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Showing posts with label CPA. Show all posts
Showing posts with label CPA. Show all posts

Mar 8, 2009

Pay-For-Play Comes To Online Radio. Is That a Bad Thing?

When it comes to promoting new music, pay-for-play schemes are generally frowned upon. The practice, which involves music labels or artists paying radio stations to play their songs in heavy rotation, dates back to the beginnings of terrestrial radio. It got so bad in the 1950s that Congress had to intervene, but it keeps rearing its head in new forms.

Now, pay-for-play has hit online radio. Jango, a music streaming service which claims 6 million monthly listeners, is selling paid placement to labels and artists through a program it launched last week called Jango Airplay. For as little as $30, a band can buy 1,000 plays on Jango. Each song has links to buy the song at Amazon or iTunes.

Given the scandalous history of pay-for-play on terrestrial radio, it is not surprising that people are skeptical about whether it is a good idea to bring it to the Web. Matt Rosoff at Cnet sums it up:

This tarnishes the entire service with a distinct air of “suck”.

Rosoff is under the impression that good artists don’t need to pay for promotion. I am not so sure. Bands don’t break out without some sort of promotion, whether that is paid for by their labels, or earned through new kinds of algorithmic and social promotion we are seeing with online music services from Pandora and MySpace Music to iLike to imeem.

If we accept paid placement in our search results, why should online music be any different? The real question is relevance. Either the paid promotions will make Jango a better listening experience and the experiment will pay off, or it will make it suck and alienate its listeners.

Unlike pay-for-play on regular radio, where the same songs are broadcast indiscriminately to every single listener, Jango’s Airplay songs are targeted to specific stations. The artists themselves choose what other kind of music they want to be played next to, just as an advertiser on Google chooses what keywords should trigger his advertisement. A heavy metal band might be better off buying plays on a Metallica station than on a Bob Dylan station. The whole point is to find listeners who are more likely to become fans.

In addition to being more targeted, Jango offers a feedback loop which does not exists on regular radio. Listeners can block songs from ever playing again, or they can give them a positive rating. Any Airplay song which garners 50 positive ratings gets pushed into regular rotation free of charge. In fact, a drop-down window encourages listeners to rate each Airplay song. My only problem with how this works is that the drop-down box characterizes the song as belonging to an “emerging artist” rather than clearly labeling it as an ad (see here).

It is an ad, and it should be clearly marked as such. I am okay with this sort of promotion as long as t is targeted to my listening preferences. The way Jango has it working now, any given listener will hear an AirPlay song no more than once every two hours, and no listener will hear the same Airplay song more than once a day. That is certainly better than listening to the same blaring commercial for auto insurance every 20 minutes.

But Jango needs to make its promotion algorithm a little more sophisticated. Even before promoting songs with 50 positive ratings to regular rotation, Airplay songs that get rated highly should get played more often, or be cheaper to promote. Just as paid search ads that get clicked on more often are cheaper to the advertiser because they are more relevant, songs which resonate more with their targeted audience should get more promoted plays.

Designed correctly, there is a place for paid promotion in music, despite what the purists might think.

Dec 24, 2008

CLIP: A Tipping Point for Online Coupons?

By Gian Fulgoni

I’ve often wondered if and when the Internet would become a major distribution medium for cents-off coupons issued by CPG manufacturers. Sure, I realize that there are concerns about the possibility of fraud if hackers figured out some way to print millions of coupons and some unscrupulous retailer tried to submit them for redemption. But, since the gang-clipping of coupons from newspapers appears to have been stymied, I figured that it was just a matter of time before manufacturers got to the point where they felt comfortable using the Internet. Today, I’m wondering if we’ve reached that point.

To begin, here are some interesting – even remarkable -- statistics about coupons. PROMO magazine reported that CPG manufacturers distributed 302 billion coupons in 2007, up 6% and representing a whopping 16 billion more coupons relative to 2006. The face value of the coupons was $387 Billion, a big increase of 16% over the $337 Billion in 2006 and representing a 9% increase in face value. Free-standing inserts in newspapers continued to lead the ways in which marketers distribute coupons (88%), followed by handouts (5%), direct mail (2%), magazines (2%), newspapers (1%), in/on-pack (1%) and the Internet (0.4%), according to NCH Marketing.

According to CMS, a promotions logistics company, the boost in value and sheer number of coupons available helped improve redemption in 2007. Consumers turned in $2.8 billion of the total $387 billion in available coupon value. That added up to 2.6 billion coupons redeemed in 2007, the first time since 1992 that redemption volume did not decline.

Economic pressures and consumer-friendly tactics combined to guarantee continued consumer and manufacturer engagement with cents-off offers in 2007. In fact, comparing coupon response to key economic indicators over time has shown a strong link between the economy and coupon redemption. Most notably, as unemployment and prices rise, coupon redemption increases. So, with today’s challenging economic conditions, I don’t think we should be surprised if coupon redemption increases again this year and next.

So, what’s been happening to the use of coupons online? Well, it certainly appears that surfing for coupons is growing in popularity. comScore’s data show that 27 million people visited coupon sites in October, up 33% from a year earlier (that’s 18% of the 148 million Americans who use any coupons in a year). The number of searches conducted using coupon terms also increased by 100% from January to September of this year. On a global basis, we saw a 42% increase in the number of pages viewed at coupon sites, so it’s certainly not just a U.S. trend...

Nov 17, 2008

US TiVo users pick up Domino's Pizza ordering / tracking abilities

US TiVo users pick up Domino's Pizza ordering / tracking abilities


Clearly catering towards the wants, nay, needs of the average American couch potato is TiVo and Domino's Pizza, which have collaborated in order to bring on-sofa pizza ordering to broadband-connected TiVo subscribers. If you'll recall, this service was actually announced for Australia earlier this month, but users in the US of A get the first chance to indulge. 'Course, this is far from the firstunorthodox method of ordering pizza, and the lack of a scheduled delivery option is certainly a weak point, but this widget does reveal that all sorts of differentiating applications could eventually find their way to a TiVo box near you. Feel free to give it a spin tonight, but don't blame us if that backlit remote gets dimmed from grease seeping into the crevices.

TiVo, Domino's team up to make us all fat

A product placement deal means that whenever TiVo users see a Domino's Pizza ad, they can go ahead and order some pizza. Mmm, pizza. There's also an on-demand ordering screen.

Jun 2, 2008

NEWS: Ad network strives to make coupons more meaningful

By MICHAEL LIEDTKE 



SAN FRANCISCO (AP) -- While most forms of advertising are getting better at targeting likely customers, coupons rarely hit the mark. To wit: U.S. consumers redeemed less than 1 percent of the estimated 285 billion coupons issued last year for groceries and various packaged goods.

But a small Silicon Valley company is striving to improve coupons' aim with a new online distribution network based on a contextual concept that helped turn Google Inc. into the Internet's most popular - and profitable - advertising vehicle.

After several weeks of tests, Mountain View-based Coupons Inc. plans to unveil its "Brandcaster" system Monday.

Finding online coupons now typically requires consumers to make a special trip to Coupons Inc.'s site, coupons.com, or similar destinations like smartsouce.com, ppgazette.com and coolsavings.com.

If Brandcaster works, Web surfers should start seeing more offers to print out coupons for products that have a contextual connection to a topic that piqued a reader's interest in the first place. For instance, someone looking at a Web page about healthy food might be offered a coupon for organic milk.

It's the same idea behind the text-based ad links that Google displays alongside search results and other information at hundreds of thousands of Web sites.

Coupons Inc. even recruited one of Google's advertising masterminds to become an adviser for the Brandcaster system.

Gokul Rajaram, who left Google late last year, said he wanted to help out because he views Brandcaster as a logical extension of Google's "AdSense" - a system he helped launch in 2003 to distribute relevant advertising links to other Web sites.

Since then, AdSense has attracted more than $15 billion in advertising revenue.

Coupons are "one of the big bastions" of advertising that still hasn't made a significant move to the Internet, Rajaram said. "I think this is can drive large amounts (of coupons) online."

If Rajaram's right, Brandcaster could drain even more revenue away from the beleaguered newspaper industry, which has been cutting staff and other expenses to cope with advertising's accelerating shift to the Internet.

Advertisers paid newspapers to distribute nearly 90 percent of the coupons issued last year for packaged goods, according to NCH Marketing Services, which helps retailers turn in redeemed coupons to manufacturers.

Just 0.4 percent of the packaged goods coupons were printed out on the Internet last year, NCH estimated.

Steven Boal, who started Brandcaster a decade ago, doesn't have any delusions about approaching Google's ad volume.

But he believes Brandcaster will play a pivotal role in achieving his goal of generating $400 million to $500 million in annual revenue, paving the way for a possible initial public offering of stock. He declined to reveal privately held Coupon Inc.'s annual revenue.

To start, Brandcaster will distribute coupons from about 200 brands to about 3,000 Web sites. The advertisers sending their coupons through Brandcaster include General Mills Inc., Kimberly-Clark Corp., Kraft Foods Inc. and Clorox Co. Within a year, Boal hopes to have 35,000 Web sites showing coupons through Brandcaster.

Like Google's advertising system, Coupons will share revenue with the Web sites participating in Brandcaster. Advertisers will only have to pay when a consumer prints out a coupon...


May 21, 2008

NEWS: Microsoft looks to buy way into search (With CPA Model)

Ed: Microsoft has activated a plan for CPA (Cost Per Action) advertising. Advertisers pay based on transactions, while consumers gain cash back like a coupon. Thus, Microsoft plays in the space between brand advertising and transactional commerce like eBay, Amazon, or Yahoo Shopping. 

The new model gives Microsoft more marketing weapons when working with large advertisers. 

Implications of CPA on search, SEM, and Yahoo are minimal. 
  • SEM appeals primarily to millions of smaller advertisers. 
  • Search is broader than a handful of promotional products. 
  • The Yahoo acquisition/deal builds critical mass. 
Let's stay focused, bloggers.

Microsoft looks to buy way into search (again)

REDMOND, Wash.--Microsoft is looking to buy its way into search, and I'm not talking about Yahoo.

The software maker plans on Wednesday to launch a cash back program to those who buy things after using its search.

Microsoft has details of the program up on its Web site, including a list of frequently asked questions.

"We want to earn your loyalty and reward it with cashback savings for your everyday online shopping," Microsoft said. "We are 'The Search That Pays You Back!' "

As previously reported, Microsoft is due to show off its latest enhancements to its search product at the Advance 08 advertising conference here. Microsoft Chairman Bill Gates is set to offer the main address of the event on Wednesday. I hear the company has more than just the cash back effort up its sleeves.

In any case, it's not the first time Microsoft has tried to use financial incentives to boost its search share. It has run a number of programs including its Live Search Club that offer rewards for those that use its search.

The Live Search Club effort briefly boosted Microsoft's search market share last year, but the gains have proved short lived. Microsoft has been losing ground since then and has returned to a single digit share of the market.

The news was reported earlier Tuesday by Search Engine Watch and the Seattle Post-Intelligencer.

According to the reports, Live Search Cash Back, is based on Microsoft's acquisition last year of Jellyfish, which has been piloting such a program, the reports said. Jellyfish said on its Web siteTuesday night that it was "currently offline to perform necessary service upgrades and enhancements."

Meanwhile, there's still no word on Microsoft's other, more expensive effort to buy search market share.

Microsoft To Offer Cash Back To Search Engine Users In Effort To Fight Google

Microsoft will announce a new search advertising model tomorrow at the Advance08 Conference in Bellevue, Washington - some parts of the site are already live on Microsoft now (see screen shots below). The core of the new service will be a new set of 18 new vertical search offerings that will give users cash back on any purchases made from advertisers.

...

A number of high profile ecommerce sites are participating in the early stages of the program, which is being dubbed “Live Search Cashback” and is based at least partially on technology developed from Jellyfish, a company Microsoft acquired in 2007. A message on the Jellyfish site says the site is down “currently offline to perform necessary service upgrades and enhancements.”

The goal, of course, is to lure high value searches away from Google. Only a small percentage of total searches are highly valuable, usually because advertisers are right on the cusp of selling something to the searcher (searches for books, for example, or mortgages).

Microsoft’s hope is to lure advertisers with a promise to pay only if a purchase is made, unlike Google’s pay-per-click model that carries more risk because a searcher may not complete a transaction. And by offering a percentage of the fee collected from advertisers, Microsoft hopes to convince searchers to take the last mile to a transaction through the Live.com search engine, generating more advertising revenue for Microsoft and simultaneously hurting arch-rival Google.

The new product will be announced tomorrow morning by Kevin Johnson, the President of Microsoft’s Platforms & Services Division. We will be live blogging the event.

Farecast, a company they acquired last month, will likely power travel, one of the 18 verticals.

The Yahoo Angle

This fits with Microsoft’s recent re-engagement with Yahoo and a new proposal to take over Yahoo’s search business. Microsoft will look to make a big splash with advertisers right away. By removing risk (moving from CPC to CPA) they will get part of the way there. But Microsoft also needs to offer advertisers enough inventory to make it worth their while - Yahoo search traffic does that.

But even without Yahoo, Microsoft may find a warm reception from advertisers, who currently see a virtual monopoly by Google in the search advertising space. It’s in their best interest to have as many strong players vying for their business as possible, so any competition to Google may be worth their time.

Look for more details tomorrow morning.

Microsoft's "Cash Back" Google Search Killer: Great Idea, Won't Work

Microsoft Live Search: If at first you don’t succeed, pay your users

To some, this may read like an article from the parody site The Onion — but it’s not. Microsoft is preparing to unveil a new initiative for its Live Search product on Wednesday, one that will pay users to use the site, according to The Seattle Post Intelligencer.

More specifically the program, known as “Live Search cashback” (which is actually already live) will pay consumers who find and buy a product via Live Search a certain percentage of the purchase price back. Microsoft has already signed up partners including Barnes & Noble, Sears, Home Depot, J&R Electronics and Office Depot among others.

This new approach stems from Microsoft’s acquisition of comparative shopping engine Jellyfish last year.

Microsoft Unwraps Search Engine Reward Program

Microsoft launched a comparative shopping feature in its Live Search engine on Wednesday. The service offers consumers a...

Microsoft to Launch Cashback Service

Microsoft hopes to make gains on Google in the lucrative business of Internet search through a new service that pays consumers who buy items they find through the software company's search service.

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