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New ways to monetise social media
Alicia Navarro
CEO & Founder
Where do I come from?Where do I come from?
We began as Skimbit.com,
a social decision-making tool…
We began as Skimbit.com,
a social decision-making tool…
…and became Skimlinks…and became Skimlinks
Observed performance of many different
types of sites:
• Blogs
• News sites
• Magazine sites
• Content sites
• Social shopping sites
• Forums
• Widgets and web apps
• Twitter
Observed performance of many different
types of sites:
• Blogs
• News sites
• Magazine sites
• Content sites
• Social shopping sites
• Forums
• Widgets and web apps
• Twitter
BlogsBlogs
News sitesNews sites
Magazine sitesMagazine sites
Content sitesContent sites
Social shopping sitesSocial shopping sites
ForumsForums
Widgets and web appsWidgets and web apps
TwitterTwitter
Affiliate marketing is hard to do well
• Small % of affiliates make a lot of money
• Technically challenging
• Time-consuming
• Error-prone
• Onerous maintenance
• Fragmented networks and merchants
• Competition from cashback/coupon
Traditional publishers don’t do it at all
• Core business is content and community
• Structured around display ads
• Fragmented departments
• Editors don’t think commercially/technically
• Requires distribution of logins to everyone
• Tend not to link to broad variety of merchants
• Yet these publishers carry influence and traffic
Traditional banner advertising not working
• Ad blindness
• Low CPM rates
• Limit to number of ads on page
• Brand advertisers don’t like small sites
• Small sites struggle to make money
• Web 2.0 technologies ≠ high page impressions
• Incentivises keeping users onsite
Source: IAB/PricewaterhouseCoopers
Social media sites convert much better
• Forums convert 5-10x more than editorial sites
• Social shopping and blogs convert 2-3x more
than editorial
• Personalised recommendations
• Deeper links
• Friendlier calls to action
New movement:
Change the way sites monetise
New movement:
Change the way sites monetise
Sites should be rewarded based on:
• The calibre of traffic
• The delivery of a service
• The fostering of a community
• Allowing and encouraging outbound links
Social media monetisation is the future!
• Nurture an eco-system that encourages more
forums and social sites to form
• First way these sites can genuinely monetise!
• Initial pain for merchants (was free traffic)
• Future joy for merchants:
– More forums created
– Better moderation and encouragement
– Compelling designs
– More optimised search for posts
Opens way for more forums & social sites
• Traditionally a labour of love
– Expensive to run (licenses, hosting, bandwidth)
– Pressure to be free and run fast (no ads)
• New business model = new innovations
• Great for all parties
– Merchants get communities talking about them,
and highly converting traffic
– Publishers can sustain their sites
– Users continue to use valuable services for free, no
intrusive ads
Ethical framework is required
Value chain of ethics
…to publishers…to users…to merchants
Ethical framework is required
Value chain of ethics
…to publishers…to users…to merchants
Rules for ethical behaviour to users
1. Must uphold user/site
contract
2. Non-intrusive to user
experience
3. Always err on side of
user-experience
4. Be careful when fiddling
with UGC
5. Retain editorial integrity
6. Disclosure (it may help
with revenue!)
How to retain editorial integrity
• Editors write what they want, but add link out if
they have an affiliate program
• Use services to allow agnosticism
• Rotate attention to different merchants
• Offer multiple links to products
• Link to where editor would look – make it useful
• Avoid finance/news, just subjective content
Examples of disclosure
Ethical grey areas
• Avoid affiliate-enabling pure news
• Take care when making financial
recommendations without disclosing
affiliations
• Using affiliate links in URL shorteners/Twitter
– Standard way needed to disclose
– Can lead to mistrust unless genuine
Rules for ethical behaviour to merchants
• Add value to the purchase process
– Value = content OR a service
– An eco-system that encourages purchases
• Therefore:
– No cookie stuffing random merchants
– No toolbars
– Coupon/cashback need to add value to brand
• Reward merchants that perform well for you
– Extra content/widgets
– Use their CPA banner ads
Nice things to do for merchants
• Offer differentiated service to merchants
– More content
– More links out
• “ASOS don’t have an affiliate program so lets
not link to them as often. Focus on products
from merchants that have an affiliate
program.”
New services to reward great
merchants
New services to reward great
merchants
Rules for ethical behaviour to publishers
• Reward highly converting traffic
• Reward community managers
• Grasp opportunity of social media
• Support deeplinking to products and search
result pages
• Offer good landing pages for out-of-stock
products
Conclusion
• Social media sites
should be rewarded
and nurtured as they
are the best converting
type of site
• Remain ethical to user
and merchant
• Help publishers that
drive traffic to your site
to survive.
Thankyou
• alicia@skimbit.com
• http://www.skimlinks.com

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New Ways To Monetise Social Media

  • 1. New ways to monetise social media Alicia Navarro CEO & Founder
  • 2. Where do I come from?Where do I come from?
  • 3. We began as Skimbit.com, a social decision-making tool… We began as Skimbit.com, a social decision-making tool…
  • 4. …and became Skimlinks…and became Skimlinks
  • 5. Observed performance of many different types of sites: • Blogs • News sites • Magazine sites • Content sites • Social shopping sites • Forums • Widgets and web apps • Twitter Observed performance of many different types of sites: • Blogs • News sites • Magazine sites • Content sites • Social shopping sites • Forums • Widgets and web apps • Twitter
  • 10. Social shopping sitesSocial shopping sites
  • 12. Widgets and web appsWidgets and web apps
  • 14. Affiliate marketing is hard to do well • Small % of affiliates make a lot of money • Technically challenging • Time-consuming • Error-prone • Onerous maintenance • Fragmented networks and merchants • Competition from cashback/coupon
  • 15. Traditional publishers don’t do it at all • Core business is content and community • Structured around display ads • Fragmented departments • Editors don’t think commercially/technically • Requires distribution of logins to everyone • Tend not to link to broad variety of merchants • Yet these publishers carry influence and traffic
  • 16. Traditional banner advertising not working • Ad blindness • Low CPM rates • Limit to number of ads on page • Brand advertisers don’t like small sites • Small sites struggle to make money • Web 2.0 technologies ≠ high page impressions • Incentivises keeping users onsite
  • 18. Social media sites convert much better • Forums convert 5-10x more than editorial sites • Social shopping and blogs convert 2-3x more than editorial • Personalised recommendations • Deeper links • Friendlier calls to action
  • 19. New movement: Change the way sites monetise New movement: Change the way sites monetise
  • 20. Sites should be rewarded based on: • The calibre of traffic • The delivery of a service • The fostering of a community • Allowing and encouraging outbound links
  • 21. Social media monetisation is the future! • Nurture an eco-system that encourages more forums and social sites to form • First way these sites can genuinely monetise! • Initial pain for merchants (was free traffic) • Future joy for merchants: – More forums created – Better moderation and encouragement – Compelling designs – More optimised search for posts
  • 22. Opens way for more forums & social sites • Traditionally a labour of love – Expensive to run (licenses, hosting, bandwidth) – Pressure to be free and run fast (no ads) • New business model = new innovations • Great for all parties – Merchants get communities talking about them, and highly converting traffic – Publishers can sustain their sites – Users continue to use valuable services for free, no intrusive ads
  • 23. Ethical framework is required Value chain of ethics …to publishers…to users…to merchants Ethical framework is required Value chain of ethics …to publishers…to users…to merchants
  • 24. Rules for ethical behaviour to users 1. Must uphold user/site contract 2. Non-intrusive to user experience 3. Always err on side of user-experience 4. Be careful when fiddling with UGC 5. Retain editorial integrity 6. Disclosure (it may help with revenue!)
  • 25. How to retain editorial integrity • Editors write what they want, but add link out if they have an affiliate program • Use services to allow agnosticism • Rotate attention to different merchants • Offer multiple links to products • Link to where editor would look – make it useful • Avoid finance/news, just subjective content
  • 27. Ethical grey areas • Avoid affiliate-enabling pure news • Take care when making financial recommendations without disclosing affiliations • Using affiliate links in URL shorteners/Twitter – Standard way needed to disclose – Can lead to mistrust unless genuine
  • 28. Rules for ethical behaviour to merchants • Add value to the purchase process – Value = content OR a service – An eco-system that encourages purchases • Therefore: – No cookie stuffing random merchants – No toolbars – Coupon/cashback need to add value to brand • Reward merchants that perform well for you – Extra content/widgets – Use their CPA banner ads
  • 29. Nice things to do for merchants • Offer differentiated service to merchants – More content – More links out • “ASOS don’t have an affiliate program so lets not link to them as often. Focus on products from merchants that have an affiliate program.”
  • 30. New services to reward great merchants New services to reward great merchants
  • 31. Rules for ethical behaviour to publishers • Reward highly converting traffic • Reward community managers • Grasp opportunity of social media • Support deeplinking to products and search result pages • Offer good landing pages for out-of-stock products
  • 32. Conclusion • Social media sites should be rewarded and nurtured as they are the best converting type of site • Remain ethical to user and merchant • Help publishers that drive traffic to your site to survive.

Editor's Notes

  1. Talked to hundreds of publishers who don’t do it because it yields small results for too much effort. The ones who do it well make their site especially for affiliate marketing, which not everyone wants to do Non-affiliate publishers find it prohibitively difficult
  2. Forums tend to be a labour of love, take years to develop, with no revenues in meantime. No one advertises on forums.
  3. ALICIA
  4. JOE – (thank you to our interviewees – ask for questions)