Paying for it: Adverts as a Revenue Source
Saturday, June 2nd, 2007For web based businesses, being able to accurately report the number of unique visitors to your site and the amount of time they spend on your site is essential you need to be armed with this information and the evidence to back it up in order to attract good rates from advertisers.
Back in the old days, you’d just parse your weblogs and count “hits”, every access was a hit, no matter what it was. That was fine until pages linked in Javascript, CSS, Images etc. Then we had to move to “Page Views”. We just looked at the specific “root” file for a page, and discounted the other objects that were loaded as a result.
Of course, then that doesn’t allow for pages like the request-o-meter on snakenet, which auto-refreshes to show people when they can next request. Does this really count as another page view? Not to advertisers mostly. Advertisers don’t want to see a buy ads on a site with 10,000 page views per hour, if that page view count comes from 2 users.
And so, sites and advertisers started to track with cookies, but that’s no good any more:
BBC NEWS | Technology | Web counting tools ‘need change’:
The way web audiences are measured could be ripe for an overhaul, according to two reports out this week….
In comScore’s study, an analysis of 400,000 home PCs in the US found that a hardcore minority of web users are clearing their cookies from their computers on a regular basis.
This causes servers to deposit new cookies which in turn could lead to an over-estimate of unique users to a particular website.
It found that 7% of computers accounted for 35% of all cookies, which extrapolated could mean the size of a site’s audience is being overstated by as much as 150%, said comScore.
Justly, many users don’t like cookies. And these are the most web literate users. It’s an invasion of your privacy they argue. People trying to profile you and track your habits. So they can better target their advertising to the right sites and the right people.
Perhaps unsurprisingly, comScore offers a very different approach to audience measurement - using the panel-based system favoured by the TV and radio industries which relies on using a representative sample of net users to gauge behaviour.
This works for TV, because TV is pretty limited. It takes a big chunk of capital to set up a TV channel, to make a TV show, to get someone to air it. It’s free to set up a web site. And thus, there are a lot of them. A lot of competition, lots of sudden start-ups. Things are niche. Take social networking, there’s MySpace, Facebook, LiveJournal, LinkedIn. Loads of them. People gravitate towards different ones on all sorts of random basis.
You can’t generalise traffic to one of those sites. There are new services getting tons of traffic from markets you can’t generalise. There are massively trafficked sites I’ve not heard of.
Perhaps the complexity is just in finding out how to come up with sensible representative survey groups. With the social networking it’s a bit easier. People who’ve been online a long time are more likely to use LiveJournal, which isn’t a true social networking site, but has aspects of it and has been around a long time. School kids and students will gravitate to facebook. Professionals to LinkedIn. That’s an easy one. But to music sites? You can’t judge the internet radio sites people visit that easily.
I know of several sites with no reason to choose between them that can be generalised. It’s down to the community. Some people fit in better elsewhere. So how are you going to be able to calculate their sites on that basis?
But, I guess this approach isn’t really about figuring out the traffic for every site, but just for the big sites, that everyone knows about.
So, they’re playing round with ways to get an accurate idea to estimate the number of unique people visiting bigger sites so they can sell advertising.
People expect the web to be free. They don’t want to pay to use facebook. Facebook need to make money. Even if it’s a cool idea that someone sets up because they think that would be a cool service running a big site is not free. The internet is only free to the consumer. The middle-men, the people who run the sites have to pay money to the bandwidth people, the power people. They don’t get that free. So you have to find a way to get money that doesn’t directly take it out of the pockets of your users.
And that’s advertising.
And your users hate it.
There are many things around that exist purely to take the advertising out of the web. I use AdBlock Plus in firefox to strip the vast majority of adverts out of every site I visit. I combine this with Greasemonkey and some user scripts to take other adverts out of sites I use a lot. And so do a lot of other people. Plus people use tools to block cookies that are used to track their use of sites and their browsing habits. Some people just purge all, but there are tools more like AdBlock Plus that do extend and enhance Firefox’s user permissions to blacklist and whitelist cookie providers. Spybot, Adaware and other tools rip out these tracking cookies.
So on the one hand, you’ve got the problem accurately reporting your usage and getting that user base up to get revenue from advertisers. On the other hand you have a hard-core minority of web users trying to eliminate that revenue stream because they don’t want your crappy invasive adverts and they don’t want to be profiled and tracked.
You have to find another revenue stream for your online business. Adverts alienate users and dilute your brand image. But people don’t want to pay for things. I guess that’s a bit of a problem for me isn’t it? On the one hand, I won’t attract users and keep users if I make Multiblog a pay service. I will have problems attracting advertisers to start with and producing evidence of my true user base to get them later on. And if I do get adverts, many of my users will be blocking adverts or alienated by them. Blogging to multiple-blogs in one hit is a very web literate thing to want to do. My core demographic is the advert avoiders.
So what do I do?
The answer isn’t great. I’m not going to waste my time building an advertising funded service. My users will ad-block. I’m not going to get anywhere charging for everything. I have to follow the web equivalent of the shareware model. I have to start free, then I have to introduce charges for advanced features later.
It’s essential that I’ve identified this model early, because I’m going to have to design user accounts and features around the fact that some features or sub-features will one day switch to paid user only, and I may even have tiers of paid users. Critical thing. if you miss that at the start, then you’re really not going to manage to deliver the payment extensions later on.
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