Media2010: Notes from Frédéric Filloux and Russ Fradin

Continuing my notes from the Media 2010 conference on the presentations by Jack Matthews, Richard Titus and Marc Frons, here are the notes I took from the presentations by Frederic Filloux and Russ Fradin.

I will be digesting what I’ve heard today and pulling into some upcoming content on the future of media.

FRÉDÉRIC FILLOUX, EDITOR – INTERNATIONAL, SCHIBSTED

1. Failure of ad model

- CPM lower than ever

- Clickthrough rate never took off

- endless inventories pushing prices down – ad networks are bottom feeders

2. Facebook/ Google sucking

People are spending far more time on social media (latest +82% globally), impacting their time on traditional media

3. Information break-up

- ‘commodity’ news – ubiquitous, difficult to monetize

- ‘participatory mashup’ – buzz driven, can be monetized

- quality niche – small, people willing to pay

ARPU (Average Revenue Per User) is a very relevant measure today.

There is revenue depletion on both print on online

Over the last four years for every $1 gained on digital $55 have been lost on print

ARPUs:

New York Times – $7-10

Huffington Post – $1.50

TechCrunch $0.85

Facebook – $1.50

Skype – $15

Need hybrid approach: combination of free and paid

Paid-for options

1. Target heaviest users

2. Focus on type of user

3. Better user experience

4. Friction-free payment

RUSS FRADIN, CEO, ADIFY

Optimize for networks

OR

Sell premium branded content

Increased time spent on mid/long-tail sites

Ad spend outpacing traffic growth

Where are you most likely to pay attention to advertising? Nielsen

TV 80%

Newspapers 61%

Major online sites 60%

Niche online sites 59%

Publisher’s options

Optimize your site for ad networks and manage yield between them

Sell premium products directly

If you choose premium:

- exit ad network and data contracts

- prepare your management

- structure sales and products for premium experiences

- extend your own reach

Premium ad products – integrated ad experiences

Build, buy or aggregate reach

- Building is time consuming and risky

- Buying is expensive and risky

- Aggregating is fast but competitive

Vertical ad network

- vehicle for efficient, brand safe buying on mid and long tail sites

- editorially selected, topically related, independent web sites

- anchored by the publishers key destination site

- visited by passionate, engaged audience

Sell more to existing advertisers

- Linking

- Content Syndication

- Immersive branding across segment of long tail