Is Native Advertising Worth The Premium Cost?

Is Native Advertising Worth The Premium Cost?

For those that have heard of “native advertising”, I’m not convinced of its effectiveness. And I’m not the only one. An ad is an ad is an ad is an ad. And just because you trick someone into reading your ad cause they think its a part of the content on the website they’re reading, doesnt mean that the ad is more valuable than a typical banner ad. I’m not saying native advertising doesn’t work at all. I’m just saying its not worth the premium price publishers are charging for it right now.

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Marketers Win By Interpreting Change

Marketers Win By Interpreting Change

Very thought provoking article on marketing: American Express CMO Jon Hayes explains that marketers win not by having best technology or knowing how to talk to consumers the best. He says marketers win when they’re able to best interpret changes in technology to figure out how best to use it. And interpreting changes in society to figure out how to tailor the message to consumers. Like its not about the ads themselves. It’s about figuring out the value of how to use the technology for marketing purposes. And how to custom fit the new process for each individual business. For instance, it’s key to understand with banner ads, the value is not in getting the clicks to produce immediate phone calls. The value is in branding in the area your potential customers are in.

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US Teens Use XBOX ONE & PS4 More For Internet Than Video Games

US Teens Use XBOX ONE & PS4 More For Internet Than Video Games

When I read the headline from eMarketer, I was stunned. The retail price of an XBOX One is $500 and the Playstation 4 is $400. Yet, teenagers are using these video game consoles more for internet use on their TV more than the video games themselves.

What this tells me is that their is tremendous demand for internet usage on the consumer’s TV. And it presents a tremendous opportunity for internet marketers and small businesses alike.

Back in the early 2000’s not many small businesses had websites. So getting one was a big deal and gave the business with a website a big advantage over the competition. Then around 2006-2008, we were getting to a point where most small businesses had websites, but not many were actively advertising and marketing their websites to get website visitors.

Fast forward to 2014 and virtually every small business desires to be on Google’s search engine in an attempt to market their website and try and get more business. But making money off Google has become more difficult with increased competition and limited real estate on Google’s first page.

I believe the new frontier for small businesses is in local, geo-targeted, banner advertising on websites throughout the internet. Right now, not many small businesses are doing it, but soon they will be.

And not only is there great opportunity because the advertising is inexpensive. Or from the lack of competition.

The opportunity is great because of the coming explosion of website traffic from people using the internet on their TV’s.

In the next 5 years, internet traffic and eyeballs on websites will skyrocket not only from mobile devices like cell phones and tablets, but also from people using the internet to watch their TV content.

And the more traffic there is, the more the cost of the advertising will be driven down due to such a large inventory of eyeballs.

This study from eMarketer illustrates the coming boom of online display, banner advertising.

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Internet Marketing Secrets Revealed. This Is How You Can Make Clients Money.

Too many internet marketing firms want to have plausible deniability when it comes to a client’s sales. Whether it’s search engine optimization, paying Google per click, too many in our industry want no accountability for the actual results. I actually used to be the same way, back in 2005, 2006, 2007,  just learning the ropes.

Most of the time, when internet marketing companies don’t have proper tracking in place to know what types of results they’re getting, it’s because they’re not confident in their abilities to increase a client’s sales. Therefore, they stick their heads in the sand not wanting to know the actual results. Again, when i was younger, I used to be the same way.

The thing I’ve learned is that it’s not enough to just advertise someone on the internet, specifically on Google. It’s not enough to just get someone phone calls. To really succeed in this industry, you need to help your client’s make more money. At the end of the day, that’s the only thing that matters.

Now someone might say, well, we can’t control whether a website visitor makes a decision to call the client. And that part is true. However, the thing you can control is the quality of the phone calls and email leads. Some months there will be a few more calls, some months there’ll be a few less, but as long as the quality of the calls are good,  the client should still be able to get new customers and make more money.

A lot of companies in our industry do a pretty good at client acquisition, landing new small business customers. But many of those same companies do a terrible job at client retention, keeping those small businesses for any longer than a year. The reason why companies like Reach Local and Go Daddy aren’t dominating even more than they are is because they constantly lose clients because they focus on advertising. They don’t focus on making the small business client money.

And how could they? This industry is so new and so young, there’s not enough people that know what they’re doing to take care of all the demand. Colleges are just getting around to starting to teach internet marketing, but because this industry is fluid and changes rapidly every year, their information is often times outdated and obsolete. Most small businesses that work with someone in a call center with limited experience, training, and knowledge have a bad experience. Therefore, the small business cancels after the contract is over.

So as internet marketers, what exactly can we do to help our clients make more money? How do we do that?

You have to focus on the quality of phone calls and sales leads. Decrease the junk leads as much as possible.

Every business is different. And for every business, they will want a specific type of customer. Find out what type of customer they want. Then get really specific on which keywords you target to make sure you get them the right type of call.

Find out the schedule of when they want to be advertised. If the client is getting clicks at 2am in the morning and doesn’t have anyone to pick up the phone at 2am, you don’t want to be advertising them at that time. Only advertise the client when they’re in a position to answer the phone or return email quickly.

Find out which devices they want to advertise on. Some businesses will find it more valuable to be advertised only on cell phones, versus all devices. Or only computers and not cell phones.

There’s a world of opportunity in our industry. The vast majority of internet marketers are not doing that great at their job because what we do is so brand new and we’re still trying to figure it out. But the people that will really succeed in the next 5-10 years will be the internet marketing companies that can RETAIN small business clients. KEEP them. Have them advertise with you for years and years. And the only way to do that is to help them make money from your work.

 

 

 

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Within 1 1/12 to 3 Years, There Will Be More Mobile Internet Users Than Computer Internet Users

T-Mobile and MetroPCS completed their merger today to become the 4th largest cell phone company in the country.

But the numbers that really stood out to me are the following:

-AT&T has 105 million subscribers, Verizon 99 million, Sprint 54 million and T-Mobile / MetroPCS has 43 million. That makes 301 wireless accounts in the US, not counting the smaller carriers.

-Some of the accounts are secondary accounts for some people so comScore and Nielsen, it looks like the number is around 250 million people with cell phones in the United States.

-According to comScore and Nielsen, 57%-60% of cell phone users now have smartphones that access the internet.

-So that would mean around 150 million people in America with cell phones that have internet access.

-Both research firms believe that as even more people get smartphones, that within 24-36 months, there will be more people that access the internet with a mobile device than a regular desktop computer or laptop. Stunning!

-According to IAB, in the total digital advertising and marketing spend in the county, only 9% of the money is dedicated to mobile internet marketing.

-In other words, advertising and marketing targeted for mobile internet use will be absolutely booming in the next 3-5 years.

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If The Internet Tax Bill Passes, Customwave Will Leave The Shopping Cart Business

I’ve thought long and hard about this. If the internet tax bill passes in Washington D.C., it will no longer be worth it for Customwave to build shopping carts for small businesses.

There are a lot of reasons for this. The biggest reason is that on a technical level, it’s going to be a nightmare for companies like Magento to figure out how to put in each state’s sales tax into the database and then have to track the IP address for each user based on what state they’re in. I’m not saying it’s impossible, but it will take them a while to figure out. And the cost for small businesses’ like Customwave to use shopping cart programs like this to build shopping carts like this will most likely go up. Joy.

Then there’s the fact that small business owners will turn to companies like us at Customwave to explain how this new internet tax deal works. And we don’t want to have to spend the extra time to become experts in whatever boondongle of legislation is passed and then take the time to explain how it works. And our clients won’t like it if we charge for our support on the phone. They’ll think we should include for free in the service.

Then there’s the issue that this tax will make it almost impossible for small businesses to make money with their shopping carts. It’s been polled to countless focus groups and surveys that the #1 reason people will buy a product off the internet is they’re trying to find a lower price than the nearby stores have. I know the politicians have been talking up taxing big corporations like Amazon, Ebay, Wal Mart, etc, but the small business will be hurt the most. Because a small business already has a very small profit margin with them trying to compete on price, after this tax, they’ll have even less money left over for themselves. And for a lot of companies, it’ll make having a shopping cart not worth it to them.

So, I’ve heard the argument about how the states are broke and they need to find new ways to bring in new money by taxing the internet. Well, here are the unintended consequences of their bill:

  • Internet marketing companies like Customwave will start to refuse to build shopping carts. But if they do decide to build shopping carts they will for sure charge more money for the reasons I stated above.
  • Programming companies like Magento might decide to leave the shopping cart business or charge more. This will also drive up the price for a small business having a shopping cart.
  • There will now be an increased burden on small businesses to have yet another place they have to keep track of taxes. So now they’ll spend time on this instead of spending time growing their business, which would help create new jobs.
  • Lots of small businesses will abandon their shopping carts and pull the plug because of higher prices and the hassle of being taxed. This will drive their revenue down being there’s one less place for them to make money.

The supposed “Fairness in the Marketplace” legislation (what the internet tax bill is ironically being called), I argue will harm small businesses more than help them. And the only people that will gain the most by this is people in the government that will be TAKING yet even more money from the private sector to spend it whichever special interest they need to pay back.

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Google Wants To Cut Out AT&T, Time Warner, Etc. To Take Over The Internet

Just read a very interesting article from Wordstream explaining Google’s motive for running their fiber optic experiment in Kansas City.

For those that don’t know, fiber optic internet is a new way of making the internet faster and Google has set up their own ISP (internet service provider) setup in Kansas City before branching out across the country.

On an earnings call, Larry Page and Patrick Pichette discussed what the purpose of Google Fiber is. In a nutshell, they said they’re not happy with the loading times people have while using the internet and blame other ISP’s like AT&T, Time Warner and others for this.

Currently right now, Google is dependent on other ISP’s to deliver its products. But the longer something takes to load, the more likely the user gives up on what they’re doing and Google loses money. So they want to cut out the ISP’s and offer their own ISP service to make sure people have the fastest times on the internet possible to ensure they make more money.

I’m not sure how I feel about this. On the one hand, I’m all about faster internet. But on the other hand, if Google started offering faster internet speeds than the other ISP’s at a lower price (because Google cares more about making money off ads than making money off the ISP service itself), Google would be pretty close to a monopoly in controlling the most important parts of the internet.

AT&T and other ISP’s also sell cable and satellite TV service too and with them potentially losing that due to cord cutting, losing the ISP business would be devastating. So I’m fairly confident they’ll spend every last penny to protect that business and fend off Google.

But what if they can’t? Hmmm …..

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Yellow Pages Is Moving Away From Advertising Local Business, Starting to Target Nationwide Business

The people that run the different yellow pages companies are not stupid. They know their business model is dying and going obsolete. So it looks like they’re starting to do something about it.

Mike Blumenthal had some interesting stats today showing that the print, local yellow pages book is starting to have more big, nationwide businesses advertising than local, small businesses.

The yellow pages is probably thinking that small businesses can’t afford to advertise in their print book without making money off the advertising, but big, nationwide companies just want the exposure. They don’t care so much about increased phone calls. They care more about brand awareness and it’s another place to advertise and be visible.

It’s a novel idea, to sprinkle the whole country with the same phone book with all these big companies in it. The problem remains that a very small amount of people still use the phone book.

I still predict the yellow pages to go the way of the dinosaurs. But at least this move has the potential to slow down their demise.

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Yellow Page Directories Are Obsolete

For anyone who cares, Super Media and Dex are two of the biggest directory companies in the country. But both are in bankruptcy hoping to save their businesses by forming a merger.

It won’t help them. Why? Because their advertisers aren’t making money off their phone book advertising. There’s not enough people that still read the phone book. And if the directories charged any less money, they would have no profit.

And people don’t go to Google and type in “super pages” or “yellow pages”. They just go to Google and type whatever it is they’re looking for.

The yellow pages are just like CD’s. People used to make boatloads of money. But that time is passed. They would be better off abandoning everything they’re doing and using the money they have to start over doing brand new stuff.

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No Steve Jobs = No More iPhone Dominance, Possibly No More Apple Dominance

I came across an article that has new data from a research company called Gartner that shows Apple has is being decimated by Android in the smartphone market.

Smartphone-Sales-to-End-Users-Feb-2013-GartnerObviously, the numbers that stick out are the ones showing the gigantic increase the Android has picked up in market share the last year.

Apple stock has been going down lately for a reason. Tim Cook is a solid CEO. A solid operations guy and leader within Apple. But he doesn’t capture the imagination or attention from people the same way Steve Jobs did. And he hasn’t proven that he can be a visionary and produce the next great product.

Apple’s top problem is not that they don’t produce great products. They do. The problem is just that the competition has caught up. And Apple is forever without the guy that lead them to such dominance in the first place. It’ll be interesting to see if sales start to decline in their other top products.

 

 

 

 

 

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