Advertising & Monetization: Turning Apps into Dollars
Jim Scheinman (Charles River Ventures), Seth Goldstein (SocialMedia.com), Scott Rafer (Lookery), Troy Young (VideoEgg), Murtaza Hussain (Peanut Labs, Inc)
Jim gave background on current Web 2.0 situation. Can make money now but could see end of good times. Slowdown rather than burst bubble. CURRENT AD MARKET – $21 BILLION IN 2007. $45 billion worldwide.
CPM; CPC; COI; incentives; CPA; non advertising models such as gifts.
Seth – co-founder, CEO; Appsoholic – measures interactions with ads. to make it big need to include big brands.
Troy – bring brands into media such as video (videoegg). video preview can be formatted to any size. when clicked on, it can load large size frame wth video. pays on engagement of large video. so want people to engage page by clicking on.
Scott – getting high value sites. can not get people to register so can not target ads. but FB knows about everyone. try to get them together so ads make sense.
Murtein – market research. used oregon trail. fill out survey to allow movement of wagon on trail.
brands – Seth. no one silver bullet for brand. so no real ad standards yet. everyone is still learning. best apps depend on where ad is placed. i.e. place ad at step 14 in which beatle are you. then they will answer since already invested.
troy dicsussed scaling. TV really easy to buy. like a commodity. but online has fragmentation etc. really hard to make happen over many, many sites. big challenge because banner model is broken. take a long time for big brands.