IPMM has always been a proponent of the value of a brand, a worldwide symbiosis with a category. Reading webpronews.. i found this interesting:
Consider this also: According to ComScore Chairman Gian Fulgoni, Google has made its billions from just five percent of its ads being clicked. Not to insult your math ability, but that's 95 percent of Google ads that are not clicked. Though clicks are monetized based on direct action, Fulgoni says only 16 percent of ads have direct online effects; 21 percent have latent online effects, and 63 percent have latent offline effects. "
[S]o 84% of the value isn’t being monetized by search engines," Search Insider's David Berkowitz summarizes in his " Dreaming of a Super Model" report. The value in that 84 percent is in less tangible branding value. Enquiro attributes a 16 percent brand lift when the brand made an appearance in the top organic result and the top sponsored result. Fulgoni used these numbers to suggest Google could maximize profit by adding a layer of cost to search advertising in the form of cost per impression.
Its exciting to read that for us at IPMM. Our niche brands are all about branding value to our readers through the online experience and social ineraction.
Couple of charts showing ad spend rate throughout the next few years. The amount of spend has dropped off from the initial rates forecast last year, as monetization has dropped off
At $1.4 billion, social network advertising will make up 5.5% of total US online ad spending this year. However, after 2010 eMarketer projects that social network sites will receive a lesser share of total spending, falling to 5.1% in 2012 after a peak of 6% in 2009-2010.
It seems as though the major social networks are not doing as good a job for marketers as other websites that cater to specific types of visitors. These large Social networks are akin to general audience advertising. Again, this is where IPMM sees the value of branded niche media properties, catering to users who look for a specific kind of content and relationship in the online experience. In conclusion, 90% of online ad spend is going somewhere else. Somewhere that advertisers feel they are getting more ROI.
Zivity Takes $7 Million In Venture Financing For Adult Content Social Network
Zivity is an adult content social network and user generated content site (they call it “Promoting Beauty 2.0″). It has the distinction of being one of the first adult content startups to be backed by venture capital via a $1 million seed round in 2007, and it caused quite a stir at its official launch at TechCrunch40. As we mentioned last month, mainstream press is starting to pay serious attention to them.
The company will announce a new $7 million round of financing in a deal led by both BlueRun Ventures and Founders Fund. The company has now raised a total of $8 million. The social networking experience that these VCs add is substantial. Founders Fund is an early Facebook investor. Both are investors in Slide.
John Malloy of BlueRun Ventures and Luke Nosek of Founders Fund join Zivity co-founders Scott Banister, Cyan Banister (who also models for the site) and Jeffrey Wescott on the company’s board of directors.
We've known for months about this, and as photographers, we've joined and used the system. WHAT DO WE THINK OF THIS? The business model is going to have to change. The problems they are TRYING to solve is somewhat real, but the solution they offering will not work. It will FAIL and probably morph into something different at some point. We consider our modelvanity brand a superior platform once we're up and running fully.
Saying he has been inspired by music, John is about to make his newest predictions. He delves into conversation marketing, as his companies core competency. Revealing that 27 full time brand advertisers sell branding through his 150+ network sites, he also explained how sometimes it takes a few quarters for the new sites to see ad income. At 12:30 he talks about two types of media, Mercenary and Missionary. He prefers missionary (passionate independent media) over mercenary. He speaks that news has a new approach to make it "straight." At 30:00 he begins talking about experiences around the events and the advertising that can go with it. Something I have been preaching for several years. Here is the video, by the Scoble Show.
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