Media2010: Notes from Frédéric Filloux and Russ Fradin
Continuing my notes from the Media 2010 conference on the presentations by Jack Matthews, Richard Titus and Marc Frons, here are the notes I took from the presentations by Frederic Filloux and Russ Fradin.
I will be digesting what I’ve heard today and pulling into some upcoming content on the future of media.
FRÉDÉRIC FILLOUX, EDITOR – INTERNATIONAL, SCHIBSTED
1. Failure of ad model
– CPM lower than ever
– Clickthrough rate never took off
– endless inventories pushing prices down – ad networks are bottom feeders
2. Facebook/ Google sucking
People are spending far more time on social media (latest +82% globally), impacting their time on traditional media
3. Information break-up
– ‘commodity’ news – ubiquitous, difficult to monetize
– ‘participatory mashup’ – buzz driven, can be monetized
– quality niche – small, people willing to pay
ARPU (Average Revenue Per User) is a very relevant measure today.
There is revenue depletion on both print on online
Over the last four years for every $1 gained on digital $55 have been lost on print
ARPUs:
New York Times – $7-10
Huffington Post – $1.50
TechCrunch $0.85
Facebook – $1.50
Skype – $15
Need hybrid approach: combination of free and paid
Paid-for options
1. Target heaviest users
2. Focus on type of user
3. Better user experience
4. Friction-free payment
RUSS FRADIN, CEO, ADIFY
Optimize for networks
OR
Sell premium branded content
Increased time spent on mid/long-tail sites
Ad spend outpacing traffic growth
Where are you most likely to pay attention to advertising? Nielsen
TV 80%
Newspapers 61%
Major online sites 60%
Niche online sites 59%
Publisher’s options
Optimize your site for ad networks and manage yield between them
Sell premium products directly
If you choose premium:
– exit ad network and data contracts
– prepare your management
– structure sales and products for premium experiences
– extend your own reach
Premium ad products – integrated ad experiences
Build, buy or aggregate reach
– Building is time consuming and risky
– Buying is expensive and risky
– Aggregating is fast but competitive
Vertical ad network
– vehicle for efficient, brand safe buying on mid and long tail sites
– editorially selected, topically related, independent web sites
– anchored by the publishers key destination site
– visited by passionate, engaged audience
Sell more to existing advertisers
– Linking
– Content Syndication
– Immersive branding across segment of long tail