and even spread it for you -- unless you promote gratuitously, insult us or, worse yet, bore us. Some of us amateurs have built audiences, and when they entertain or market, each video is guaranteed to get 10,000-100,000 views. That's not a huge number relative to TV's reach, but try getting that many views with a video you upload yourself to YouTube. And here's the best kept secret. Some of us will promote a brand for a modest fee. While some YouTubers are certifiably nuts, others can be your spokesperson and a way to connect with large audiences. And some video creators will make a promotional video for less than your agency bills you for that lunch meeting; others will do it for free product samples. Although the scalability of these programs is currently limited (unless you create one of the extremely rare viral sensations), the return on investment is often better than paid search.
Lesson two: Quality of the video is not what determines its popularity
My most popular videos are far from my best. Almost every day my videos rank in the "highest rated" section of the comedy category, and yet I'm far from the funniest creator on YouTube. When I featured a 14-year-old using a fart machine in a public library, I never dreamed "Farting in Public" would get nearly 4 million views. Though popular videos tend to be short, funny and shocking, there are other variables that have as much influence on getting the video seen. Many second and third-tier sites will give entertaining sponsored videos preferred placement for relatively small amounts of media spend. Got $10,000? Use the money to help get a clever sponsored video seen instead of pouring it into a black hole of unseen banner ads.
Lesson three: A video of a dog skateboarding can get 3 million views, but that doesn't mean your commercial will
While some clever advertisements (with surprise endings, humor or sex) do become viral, most ads don't translate online, and it's a rare promotional video that gets millions of views. The smarter play is to sponsor popular video creators to create entertainment with product placement. This requires brands to let go of overt marketing messages and trust the instincts of creators to please their audiences.
Lesson four: Online-video marketing is not just about contests
While contests are pervasive tools to engage online video creators and audiences, they're just one tactic of many. Smarter brands are connecting directly with prominent viral video creators. These folks have huge subscriber bases and fans, and are often delighted to get paid relatively small amounts for a sponsored video. I'm perplexed why some of the "most subscribed" video creators on YouTube don't have sponsors breaking their doors down. I have seen brands pay well into the six figures for videos that get fewer views than some of these creators get each time they post a video.
Lesson five: "Tagging" your video with keywords doesn't get them seen
Keywords may get your video to rank in searches, but there are far more effective ways to get your videos seen, such as title and thumbnail. A short funny video with a surprise ending will be exponentially more viral. That said, well-tagged videos can help brands in search. Do a Google search for "Healies" (a misspelling of the shoe called "Heely's) and you'll find my "Poor Man's Healies" videos near the top of the results page. Meanwhile, Zappos and Dick's Sporting Goods are bidding against the keyword and paying for each click.
Lesson six: Consumers might see your video, but that doesn't mean they'll visit your site and buy
I learned this the hard way. The conversion rate from viewing a video to visiting your site is not much better than the low-single digits of direct response. That means you either need metrics for the "worth" of a view or hope your video is seen millions of times so the direct-response metrics aren't embarrassing.
Lesson seven: Paying for a well-produced video won't necessarily increase your brand's ROI
A $250,000 production cost makes a return on investment difficult. Since fewer than 2% of people will visit a website after a video, a good ROI requires a low production cost and the highest number of views possible.
Lesson eight: Not all video portals are created equal
The vast majority of online viewing occurs on YouTube. Putting your videos on a bloated-product.com site is the online equivalent to running television commercials on a kiosk hidden in an abandoned cemetery.
Lesson nine: You may be a conservative organization, but don't let that keep you from this medium
Conservative legal and public-relations policies have prevented many marketers from entering into a dialogue with prominent video creators. Most marketers have seen at least a few videos that mention their own brands or those of competitors, but some brands remain squeamish about something as simple as an online-video contest. Doritos, Dove, Heinz and Mr. Clean were just a few of the brands that invited consumers to submit to contests to win cash, prizes, fame or a chance to be on TV.
Some brands fear running a contest because they don't want to be ridiculed. But brands will be bashed by disgruntled consumers via online video whether or not their companies dabble in the space. Quietly watching from the sidelines is no insurance policy and certainly won't grow revenue. So refraining from online video in fear is no smarter than those companies that were afraid to market online back in 1998.
Lesson 10: This medium will become measurable
As it matures, it will become as measurable as search. But for the time being, the most controllable variables are cost of production and total views. I've had sponsors beg for their URL to appear pervasively through a video, but that tends to alienate viewers and reduce the total views. And the rate of viewers that visit the website is a difficult variable to change (unless there's a provocative reason for the viewer to interrupt their online-viewing experience).
Online video is changing the way we market, and it requires skill sets they don't teach in business school (at least they didn't a decade ago, but now I'm dating myself). On one hand we have marketers believing their "unique selling proposition" is as interesting as the "Numa Numa" kid. On the other, we have today's ADHD-prone video viewers demanding short entertainment whether it is promotional or not. So the rules are fairly simple: Keep your promotion short, interesting, edgy and give us a surprise that makes us want to forward your clip. After all, it's not a "viral video" if nobody wants to share it.
Lesson one: Tap into the video community
We online-video creators and watchers are a community that's not shrinking and not growing slowly. Your customers are among us unless you're targeting the maybe 10%-20% of people that haven't watched an online video. We'll watch your advertising and even spread it for you -- unless you promote gratuitously, insult us or, worse yet, bore us. Some of us amateurs have built audiences, and when they entertain or market, each video is guaranteed to get 10,000-100,000 views. That's not a huge number relative to TV's reach, but try getting that many views with a video you upload yourself to YouTube. And here's the best kept secret. Some of us will promote a brand for a modest fee. While some YouTubers are certifiably nuts, others can be your spokesperson and a way to connect with large audiences. And some video creators will make a promotional video for less than your agency bills you for that lunch meeting; others will do it for free product samples. Although the scalability of these programs is currently limited (unless you create one of the extremely rare viral sensations), the return on investment is often better than paid search.
Lesson two: Quality of the video is not what determines its popularity
My most popular videos are far from my best. Almost every day my videos rank in the "highest rated" section of the comedy category, and yet I'm far from the funniest creator on YouTube. When I featured a 14-year-old using a fart machine in a public library, I never dreamed "Farting in Public" would get nearly 4 million views. Though popular videos tend to be short, funny and shocking, there are other variables that have as much influence on getting the video seen. Many second and third-tier sites will give entertaining sponsored videos preferred placement for relatively small amounts of media spend. Got $10,000? Use the money to help get a clever sponsored video seen instead of pouring it into a black hole of unseen banner ads.
Lesson three: A video of a dog skateboarding can get 3 million views, but that doesn't mean your commercial will
While some clever advertisements (with surprise endings, humor or sex) do become viral, most ads don't translate online, and it's a rare promotional video that gets millions of views. The smarter play is to sponsor popular video creators to create entertainment with product placement. This requires brands to let go of overt marketing messages and trust the instincts of creators to please their audiences.
Lesson four: Online-video marketing is not just about contests
While contests are pervasive tools to engage online video creators and audiences, they're just one tactic of many. Smarter brands are connecting directly with prominent viral video creators. These folks have huge subscriber bases and fans, and are often delighted to get paid relatively small amounts for a sponsored video. I'm perplexed why some of the "most subscribed" video creators on YouTube don't have sponsors breaking their doors down. I have seen brands pay well into the six figures for videos that get fewer views than some of these creators get each time they post a video.
Lesson five: "Tagging" your video with keywords doesn't get them seen
Keywords may get your video to rank in searches, but there are far more effective ways to get your videos seen, such as title and thumbnail. A short funny video with a surprise ending will be exponentially more viral. That said, well-tagged videos can help brands in search. Do a Google search for "Healies" (a misspelling of the shoe called "Heely's) and you'll find my "Poor Man's Healies" videos near the top of the results page. Meanwhile, Zappos and Dick's Sporting Goods are bidding against the keyword and paying for each click.
Lesson six: Consumers might see your video, but that doesn't mean they'll visit your site and buy
I learned this the hard way. The conversion rate from viewing a video to visiting your site is not much better than the low-single digits of direct response. That means you either need metrics for the "worth" of a view or hope your video is seen millions of times so the direct-response metrics aren't embarrassing.
Lesson seven: Paying for a well-produced video won't necessarily increase your brand's ROI
A $250,000 production cost makes a return on investment difficult. Since fewer than 2% of people will visit a website after a video, a good ROI requires a low production cost and the highest number of views possible.
Lesson eight: Not all video portals are created equal
The vast majority of online viewing occurs on YouTube. Putting your videos on a bloated-product.com site is the online equivalent to running television commercials on a kiosk hidden in an abandoned cemetery.
Lesson nine: You may be a conservative organization, but don't let that keep you from this medium
Conservative legal and public-relations policies have prevented many marketers from entering into a dialogue with prominent video creators. Most marketers have seen at least a few videos that mention their own brands or those of competitors, but some brands remain squeamish about something as simple as an online-video contest. Doritos, Dove, Heinz and Mr. Clean were just a few of the brands that invited consumers to submit to contests to win cash, prizes, fame or a chance to be on TV.
Some brands fear running a contest because they don't want to be ridiculed. But brands will be bashed by disgruntled consumers via online video whether or not their companies dabble in the space. Quietly watching from the sidelines is no insurance policy and certainly won't grow revenue. So refraining from online video in fear is no smarter than those companies that were afraid to market online back in 1998.
Lesson 10: This medium will become measurable
As it matures, it will become as measurable as search. But for the time being, the most controllable variables are cost of production and total views. I've had sponsors beg for their URL to appear pervasively through a video, but that tends to alienate viewers and reduce the total views. And the rate of viewers that visit the website is a difficult variable to change (unless there's a provocative reason for the viewer to interrupt their online-viewing experience).
Senin, 05 November 2007
Online Diwali sales to zoom
Online shopping has come of age. Due to dearth of time and tedious ways of traditional shopping, customers are increasingly seeking the convenience of shopping from their home.
And this Diwali the online marketeers are busy wooing the 37 million strong Indian net users with festival packages and Maha Diwali sales.
According to a report by Internet and Mobile Association of India (IMAI), this Diwali the online sales are expected to go up by more than 100 per cent.
In 2006, online business conducted during Diwali was around Rs 115 crore which is expected to cross the Rs 250 crore mark this year, according to the report.
Even the Associated Chambers of Commerce and Industry of India (Assocham) in its press release said e-shopping is a preferred mode this Diwali as it has already registered a growth of 40 per cent and is expected to register a growth of 130 per cent.
As per Assocham, more than 30 lakh consumers in order to avoid security threats and physical movement will be using internet for e-shopping.
Items which are most sought after during Diwali shopping include gift articles, idols of Gods and Goddesses, sweets, flowers, clothes and jewellery and diamonds.
A big chunk of online shoppers comprise corporate houses and their employees. Corporates are to spend Rs 2,000 crore on Diwali gifts, an increase of 48 per cent as compared to Rs 1,350 crore last year, according to industry body Assocham.
Customised gifts are another trend with IT and BPO companies. T-shirts, sweatshirts, pens and other items with company logos are quite popular among them.
“Electronic items are the first choice among most corporates. Mobiles, iPods, digicams, pen drives, storage devices, desktop utilities are the most sought after gifts this season,” said Ranjith Boyanpalli, Head e-Tail, eYantra Industries.
A flow of portals are selling services like online prayers and offerings blessed by the priest. Primarily aimed at NRIs, DVDs of prayers and offerings blessed by the priest or idols, incense sticks, religious books are a big hit.
This Diwali the gifts have moved from low value to high-value products with the appreciation of rupee and so the profit margins of companies. While conventional gifts are out, sophisticated and innovative gifts are in this Diwali.
- Article appeared in Business Standard
And this Diwali the online marketeers are busy wooing the 37 million strong Indian net users with festival packages and Maha Diwali sales.
According to a report by Internet and Mobile Association of India (IMAI), this Diwali the online sales are expected to go up by more than 100 per cent.
In 2006, online business conducted during Diwali was around Rs 115 crore which is expected to cross the Rs 250 crore mark this year, according to the report.
Even the Associated Chambers of Commerce and Industry of India (Assocham) in its press release said e-shopping is a preferred mode this Diwali as it has already registered a growth of 40 per cent and is expected to register a growth of 130 per cent.
As per Assocham, more than 30 lakh consumers in order to avoid security threats and physical movement will be using internet for e-shopping.
Items which are most sought after during Diwali shopping include gift articles, idols of Gods and Goddesses, sweets, flowers, clothes and jewellery and diamonds.
A big chunk of online shoppers comprise corporate houses and their employees. Corporates are to spend Rs 2,000 crore on Diwali gifts, an increase of 48 per cent as compared to Rs 1,350 crore last year, according to industry body Assocham.
Customised gifts are another trend with IT and BPO companies. T-shirts, sweatshirts, pens and other items with company logos are quite popular among them.
“Electronic items are the first choice among most corporates. Mobiles, iPods, digicams, pen drives, storage devices, desktop utilities are the most sought after gifts this season,” said Ranjith Boyanpalli, Head e-Tail, eYantra Industries.
A flow of portals are selling services like online prayers and offerings blessed by the priest. Primarily aimed at NRIs, DVDs of prayers and offerings blessed by the priest or idols, incense sticks, religious books are a big hit.
This Diwali the gifts have moved from low value to high-value products with the appreciation of rupee and so the profit margins of companies. While conventional gifts are out, sophisticated and innovative gifts are in this Diwali.
- Article appeared in Business Standard
Online Diwali sales to zoom
Online shopping has come of age. Due to dearth of time and tedious ways of traditional shopping, customers are increasingly seeking the convenience of shopping from their home.
And this Diwali the online marketeers are busy wooing the 37 million strong Indian net users with festival packages and Maha Diwali sales.
According to a report by Internet and Mobile Association of India (IMAI), this Diwali the online sales are expected to go up by more than 100 per cent.
In 2006, online business conducted during Diwali was around Rs 115 crore which is expected to cross the Rs 250 crore mark this year, according to the report.
Even the Associated Chambers of Commerce and Industry of India (Assocham) in its press release said e-shopping is a preferred mode this Diwali as it has already registered a growth of 40 per cent and is expected to register a growth of 130 per cent.
As per Assocham, more than 30 lakh consumers in order to avoid security threats and physical movement will be using internet for e-shopping.
Items which are most sought after during Diwali shopping include gift articles, idols of Gods and Goddesses, sweets, flowers, clothes and jewellery and diamonds.
A big chunk of online shoppers comprise corporate houses and their employees. Corporates are to spend Rs 2,000 crore on Diwali gifts, an increase of 48 per cent as compared to Rs 1,350 crore last year, according to industry body Assocham.
Customised gifts are another trend with IT and BPO companies. T-shirts, sweatshirts, pens and other items with company logos are quite popular among them.
“Electronic items are the first choice among most corporates. Mobiles, iPods, digicams, pen drives, storage devices, desktop utilities are the most sought after gifts this season,” said Ranjith Boyanpalli, Head e-Tail, eYantra Industries.
A flow of portals are selling services like online prayers and offerings blessed by the priest. Primarily aimed at NRIs, DVDs of prayers and offerings blessed by the priest or idols, incense sticks, religious books are a big hit.
This Diwali the gifts have moved from low value to high-value products with the appreciation of rupee and so the profit margins of companies. While conventional gifts are out, sophisticated and innovative gifts are in this Diwali.
- Article appeared in Business Standard
And this Diwali the online marketeers are busy wooing the 37 million strong Indian net users with festival packages and Maha Diwali sales.
According to a report by Internet and Mobile Association of India (IMAI), this Diwali the online sales are expected to go up by more than 100 per cent.
In 2006, online business conducted during Diwali was around Rs 115 crore which is expected to cross the Rs 250 crore mark this year, according to the report.
Even the Associated Chambers of Commerce and Industry of India (Assocham) in its press release said e-shopping is a preferred mode this Diwali as it has already registered a growth of 40 per cent and is expected to register a growth of 130 per cent.
As per Assocham, more than 30 lakh consumers in order to avoid security threats and physical movement will be using internet for e-shopping.
Items which are most sought after during Diwali shopping include gift articles, idols of Gods and Goddesses, sweets, flowers, clothes and jewellery and diamonds.
A big chunk of online shoppers comprise corporate houses and their employees. Corporates are to spend Rs 2,000 crore on Diwali gifts, an increase of 48 per cent as compared to Rs 1,350 crore last year, according to industry body Assocham.
Customised gifts are another trend with IT and BPO companies. T-shirts, sweatshirts, pens and other items with company logos are quite popular among them.
“Electronic items are the first choice among most corporates. Mobiles, iPods, digicams, pen drives, storage devices, desktop utilities are the most sought after gifts this season,” said Ranjith Boyanpalli, Head e-Tail, eYantra Industries.
A flow of portals are selling services like online prayers and offerings blessed by the priest. Primarily aimed at NRIs, DVDs of prayers and offerings blessed by the priest or idols, incense sticks, religious books are a big hit.
This Diwali the gifts have moved from low value to high-value products with the appreciation of rupee and so the profit margins of companies. While conventional gifts are out, sophisticated and innovative gifts are in this Diwali.
- Article appeared in Business Standard
Online Diwali sales to zoom
Online shopping has come of age. Due to dearth of time and tedious ways of traditional shopping, customers are increasingly seeking the convenience of shopping from their home.
And this Diwali the online marketeers are busy wooing the 37 million strong Indian net users with festival packages and Maha Diwali sales.
According to a report by Internet and Mobile Association of India (IMAI), this Diwali the online sales are expected to go up by more than 100 per cent.
In 2006, online business conducted during Diwali was around Rs 115 crore which is expected to cross the Rs 250 crore mark this year, according to the report.
Even the Associated Chambers of Commerce and Industry of India (Assocham) in its press release said e-shopping is a preferred mode this Diwali as it has already registered a growth of 40 per cent and is expected to register a growth of 130 per cent.
As per Assocham, more than 30 lakh consumers in order to avoid security threats and physical movement will be using internet for e-shopping.
Items which are most sought after during Diwali shopping include gift articles, idols of Gods and Goddesses, sweets, flowers, clothes and jewellery and diamonds.
A big chunk of online shoppers comprise corporate houses and their employees. Corporates are to spend Rs 2,000 crore on Diwali gifts, an increase of 48 per cent as compared to Rs 1,350 crore last year, according to industry body Assocham.
Customised gifts are another trend with IT and BPO companies. T-shirts, sweatshirts, pens and other items with company logos are quite popular among them.
“Electronic items are the first choice among most corporates. Mobiles, iPods, digicams, pen drives, storage devices, desktop utilities are the most sought after gifts this season,” said Ranjith Boyanpalli, Head e-Tail, eYantra Industries.
A flow of portals are selling services like online prayers and offerings blessed by the priest. Primarily aimed at NRIs, DVDs of prayers and offerings blessed by the priest or idols, incense sticks, religious books are a big hit.
This Diwali the gifts have moved from low value to high-value products with the appreciation of rupee and so the profit margins of companies. While conventional gifts are out, sophisticated and innovative gifts are in this Diwali.
- Article appeared in Business Standard
And this Diwali the online marketeers are busy wooing the 37 million strong Indian net users with festival packages and Maha Diwali sales.
According to a report by Internet and Mobile Association of India (IMAI), this Diwali the online sales are expected to go up by more than 100 per cent.
In 2006, online business conducted during Diwali was around Rs 115 crore which is expected to cross the Rs 250 crore mark this year, according to the report.
Even the Associated Chambers of Commerce and Industry of India (Assocham) in its press release said e-shopping is a preferred mode this Diwali as it has already registered a growth of 40 per cent and is expected to register a growth of 130 per cent.
As per Assocham, more than 30 lakh consumers in order to avoid security threats and physical movement will be using internet for e-shopping.
Items which are most sought after during Diwali shopping include gift articles, idols of Gods and Goddesses, sweets, flowers, clothes and jewellery and diamonds.
A big chunk of online shoppers comprise corporate houses and their employees. Corporates are to spend Rs 2,000 crore on Diwali gifts, an increase of 48 per cent as compared to Rs 1,350 crore last year, according to industry body Assocham.
Customised gifts are another trend with IT and BPO companies. T-shirts, sweatshirts, pens and other items with company logos are quite popular among them.
“Electronic items are the first choice among most corporates. Mobiles, iPods, digicams, pen drives, storage devices, desktop utilities are the most sought after gifts this season,” said Ranjith Boyanpalli, Head e-Tail, eYantra Industries.
A flow of portals are selling services like online prayers and offerings blessed by the priest. Primarily aimed at NRIs, DVDs of prayers and offerings blessed by the priest or idols, incense sticks, religious books are a big hit.
This Diwali the gifts have moved from low value to high-value products with the appreciation of rupee and so the profit margins of companies. While conventional gifts are out, sophisticated and innovative gifts are in this Diwali.
- Article appeared in Business Standard
Rabu, 24 Oktober 2007
Paid Content in India
A recent IAMAI-IMRB survey on e-commerce in India reveals that in 2006-07, the online paid content subscription market was worth a mere Rs 20 crore, a fragment of the Rs 7,080 crore e-commerce market, which is made up of online travel, e-tailing, paid content subscription and digital download sites.
In a paid content or subscription model, a content owner provides consumers access to content for a subscription fee. In India, paid content subscriptions are offered across various categories like news, legal or financial information, online games, audio books or research reports.
For example, Indian Petro Group (IPG) is one such company that offers information related to the oil, gas, power and fertiliser sectors to its clients – ONGC, Lehman Brothers, KPMG and ABN Amro, among others – for a monthly subscription fee of $500 per month. Indian Petro Group owns sites such as Indianpetro.com, Energylineindia.com and Indianfertilizer.com.
Says Santanu Saikia, executive editor, IPG: “Paid content sites offer more and in-depth information than free content sites and such sites usually go through a long gestation period of at least two years before subscription starts.” Saikia says, “The size of the paid content or subscription market in India is not more than Rs 20-25 crore, but it will grow in the future if it is nurtured properly.”
In the financial domain, Poweryourtrade.com (from the Network18 Group) provides stock market-related news, advice and analysis to individual investors and traders on a subscription basis. Neeraj Sanan, marketing head, Web 18, thinks that the “paid content or subscription market in India is more than Rs 20 crore”. Sanan believes that “customers will pay for content which will help them to make money”.
There are websites in the legal domain as well which offer paid content to subscribers. Taxindiaonline.com offers its paid subscribers access to an online library of case laws, notifications and circulars apart from tax related information like Supreme Court rulings on income tax.
In the B2C category, a few portals in the news publishing and online gaming domain are experimenting with the subscription model. As far as news goes, there’s a broad consensus that a paid model does not work. ‘The New York Times’ TimesSelect service was discontinued recently, and there’s talk that Rupert Murdoch plans to go the same way for ‘The Wall Street Journal’s successful paid content model.
In India, ‘Business Standard’ has sought to buck the trend, offering free as well as paid content on its site. A reader can pay Rs 149 annually to get complete access to the archives and special supplements of the newspaper. All other major newspaper sites offer free content. Arun Natesh, general manager, ‘Business Standard’, explains the divergent view: “Serious users or information seekers are open to paying for relevant and credible content, especially if the price is right. In the long run, subscription revenues will be far more stable.”
Though online games in India are almost always free, Indiagames.com allows gamers to download games only after they purchase a subscription package. The fee is between Rs 100-200 based on the download size of the game. Vishal Gondal, founder, Indiagames.com, says, “Worldwide, the online gaming industry works on subscription model and subscription provides more revenue than in-game advertising.”
In 2007-08, the paid content subscription market is expected to reach Rs 30 crore. But obviously, the market size of paid content subscriptions remains small. “The paid content subscription market is very fragmented. In general, Indian consumers do not like paying for content,” says Balendu Shrivastava, research director, IMRB International. Also, with the free availability of content via blogs, podcasts and video/ photo sharing sites, it does seem tough for publishers to monetise their regular content even in the future.
But it is not as if publishers are completely overlooking the model. As Sanjay Trehan, CEO, NDTV.com, says, “Consumers are willing to pay for content that is original, exclusive and provides them with value addition.” The ‘original content’ could work particularly for categories like financial, legal and real estate information, where customised and exclusive information can be created. But clearly, it’s a long slog ahead to get Indian netizens to pay up for content.
(News as appeared in Agencyfaqs.com)
In a paid content or subscription model, a content owner provides consumers access to content for a subscription fee. In India, paid content subscriptions are offered across various categories like news, legal or financial information, online games, audio books or research reports.
For example, Indian Petro Group (IPG) is one such company that offers information related to the oil, gas, power and fertiliser sectors to its clients – ONGC, Lehman Brothers, KPMG and ABN Amro, among others – for a monthly subscription fee of $500 per month. Indian Petro Group owns sites such as Indianpetro.com, Energylineindia.com and Indianfertilizer.com.
Says Santanu Saikia, executive editor, IPG: “Paid content sites offer more and in-depth information than free content sites and such sites usually go through a long gestation period of at least two years before subscription starts.” Saikia says, “The size of the paid content or subscription market in India is not more than Rs 20-25 crore, but it will grow in the future if it is nurtured properly.”
In the financial domain, Poweryourtrade.com (from the Network18 Group) provides stock market-related news, advice and analysis to individual investors and traders on a subscription basis. Neeraj Sanan, marketing head, Web 18, thinks that the “paid content or subscription market in India is more than Rs 20 crore”. Sanan believes that “customers will pay for content which will help them to make money”.
There are websites in the legal domain as well which offer paid content to subscribers. Taxindiaonline.com offers its paid subscribers access to an online library of case laws, notifications and circulars apart from tax related information like Supreme Court rulings on income tax.
In the B2C category, a few portals in the news publishing and online gaming domain are experimenting with the subscription model. As far as news goes, there’s a broad consensus that a paid model does not work. ‘The New York Times’ TimesSelect service was discontinued recently, and there’s talk that Rupert Murdoch plans to go the same way for ‘The Wall Street Journal’s successful paid content model.
In India, ‘Business Standard’ has sought to buck the trend, offering free as well as paid content on its site. A reader can pay Rs 149 annually to get complete access to the archives and special supplements of the newspaper. All other major newspaper sites offer free content. Arun Natesh, general manager, ‘Business Standard’, explains the divergent view: “Serious users or information seekers are open to paying for relevant and credible content, especially if the price is right. In the long run, subscription revenues will be far more stable.”
Though online games in India are almost always free, Indiagames.com allows gamers to download games only after they purchase a subscription package. The fee is between Rs 100-200 based on the download size of the game. Vishal Gondal, founder, Indiagames.com, says, “Worldwide, the online gaming industry works on subscription model and subscription provides more revenue than in-game advertising.”
In 2007-08, the paid content subscription market is expected to reach Rs 30 crore. But obviously, the market size of paid content subscriptions remains small. “The paid content subscription market is very fragmented. In general, Indian consumers do not like paying for content,” says Balendu Shrivastava, research director, IMRB International. Also, with the free availability of content via blogs, podcasts and video/ photo sharing sites, it does seem tough for publishers to monetise their regular content even in the future.
But it is not as if publishers are completely overlooking the model. As Sanjay Trehan, CEO, NDTV.com, says, “Consumers are willing to pay for content that is original, exclusive and provides them with value addition.” The ‘original content’ could work particularly for categories like financial, legal and real estate information, where customised and exclusive information can be created. But clearly, it’s a long slog ahead to get Indian netizens to pay up for content.
(News as appeared in Agencyfaqs.com)
Paid Content in India
A recent IAMAI-IMRB survey on e-commerce in India reveals that in 2006-07, the online paid content subscription market was worth a mere Rs 20 crore, a fragment of the Rs 7,080 crore e-commerce market, which is made up of online travel, e-tailing, paid content subscription and digital download sites.
In a paid content or subscription model, a content owner provides consumers access to content for a subscription fee. In India, paid content subscriptions are offered across various categories like news, legal or financial information, online games, audio books or research reports.
For example, Indian Petro Group (IPG) is one such company that offers information related to the oil, gas, power and fertiliser sectors to its clients – ONGC, Lehman Brothers, KPMG and ABN Amro, among others – for a monthly subscription fee of $500 per month. Indian Petro Group owns sites such as Indianpetro.com, Energylineindia.com and Indianfertilizer.com.
Says Santanu Saikia, executive editor, IPG: “Paid content sites offer more and in-depth information than free content sites and such sites usually go through a long gestation period of at least two years before subscription starts.” Saikia says, “The size of the paid content or subscription market in India is not more than Rs 20-25 crore, but it will grow in the future if it is nurtured properly.”
In the financial domain, Poweryourtrade.com (from the Network18 Group) provides stock market-related news, advice and analysis to individual investors and traders on a subscription basis. Neeraj Sanan, marketing head, Web 18, thinks that the “paid content or subscription market in India is more than Rs 20 crore”. Sanan believes that “customers will pay for content which will help them to make money”.
There are websites in the legal domain as well which offer paid content to subscribers. Taxindiaonline.com offers its paid subscribers access to an online library of case laws, notifications and circulars apart from tax related information like Supreme Court rulings on income tax.
In the B2C category, a few portals in the news publishing and online gaming domain are experimenting with the subscription model. As far as news goes, there’s a broad consensus that a paid model does not work. ‘The New York Times’ TimesSelect service was discontinued recently, and there’s talk that Rupert Murdoch plans to go the same way for ‘The Wall Street Journal’s successful paid content model.
In India, ‘Business Standard’ has sought to buck the trend, offering free as well as paid content on its site. A reader can pay Rs 149 annually to get complete access to the archives and special supplements of the newspaper. All other major newspaper sites offer free content. Arun Natesh, general manager, ‘Business Standard’, explains the divergent view: “Serious users or information seekers are open to paying for relevant and credible content, especially if the price is right. In the long run, subscription revenues will be far more stable.”
Though online games in India are almost always free, Indiagames.com allows gamers to download games only after they purchase a subscription package. The fee is between Rs 100-200 based on the download size of the game. Vishal Gondal, founder, Indiagames.com, says, “Worldwide, the online gaming industry works on subscription model and subscription provides more revenue than in-game advertising.”
In 2007-08, the paid content subscription market is expected to reach Rs 30 crore. But obviously, the market size of paid content subscriptions remains small. “The paid content subscription market is very fragmented. In general, Indian consumers do not like paying for content,” says Balendu Shrivastava, research director, IMRB International. Also, with the free availability of content via blogs, podcasts and video/ photo sharing sites, it does seem tough for publishers to monetise their regular content even in the future.
But it is not as if publishers are completely overlooking the model. As Sanjay Trehan, CEO, NDTV.com, says, “Consumers are willing to pay for content that is original, exclusive and provides them with value addition.” The ‘original content’ could work particularly for categories like financial, legal and real estate information, where customised and exclusive information can be created. But clearly, it’s a long slog ahead to get Indian netizens to pay up for content.
(News as appeared in Agencyfaqs.com)
In a paid content or subscription model, a content owner provides consumers access to content for a subscription fee. In India, paid content subscriptions are offered across various categories like news, legal or financial information, online games, audio books or research reports.
For example, Indian Petro Group (IPG) is one such company that offers information related to the oil, gas, power and fertiliser sectors to its clients – ONGC, Lehman Brothers, KPMG and ABN Amro, among others – for a monthly subscription fee of $500 per month. Indian Petro Group owns sites such as Indianpetro.com, Energylineindia.com and Indianfertilizer.com.
Says Santanu Saikia, executive editor, IPG: “Paid content sites offer more and in-depth information than free content sites and such sites usually go through a long gestation period of at least two years before subscription starts.” Saikia says, “The size of the paid content or subscription market in India is not more than Rs 20-25 crore, but it will grow in the future if it is nurtured properly.”
In the financial domain, Poweryourtrade.com (from the Network18 Group) provides stock market-related news, advice and analysis to individual investors and traders on a subscription basis. Neeraj Sanan, marketing head, Web 18, thinks that the “paid content or subscription market in India is more than Rs 20 crore”. Sanan believes that “customers will pay for content which will help them to make money”.
There are websites in the legal domain as well which offer paid content to subscribers. Taxindiaonline.com offers its paid subscribers access to an online library of case laws, notifications and circulars apart from tax related information like Supreme Court rulings on income tax.
In the B2C category, a few portals in the news publishing and online gaming domain are experimenting with the subscription model. As far as news goes, there’s a broad consensus that a paid model does not work. ‘The New York Times’ TimesSelect service was discontinued recently, and there’s talk that Rupert Murdoch plans to go the same way for ‘The Wall Street Journal’s successful paid content model.
In India, ‘Business Standard’ has sought to buck the trend, offering free as well as paid content on its site. A reader can pay Rs 149 annually to get complete access to the archives and special supplements of the newspaper. All other major newspaper sites offer free content. Arun Natesh, general manager, ‘Business Standard’, explains the divergent view: “Serious users or information seekers are open to paying for relevant and credible content, especially if the price is right. In the long run, subscription revenues will be far more stable.”
Though online games in India are almost always free, Indiagames.com allows gamers to download games only after they purchase a subscription package. The fee is between Rs 100-200 based on the download size of the game. Vishal Gondal, founder, Indiagames.com, says, “Worldwide, the online gaming industry works on subscription model and subscription provides more revenue than in-game advertising.”
In 2007-08, the paid content subscription market is expected to reach Rs 30 crore. But obviously, the market size of paid content subscriptions remains small. “The paid content subscription market is very fragmented. In general, Indian consumers do not like paying for content,” says Balendu Shrivastava, research director, IMRB International. Also, with the free availability of content via blogs, podcasts and video/ photo sharing sites, it does seem tough for publishers to monetise their regular content even in the future.
But it is not as if publishers are completely overlooking the model. As Sanjay Trehan, CEO, NDTV.com, says, “Consumers are willing to pay for content that is original, exclusive and provides them with value addition.” The ‘original content’ could work particularly for categories like financial, legal and real estate information, where customised and exclusive information can be created. But clearly, it’s a long slog ahead to get Indian netizens to pay up for content.
(News as appeared in Agencyfaqs.com)
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