Marketing Archives - Page 12 of 37

How Content Marketers and Sites Make Money as Agencies

One of the more interesting line items in the financial statements is “cost of revenue,” which “consists primarily of amounts due to third party websites and platforms to fulfill customers’ advertising campaigns.” (An unspecified percentage of “cost of revenue” refers to the cost of maintaining BuzzFeed’s own servers.) In other words, “cost of revenue” appears to refer primarily to the money BuzzFeed is using to buy traffic from Facebook (and likely other websites too) on behalf of brands advertising on BuzzFeed.

Source: Internal Documents Show BuzzFeed’s Skyrocketing Investment in Editorial

BuzzFeed is an interesting beast because it sits at the fulcrum point between “old news” and “new media news.” BuzzFeed does have quality reporting and long form pieces, but unlike the New York Times those pieces often sit beside the latest funny cat gifs or a hilarious video of a kid after a dentist visit.

How BuzzFeed makes money has been a question that “old news” sites like the NY Times have been trying to figure out with paywalls, subscriptions, email captures etc. None of that seems to be helping slow BuzzFeed down or improve the doom of the more traditional news site economy given the large number of people who get most of their news (quality or otherwise) from Facebook.

Those of us who like to follow these things point back to info like this from 2013 when BuzzFeed was beginning to make serious money and turn heads:

BuzzFeed, for example, has an entire in-house team dedicated to buying ads that drive users to its sponsored posts. Through a program it calls “Social Discovery,” the company buys traffic from a range of sources including Facebook, Twitter, and StumbleUpon, as well as other content-marketing services. It pays to have links to its sponsors’ posts show up in Facebook users’ news feeds and to force them in front of users on StumbleUpon, for example… Peretti said the company is not buying traffic to boost its numbers or meet advertiser commitments. Its brand partners are actually beginning to use its media-buying team as an agency of sorts, asking it to package posts on BuzzFeed with a paid distribution element, too. It doesn’t pay for the ads itself to boost the number of views the content it sells to advertisers gets.

Source: How BuzzFeed Gives Native Ads a Traffic Boost – Digiday

So there you go. If you’re a news site, become an agency with an in-house team to do arbitrage and market your native ads via viewers from Facebook and Twitter (as they are more than happy to take your money). Television and radio has been doing this for decades.

All this has happened before, and will happen again.

You Need the .com of Your Name

If you have a US startup called X and you don’t have x.com, you should probably change your name.

The reason is not just that people can’t find you. For companies with mobile apps, especially, having the right domain name is not as critical as it used to be for getting users. The problem with not having the .com of your name is that it signals weakness. Unless you’re so big that your reputation precedes you, a marginal domain suggests you’re a marginal company.

Source: Paul Graham – Change Your Name

I have so many conversations with clients or potential clients about the need for a good domain name. For a number of reasons, that’s an easier conversation with startups than it is with, say, churches or nonprofits that have existed as an organization for decades.

Regardless of the case, there’s always a way to secure a .com that at least contains your name. Don’t fall for the .churches or .faith or .nonprofit or .startup or .marketing TLD domains that are now being offered. Secure the .com. If you’re a school, nonprofit, church etc, then secure the .org as well.

As an aside, I also have the .com’s of all our family and children (and child-to-be coming this November but is still in stealth mode). You should have that as well. We’ll eventually swing back from a web controlled by social silos to one spread around to sites based on our own identities (again).

Why You Should Fear the Future and Think about Your Business Now

“This is for the same reason we just discussed—the Law of Accelerating Returns. The average rate of advancement between 1985 and 2015 was higher than the rate between 1955 and 1985—because the former was a more advanced world—so much more change happened in the most recent 30 years than in the prior 30.

So—advances are getting bigger and bigger and happening more and more quickly. This suggests some pretty intense things about our future, right?

Kurzweil suggests that the progress of the entire 20th century would have been achieved in only 20 years at the rate of advancement in the year 2000—in other words, by 2000, the rate of progress was five times faster than the average rate of progress during the 20th century. He believes another 20th century’s worth of progress happened between 2000 and 2014 and that another 20th century’s worth of progress will happen by 2021, in only seven years. A couple decades later, he believes a 20th century’s worth of progress will happen multiple times in the same year, and even later, in less than one month. All in all, because of the Law of Accelerating Returns, Kurzweil believes that the 21st century will achieve 1,000 times the progress of the 20th century.”

Source: The AI Revolution: Road to Superintelligence – Wait But Why

“Things are changing so quickly these days compared to when I grew up.” – Every person older than 30 that I know

That sentiment is true.

“Change” (in this case technological advancement) happens on exponential curves. We, as humans, are geared to view change linearly or on a straight course based on our previous experiences. We love to share anecdotes about the past and think about the future in terms of small incremental bits. After all, I was born in 1978 and things aren’t all that different now than they were then? Yes, they are.

Business wise, it’s time to think about how you or your company or your church or your nonprofit is going to position itself now for the increasing climb of the Law of Accelerating Returns. 2040 will look dramatically different than 2020 in terms of human advancement.

This will impact everything from how we consume and produce products (already happening) to how we drive (already happening) to how we use, spend, and save currency (already happening) to how we worship or view faith (happening at a shocking pace now) to how we do business (if you think “the internet” is important for business, just wait) to how we monitor and adjust and improve our own biological, mental, and emotional health. Not to mention external variables that will affect our future such as climate change, growth in human population, war, strife, and the coming economic calamity because of the gap between rich and poor.

If we don’t nuke ourselves or die from spoiling our resources, the next 100 years will see an incredible change in what it means to be(ing) human.

So, if you think 2015 is weird and annoying with mobile phones, email, and Facebook and you cannot wait until we all just go back to paper and “how things used to be”… just wait for 2025. You should fear the future.

However, this will be an amazing and monumental time for our species. I’m hopeful that technological advancement will bring human progress in a number of areas.

Either way, prepare your business now by thinking about what’s coming.

Wilco’s Star Wars and My Personal Helicon

Only Wilco could make something this eruptive feel so comfy, like a steel-wool security blanket.

Source: Wilco’s New Album: Star Wars | Rolling Stone

I’ve been enjoying the heck out of this album over the past week. I was skeptical at first … it being a “free” and “surprise” album with a cutesy yet askew title that Wilco just dropped on us all last week.

After listening to it in the office throughout the week then on replay during a 5 hour drive (the album is just over 30 mins, which is something of a miracle in itself for a Wilco production), I’m a believer.

To make it completely personal and anecdotal, Tweedy’s lyrics and the band’s music reminds me that even though I’m heading into my 37th year of being here and continue to find my own way in business while working with my clients, there are still opportunities to explore the cracks in the sidewalk and allow myself to be creative. I’ve smoothed over those moments of opportunity. I’ve wasted my words and openings for personal and work actualization. This album has helped me realize that.

It’s not enough to coast. Sky Blue Sky, Wilco (The Album) and The Whole Love were fine albums in their own rights. But they didn’t cause the type of “woah, wait a minute … think about how these lyrics and this music can get you to explore your own space, Sam” moments that made me start listening to Wilco in the first place.

The first time I heard Misunderstood from Being There, I was in college and trying to figure out what I was going to do with my life. So, I got a religion major. It made sense at the time. That song was a part of that decision that seemed so flippant yet daring looking back on my younger self. “I would never do that today,” I think to myself as I take my multivitamin supplements and do my morning stretches while looking at my agenda.

Shortly after I took my first office job, my friend Jon said I needed to listen to something and slipped me a CD (it was the style of the times). While sitting in my fluorescent cubicle, I plugged in my headphones and the first cacophonous notes of I Am Trying to Break Your Heart from Yankee Hotel Foxtrot entered my consciousness. I started blogging. My career took me on a path I could have never imagined. That song could be a metaphor for my 20’s (at least in my own head) both in terms of work, exploring my creativity, and relationships. It still gives me chills. It, like Misunderstood, was a strange reflecting pool where I could see myself askew and needed to explore that further before I could look away.

The songs on Star Wars are pushing me to that type of mirror pool reflection. The trick, I think, as I turn 37 is to realize that there will be other songs to push and pull me later, but I need to enjoy these for now and see where they go. Creativity in work, and life, is a blessing and a curse as it seems to come as quickly as it goes. You’re thinking up the color of the tech world at 27 and then you realize you’re 35 and still using the same palette.

It’s time to push the obtuse in my work, and find the angles that I smoothed over.

Then, I have to walk on and find the next mirror pond of songs before settling in as I did before:

Others had echoes, gave back your own call
With a clean new music in it. And one
Was scaresome, for there, out of ferns and tall
Foxgloves, a rat slapped across my reflection.

Now, to pry into roots, to finger slime,
To stare, big-eyed Narcissus, into some spring
Is beneath all adult dignity. I rhyme
To see myself, to set the darkness echoing.

Undervaluing The Click and Mobile’s Importance in Conversions

Mobile advertising is worth ten times the amount marketers think because it drives more offline sales than marketers are able to measure, according to Google’s Matt Bush.

Source: Google: mobile is ten times more valuable than marketers think

Part of me (the marketing consultant part) wants to jump up and down and say “YES! SEE! READ THIS, SKEPTICAL CLIENT!”

Another part of me (the cynical online marketing veteran part) looks at this relatively cynically since it is coming from Google. Google is making intentional moves to distance its majority of revenue from cost per click actions on desktops and laptops and focus on transitioning its largest advertisers to mobile, contextual, and video (YouTube) ads. The average Cost Per Click revenue is down 11% this past quarter from a year ago and will continue to plummet as advertisers continue to realize that clicks aren’t a scarce commodity. That would fall in line with this statement from last week:

According to Bush, marketers are underestimating the value of clicks on desktop by about four times and clicks on mobile by as much as ten times. “You can see if someone had clicked on an ad or visited store, we need to start thinking about the creative we put in place.”

So which part of me is right? As with most things (especially in advertising / marketing), it’s not a black-and-white issue. Yes, Google is right to encourage advertisers and marketers to realize that clicks are undervalued when it comes to the conversion process. However, that realization would serve Google well.

For over 10 years, I’ve been arguing that marketers need to get beyond the old metrics we were and have been using for evaluating click effectiveness (whether in a CPC mode or in actually clicking on a link).

We’ll see if mobile finally delivers on that promise.

You Won’t Make Money with Your Website

“The future for most publishers is likely that of pure content production only, save for the few — like Gruber — who are destination sites capable of selling native advertising in stream (or selling subscriptions, like this site). What is very much in question is exactly how users will feel when they finally get what they claim they wish for.”

Source: Why Web Pages Suck – Stratechery by Ben Thompson

Ben is mostly right with his analysis here – the only point I’d include is that there are possibilities (still) for small and niche sites to utilize affiliate marketing for profits. Even better are sites that are shaped around podcasts (*cough* Thinking.FM *cough*) or video etc.

If you’re looking to start a site, grow a large readership, and make money from advertising… that ship has sailed.

As I told a client this morning, websites and podcasts and YouTube channels aren’t direct money makers… they are marketing channels.

Google Affiliate Network 3.0

“To be clear, the merchants will still handle the actual product fulfillment, although the pages will be hosted by Google. The company emphasized that it’s trying to reduce the friction in mobile purchases without interfering in the relationship between merchants and consumers. That’s why the purchase page will carry the merchant’s branding, and if the product isn’t exactly what the shopper is looking for, they’ll even be able to search for other products.”

Source: Google Unveils “Purchases On Google,” Which Are Basically Buy Buttons In Mobile Ads

Sounds a lot like affiliate marketing to me.

Ah, the good ole days.

Affiliate marketing always was a good system in theory, but I’m always a little sad its promise of a democratized marketing industry never really materialized. Like our social interactions, I guess it’s up to the large silos to run the show.

Nice rundown of “Purchases on Google” over at Marketing Land.

Declining Average Church Attendance and Marketing Implications

RIP, average attendance | Faith and Leadership: “Church attendance was once a key indicator of a virtuous cycle. If the church could get a new person in the pew regularly, offerings would go up, involvement in small groups and missions would climb, and the church would be healthy. If attendance was declining then everything else would eventually decline. The growing lack of dependability on attendance is a sign that the virtuous cycles that have sustained congregations since the end of World War II are collapsing. In order to sustain congregations over the long haul, new cycles need to be developed. Once that begins to happen, new measures can be identified.”

Interesting article that ends with a decisive call to parish leaders to move ahead in attempting to understand the changing nature of church attendance rather than keeping the status quo or firmly placing heads in sand to avoid the uncomfortable conversations that arise as a result.

As Pew Research etc have pointed out, the religious landscape of the United States is decidedly different than it was just 10 years ago, but especially 20-30 years ago when many of the models church leaders use for analysis, budget predictions etc were being formulated.

It’s not all doom and gloom, though. Churches being smart, nimble, and open to hearing the voice of God in the silence, in the whirlwinds, and even in the spreadsheets can mean the difference between keeping a historic sanctuary lit and being able to provide missions monies or having to sell the building to the YMCA.

Social Fundraising and Boards

Good tips here on how to get your nonprofit’s board behind a “social fundraising” campaign. I’ve seen directors struggle with this same issue numerous times, and I offer up similar advice:

The Nonprofit Marketing Blog: “Of course, the idea behind social fundraising isn’t new, but combining the age-old structure of board support and your fundraising assets with technology that makes it much easier to ask for a gift can amplify your outreach, resulting in more donors and more donations for your mission.”