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Make Mone Online with Affiliate Marketing and Affiliate Networks

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Affiliate networks have all be jumping on the Pay-Per-Call bandwagon using RingRevenue’s pay-per-call tracking platform.  Currently I have seen programs for Commission Junction, Google Affiliate Network, LinkShare and ShareASale.

What are the advantages of pay-per-call?

  1. The ability for companies to compensate partners for sales calls.
  2. The ability for consultative or high ticket purchase companies to get into performance marketing
  3. The ability for websites to compensate partners for both online sales and sales that turn into calls from the website (typically lost to performance partners and a primary reason performance partners as to have phone numbers removed from landing pages).

These all sound great, but like any other new technology the devil is in the details and the implementation.  Here are some of the struggles I have run into so far:

  1. Phone# Replacement Code Implementation – The vast majority of the companies offering pay-per-call have not implemented the code to actually replace the performance partner’s unique number into their landing page.  This seems like an obvious 1st step to implementation, but alas having your number show on the page is currently more of an exception than a norm.
  2. Listed Call Times – Since we are dealing with phone calls, and not all companies can afford to staff their call centers 24/7, each program lists the call times for which they are willing to pay for calls.  That makes perfect sense, but for one of the companies I was testing, I placed a test call during listed hours, and got a message that the company was taking a day off to go sailing!  If you are not going to be around, you need to communicate this to your partners so they aren’t wasting their money on campaigns.
  3. Call Leakage – Performance marketers have talked about website leakage for a long time, leakage is paths that consumers can take that end up being uncompensated for the performance partner.  In fact pay-per-call promises to solve the phone number leakage problem.  One company I placed a test call to directed customers to visit their website (a non-compensated url) and then proceeded to place the customer on hold and then every 10 seconds on hold offered the customer the option to enter a call back number and not lose their place in line.  While that might be very convenient for a customer, it encourages the customer to drop off the call before hitting the pay-out time threshold.
  4. Ghost Calls – If you are focusing your marketing efforts on mobile marketing, you may find that there are a lot of “Ghost Calls”, calls that appear as clicks/calls to the marketing network you are working with but never actually generate a call.  This can happen if a customer clicks on the “call” option and then doesn’t click ok when their phone asks them if they want to place the call.   This seems to happen a lot in the mobile display advertising space.
  5. Standard Landing Pages – While having the standard landing pages and replacing the phone number is a great first step, it would be great to also offer mobile marketing links with mobile landing pages that are made to look good on the various types of mobile phones.

My suggestion is that this is a very new technology with a lot of hurdles.  It’s worth testing the waters right now, but tread lightly and make sure to test out the customer experience on the click and the call before proceeding.


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Pay-Per-Call Programs from the Trenches

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Jambool, creator of Social Gold and former provider of virtual currency for Facebook games and web apps, was sold to Google for a reported $70 million. This follows the trend of game and social app providers LabPixies and Slide we covered here.

In a post about the Slide acquisition, I discussed how Facebook, which originally welcomed developers in 2007 with open arms by dangling the possibility of riches, changed the game and pulled the power back in, away from developers. But why did developers originally flock there? In a blog post, Paul Allen called it the “true spirit of Wikinomics”, explaining:

“Mark Zuckerberg made three big announcements. 1) Applications can be deeply integrated with Facebook 2) Distribution of the applications will occur through the network, and 3) The business opportunity Facebook is providing will give 100% of advertising revenue (for third party applications) and 100% of transaction revenue to the application developers.”

That move had a huge impact. First Round Capital, a venture capital firm, describes this step: “By providing a clear roadmap – and business opportunity – for the widget makers, Facebook has just increased its virtual R&D budget by over $250 million dollars.” First Round correctly predicted that companies like Slide, RockYou, and other developers would enrich the user experience and likely enrich Facebook.

One such company, Jambool, took on the task of building a virtual currency business on Facebook, facilitating the buying and selling of virtual goods and services for application developers. This gained them some traction with other app developers and helped to build a growing business.

But that was the past, and now, as Facebook has grown in size and influence, it has changed the rules. Just as Slide, RockYou, and others have seen their fortunes wane as Facebook grew more powerful Jambool literally had  the rug pulled out from under them once Facebook introduced credits and negotiated deals where these credits would be the exclusive virtual currency on the site. It’s no mystery then that Jambool was snapped up by Google.  Like Slide before them, Jambool’s market valuation and market viability took a hit when Facebook changed the game, making them more likely to embrace an acquisition by Google.

This expands the Google fold to include game makers, experts in viral widgets, social advertising, expression tools, and now virtual currency. What’s next? Who else has been hurt by Facebook changing the game? What gaps need to be filled in Google’s social strategy?

While there are many utility apps and games that fit the bill, the one missing piece are offers – the trend where users don’t pay directly for points, credits, or virtual goods directly, but instead they do tasks, trial products, or spend money on other things that get them what they want.

The two most obvious candidates in this space are OfferPal, which was flying high until the scamville problem we covered here and the choice by Facebook to use TrialPay and PeanutLabs for their offers. This dramatically cut OfferPal’s profile and instantly cast doubt on how big they could become, and now, with a reduced valuation but solid technology implementation, Google could pick them up and round out their portfolio. However, while OfferPal is one obvious choice, Google could also choose TrialPay – a successful, and less controversial, but smaller provider in the offer space. If Google was willing to be aggressive, they could buy TrialPay, which is the favored integration partner for Facebook and currently the main provider of offers that yield Facebook credits. Such a move, at the right time, could not only give Google a solid technology and team, but also temporarily disrupt Facebook’s ability to leverage offers for credits.

Google is building an army of technology,  social tools, and people to challenge Facebook’s dominance in social media. While it has successfully executed on many technologies, it’s only now buying the companies with the traction, experience, and the mindset to put the social back in Google. The only remaining questions are around their ability to they integrate the recently acquired companies and if/how they will move into the offers market.


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Microsoft continues to wrestle with the e-commerce side of its search engine, Bing, in an effort to more effectively compete with Google’s dominance.

The company discontinued Bing Cashback as of July 30. Bing Cashback was a novel way for shoppers to save money by earning a percentage of the price paid for an online product as “cashback” – in essence, an instant rebate. The cashback was paid out of proceeds from search advertising fees from participating stores. Consumers received cashback payments through PayPal, direct deposit, or mailed checks.

George Michie, CEO & Co-Founder of The Rimm-Kaufman Group, a search engine marketing firm, tells Internet Retailer, “Cashback was a big win for merchants and users, but I don’t know how big a win it was for Bing in terms of buying market share.” According to Microsoft, while Bing Cashback attracted over a thousand merchant partners, it “did not see the broad adoption that we had hoped for.”

Bing is trying to remove the sting from killing Cashback with the launch of Bing Shopping, which appears as a navigational link on the Bing home page. Bing Shopping is following Google’s lead in offering online retailers free clicks from the Bing Shopping page. Microsoft confirmed that a product feed service for merchants was being offered without charge, so product listings and images show up in search results as essentially free placements. Eventually, Microsoft is expected to add paid advertising to the mix.

Bing Shopping is a nicely organized shopping portal, with featured products, featured stores, and “products people are talking about.” It will offer some new search marketing features; for example, “shopping slide shows” allow consumers to click through product photos and purchase a product of interest, directly through the portal. Bottom line, however: Bing Shopping is basically similar to Google Product Search, with some added functionality.

Bing Shopping will also be similar to Google Product Search in ranking products. Rick Backus, co-founder of CPC Strategy, an online data firm, tells Internet Retailer, “Bing’s data on search clicks will be part of its overall algorithm that ranks product search results, giving popular retailers an advantage.”

But the big question about Bing Shopping is whether the search engine can drive enough traffic to build the numbers merchants want, especially in terms of sales conversions. Bing Cashback presented a pretty compelling reason to shop because of attractive rebate offers. Bing Shopping has no such built-in incentive.

Bing Shopping needs to do two things quickly: get as many merchants as possible to participate, and get as many shoppers as possible to visit. Launched last summer, Bing has seen increases in traffic, but its U.S. market share is under 10 percent, while Google’s is over 71 percent. Microsoft has also been losing money in its Online Services division.

If Bing Shopping can’t make the cash registers ring for online retailers, dumping Bing Cashback may come back to haunt Microsoft.


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Will Shoppers Click with Bing Shopping?

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The latest edition of the Global Entertainment and Media Outlook: 2010-2014, has just been issued by global consulting firm PricewaterhouseCoopers (PwC).

The report forecasts modest growth in entertainment and media spending worldwide over the next four years, with much of the emphasis on digital media. But what’s behind the numbers is perhaps of greatest interest to online marketers. Consider these “three themes” identified by PwC to gain some insight into the digital media environment going forward:

1) Rising power of mobility and devices.

PwC says “increasingly converged, multi-functional mobile devices” will come of age as a primary platform for communications by the end of 2011. The movement to “consume and interact with content anywhere, anytime – and to share and discuss that content experience with others via social networks” is expected to be a driving force that information providers will have to accommodate. The number of U.S. mobile Internet access subscribers will likely reach over 96 million by 2014, according to PwC.

2) Growing dominance of Internet experience over all content consumption.

The Internet has caused a fundamental shift in the consumer’s mindset. Now the consumer “expects all forms of media to embed the convenience, immediacy and interactivity of the Internet.” This suggests that at least three existing media will dramatically change: television will finally become Web-enabled, Internet-enabled devices like the iPad will increase in popularity as magazine and newspaper content delivery platforms, and music CDs and even digital downloads will be replaced by streaming personalized music services. The same is likely to be true of video.

3) Increasing engagement and readiness to pay for content – driven by improved consumption experiences and convenience.

If – and this is a big if – content is combined with convenience and usage flexibility, consumers will consider paying for that content. But the content will have to incorporate personalization “and a differentiated experience that cannot be created elsewhere.” Consumers might also be more willing to pay for content that has local relevance, which is why localization is a hot topic these days.

These very trends are often discussed on ReveNews, so it’s reassuring to get validation from a major consulting organization. But PwC cautions businesses they’ll need to make changes, too. They warn that “digital migration and consumer behavior changes have put extreme pressure on existing business models. …There is no ‘one-size-fits-all’ approach for E&M [Entertainment & Media] companies to stake their position in the digital value chain. The continued fragmentation of the E&M sector will fuel greater experimentation by both established industry giants and niche players in adopting business models that include hybrid combinations of advertising and subscription approaches.”

This may be why you’re seeing a lot of experimentation by Google, Facebook, Twitter and other established leaders, and why up and coming players like Foursquare and Gowalla are attracting significant attention. Providers on the hardware side of the business are scrambling to stay level with Apple’s iPhone and iPad.

It’s interesting that the three trends noted by PwC really converge into one over-riding consumer desire: to be connected and informed all the time. The consumer is indeed driving massive digital change. Those marketers who recognize how to meet that need will be the ones to succeed in this rapidly evolving marketplace.


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3 Reasons Consumers Are Driving Digital Change

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Social media is good for a lot of things. But what about your bottom line?

Well, the truth is that social media and sales are strange bedfellows. When it comes to social media, on the one hand, relationships come before sales. On the other hand, people prefer to do business with those they trust.

So while you shouldn’t be using social media to sell your products, using social media in the right way can lead to an increase in sales in five different ways.

1. Customer Retention & Loyalty

The most immediate way that social media can help increase your sales is by making your existing customers repeat buyers. By offering your customers the ability to connect with you and each other, you can turn your target market into a community. And the sense of belonging they get from being part of that community can make them more loyal to your brand.

Examples of this include having social media profiles that are active and useful. This can be as simple as a Twitter account that addresses consumers’ comments about products. Or it can be as engaging as a Facebook group that solicits feedback from customers and fosters discussion between them.

The point is that by connecting with your customer base in a meaningful way, you remind them that their product and brand experiences matter to you. And when a consumer feels as though they have a voice and some influence, they are more likely to become repeat buyers because they feel that your products have been designed with their personal needs in mind.

2. Community & Acquisition

We all belong to different networks. Work networks, school networks, family networks, etc.  Many of those networks overlap through social media. For instance, you can find out a lot more about your colleague’s personal interests by friending them on Facebook.

Well, your customers are no different. And when you encourage them to form a community around your brand, the people in their personal network who know them and trust them will see that they are a loyal customer.

And when someone you trust trusts someone else, you’re more willing to trust them, too. So the next time someone in their network is looking for a product/service you sell, they’ll remember your brand and be more likely to buy from you.

3. Trust & User Generated Content

Developing powerful, compelling content can be costly and a huge pain. You have to hire writers, analyze content conversion rates, and constantly tweak your copy. And more often than not, your content will come out so branded and sterile that it doesn’t resonate with consumers anyway.

But what if you could outsource your content strategy to a trusted third-party for free? Well, social media can help you do that through user generated content (UGC).

You see when you develop content consumers know that you’re just trying to sell to them. And there’s nothing wrong with that.

But when you open up your products to user reviews, you send send a message that you have nothing to hide/fear, and that helps a consumer trust your brand more. By giving consumers access to independent third-party feedback, you’re helping them make a better purchasing decision, and when a consumer is more comfortable, they are more likely to buy.

Of course, all this being said, it’s your responsibility to make sure that your products and services (including customer service) don’t suck. So if you get bad reviews, address the issues and make it very clear in value proposition, call to action, and product descriptions that improvements have been made.

4. SEO & Acquisition

A convenient side-effect of opening up your products to community activity and UGC is that you increase your chance of rankings on all kinds of medium- to long-tail keywords. And that means that you increase your chances of reaching out to targeted users who have already made the decision to buy (i.e. are actively searching for products/services).

Google will only permit a single domain to appear twice on the same search engine results page (SERP). That means that you can have up to 8 competitors on a SERP.

But when you build a community around your brand through social media profiles and open up it up to UGC, you create another branded page that can rank in the SERPs. And that means another portal through which you can acquire and convert users.

5. Drive Foot Traffic

Believe it or not, social media can drive traffic to your brick & mortar point-of-sale (POS). You see, the web has gone mobile and so has social networking. More and more of what users are doing are location-based, and that means that you can reach out to potential customers who are, quite literally, just around the corner.

For instance, the social network Foursquare allows users to “check-in” to physical locations (such as a cafe) through their mobile phones. Their personal network is then updated about their physical location. And when we see that someone we trust frequents a certain POS, we’re curious to check it out, too.

Consider the partnership between Foursquare and the Canadian free daily newspaper franchise, Metro, to deliver restaurant reviews based on the location of a Foursquare user. This means that restaurants are driving foot traffic through third-party content.

But there are so many more possibilities. Social media and the mobile web also allow you to geo-target advertising to within a radius of only a few blocks. In fact, many retailers already offer time-sensitive deals to users who are in walking distance of a POS.

Being Social, Making Sales

Of course, what you have to remember about social media is that relationships come before sales. Social media is supposed to be social, not commercial.

Through social media you can build community, trust, and influence with your target marketing. You can get invaluable feedback that can be used to improve products and brand experiences. And you can find out more about what your customers want.

But never try to actually solicit a sale. Not only will the attempt fail, but it can backfire, and word can spread quickly about you’re just another marketing douchebag.


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5 Ways Social Media Can Generate Sales

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Two of the original founders of 1800Solutions (later called MetricsDirect and then more infamously Zango) are in business together once again with a new start-up company, BigDoorMedia. Keith Smith and Jeff Malek recently received $5 million in investments from Foundry Group according to information on their site and TechCrunch. This brings the total investments for BigDoorMedia to almost $6 million.

BigDoorMedia is currently in public beta and describes their business as:

Our platform helps companies build game-like mechanics and loyalty programs into their site or app through points, badges, levels, leaderboards, virtual currency and virtual goods.

Ultimately, the BigDoorMedia platform allows publishers to monetize their community through virtual currency and goods using an offers platform.

An interesting side note is that Foundry Group is also an investor in Zynga, the social gaming company behind Farmville, Yoville, MafiWars and many other games. These are the types of social games the BigDoorMedia platform is meant to monetize. Ultimately some would consider this a risky investment for the Foundry Group considering the background of the two founders.

Smith and Malek have achieved the milestone of launching a new start-up company and acquiring significant financial investment in the short time frame of about a year following the bankruptcy filing and asset sale of Zango which led to the personal bankruptcy filing by Smith.

Reformation or Public Relations?

The business model and practices of Zango received a steady onslaught of criticism over the years from many groups including security companies, online advocates and consumers.  Through it all, Zango consistently maintained their innocence against the allegations related to malicious installs of the various Zango products and launched savvy public relations campaigns to counter the negative PR and stigma that became associated with the various company names. The public relations campaigns were successful, at least for the many advertisers who continued to run campaigns on the Zango platform.

Smith appears to be addressing the past problems of Zango head on, which is probably a good public relations move for his new company. I doubt there are many players in the online marketing space who don’t know about the past history of Zango. In a BigDoorMedia blog post, a detailed account of the philosophy behind BigDoorMedia is laid out, as well as lessons learned from Zango and how these lessons are shaping BigDoorMedia. While some of the “lessons learned” appear self evident for any business, such as being good to consumers and only do business with the good guys, there are a few points worthy of further exploration:

Don’t be adware. It doesn’t matter that our move into adware was based on logic that was sound and motives that were pure. Adware became known as a public scourge and trying to fight a broadly based perception is like spitting in the wind. We don’t ever want to write broadly distributed client-side software again.

I’ll pass on the debate of whether or not the move into adware was sound logic and the motivations were pure, but what is not mentioned is the degree to which the $3 million dollar FTC settlement (pdf) undoubtedly played in the decision to not be adware. At least I hope that Smith took something away from the FTC investigation into his business. Although I notice that BigDoorMedia appears to have left themselves a bit of an opening with “broadly distributed” client-side software and don’t go as far as to state definitively not entering the arena of adware.

Regardless of whether or not BigDoorMedia has any intentions of using adware in their new business venture, Smith does have to inform the FTC of his new business venture as required in the FTC settlement agreement. This is irrespective of whether or not adware is involved, and is a pretty standard clause in FTC settlements. The FTC wants to be informed of this so they can keep an eye on business practices to ensure consumer protection. Smith addresses this point when stating:

Be good to consumers. Monetization of users and content by its very nature is not going to be directly welcomed by consumers, but it absolutely has to be consumer friendly.

I certainly agree that monetization absolutely has to be consumer friendly, although the scope of being good to consumers certainly goes far beyond the example presented by Smith for balancing the amount of time exposed to ads with the time the consumer engages in the desired content consumption.

Smith expounds on another lesson he has learned:

Be long-term greedy. Real value needs to be delivered to get people to part with their money, so revenue is a great way to measure the value you are adding to the world. Short-term greed and measurement will almost always lead to ruin, but if a business thinks long-term and makes intelligent decisions about what will generate the most amount of revenue over a three to five year period of time (an eternity online) – in most cases that will be a fantastic guide to doing good and adding tremendous value.

When taken together, I have to wonder if Smith has truly learned what being good to the consumer actually entails. Revenue earned isn’t necessarily a valid or a reliable statistic for measuring “good and adding tremendous value.” We only have to look at recent events in the way some platforms have monetized social gaming to understand that a lot of money is being made at the expense of the consumer. Shady advertising offers to social gaming users have provided quite a bit of revenue to companies like Zynga (remember they have been funded by Foundry Group also). It is hard to argue the point that taking advantage of consumers is treating the consumer well. These types of advertising offers that mislead consumers are the exact kind of marketing the FTC doesn’t like to see.

But maybe Smith isn’t completely blind to these types of activities in the social gaming monetization marketplace, as BigDoorMedia blogged about the whole TechCrunch/Zynga “Scamville” incident, sharing more of the lessons learned from running an adware company. The crux of the problem becomes whether or not a company can recoup the millions invested in a short-term (the 3-5 years pointed out by Smith) without being lured to the big dollars behind the questionable lead gen offers out there.

What Is Missing From The Picture?

The rhetoric is well and good. But if one looks a bit closer, there are some glaring points which should be considered if lessons have been learned and indeed reformation may happen with the management of BigDoorMedia. I appreciate the fact that the BigDoorMedia venture is still in public beta. Beta clearly indicates the company may well be working the technical kinks out of their system. But since the company is currently accepting publishers and vendors, there are some fundamental aspects missing from their site that I would expect to see from a legitimate business.

Terms Of Service I could find no TOS on the BigDoorMedia web site, even a footer link on the publisher sign-up page. This is so basic, I don’t think any further elaboration is required. A TOS would certainly provide some insight into how a business is being operated.

Privacy Policy I was unable to find any Privacy Policy on the BigDoorMedia web site. This is as basic as having a TOS. This is also not only critical for the publishers and vendors working with BigDoorMedia, it is essential for the consumers who will be interacting with the BigDoorMedia platform. It’s an aspect required and expected by the FTC as well.

Advertisers While Smith may say he thinks that certain types of advertising offers need to be cleaned up from the online ecosystem, there is little to no information on the BigDoorMedia site about the advertising companies and offers being used for monetization. What types of offers can publishers expect their communities to be exposed to? Indeed, BigDoorMedia talks very little about the actual monetization on their site. At the end of the day, the platform is about monetization not providing cool badges, trophies and loyalty points only.

Be Good To Advertisers While consumers should be treated honestly, so should advertisers. Ultimately there is not monetization without the advertising dollars. In all the posted lessons learned, I saw nothing talking about how advertisers should be treated just as fairly as the consumers. Certainly, there are advertisers who are more than happy to scam consumers, but if you are “only working with the good guys”, those types of advertisers should be removed from the picture by default.

We saw historically the Zango platform being used to defraud advertisers and this was with the full knowledge of Zango. Back when it was 1800Solutions, they engaged in some of the exact same practices themselves acting as affiliates. While measures could have been taken directly by Zango to not allow their platform to be used in such ways, Zango never implemented any protective measures.

In the world of incentivized advertising, potential fraud is present (e.g. consumers submitting lead gens with false information or intent to cancel offer only to get the incentive). With an exchange economy based on offers, the majority of revenue generation will come from the coffers of advertisers. Will BigDoorMedia care as much about the advertisers as the consumer?

At the end of the day, it is not what BigDoorMedia puts down in web ink as their mission and theology of the business. It is the choices the owners make in the actual implementation of their business model. As they are persistently pointing out, they feel they had a good business model with 1800Solutions/Zango, but made many mistakes in the implementation which ultimately led to its failure.  Only time will tell if BigDoorMedia is able to fulfill the promises currently being made and plays as a good netizen in the online advertising space.


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Zango Co-Founders Receive Over $5 Million For New Start-up

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Although the average conversion rate for a website is around 3 percent, many websites convert at 10 percent or higher. This session at SES Toronto covered what you may not be doing to reach that conversion level. The speaker was Bryan Eisenberg (founder of Grok.com and author of several books), and he provided, examples from retail sites, B2B sites, publishers and everything in between.

Bryan started out by reminding us that conversion rate is a measure of your ability to persuade visitors to take the action you want them to take. Then he asked an interesting question: If technology and tools have improved so much since the late 90s, how come conversion rates only climbed from 1.8 percent to 3 percent?

1. Communicate Your UVPs & UCPs
You have to give people a reason to buy from you. Make sure that your unique value propositions and unique campaign propositions are clear and prominent on every page of your website.

2. Make Persuasive & Relevant Offers
Make sure that customers have a reason to convert. For example, Overstock.com offers free shipping for first time customers.

3. Reinforce The Offer Site Wide
Remind your users over and over again. Whatever your offer, have it all the way to your Thank You page.

4. Maintain Scent
This is about maintaining your branding, UVP, and UCP throughout your sales funnel. Landing page optimization is not enough. You have to look at the customer’s entire journey & experience. For instance, if you’re running PPC ads, make sure that the landing page and every subsequent page in the funnel is in-line with your ad copy.

5. Make a Strong First Impression
Whether it’s a good brand story or offer, find a way to distinguish yourself.

6. Appeal to Multiple Personas/Segments
None of us have just one kind of customer. But we often overlook all of our potential customers. Different customers will interact with your content differently. So build acquisition models for each potential persona you’re targeting.

7. Don’t Do Slice & Dice Optimization
When you do A/B testing, use your concepts of personas to get better results quicker. Spontaneous users seek top sellers. Humanistic users care about reviews. Methodical users shop by category/genre. Competitive users search by other product meta info, such as make, model, brand. etc.

8. Leverage Social Commerce: Use the Voice of Customers
Let your target market create the content for your products. Amazon does this better than anyone with their users reviews, and they have 25 percent of ecommerce transactions in the US.

9. Use Reviews for Navigation
Incorporate your most viewed and most reviewed products into your navigation by figuring them prominently on your site.

10. Use Reviews for Promotions
Use customer reviews in your other marketing material — email, PPC, etc…

11. Use Review for Credibility
Reviews from independent, third party customers add a lot of credibility to your brand and products.

12. User Reviews for Feedback & Research
What you used to pay a marketing research firm tons of money for is now available for free. And there are 69 free/low-cost tools to help you make sense of the user’s experience.

13. Use Persuasion Principles Like Scarcity
Usability helps people what they need to do, but not why they need to do it! You need to create urgency to persuade the user to convert — i.e. “Only 7 left in stock – Shop Now.”

14. Make Forms Engaging
Keep the clean, short, and simple — to be both visually engaging and easy to complete. There is no need to make people users register before they check out.

15. Provide Point of Action Assurances
Leads lose their effectiveness by “6x” within the first hour. So reassure customers of when they’ll hear back from you. Also, remind them that the check-out process is secure.

16. Keep Them in the Process
As users choose items, give them the option to either keep shopping or check out.

17. Consider Email Preview
Email is an effective way to retain users. Leverage it to follow up with leads and recent customers.

18. Budget for Experience
You can’t just invest in acquisition. You also have to invest in what happens once users get to the website. So work conversion optimization into your marketing budget. And work continuously to improve your customer experience.

19. Utilize a System for Prioritization
Prioritize elements of the sales process/funnel based on how the customer interacts with the site. For example, if users click on a certain feature a lot, optimize that feature first.

20. Make Data Driven Decision
As hard as it can be to go against your own (or CEO’s) personal preferences and ego, you (or your boss) don’t necessarily represent your target market. So use the data you have to optimize the funnel. Make a To-Do list of all the problematic parts of your sales process, think up ideas on how to improve them, and then implement A/B testing to figure out what elements of any given step are impacting conversions.

21. Know How to Execute Rapidly
Develop processes for rapidly adapting content and deploying new products. Map out the implementation process and template it so that when a marketing opportunity arises, you can quickly capitalize on it.

Bonus Secret – 22. Use your Thank You Page to Sell
Since you’re not trying to register users before they by (see #14), encourage them to create an account on the thank you page. Customers will be more likely to complete the process once they’ve got what they want (i.e. made their purchase), and getting the to create an account will help you increase users retention rates.

#21secrets


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The home theater is one of the new gold rushes in consumer electronics. Not just all the new units sporting 3D technology but how consumers get their media. This week Best Buy is stepping into that fray, hoping it’s home theater in a box system will entice consumers away from the reigning champion in the space Netflix. Aside from Netflix the market is already crowded with players like Hulu, Amazon, iTunes, Zune’s Xbox service, and YouTube all involved in the space.

Best Buy’s Plans for CinemaNow

The service is called CinemaNow, partnering Best Buy with Sonic Solutions Inc. The service will start as a la carte, and hopes to progress to a Netflix like subscription service. Movie rentals will start at 2.99, videos for purchase will run from 9.99 – 19.99.

According to ReadWriteWeb the service will be available through select connected Blu-ray disc players, HDTVs, and PCs via CinemaNow. ReadWriteWeb’s only problem with the plan is why purchase a digital DVD for $20 when you can go out and buy a physical copy of said same DVD for the same price? It’s a good point. It seems unlikely given current prices and the hit that Netflix has going where you can stream hundreds of movies to your home PC, Xbox, PS3 or Wii, that Best Buy will attract significant market share.

According to  Ryan Pirozzi, Best Buy’s Director of Digital Video, “It will be 2012, at the earliest, before the Internet video service gains enough traction to encourage Best Buy to begin phasing out DVDs in its stores”.

The timing of the move also seems to be in direct response to Wal-Mart’s recent acquisition of VUDU. According to Endgadget’s Richard Lawler Best Buy plans to “sneak boxes with its store (CinemaNow) embedded through other retailers.”

In an article last month speculating Best Buy’s tactics Lawler writes:

“CinemaNow is well prepared to set up online video stores for others, with Blockbuster (bad example) and Dell already on board. Variety suggests Best Buy could market and sell Internet-connected TVs and set-top boxes that include CinemaNow access, with a shared revenue stream between the two, but nothing is final. Netflix has a hit on its hands with Watch Instantly so think it over, would you give an Insignia Blu-ray player or HDTV a second look if it could download movies?”

Netflix’s Hold on the Market

As the big gorilla in the space, Netflix is only real weakness is on the technical side. Complaints about occasional audio problems, no subtitles, and occasional slow downloads, etc. Then there is the problem with selection since sometimes the movies you can download aren’t the ones you really want to, for every Guess Who’s Coming to Dinner there is three Pluto Nash like gems. No, it’s not the pick of the litter so-to-speak of movies, but I can’t say there’s nothing to watch.

Netflix’s market share is very strong. According to Media Post’s Steve Smith :

“The share of Netflix customers now accessing streaming media is 55%, up from 48% in the last quarter of 2009 and from 36% in Q1 2009.  But the habit of streaming clearly is there and I am sure the connection from Web to TV is gelling in consumers’ heads. Netflix knows what it is on to. It just cut some DVD windowing agreements with Hollywood that opened up more content for the Watch Instantly library.

I saw reports that Blockbuster’s CEO sniffed at this the other day by insisting that his competition’s on-demand library essentially was filled with junk. He obviously hasn’t spent much time browsing films on set top devices. The choices you make in the end often are serendipitous and not driven by a hunger to see the latest release.”

How Will the Affiliate Marketing Play Into Matters?

Netflix’s success is largely due to its affiliate program which it operates currently on the Google Affiliate Network. According to Google’s Affiliate Network the rough numbers are as follows:

There’s a $ 16 fixed commission. They have 42 million unique visitors worldwide, and 1.2 Billion page views. The average customer has some college education, between the ages of 25-55, and a household income between 25,000-99,999.

Best Buy also has a long standing and healthy affiliate presences, focused on their retail product. They are also very active in the industry and have positioned themselves to take advantage of the recent “Amazon Tax” Legislation:

“Some online-only retailers have recently terminated their affiliate relationships in some states due to recent legislation requiring online-only retailers to collect sales tax from online purchases. Since Best Buy has physical stores nationwide, this does not impact our affiliate program business model. In fact, we think it’s a great time for you to sign up with us!”

The question is will Best Buy develop an affiliate program for CinemaNow, on par with Neflix’s current affiliate program? It will be a challenge since the download space has significant differences than the retail goods space.

The bigger question is will consumers buy into CinemaNow enough to make Best Buy a factor, or will Netfix and the fast growing Hulu continue to rule the space?


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Best Buy Hopes CinemaNow Will Strike Gold

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A trillion. The number is hard to get your mind around, but it appears that’s the latest diet of online advertising that the Internet audience is being exposed to.

According to numbers released by the Interactive Advertising Bureau (IAB) in conjunction with PricewaterhouseCoopers, the first quarter of 2010 was a healthy one for online ads. IAB reports that 2010 had the best first quarter ever, as web ad revenues hit $5.9 billion, up 7.5 percent over the first quarter of 2009.

ComScore presents the really big number in terms of how vast online advertising’s reach has grown, reporting that there were 1.1 trillion ads presented to web users in the first quarter of 2010. Jeff Hackett, Senior Vice President comScore, said:

“Following a severe ad recession that began in late 2008 and continued through the first three quarters of 2009, we’ve been seeing a strong resurgence in the online display ad market. The first quarter of 2010 posted strong volume in online display ads, coinciding with increasing expenditure from advertisers and higher CPMs for publishers. This pickup in activity should bode well for the online advertising industry as we move forward in 2010.”

The biggest publisher for display ads is Facebook, which now owns a 16.2 percent market share of the ad delivery game. Yahoo, Microsoft, Fox Interactive and Google all trail Facebook. A clear sign in Facebook’s ever increasing dominance.

Top 10 U.S. Online Display Ad* Publishers
Q1 2010
Total U.S. – Home/Work/University Locations
Source: comScore Ad Metrix
Total Display Ad Impressions (MM) Share of Display Ad Impressions
Total Internet 1,089,732 100.0%
Facebook.com 176,307 16.2%
Yahoo! Sites 131,555 12.1%
Microsoft Sites 60,187 5.5%
Fox Interactive Media 53,823 4.9%
AOL LLC 32,100 2.9%
Google Sites 25,852 2.4%
Turner Network 15,685 1.4%
Glam Media 7,819 0.7%
eBay 7,483 0.7%
Tagged.com 6,804 0.6%

*Display ads include static and rich media ads; excludes video ads, house ads and very small ads (< 2,500 pixels in dimension)

Both reports are seen as indicators of economic recovery as investment in online increases quickly over other advertising channels. David Hallerman, Senior Analyst eMarketer, told Bizreport.com:

“Overall, the U.S. economy is recovering a bit sooner than last year’s data led us to believe. For example, not only did the GDP increase by 3.2% in Q1 2010, but there was a corresponding 3.6% gain in personal consumption expenditures. And greater consumer activity is one of the prime motivators for greater advertising spending.”

Facebook could be more and more of an engine for this growth, as the social networking site gets more savvy about leveraging its users content to generate targeted advertising for its users. The next step in the overall growth of tech-based advertising is how all of these platforms – Facebook, Yahoo, Google and others move into the home theater, mobile, and local markets.

As consumers increasingly adopt new technology advertisers will have more inventory. From mobile to streaming video every screen a consumer sees is an opportunity for an impression and that will cause that trillion number to be surpassed very quickly.


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Online Advertising Sets Records On The Rebound

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Integrate email and social media?  Nonsense.  Email is social media.  And once you realize this — and focus on traditional direct response tactics — you’ll be glad you didn’t pay the consultants for their social media blather.  You’ll be too busy counting sales.

Last week I discussed the concept of using ‘ethical bribes’ to acquire new customers via social media — all while suggesting that all digital media is social.  And that includes email.  Integration of the two is actually just folly because the two are in fact one.  I’m back with the case study on Dormeo, a home goods brand focused on sleep products and mattresses.

We left off with Rok Hrastnik being tired.  The International Web Director for Direct TV Goliath, Studio Moderna was exhausted — done watching his home goods-focused Web sales just puttering along.  His boss tasked him with generating incremental sales — not just leeching sales generated by all the TV ads the company was running.  To top it off, he was suffering through poor readership and sales from his email newsletters.  So Hrastnik got bold and decided to take a risk.

He became a full-fledged, content-focused email publisher to the masses.

Some in his office called him crazy — courting people who he knew would not be customers in near-term.  But his bet paid off.  Sure enough, his readers began to buy his mattresses, bedding and sleep-related home goods when he mixed direct calls-to-action into his content marketing fold.

The system revealed: email publishing

Hrastnik realized that he had two choices when building an email list that would generate sales.  It’s the same choice you probably have.  Either buy a targeted list of leads or an un-qualified list of prospects (people who have no interest in your product line).

Lists of qualified buyers cost more.  Unqualified cost much less.   So Hrastnik decided to buy unqualified leads based on the following hunch.

He could successfully use content to:

  1. Establish meaningful relationships with men and women who, eventually, would buy.
  2. Grow relationships exponentially by giving readers incentives to recruit others.content marketing
  3. Offer unqualified customers an honest, durable value exchange (quality content that they actually wanted for their eventual purchase consideration).
  4. Net sales — be there with a compelling call to action when time was right.
  5. Prove a profit,  spend less on producing and distributing content than he’s netting in gross sales. In other words, preserve margin and hold the line on “cost per order” (CPO).

And that’s precisely what Hrastnik did.

First, Hrastnik acquired email addresses and mailed them a legitimate overseas vacation sweepstakes offer.  This built his opt-in list.  As part of this promotion subscribers agreed to receive newsletters.  Information on what they really, truly want and can use to improve their lives — immediately.

Segmented by gender, these included very topical content focused on successful courtship, beauty tips, weight loss tips, celebrity gossip that resonated with women. Men received well-written, boldly designed newsletters on grooming tips, gadget articles, automotive and sports content – the kind of stuff that men typically consume, and not only consume but appreciate and share.  And just to spur things on a bit Hrastnik kicked it up a notch.  He allowed the subscribers / sweeps participants to increase the chance of winning by making referrals.  If you referred friends your chances of winning a prize increased.

Here’s the rub:  most contest-applicants stayed on.  They liked the newsletters and agreed to receive occasional promotional messages from Hrastnik’s company.   Of course, they demonstrated a clear level of tolerance — unsubscribing like mad when receiving calls-to-action/promos more frequently than three times per month.

Oh, and sales increased…

Sales increased.  You remember sales right?  Sales that were directly attributed to this campaign began to roll in within a few months time.  A few days?  No.  A few weeks?  No.  But Hrastnik was patient.  He made serious investments in hiring writers, graphic designers, etc. to create his e-mail and Web publishing empire.  He made a wager.

Important to repeat:  the closest his content came to talking about bedding and mattresses (Hrastnik’s product) was with articles on dream interpretation… which were a big hit by the way.

What’s the secret sauce?  It’s direct response.  Database marketing.  But in a challenging, multichannel environment. For Hrastnik it was sink or swim.  And he did a few laps.

You already have the answers…

Like Hrastnik, you probably already have the answers.  No, not what you read on blogs from social media gurus.  I’m referring to what has always, traditionally worked for your company.  Was the story that I just presented cool?  Sure.  But was it from another planet?  Was Hrastnik’s idea completely foreign?  No, it was a sweepstakes used as bait to create a list that he mailed to.

Hmm… maybe that’s why he knew it would work.  Because it always has in the past.  It’s called direct response marketing and just needs to be applied on the Web.

I find it really interesting that a “long-form content” focused company (a direct TV seller) is essentially transferring its best practice to the Web.  But in a different way.  Long form, selling-based video — their specialty — doesn’t translate to the Web in practical ways.  Attention spans are too short.  Hrastnik played to that characteristic by creating short, valuable bits of relevant, useful content.  Then super-charged it with sweeps and calls to action.

Hrastnik and his crew are mastering the Web like no other direct TV company I’ve found here States-side.

Never give up

Worth noting, Hrastnik innovated.  He was faced with a daunting task and didn’t give up.  He dove into uncharted waters.  He took a risk.  But he, of course, held full accountability for his actions… and his risk was a calculated one.  He was a true intra-preneur.

This is just one example that I’ve been researching and I hope to bring others to ReveNews’  readers soon.  And email is not the only means to execute content marketing strategies.  But it sure is an accessible, familiar, cost-effective device to start with.  Good luck!


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Case Study: Email Is Social Media

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Need to integrate social media with traditional marketing activities?  Get the job done by realizing and acting on 2 facts: traditional marketing concepts and constructs still create successful outcomes and the all web is a social media.  Follow me and I’ll show you how to optimize social media with traditional strategies in a way that creates quick results — more sales and leads.

Here’s what I’ll pitch you to get the job done:  put integration on the back-burner.  Replace it with a better objective.  I’ll give you compelling reasons why to do this; proof that not integrating social media is the way to go (for most of us) and finally I’ll illustrate with a case study.  I’ll provide living proof.  Beware though,  consultants and gurus may not care for what I’m dishing out.

Who’s integrating and why?

Integration is a logical concept.  If something is new it should be integrated with what already exists.  It’s a natural thing to do.  When a newborn child is brought into a family, it’s time to integrate.  Heh… and that can be a challenge for sure with existing siblings.  But does this reasoning make it right for your business?

As part of a book project and marketing leadership speaking, I’m researching the true trailblazers — many of whom keep quiet when it comes to how they create results using social media… and Web marketing in general.  The theme that keeps recurring is this:

They don’t integrate “new strategies” with old.  They take time-tested direct response marketing concepts (best practices) and apply them to new digital technologies that will likely produce a meaningful, measurable result — a goal within the context of their business.

Remarkably successful marketers are operating under the assumption that “social media” is not really new.  All of the Internet is a social media and it always has been. They’re not integrating in hopes of optimizing under some hocus pocus theory or logical assumption.  They’re making sales and/or generating leads today,  I’ll discuss how they’re doing it.

All media is “social media”

But first there’s a problem, Houston.  Let’s knock this out quickly.  Use of the term “social media” prevents clarity and clarity prevents action… and action prevents improvement.

Think about it.  We use all forms of media “socially.”  Consider how we use a newspaper clipping or a telephone.  Now think about email.  We share (re-distribute, forward), argue, discuss, lash out at, lament over, compliment, barter and agonize via these things… these media.

If we can agree that all media is social (especially if it’s digital — it’s hyper-social) then we can likely agree that “social media” is really a poor choice of words that needs to be — well, killed.  And for some very strategic reasons.  It prevents clarity and clarity prevents action… and action prevents improvement.  The continued use of the words “social media” is part of a current raging debate (see link above).

Robert Bacal, successful author and CEO of Bacal & Associates shares this bit of wisdom recently at Rob Key’s recent piece on the need to stop using the term ’social media.’

Social media has never been driven by function and purpose but by buzz and mass popularity (with a few exceptions). That’s because, in part, there are no new functions or purposes because social media is not a quantum leap. It’s barely a stagger forward. What separates it now from what has come before is that it got buzz, got cool, got popular.

It’s a “tool” looking for a function.

My point: Thinking that “social media” is something really techie, revolutionary  and cutting-edge-new makes us think and act like we’re clueless as marketers — when we’re clearly not.  A majority of us know good marketing. We’re just overly enthusiastic about social media.

And part of this enthusiasm is being fed by consultants and solution providers who fuel the fire of our very legitimate excitement.  We’re giddy, a little bit gullible and with good reason.  The result: sometimes we become tools of the tools themselves.  And I hate being called a tool.

But…

Marketing hasn’t changed.  Consumers haven’t changed — other than spending less. The rules governing our businesses have not changed. This economy is certainly spotlighting that fact.  What has?  Our environment.

There is no “digital revolution”… just an evolution.  Can we agree now that the “is social media a fad or is it a game-changer?” dust has settled?

Integrate later — make sales today

What?!  I thought this was about how to integrate “social” with the rest of mainstream marketing.  Well, yes… it is.  Bear with me.  Before we strive to integrate, traditional “old school” marketing is where we should be looking for answers for “what works” in social media marketing.

And isn’t that what we’re really after — optimum performance of all marketing programs?  But by making a bunch of things that aren’t (yet) optimized themselves work together harmoniously — is that really going to produce a better result?

The premise I’m operating under is that the “integration discussion”  is not a valid one, not yet.  First things first, let’s get better at optimizing results of what we’ve been given to work with — “traditional” web marketing strategies.

Put integration on the back-burner.  Replace it with a better objective.  Find ways to improve ROI of your current marketing tools (Web and traditional).  To…

Attract unqualified customers (who will eventually buy), keep them “engaged” with digital content “long enough” so you can “be there” when they’re ready to buy. Then pounce with a compelling call to action.

Wouldn’t that improve your job security?  Your net worth?  Your profit?

And in days ahead, we’ll explore how to do this.  Sound good?  Sound social?  Sounds productive to me… more so than working on “integrating” based on some consultant’s or vendor’s presumed outcomes.

E-mail is ’social media’

Email works.  It’s also a known entity.  But there’s a lot of discussion all over the web and at conferences about the interplay between email and “social media.” A lot of insisting that one affects the other and circumstantial proof offered up as reasoning behind, of course, the need to integrate these new “social doo-dads” with the old.  If we can do that we’ll unlock… we’ll open the floodgates to… well, you know.

I say stop the madness.  Email is social.  Treating it in any other way is laying obstacles where they’re not needed.

Experts have all kinds of analysis on why and how this “new thing” impacts the old tactics.  There’s an incessant need to pontificate often driven by vendors who sell solutions across both “new” and “old” — or who offer the ability to integrate them.  So the “experts” (vendors) invent some reasoning why that has something to do with ROI — as they define it.

But you’re too smart for this charade.  That’s why you read ReveNews!

So I’ll prove to you that the need to integrate is largely one that makes little sense — it’s not needed.  It’s based on “social media” being some kind of new “thing” out there — a thing that doesn’t really exist beyond technology that connects all of us more ubiquitously.

Along the way, I’ll show how email is an effective “social media.” It’s old school direct response marketing but it is a social device by nature.  You cannot “un-socialize” email.  It can often be super-charged when combined with emerging things like video, blogs, social networks, Twitter — “social media.”

Here’s what we’ll cover.    I’ll also throw in a few case studies — one from eastern Europe that will astound you and inspire you and make you proud to be an online marketer.   You’ll learn how to:

  • Acquire new customers with “ethical bribes”
  • Use content and a publishing model to net sales you’d otherwise not get – and make a profit
  • Grow your e-mail prospect list organically using a simple sweepstakes promotion
  • Generate incremental web sales (sales outside of what your catalog, broadcast ads, etc. generate demand for)
  • Take what you already know works and apply it to make social media pay dividends.

See you next time and I look forward to your comments and feedback on what I’m sharing.


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As reported in ReveNews, a privacy bill was released in draft form on Tuesday with the intention of getting comments on the draft and then introducing formal legislation in about a month.

According to The New York Times:

The proposed bill would expand what information should be considered confidential. It would require companies to post clear and understandable privacy notices when they collected information. Such information could range from health or financial data to any unique identifier, including a customer identification number, a user’s race or sexual orientation, the user’s precise location or any preference profile the user has filled out. It could also include an Internet Protocol address…

Significantly, the bill also requires companies to advise consumers even when they are collecting any of that information off line, which could include data houses and direct marketers.

Reaction to the draft legislation was fast and furious. The Wall Street Journal reports that the legislation was “drawing criticism from both Internet and advertising industries, which are leery of regulation, and consumer privacy advocates, who say the bill does far too little to protect consumers.”

Adam Thierer of the Progress and Freedom Foundation told CNET, “By mandating a hodge-podge of restrictive regulatory defaults, policymakers could unintentionally devastate the ‘free’ Internet as we know it.” But Michelle De Mooy of the group Consumer Action said “We don’t think it effectively protects consumer information online.” Susan Grant of the Consumer Federation of America added, “It carves out a huge loophole for behavioral advertising. It prevents states from enacting and enforcing stronger privacy legislation.”

Mike Zaneis of the Interactive Advertising Bureau told The New York Times that some of the definitions in the legislation were “overly broad.” He said including an IP address would be a significant “change to existing laws here in the U.S. and would potentially have widespread implications.”

In short, no one seems happy with the content of the bill. Even groups on opposite sides of the issue agree that the potential legislation stinks. Given that the draft legislation was released by both Democrat and Republican Congressmen, the blame can’t be heaped on one party. Instead, it appears that once again, Washington may be trying to legislate business practices without considering the voices of either industry or consumers.

Stay tuned to see if this legislation moves forward in its current form, or if the uproar it has created is heard on Capitol Hill. It would be nice to think legislators would listen for a change and come up with something that makes sense and serves the needs of everyone.


Continued here:
Reaction to Privacy Bill Fast and Furious

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The reach of the Travel Ad Network stretched a bit more last week with the addition of SpaFinder into its partner portfolio. Travel Ad Network is the largest ad platform in the online travel vertical, reaching 33 million users.

SpaFinder has been added to a portfolio that includes Rand McNally, Hawaii.com, Lonely Planet and Priceline’s Hotelsbycity network among 300 other travel sites. The addition of SpaFinder adds a new demographic of high-income, female web users. In a press release Brian Silver TAN’s president and CEO said:

“SpaFinder is the known leader in the spa wellness category with the most trafficked consumer websites focusing on the spa industry. We are pleased to have them in the TAN family and are pleased to bring this high quality luxury inventory to our endemic and non-endemic marketing partners.”

The move aligns with the growth strategy set out by Cree Lawson, now TAN’s Chairman, in a 10-part interview in 2008. When asked about the direction of TAN then, he said:

“Growing a network is pretty straightforward. You build out the sales team and you add more publishers. We plan to continue on these core aspects while establishing more specialization, new products and barriers to entry. We have plenty of room for growth both in publisher audience base (there are 10,000 travel websites out there) and in advertiser share of wallet (we’re not quite at 1 percent of the $3.2 billion a year in revenue). So there’s no shift in strategy other than going deeper with our publishers, deeper with our advertisers and expanding things on both sides.”

SpaFinder has been expanding its footprint online, adding more sponsorships and reaching users with a SpaFinder iPhone application.

“In less than six months, Travel Ad Network has grown by almost a third to over 300 sites reaching over 30 million travel planners worldwide. They are the clear leaders in this space,” says Brad Jones, vice president, sales & online marketing, SpaFinder. “We set the highest standards for our own business and are looking forward to working with the organization that shares our standards of excellence in content, marketing and customer service.”


Excerpt from:
Travel Ad Network Ads Another Key Partner

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Traditionally, financial services firms have not been known as marketing vanguards, but in recent years, banks, brokerage firms, and insurance companies have made significant strides. In large part, they have caught up with their consumer products brethren and now actively use every medium available to promote their financial products. Increasingly, these firms are becoming more aggressive with digital media. In a previous post, I mentioned E*TRADE as an example of a financial services firm that has leveraged its television ads featuring babies into a range of online promotion, including YouTube videos and electronic “Baby Mail.”

So it is interesting that Bank of America revealed at the Advertising Age Digital Conference it will be reducing its spending on traditional television and print advertising and, instead, doubling its digital spending. Bank of America is the country’s second largest bank, so the news is not inconsequential. Banks are notorious for moving in a herd. Other banks will surely pay close attention to Bank of America’s digital adventures and follow closely in its footsteps.

Perhaps more interesting than the announcement itself, though, is how Bank of America plans to use digital media. While the bank could easily dump tons of money into digital advertising, it is taking an alternate route. Claire Huang, Head of Marketing for Bank of America’s Global Wealth & Investment Management division, told the audience at the Advertising Age Digital Conference that:

“We’re realizing that digital not only allows you to provide information, you have real, live connections. It’s not just a flat little square box you have two seconds to look at. … We’re actually making our own content because we have content experts.”

AdAge adds that Bank of America is:

“Improving its digital presence by increasing internal efforts, such as new texting tools, Twitter tools and self-produced webcasts, rather than on more digital ad spending. … As an example Bank of America’s Merrill Lynch unit recently hired Charlie Gibson to talk on a panel about retirement planning that was webcast from the Merrill Lynch site.”

Bank of America’s digital awakening may not be earth-shaking to online marketers who will smile knowingly at the mention of the word “content.” This, after all, is the modern day core value proposition of the Internet. The Internet has flattened access to information. That’s why the quality of information is so critical.

In fact, the value of useful and proprietary information can be a competitive factor in differentiating one marketer from another. Whether it’s through corporate websites, microsites, blogs, webcasts, digital videos, or via social media, distributing valuable content – and even better, original valuable content – is the road to grabbing and holding onto an online consumer and getting that consumer engaged in a “live connection,” as Claire Huang calls it.

I applaud Bank of America for recognizing the value of content, and for betting its marketing dollars on that content. Here’s hoping that lots more financial services organizations, and other marketers, will take this as a call to arms and offer up their own original, valuable content. Such a development could do nothing but make the online world a better place for all of us.


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Recently I’ve been hearing some low-level buzz over plans by Facebook to dip into the revenue stream of the social gaming companies feeding off its network. This follows close on the heels of Zynga’s estimated valuation of $5 billon in an article by Second Shares. I don’t have any desire to partake in rumor mongering; however, I and other former micropayments executives expected Facebook to make this move a year ago.

Why does this seem obvious? For over a year now, we’ve seen a phenomenon on Myspace and Facebook that I call the “Now what” moment. This is when you’ve found and connected with your groups and friends  in the system and now there’s nothing left to do.  I had the same experience trialing Friendster and Xanga way back when.

Enter Mobsters, Mafia Wars, and Farmville – somewhat addicting games on Myspace and Facebook. If you’ve studied these dynamics, you have seen massive friending efforts, fake account creation, and addicted users who waste every spare moment stuck in these games. These games have driven new account creation and ‘active user’ minutes on these social networks. I expect that some of the growth, especially on Facebook, is based wholly on these games, where new accounts represent fake social graphs and possibly users with multiple accounts.

What can be learned from studying trends associated with these games comes from when the ’special items’ go on sale.  These are scarce virtual goods that help you in the game, costing 20 to 80 points of some kind, where points typically run from $0.25 to $0.50 each payable to Zynga, Playdom, or other social game operator. Those points are also ‘earnable’ by doing offers, some of which are scammy and covered here, which funnel funds to the game companies through offers providers list in scam articles.

Recently, I’ve seen 30,000 rare items sold in one day, suggesting massive payment volume or offer completion rates to cover the cost of those items. These were all transactions happening for in-game goods and services on Facebook and Myspace, and without the involvement of the social networks. In a simplified model, 30,000 items at 30 point would mean 900,000 points. At $0.25/point (low end) that suggests a possible $225,000 a day, or over $82 million – for just one game. Multiply that by three to estimate the impact of the other blockbuster games, and we’re talking serious money to Zynga – and none of it directly to Facebook. Repeat the same revenue calculations for Playdom and PlaySpan to get an idea of how big this market is on Facebook just for social games. Of course these revenue estimates are on the high-end, but if you were Facebook, wouldn’t you want a cut?

Pause and think about how much money is flowing here and how much revenue could be at stake.

While it’s natural for Facebook to want a cut, doing so is not going to be as easy as generating new revenue from partnering with EventBrite as discussed here on ReveNews. Stay tuned for my next article to expand on the complexities of tapping into the social games revenue streams.


Read more:
Facebook vs. Social Game Companies: The Fight For Game $$ Via Credits

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