Posted by: Matt Shanahan The New York Times article about upcoming mobile magazine Nomad Editions has a reasonably detailed description of the proposed business model. Nomad Editions plans to charge $24/visitor/year as a subscription fee. Additionally, Nomad Editions plans to generate revenue from advertising, but it appears to be a small portion compared to the revenue expected from subscriptions. The fee of $24/visitor/year provides access to a particular “edition” (i.e., section on either food, movies, surfing, etc.). Editors of an edition will take 5% of the revenue ($1.20/visitor/year) and writers will take 30% ($7.20/visitor/year) of the revenue. This means that 65% of the revenue will go to development, operations, and profit or $15.60/visitor/year. The article also states that a writer should […]
Archive | August, 2010
Revenue Per Visitor for Demand Media
Posted by: Matt Shanahan According to Kara Swisher at All Things Digital, Demand Media could do as much as $230M in revenue this year off of 86M unique visitors (note: the 86M comes from the Demand Media S1). Currently, 60% of the revenue comes from the content business and 40% from other sources (e.g., registrar business). In that case, $138M comes from content, and the revenue per visitor per year is $1.60. Currently, Demand Media is projected to be unprofitable.
Revenue Per Visitor at TechTarget
In the last couple of postings, I have referenced a metric called “revenue per reader” which I picked up from a Newsweek article. This post and future posts will refer to Revenue Per Visitor (RPV) as a more generic measurement and consistent with Nielsen, Comscore, and other reporting regarding uniques. Interestingly, RPV is not new (Web Analytics Demystified definition and SAI Chart), but it has not been leveraged much in tracking performance. The RPV metric measures the gross revenue efficiency of a publisher and reflects the fact that audience engagement is the source of ad and subscription revenue. TechTarget (TTGT) reported their financial results for Q2 2010. They produced $25.1M in revenue which was 15% YoY gain, and they had net income […]
The Metered Model and the New York Times
Posted by: Matt Shanahan The New York Times reported their second-quarter results on July 22nd. One topic of conversation on the analyst call was the metered model under development. Another topic was Internet revenues — specifically advertising. It sparked a question for me, about what the conference call might sound like in July 2011 with a metered model in place. How would the ad and subscription revenue compare? I decided to do some of my own analysis. The goal here is not to replace Alexia at J.P. Morgan, rather to examine the impact of a combined subscription and ad revenue model. To model the New York Times metering, I needed to develop some assumptions: number of readers, revenue per reader, and subscription revenue per reader. With […]
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