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Business Of The Web

Date post: 28-Nov-2014
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Presentation I did @ the Digital Citizens Indaba http://dci.ru.ac.za/ on the business aspects of online media and the local blogosphere, with a look at the SA internet.
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Business of the web Matthew Buckland | GM: M&G Online Business of the web Matthew Buckland, GM: M&G Online www.mg.co.za www.matthewbuckland.com [email protected]
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Page 1: Business Of The Web

Business of the webMatthew Buckland | GM: M&G Online

Business of the webMatthew Buckland, GM: M&G Online

[email protected]

Page 2: Business Of The Web

Business of the webMatthew Buckland | GM: M&G Online

About M&G OnlineMonthly audited 500,000 UBs | 4,000,000 PIsSeparate divisionOnline advertisingMost of the time profitable60% increase in online advertising revenues y-o-y3X readership; but generates 1/10 revenue of paper

Page 3: Business Of The Web

Business of the webMatthew Buckland | GM: M&G Online

Page 4: Business Of The Web

Business of the webMatthew Buckland | GM: M&G Online

| Internet audience nearing 4,000,000 is entire population of Ireland

| SA’s big websites attract almost 8,100,000

Page 5: Business Of The Web

Business of the webMatthew Buckland | GM: M&G Online

Online advertising in SAMain revenue stream for online mediaWorth R180m, 1% of ad pieGoogle likely doing double that (with no local office)Competing models: CPM vs CPC vs CPACentralised stats & demographics under OPA

Page 6: Business Of The Web

Business of the webMatthew Buckland | GM: M&G Online

Types of advertisingBanner advertising (iab.net)SponsorshipsClassifieds/jobsContextual searchLinksAdvertorials

Page 7: Business Of The Web

Business of the webMatthew Buckland | GM: M&G Online

Is banner is dead?Online advertising: Unsophisticated Hit & missClickthrough rate of 0.3% a success (Ridiculous actually)Below potentialProblem is: Resembles traditional/print advertising model

Page 8: Business Of The Web

Business of the webMatthew Buckland | GM: M&G Online

…no, it’s just terribly “web 1.0”Targeted advertising (user profiles, reg data)Relevant advertising is useful, does not irritate 99,7%Less wastage, less hit-and-missMultimedia: Convergence of TV & online advertisingGlobalisation: Facebook SA advertisingNetworked advertising models

Page 9: Business Of The Web

Business of the webMatthew Buckland | GM: M&G Online

SA blogosphere25,037 active blogs621,204 USs, 5,198,693 PIsSimilar in size to the M&G OnlinePuts in top 10 of SA’s publishers

www.thoughtleader.co.za/

arthurgoldstuck

Page 10: Business Of The Web

Business of the webMatthew Buckland | GM: M&G Online

How can bloggers cash in?Can be more influential than MSMInfluencing purchasing decisionsTechnology, motoring, news & current affairsOften more trust than MSM? (US, Zim Media)

Page 11: Business Of The Web

Business of the webMatthew Buckland | GM: M&G Online

Page 12: Business Of The Web

Business of the webMatthew Buckland | GM: M&G Online

Reader powerSmall individually, but powerful as groupMost blog for leisure, not make money (Pew)Those that do start behaving more like formal mediaGoogle Adsense – not touch sides for manyFuture is in aggregated/networked advertising models

Page 13: Business Of The Web

Business of the webMatthew Buckland | GM: M&G Online

Page 14: Business Of The Web

Business of the webMatthew Buckland | GM: M&G Online

Questions?He must be very ignorant for he answers

every question he is asked - Voltaire

Contact: [email protected]


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