Monetization of Digital Channels Hec Montreal nov 2010

55 AV. MONT-ROYAL W., SUITE 999, MONTREAL (QC) H2T 2S6

2010: MONETIZATION OF DIGITAL CHANNELS – WHY ARE THERE SO MANY MISSED OPPORTUNITIES?

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AGENDA

1. Social media v. Search

2. Search landscape in North America

3. Top 3 digital strategies to drive ROI

4. Conclusion

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SOCIAL MEDIA V. SEARCH…WHAT’S NEXT

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Social Media ROI: Socialnomics

QUESTION

Is social media a Fad?

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QUESTION

Will social media take over search?

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MICROSOFT & YAHOO’S WEDDING

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•2009, Microsoft and Yahoo! announced that they had made a 10-year deal

•Yahoo! search engine would be replaced by Bing

MICROSOFT & YAHOO’S WEDDING

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•Yahoo! will get to keep 88% of the revenue from all search ad sales on its site for the first five years of the deal, and have the right to sell adverts on some Microsoft sites

•Yahoo! Search will still maintain its own user interface, but will eventually feature "Powered by Bing" branding

Facebook and Bing’s Plan to Make Search Social

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2015 TOP SEARCH ENGINE…

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OR

CANADIAN LANDSCAPE: WHY SEARCH IS THE #1 ROI DRIVER?

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Search

• Search represents over 41% of overall online revenue, 741 million $

• Over 110 million search engine queries a day

• 77% of all Canadian Internet traffic starts from a search engine

• 98% of online users rely on search engines to find websites

Source : IAB 2010 & Comscore 2009.

CANADIAN LANDSCAPE: WHY SEARCH IS THE #1 ROI DRIVER?

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Search

• 78% of Canadians online will use search engines to research online and offline purchases

• 27% of those who researched product info online purchased online

• 45% of those that searched for product information online still purchase via traditional retail

Source : IAB 2010 & Comscore 2009.

Few numbers increasing quickly…

US FORECAST : INTERACTIVE SPEND FROM 2009 – 2014

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Search

Source : Forrester’s Interactive Advertising Models, 4/09 and 10/08 (US only) .

55 AV. MONT-ROYAL W., SUITE 999, MONTREAL (QC) H2T 2S6 13

ONLINE ROI ECOSYSTEM

SEO v. PPC

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Search

Source : IAB 2010 & Comscore 2009.

TRADITIONAL BUSINESS OBJECTIVES

The channels evolve, but the business objectives do not.

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The Business Value of Social Media

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4 UNIQUE WAYS TO DO SOCIAL MEDIA

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SOCIAL NEWS OPTIMIZATION KEY FACTORS

Content Quality & enjoyment factor VS time taken to readCategorization Popular categories / tags will bring more results Sollicitation A key to reach a critical mass

SOCIAL NEW OPTIMIZATION KPIs

Traffic UVs, Pageviews, recurring visits SEO AVG Inbound links

SNO KEY FACTORS & KPIs

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WIDGET KEY FACTORS

Usefulness The widget has to fit a specific requirement of the marketSEO friendliness Widgets should pass linkjuice with targeted anchor textQuality Nice enough to fit on tier1 blogs & websites Ease of installation A Mommy blog should be able to install it

WIDGET KPIs Reach Global reach achieved by the # of sites with the widget installed Traffic Pageviews generated on partner sites, clickthroughs to client site SEO Often sitewide links with relevant anchor text

WIDGET KEY FACTORS & KPIs

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WIDGET EXAMPLE – CLUB MED

SOCIAL MEDIA FOR SEO “101”

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Search

• You can maximize your blogging outreach & ROI by:

• Doing Social News Optimization (SNO) on StumbleUpon, Digg, Reddit, etc.• Creating & promoting widgets

THE SEO & PPC MISMATCH

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Search

The Traffic Mismatch“ 7.3x more traffic in SEO vs PPC ”

Reality vs Opportunity•PPC is easier to setup•PPC generates immediate return•PPC has no competitive advantage

The Budget Mismatch: “ More than 85% is invested in PPC ”

Reality vs Opportunity• SEO’s results need 3-9 months• SEO 2X, 5X, 10X…long term return• SEO skips the middle man (Google)

Source : Enquisite 2010.

PPC “101”

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Search

• Outsmart other advertisers bids & ad creatives with technology & grey matter • Control and optimize the whole conversion funnel to decrease CPA• Best short term ROI

SEO “101”

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Search

INDEXATION + RELEVANCY + POPULARITY

• Removing any hurdle to the crawlers is key for a perfect indexation• Map your site architecture in accordance with semantic verticals to reach ideal relevancy• Balance the quantity, quality, aging & regularity of your linkgraph to maximize popularity

Smaller corporate structures & fewer departments involved Agile development, faster release cycles, business model flexibility

Less aversion to risk (need to catch up with the leader) Easier to make room for SEO to bridge gaps between them and the

leading brand

Faster access & bigger impact on board / key decision makers SEO represents a bigger chunk of the company’s overall budget

RUNNER-UP INSIGHTS - PROSLeading Brand vs Runner-up

Several existing properties to spread existing linkjuice

Need to create a global strategy to maximize each property

Biggest competitive advantage to leverage against runner-ups

LEADER INSIGHTS-PROSLeading Brand vs Runner-up

CANPAGES.CA (2/2)

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NVI SEO Case Study

Traffic increased from 30,000 to 3,000,000 per month in unique organic visitors (from 2008 to 2009).

Business directories: In 2008 Canpages’ traffic represented 1% of Yellow Pages’ online French & English directories’ unique traffic. By 2009, that percentage had grown to 46%. (Figures are noted as documented on the adjacent chart).

Achieved major indexation of Canpages.ca (millions of merchant pages were indexed through the onsite SEO process compared to a few hundred prior to NVI’s involvement).

RESULTS

LEADER – 2009 & 2010

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Business Cases

Key factors

• Web Dev = with a external 3rd party• Less onsite SEO elements

implemented per month• Access only to the VP Digital• Had to hire a SEO director to

accelerate implementations• Took longer to build momentum as

many transitions occured

Results

• Organic Traffic increased from approximately 3.00M to 4.5M organic visits per month (from mid-2009 to mid 2010).

• The company still has to implement several recommendations

SEO & PPC ARE THE MOST EFFECTIVE TACTICS WHEN IT COMESTO RESULT ACHIEVEMENT

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Search

Results vs. expectations for digital marketing compaigns

Source: © Copyright FORBES 2009

SEO SEEN AS MOST EFFECTIVE IN GENERATING CONVERSIONS

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Search

Most effective digital marketing tools for generating conversations

Source: © Copyright FORBES 2009

WHY ARE THERE SO MANY MISSED OPPORTUNITIES?

• There are 100 ways to make money in the digital era & 3 types of players

• Too many are still standing still, afraid of change, losing market share

• Too many others are constantly trying every options with miss a large portion of the low hanging fruit

• My recommendation is to follow the current winners of this industry. The ones focusing and maximizing every dime from the top highest return channel as of today.

• Only once the return is optimize, should you look for other options.

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WHAT’S NEXT?

The Future of Mobile Media and Communication

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THANK YOU!

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JEAN-FRANÇOIS LEDUCCRO - CHIEF REVENUE [email protected]: http://ca.linkedin.com/in/jfleducMy Twitter: http://twitter.com/jfleduc