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The cost of free

September 01, 2009 By: Matthew Ho Category: News, advertising, business

The internet has fundamentally altered the business models of many industries.

One of these is the content industry. We have seen recently that the Readers Digest filed for bankruptcy. News Ltd posted a $300m loss in the last financial year.

The World Wide Web can give you almost unparalled access to any kind of information that you want. Its changing the way that we read the news and how much we pay for it. If I can access information anywhere, will I be prepared to pay for it? Will users be prepared to pay for it? And how can publishers and content producers make money from it? How does this affect online services?

At the same time, it is also altering our view of online services.

I’ve just started reading Chris Anderson’s “Free” book which has inspired me to write this as well as the current debate around this topic. The problem is that everyone now expects everything to be free. Chris Anderson’s discusses this briefly, on the divide between the older generation (30+) who are skeptical about anything offered for free, and the younger than 30 (gen x & gen Y) who have grown up in this free era.

free-chris-anderson1

Free online services but at what cost?

We get email services for free – gmail, hotmail, yahoo, et al. And these are all really good email services. There’s almost an unlimited capacity of email storage now. Gmail offers 7GB storge for free (Seven! that’s right). Sidenote: You can actually upgrade to 10GB – 400GB for $20 – $400 USD.  Except the cost of free email is advertising. And most people are willing to put up with it.

Free wifi is available in many cafes, particularly in Starbucks in the US – but there is an expectation that you will buy a Starbucks coffee in exchange for the price of free internet access. Its really an economic cross subsidy. Give me one service in exchange for paying for another, which allows the provider to make a profit margin. Free internet means you will stay longer in the cafe, sipping more cups of coffee whilst browsing the internet.

Many internet services like Huddle.net, Yammer and countless others more offer you a good service for free. They try to entice you by giving you a basic version and hoping that a percentage of users will upgrade to the paid version (when the 80/20 rule kicks in). It forces these kind of companies to be innovative and their competitors as well. Because if I’m not using their service, I could easily jump onto their competitor’s service. 20% of the paid/enterprise customers are subsidising the 80% free customers.

This is the same thinking behind the next release of Microsoft’s office 2010. They’ll give you a web version for free, most likely stripped down. Because if your not using this, your going to be using Google docs which is free.

I use Huddle, a project management software and it gives you a certain amount of capacity for free. It’s quite convenient, and I am seriously considering paying for it to use in my church for project management. I just need to investigate how it would work with many users, etc… I would consider this, because I have used the free service and seen how useful it can be.

The CEO of Box.net, which offers a similar collaboration/storage solution, said this gem of a quote:

“Free is not a business model. It is a distribution and marketing tactic”.

I agree with this 100%. You cannot last in a business environment (especially in a harsh GFC climate like now) without thinking about how you will eventually monetize your business. Free can only last for so long. Really its for marketing purposes, to allow users to sample your services and provide stickiness. If your service isn’t good enough, I’m just going to go somewhere else. So it keeps these online service providers on their toes.

With Google, they provide such superior search services (bing who?), it keeps drawing you back. They surround the organic search results with paid advertising in the form of search engine marketing on the right hand side. And I am perfectly cool with this, as are many other people. It’s done in a way that is unobtrusive and occassionally offers relevant paid results. Not that I have ever clicked on them, but someone must. Right?

free-cover

I remember hearing one of the google maps engineers who was asked why does Google provide the google maps API? It’s really comes down to advertising. The more you use google services, the more advertising you are exposed to. However is the cost of free……… advertising? In relation to Google services, yes. Because Google typically starts its services with free and needs a way to monetise its services. It’s really a advertising/media company which also has a side business selling enterprise apps =)

You can provide a free service, but there needs to be something else which is making money. Anderson uses the example of King Gillete who gave razors away but made money through the sale of blades. Wow you with one hand, take your money with the other.

Its the same example for VCR’s/Playstations/Computers, etc… Subsidise the sale of hardware, so you’ll buy the software. Its the software / videos/DVD’s which have a higher profit margin and you’ll consume more of once you have the hardware.

I actually think that they could offer the iphone for almost free or heavily subsidised. And make the money back through apps. I know there’s a group of people out there that refuse to pay for apps. But there’s enough people (a minority) that will pay, and scaled over the millions that own iphones, its enough to generate significant revenues for Apple and the developers that create those apps.

So what’s the deal with online news content?

If I want the latest news, I can jump onto news.com.au and read any of the articles. If they build a paywall around it, I’ll just go to New York Times. I’m really only one click away. Or more likely, I’ll just search in google and end up reading an article from Google news, which is the king of all aggregators. They suck in content, strip it down and spit it out.

You can’t simply just aggregate content. Because you’ll just be re-aggregated by someone bigger or some other new service. It’s a continual battle. You need to produce original content which draws people in and they want to share.

The news industry is very different to many other industries because of its dynamics which focus on content, editorial standards, readership/subscription model, rapid distribution of news, classified advertising, etc…

I spoke about it with David Meerman Scott about it briefly this morning and he had some thoughts around creating customised content based on the user’s preference. I think this idea is worth exploring. As I’ve stated before, the business model of the  news industry needs to change. The question is – to what? What will people pay for?

You can’t just give stuff away for free. Their is a cost involved. You need a cross subsidy or some way to generate income back in return – whether through advertising ala google, or a freemium model.

But give me the news that I WANT, on demand and I might pay for that. I see BBC news and also news.com.au moving to this model. They allow you to rearrange the content based on what I want to read. Allow me to select my preferences. Perhaps they can build some intelligence around my behaviour. Understand what I like to read, what is sticky to me, what engages me, what I share with my friends. What conversations I am having on facebook, twitter, etc… about your news article.

Feed that loop back in. Know that I am interested in sports, particularly basketball & football. Hip hop music, international affairs, quirky news articles, etc… Make sure these kind of articles rise to the top. Create me an igoogle type portal or a popurl interface.

popurl

I would consider paying for this type of service. Would I consider paying on a ala carte basis per article? No. I would pay a monthly fee and consume as much as I could. If it works for Pay TV, this could work for news as well. Even though there is free to air tv, people pay for premium tv services that offer a greater variety of shows, and latest movies. Give me somethign superior to what is free, and I believe users will pay. It works for huddle, yammer and other online services. Why can’t it work in the news industry (despite its different dynamics)?

I don’t believe that the news industry should solely rely on advertising to monetise content despite the advances of advertising technology. Consumers are sick of pop-up ads, pop-unders, take over ads, pre-roll ads, banners. That stuff doesn’t work anymore.

If you know me, I’m a big fan of Mark Cuban’s blog, and he’s also got some ideas around this which are worth reading.

I’m out like free content,

Matt aka Inspiredworlds

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Seth Godin on the tribes we lead

June 06, 2009 By: Matthew Ho Category: advertising, events, technology, video

A few weeks ago I went to TEDxSydney. One of the videos we watched was the one above from Seth Godin. It’s quite good. Its about how change no longer comes from mass marketing, cheaper labour & faster machines, but rather tribes. Tribes can be used to start movement and connect people.

Very inspiring video. There’s more here. I’ve been watching them all night. There’s lot of really cool videos on music, design, technology. Other diverse topics include health, education, etc.. It’s more about innovative ideas. 

I’m out like tribes,

Matt

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Beware the Witch of Man

April 29, 2009 By: Matthew Ho Category: Social networking, advertising, branding, events, social media, video, youtube

On Monday night, about 300 people gathered for the inaugural launch of the social media club in Sydney. The event was held at the Polo & Supper Club in Oxford St and the event was well attended by the masses. By the masses I’m referring to marketing people, the digerati, the twitterati, PR people, etc…or whatever you want to call them. The key note speakers were the fake Stephen Conroy aka Leslie Nassar (love your work!) and Adam Ferrier of Naked Communications. The MC for the night was Tim Burrowes, editor of Mumbrella.  The topic for the night was “authenticity & transparency in social media” – one of those airy fairy marketing topics. 

At 6.30pm when I arrived, the place was pumping. They had two levels booked out, and the bottom level where the main arena was, was absolutely packed. Standing room only! (Well bars are made for standing room).

Man with the $349 jacket

Adam Ferrier went first and spoke about their infamous “girl in the jacket campaign”. This campaign was created for Witchery to launch their mens range and they had a budget of zero (emphasis) and wanted to generate a lot of buzz. So they created a fictious story where girl sees boy in cafe she fancies, boy leaves jacket, girl wants to find boy. Girl then goes to the enormous length of posting a video on youtube. The story then got amplified as the main stream press picked it up and they showed that Sunrise breakfast program, newspapers, etc… Their intention was to get the brand noticed and get people talking about Witchery Man. Check it:

 

As of now, 212,100 views in youtube. Pretty impressive for a budget of zero. I’ve watched the video for the first time, and although I have the benefit of hindsight, I would have been highly skeptical of it at the time. The way that she goes to great lengths to describe the jacket and how the “perfect guy” would be wearing it. In fact its not a bad jacket. Subliminal advertising must work on the weak.

Then the press started asking who is this girl, is this a marketing campaign, who is behind this? They eventually got outed. Naked & Witchery came clean and posted a video response saying yes it was us. I’ve only seen the videos now (after the talk) so here it in all its glory:

Man, I cringed when I saw this. It could have been executed a lot better and definently with more class – the way that Heidi turns it into a ad for the jacket. In fact, the only time I cringed even more in the last 24 hrs was when I heard Adam Ferrier’s response as to whether Naked was arrogant.

Its all about generating conversations

It seemed that for most of the night Adam was defending Naked’s actions. He even had stats to back himself up. But at the end of the day, I think he was convincing and I agree with Tim Burrowes comments on Mumbrella that he did help to sway the crowd onto his side.

Honestly, I don’t have a problem with this tactic of creating a false story or building a mysterious story to get customers engaged and talking about a brand. Brands do it all the time. It’s what we do as marketers. Can Jordan really fly? (Wait, there is doubt?), are pure blondes really made from pristine rivers? Brands make up stories and fantasies all the time to get customers talking and excited. All they want to do is generate buzz. If that’s the objective, then Naked slam dunked it.

Was the public misled about Girl in the Jacket. I have no doubt they were. Was their a line that was crossed? Yes – only when they made that cringeworthy followup video. If Naked did not do the followup video like that, I think it would have been a great campaign. Consumers are smarter than what we give them credit for.

Was it groundbreaking? Of course not. In fact some guy in the audience asked “Did the Witchery Man campaign helped increase the popularty of social media?” – dude are you kidding me? They posted a youtube video about a fake story and it got picked up by the press. It’s not as if they created Twitter. When the story was being told, I immediately thought of the real life campaign of NY girl of my dreams, the cybersearch by one NYC man for an aussie girl he met on the subway. I came across this when I was travelling in the States, and I had actually thought about it when I started reading about this campaign and the connection became even more clearer last night. 

I agree with Adam’s insight that social media is a communication channel. It could be more than that, but at the end of the day that’s primarily what it is. Yes it is democratizing media (see Ashton Kutcher). However, it does make it a lot harder for brands and marketers to do something similar now because people think they got screwed over.

It nots really Stephen Conroy?

I love Leslie’s work as the fake stephen conroy. Dude is funny but a walking PR disaster. He didn’t have a lot to say on the night and Tim was trying to involve him as much as possible by asking him questions as well. But he definently had a couple of good insights – that not everything created by companies on social media is great. Everyone does go nuts when they see a brand do something on social media. 

If you want to see more of the Witchery Man campaign check the video from the night.

I’m out like the man in the jacket, 

Matt

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Next Digital Breakfast with Google

April 11, 2009 By: Matthew Ho Category: Google, advertising, events, video

We have the first video up from the Get Digital breakfast with Google.

Yuri Narciss, Head of Technology Industry Sales talks Innovation.

The event was held on Thursday 12 March 2008.

This is Part 1 of 4.

Slides will be coming soon.

[viddler id=f22f29b&w=437&h=392]

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AFL v NRL 2009 season launch ads

March 22, 2009 By: Matthew Ho Category: advertising, sports, video, youtube

NRL has started and is now in round 2, and the AFL is about to kick off. What better way than to show case both season launch ads. Now I’m not an AFL fan, other than a Sydney Swans supporter by virtue of being from Sydney. However, I do  think that the AFL ad is better. C’mon NRL, step yo game up!

 

AFL Season Launch Ad 


[youtube=http://www.youtube.com/watch?v=5oxpyRreruU]

 

NRL Season Launch Ad 


[youtube=http://www.youtube.com/watch?v=jgxGWvaPz6w]

 

I’m out like the offseason, 

Matthew Ho

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Creative Lego ads – brings back childhood memories!

March 17, 2009 By: Matthew Ho Category: advertising, branding

I love lego. I used to love the big lego exhibitions in the city, which my parents used to take me to as a kid. You would see  these crazy lego sculptures and wonder how people made them (and how they were held together!)

And these ads are so clever! Some of them are very simple but so witty and funny. Minimalist is the key.

LEGO – TANK

legoad-tank1

 

LEGO – ALICIA KEYS

legoad-alicia-keys

For more check out here. It’s worth it, trust me!

I’m out like lego exhibitions,

Matthew Ho.

p.s. someone bring them back!

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Call to legislate internet privacy and Google’s new interest based advertising

March 15, 2009 By: Matthew Ho Category: Legal, Search Engine Links, Websites you should check out, advertising

After my Advertising and marketing meets Johnny Law post, two interesting things have emerged on internet privacy. Check out the news from the NY times blog and the Google public policy blog (one of my favourite blogs to read).

I’ve copied some of the more pertinent parts of the article below. 

——————-

Call to Legislate Internet Privacy

The debate on Internet privacy has begun in Congress.

Rick Boucher
Phil McCarten/Reuters
Representative Rick Boucher

I had a chance to sit down recently with Representative Rick Boucher, the long-serving Virginia Democrat, who has just replaced Ed Markey, the Democrat from Massachusetts, as the chairman of the House Subcommittee looking after telecommunications, technology and the Internet. Mr. Boucher is widely regarded as one of the most technologically savvy members of Congress……..

But high on his list is a topic that is very much under his discretion: passing a bill to regulate the privacy of Internet users.

“Internet users should be able to know what information is collected about them and have the opportunity to opt out,” he said.

While he hasn’t written the bill yet, Mr. Boucher said that he, working with Representative Cliff Stearns, the Florida Republican who is the ranking minority member on the subcommittee, wants to require Web sites to disclose how they collect and use data, and give users the option to opt out of any data collection. That’s not a big change from what happens now, at least on most big sites.

But in what could be a big change from current practice, Mr. Boucher wants sites to get explicit permission from users — an “opt in” — if they are going to share information with other companies.

“I think that strikes the right balance,” he said. “Web site operators are very concerned that if they have an opt-in regime for the internal marketing of the Web site themselves it would be very disruptive. The default position of most Internet users will be not to check any boxes at all. It is a very different matter if the site takes the information and sells it to gain revenue.”

I spoke to Mr. Boucher on the day that Google announced its new plan to track data about customers for advertising. And I asked him about such behavioral targeting, which presents an ad based on what you did on other sites.

For the rest of it here

——————–

Google’s announcement on interest based advertising

[youtube=http://www.youtube.com/watch?v=aUkm_gKgdQc]

 Check out this article on Google’s new privacy controls here and Google’s take on it via their public policy blog. This is exactly the point I was making in my post about relevancy of advertising v privacy of information:

“In her post to the Official Google Blog this morning, Susan Wojcicki, VP of Product Management, announced that we are making interest-based advertising available in beta for our AdSense partner sites and YouTube. Interest-based advertising uses information about the web pages people visit to make the online ads they see more relevant. Relevant advertising, in turn, has fueled the content, products and services available on the Internet today.

Providing such advertising has proven to be a challenging policy issue for advertisers, publishers, internet companies and regulators over the last decade. On the one hand, well-tailored ads benefit consumers, advertisers, and publishers alike. On the other hand, the industry has long struggled with how to deliver relevant ads while respecting users’ privacy.”

 

I will discuss it in more detail when I get my head around all this information. 

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When advertising & marketing meets Johnny Law

March 15, 2009 By: Matthew Ho Category: Google, Legal, Search Engine Links, advertising, business, search engine marketing, search engine optimisation

Last night I watched American Gangster (again!) featuring Denzel Washington, one of my favourite actors. I’ve seen it before when I was visiting New York in a Times Square movie theatre. Denzel, uses the “johnny law” phrase a few times when talking about paying off “Johnny Law” i.e. paying cops to turn a blind eye to his nefarious activities.

I’ve always been curious about technology and the law. And now more so. Technology is an evolving beast, where the business models are constantly changing and new competitors, trends, viral campaigns emerge overnight. Whilst the law is seen as conservative, slow to adapt, and very traditional. Generalisations yes, but ask any lawyer or laymen and they’ll agree with these perceptions. Evidently, these two are at opposite ends of the spectrum. The law seeks to maintain order and protect society, yet also to enable the creation of new ideas and businesses. The internet is disruptive, fast moving, changing and global in its reach. Law is often seen as jursidictional, often applying to only member states (i.e on country by country basis) unless treaties are ratified by Member states.

On Wednesday morning, I attended an Advertising and Marketing law CLE. What is a CLE? It means “continuing legal education”. For those that are unaware, I’m still a qualified lawyer (amongst other things) and to maintain your status as a lawyer, you need undertake ongoing education. It might involve some lectures, preparing presenting a lecture, or watching some videos.

I wasn’t sure what to expect with this lecture but went with an open mind. I heard the following lectures:

1. New commercial models in advertising and marketing using the internet 
2. Comparative advertising 101
3. Copyright in advertising
4. Children & the law

Topic 1: New commercial models in advertising and marketing using the internet 

They were well presented, but the most useful to me was probably Internet Business models by Peter Leonard. Peter is a partner at Gilbert & Tobin, and counts Google amongst his clients. He described some basics about adwords and how it worked – I knew most of this stuff since I do some work on adwords. However, he had some really interesting points on whitelisting v blacklisting of keywords, something which I was not aware of. 

Blacklisting of keywords

Apparently, some brandnames are “blacklisted” on google, so advertisers can’t use them. For example, “Toyota” can only be used by Toyota. A car reseller, wholesaler, etc… can’t use that term. People are very careful which words they blacklist since it does not enable to aforementioned parties to advertise on google. And google applies this policy on a global basis. So if Toyota actually had a reseller in china under a distribution arrangement, they could not buy that keyword to sell a Toyota car.

Contextual and behavioural advertising

The other relevant thing he discussed was contexutal and behavioural advertising, which is becoming quite a big area in the online marketing world. Advertising has always been about relevancy and recency. Erwin Ephron developed the recency theory which is about showing someone an ad when they are in the mood to purchase. The idea of “top of mind”. It’s not about showing them an ad 3 times to get it to stick, rather at the right time when they want to buy. I believe that is what behavioural advertising and contextual advertising seeks to do as well – tying relevancy and recency together. 

 Behavioural looks at your past behaviour on the internet – which websites you’ve been to, how you use the internet. Contextual advertising is 3rd party advertising based on the content on the website (i.e. your current session on the web).  The whole idea is to serve you more relevant ads. Websites now, may reserve a space on their site for advertising local content to you based on your IP address – you’ve probabaly seen it! Look at an American website, yet its giving you ads for Australian flights or credit cards. Online advertising has gotten smarter. It was really insightful because at ad:tech and even in my work, these are topics which people are talking about. third party advertising, serving of ads, affiliate marketing, etc… On the flip side, there are privacy concerns, because your ISP tracks where you’ve been and keeps all the information about each individiual user. To me, this is also two competing concerns – serving you more relevant ads v capturing your private information.

It enhances the user experience and the advertising by having geographically and behavioural based ads, but aren’t you worried that someone is keeping tabs on you?

Other interesting points he discussed was how keywords get bought, and the difficulty of proving trademark infringement for keywords. Since the prices and the allocation of paid ads on Google was constantly changing, its hard to prove in such a dynamic environment. 

I must admit the other seminars weren’t as relevant to me or as interesting, hence my interest did drop off. Copyright issues in advertising were ok, about database compliation and the rights attached to that. Children and the law & comparative advertising was extremely boring, but still handy to know. I learnt that advertising needs to get clearance from legals, very important so you don’t get sued (!) and meets all legal and regulatory requirements. Also, there’s so many various regulatory codes for each type of media (radio, tv, outdoor) and legislation. 

I’m out like Johnny Law, 

Matthew Ho.

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Ad:tech – Day 2 by pictures

March 15, 2009 By: Matthew Ho Category: advertising, business, email, email marketing, events, social media, twitter

I visited ad:tech sydney again on day 2 (Wednesday, 11 March 2009). This time I arrived later in the afternoon at 2.30pm. 

I was there to help out with the exhibit. I was at the Next Digital stand from 2.30 – 4.30pm. I also took a bunch of pics and posted them on Flickr and below as well.

It’s interesting being an exhibitor as opposed to a visitor walking around on Day 1. Some people walk up to you just to chat and find out what it is about, others have an interest or something they want to pitch at us. I think the most important thing is to be nice and have a casual chat. Not everyone is interested in hearing the marketing spiel and you have to be ready for all types of questions.

There’s a lot of people at ad:tech that are very tech savvy, and you have others there for the 1st time who looked like they just walked off the street. Overall though, it seemed pretty quite and there was not a lot of people walking around. It look like ad:tech was winding down on Wednesday afternoon.

Next year, I’d like to go to some more of the seminars, possibly even the paid ones. I hear the chatter on twitter from following the hashtags (#atsyd, #atsyd1, etc…) and there seems to be a lot going on.

When I look back, I realise that I have progressed in this industry and it is a humbling experience that a year ago, I wasn’t even working in digital. Now, I had the priviliege and the opportunity to talk to people at ad:tech as an exhibitor about online marketing regarding email marketing, analytics, etc… They say that 1 year in online is equivalent to 7 dog years. I believe that’s so true. Online just moves so fast, new things are emerging all the time. As I’ve heard people say, it may be changing but the fundamentals haven’t changed.

Overall, ad:tech was very good for checking out some new things. One of the most important things I was exposed to was affiliate marketing and traffic marketing, and different companies in this area. These aspects about online marketing I would never had learnt about sitting at my desk at work.

I’m out like ad:tech,

Matthew Ho.

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Ad:Tech Sydney – First Day Impressions: talking to myspace.com, netpartners, post click, girls.com.au

March 10, 2009 By: Matthew Ho Category: Interactive, Websites you should check out, advertising, branding, business, events, social media, twitter

adtech_sydney

Ad:tech started in Sydney today. It’s a 2 day expo, with similar events held in San Francisco, Paris, London, Chicago, New York, Singapore. It’s basically for online marketing companies, for those involved in advertising technology. The official line is:

“ad:tech is an interactive advertising and technology conference and exhibition. Worldwide shows blend keynote speakers, topic driven panels and workshops to provide attendees with the tools and techniques they need to compete in a changing world”

I arrived there around lunch time.  I had my express check in pass (thanks ad:tech!), so got buzzed in pretty quick. The first stand lo and behold was Next Digital/Commquest! Which is my company – more on this later.

I was in a rush because I was supposed to go to the Yahoo search masterclass. In the corner of my eye, I saw a guy from my media buying class who’s a dedicated search guy. However, when I got there, the seminar was over. Disappointed, I trudged back and went to the Yahoo search stand and asked them what it was about. I also asked them for notes of the presentation and hopefully they can email it to me. Hit me up if you would like a copy of the notes.

Overall, ad:tech didn’t actually look that full. Maybe its because I expected it be at full capacity. Or perhaps, there were seminars going on. There’s paid seminars, with 3 different tracks but to go to them you need to have a conference pass which costs $1k. I’m just going to the free stuff =) You can check out the different stands, talk to people, and listen to the free seminars. It reminds me of a big careers fair!

Next Digital has got prime position, near the front door and we’ve decked it out in a hospital theme with hospital bed, flasks of weird liquids, IV drip, and doctors walking around with stethoscopes. The theme its “Digital Health Check”, and we’re offering free audits of digital marketing strategy, websites, etc.. We are taking appointments and doing followups. Kate Kendall, editor of marketing mag called it  best stand at expo. Have a look here:

nd-stand-ad-tech

Next Digital was giving a talk after the Yahoo one, so I briefly saw my director Mark Edwards, speaking about digital strategy.  Its a small seated area with about 30 seats and people were standing in the back, 3 rows deep! He had some really good content, however the sound quality was quite poor.The mic and the speakers weren’t loud enough. For the guys standing in the back like me, you couldn’t hear him clearly. As the stands are right next to auditorium area,  there’s so much background noise. It’s a shame and it something the organiser’s will have to look at for next year. Perhaps move the speaking stage a little bit further into a quieter area and turn up the mics!!!!!!!!

I spoke to a couple of interesting people /companies at the stands. Vincent and I walked around and spoke to the following stands. I’ve provided a short commentary on each one:

Fox Interactive 

Websites : Myspace.com, Rottentomatoes.com (movie review site), ign.com (similar to gamespot.com), Askmen.com.

We were talking to Sharon May-Tanous, Group Sales Manager, and she showed us a new feature on myspace.com. There’s this function called “Myspace recharge” where u can recharge your phone by buying credits / topups. Very cool. I’ve always advocated that social networks should do more in the transactional & ecommerce space, given that we spend so much time on there. According to Nielsen research, time spent on social networking has overtaken personal email. Myspace are also releasing a new visa credit card as well, targeted towards younger people. Its going to work like a prepaid debit card. It will be an interesting move for them.

They had a very cool stand with lots of monitors. If you look at the above sites I’ve listed in the heading and click through, you’ll realise that their are Australian versions with localised content. That’s something that they are trying to push, localisation. Rottentomatoes.com is mostly made up of American movies and reviews, so its good a move to have some Aussie content in there too. 

I told her I didn’t use Myspace anymore and she got a bit grouchy LOL. I’ll stick with Facebook, but I’ll check Myspace.com for music related stuff. FYI, I’m name dropping here, but I met Brett Brewer, one of the co-founders of Myspace at the Digital Tipping Point a few weeks ago. He’s sold off myspace to Rupert Murdoch and is now CEO of a social networking advertising company called AdKnowledge. He’s a very cool guy, down to earth, and I guess I’ll have to hit him up on myspace?  

Netpartners – Content network advertising / traffic broking

This area is new to me. I’m still new to search marketing and online advertising, but I understand the basics like clicks, CPM, CPA, conversions and al that jargon. But there’s this whole new area regarding content network / affiliate marketing, etc.. It’s to do with advertising on 3rd party sites, publishers, etc… I spoke to Alan Wan, Affiliate Manager, he explained to me what it was about and I think I got the gist of it. Netpartners is a Hong Kong outfit, mainly targetting US and UK markets. I have to do a bit more research in to this area regarding affiliate marketing. At ad:tech, there were a number of stands, I would say 1/3 selling these services. It was pretty funny, because he was talking English to us and as we were winding down our conversation he asked if we spoke Chinese! Vincent and him started talking, and then I joined in, but I don’t think he understood me very well since my Cantonese is pretty bad and heavily accented. 

Post Click - affiliate marketing

We spoke to the BD manager there. I’ve actually heard of them. Post click specialises in niche affiliate marketing. I’m still getting the hang of this term – its advertising on a network of sites. e.g. you would like to advertise to websites in Indonesia targeting students coming to Australia. They would go represent you and negotiate, and source sites for you to advertise on. They must have relationships with traffic brokers (a new term I learnt) and work out how much you have to pay for CPA, cost per action which is for lead or conversion generation if someone clicks on an ad. Post Click most likely takes a set up fee and a slice of the action e.g. CPC of 1 cent (cost per click of $0.01). 

Girls.com.au / Femail.com.au

I’m not sure why but we wondered over to this stand. We were just curious, and it was right next to ours. They’ve got 2 websites which are online magazines targeted towards females. Girls.com.au has a demo of 18 – 35, skewed towards younger females. Femail.com.au has a demo of 25+. These mags have been running for about 10 years online and has similar content to Vogue, Cleo, etc.. The opportunities are for advertising towards a very specific demographic. 

They also own female.com.au and redirect all the traffic to femail.com.au. however, they are not going to switch over to female.com.au because of the search engine rankings – its already been optimised (SEO baby!!).

CABO Networks – Pay for performance marketing

I spoke to Jurgen Cautreels, who’s over here from Miami. These guys have offices in Miami and Sydney, that’s TWO awesome beach places. They do stuff related to traffic marketing, lists, and email marketing. 

iAD & Pureprofile

I’ve lumped them together even though they are two very distinct companies. Only because they have both presented at our offices. I like iAD, but I feel that their technology is way ahead of its time. When they came into our office and explained their product, they left a lot of us dumbfounded, including me. If you can’t explain to a bunch of people that are pretty technology savvy, your going to struggle with other people as well. Even their blurb in ad:tech is hard to understand – something about a multi-function device, etc…

Ad:Tech on Twitter & Blog

If you are keen to follow with the latest adtech updates, check out twitter. People are twittering using the following hashtags:

#adtechsyd

#atsyd

For the 3 different seminar tracks, there’s also:

#atsyd1 

#atsyd2 

#atsyd3

There’s heaps of ad:tech tweeting going on, and I’ve been following the conversations via twitter and tweetdeck (i’ve got my search groups on for each hashtag!).

You can also check out ad:tech brain blog, I’ve been reading and commenting on it over the past month or so. 

See you there

If you are going to be there, look for me at the Next Digital /Commquest stand in the late afternoon. I’m going to be there in a white coat, and also checking some of the other stands and seminars. 

I’m out like day 1 of ad:tech, 

Matthew Ho aka inspiredworlds

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