What comes after the banner adWhy you’re doing digital wrong and how to do it right.

Who we are.

Digital publisher since 2003 Solutions enjoyed by 2,000,000 readers

per month Solutions delivered via browser and

native apps Born to save publishers money Exist to generate money for publishers

Today’s agenda

Understand history and current state of digital advertising

Understand concept of audience Look at how best to leverage the two

In the beginning

Behold the very first banner ad October 1994 44% click-through rate (!)

From there, it only got worse Average CTR in the 90s was 3% Had fallen to .1 - .3% by 2011 As number dwindled, advertising

regressed to the mean, meaning….

CTR gave way to CPM

CTR had fallen in effectiveness by 20-30x

Publishers didn’t want to be held hostage by bad creative

Brand advertisers flocked to digital, not because it was effective, but because it was cheap

And now?

468x60 banners have a .04% CTR (1100x slide since 1994)

Mobile CPMs are $ .75 Up to 50% of mobile clicks are accidental 8% of users click 85% of the ads Worst of all, we use this metric to sell,

even if we’re controlled circulation

And digital editions?

Typically have a “much” higher CTR 1-2%

Typically have fewer visitors than websites

If you have higher Cs but lower Ms, you still end up not making enough money

It’s not about the M in CPM

“It is stating the obvious, but it is the quality of a circulation profile, its currency and the precision of the demographic intelligence, which delivers the advertising.” – InPublishing, 2010

Airline Cargo Management

6,688 subscribers “Our publications and websites provide

access to an executive-level readership within targeted sectors of the aviation industry.”

The Peanut Grower

9,000 subscribers Number of peanut growers in the US in

2007? 5,134

The Reality

CPM punishes those in tight verticals CPM is a mass market metric Most of you are not in a mass market You need advertising models that exploit

your ability to reach your vertical without punishing you because of inherent and inherited flaws in the system

Summary

Few people click on digital ads Digital ads are sold via CPMs Selling CPMs when your audience is

small makes no sense Wow – this is depressing

Not necessarily

You are the portal to your industry’s customers

You’re still selling digital (hopefully) You are in prime position to capitalize It’s easier than you think

A different ad – the non-ad

Nxtbook Ubiquity Responsive design Platform agnostic

Key ad unit is web-in-page Delivers user directly to website

In action

Click here for demo

Potential uses

Buyers guides Categorize by vertical

Special supplements Handful of sponsors are more than enough

to be profitable  Periodic digital editions 

Allows you to repurpose editorial while generating more value from it

Possible Scenarios

Kill replica digital edition Lose 15% of audience Make it up with web-in-page edition

Keep replica digital edition Do web-in-page supplement or buyers

guide

Advantages of website advertising 100% viewing of advertiser sites Distribution via email and social media It’s a quality play – NOT a quantity play 

Pricing – how to charge

Divide up ads into 2 categories Branding CTA – Call to Action

Determine effectiveness (CTR) of CTA ads

Determine cost per action of CTA ads The result = what the advertiser will pay

you to deliver someone to their site

Traditional sample

Typical banner 5000 viewers Cost - $1500 CTR of .5% CPC (or CPA) of $60 for each person

delivered to webpage

Web in page value

Large format real estate (entire website) 5000 viewers All viewers are delivered to advertiser’s

website At $60/CPA, value is $300,000

Can you sell it for $300,000? Maybe not, but consider Advertisers have already decided YOUR

audience is their audience The advertisers’ goal is to get qualified

audience to their website You’ve just succeeded – and then some In doubt? Ask them what they’d pay for

a qualified visitor to their website

What their traffic will look like Actual Nxtbook traffic after FOLIO

supplement launched

The only objection you’ll hear: “They didn’t choose to go to my site.” By definition, a qualified audience is one

that you would want to communicate with.

By the time people go to your site, research shows much of their product evaluation is done. This just brings them to the site sooner.

Nothing prevents you from creating a specific landing page offer for the audience.

Case Study – Connections Magazine Digital only magazine, circ. approximately 10k Started in 2009 Local magazine, local advertisers w/ local

customers Moved from standard content to 4

supplements with Web in Page in 2013 Full page rate in 2012: $760

Including rich media: Flash, video insertion, form Web in Page 2013: $1100

Requires just a link 45% increase

Case Study – Connections Magazine Ad creation time dropped by more than

95% By end of March, 2013 sales surpassed

2012 Key benefits

No back and forth with advertisers No dealing with agencies Delivering far better metrics

Technical FAQ

Where does this run? Any browser beyond IE8 Tablet & mobile, too

What metrics are there? Visits, visitors, engagement time and more

Is this software? No. This is the latest full service offering

from Nxtbook Media.

Technical FAQ

Does the visitor to the website count as traffic for the advertiser? Absolutely Referrer data shows you were the one who

delivered them What if the advertiser’s site isn’t

responsive design? Still loads, just requires zooming Likely a short-term concern

Thank you – Q/A

info@nxtbookmedia.com