Posted by: Matt Shanahan Provenance is one of the big holes in web analytics today. Reporting and manipulating visit data based on the source that generated the visit data isn’t exposed. Some vendors offer expensive data mart add-ons to patch the hole, but this creates more headaches. Consequently, the ability to understand individual visitor behavior isn’t possible with web analytics such as Omniture SiteCatalyst, Google Analytics, Webtrends Analytics, and others. Surprisingly, very few publishers are aware of this limitation and its impact on the revenue model. For publishers, the lack of provenance puts real operational limits on monetizing subscribers or audience members. I’ll cover these limitation in my next post. This post looks mainly at the technical side. So what is provenance? […]
Archive | June, 2010
Audience Reselling: Does It Drive Profits?
Posted by: Matt Shanahan In audience selling, a publisher sells impressions of a specific target audience to an advertiser. In audience reselling, a publisher sells the audience data to an advertiser via an aggregator or network. The decision to sell the data vs. the impression should be based on a financial model and expected returns. Interestingly, I haven’t found any models that help publishers make this decision. So here is my take. Using the math set forth by GCA Savvian, data aggregators on average get $0.50 of every $10 CPM, and publishers receive $3.60 of every $10 CPM. Let’s assume group of advertisers wants to buy 1,000,000 impressions ($10,000) to a specific audience demographic. Let’s assume there is a publisher […]
Reverse Auction for Your Own Audience
Posted by: Matt Shanahan In addition to producing media, publishers also produce audiences. It is the combined uniqueness of the media and audience that are the source of revenue in their models. Unfortunately, that uniqueness is being systematically eroded and has largely been overlooked. Here’s why. Uniqueness of a product is critical characteristic if a supplier wants control over pricing. Look at the recent iPad offering as an example of where great margins are being earned due to the uniqueness of the offering. As competition enters, we’ll see the price of tablets drop dramatically. As discussed in this blog, publishers are selling audiences — audiences generated from their media. In audience selling, uniqueness is derived from the targeting data a […]
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