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Revenue The Internet Wants to Be Free, but You Need to Get Paid
How I Got Here Andrew Chen
How Online Companies Make Money From Ads CPM CPC CPA / affiliate, leads From Users ecommerce subscriptions virtual goods
From Users ecommerce subscriptions virtual goods
The Basic Model
Transactions as funnels Source: Andrew Chen User enters Browses Adds to cart Buys
ARPU =  average revenue per user ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Source: Andrew Chen
Maximizing ARPU ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
From Ads CPM CPC CPA / affiliate, leads
Understanding Risk Advertisers Publishers Risk CPM CPC CPA CPM CPC CPA Equal Risk. Not surprising CPC became dominant pricing method.
Calculating Revenue Per Thousand (RPM) –  The standard unit for measuring ad revenue ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Click Through Rate (CTR) - Clicks/Impressions * 100 (%)
What Will It Take to Win? ,[object Object],[object Object],[object Object],[object Object],[object Object]
No One Said It Was Easy ,[object Object],[object Object],[object Object],[object Object]
An Imperfect World You Have (1) Message Find Out Right Now Who. Hint: They Are On Your Friends List myluvcrushmsg.com Is It Love? Take The Quiz Enter Your Names To Check This Is So Accurate, It's Scary! NewCrushAlert.com
Monetizing Your Inventory Option Pros Cons In-house Sales Team Better Rates, Full Control Pricey, Need Staff Ad Networks Quick set-up, Great Reporting Limited Ads, No Guarantees Ad Sense Strong Adv Base, Solid Yields Restrictive Terms, Ad Crack Affiliate/CPA Programs  Flexibility, More Integration Options Hit or Miss, More Manual
Maximizing Ad Revenue ,[object Object],[object Object],[object Object],[object Object],[object Object]
When East Meets West From Ads CPM CPC CPA / affiliate, leads From Users ecommerce subscriptions virtual goods Ad Payment Platforms Ads Instead of $
Ad Payment Platforms
What Is It Users Want Something The Problem:  They Don’t Want To Pay with Cash Social Media Apps Software The Solution: They Will “Pay” Through Ads Movie Tickets Source: Trialpay.com
Flow Social Media – App Developer Digital Goods – Consumer Proposition Source: Trialpay.com Source: OfferPal Media Source: Super Rewards Social Media - Integration
Maximizing Ad Platform Performance ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Mix And Match From Ads CPM CPC CPA / affiliate, leads From Users ecommerce subscriptions virtual goods Ad Payment Platforms Ads Instead of $ One Style Does Not Fit All
Questions? Jay Weintraub jay.weintraub[at]gmail.com Blog: jayweintraub.com @jayweintraub @leadscon
Four Factors Affecting RPM Impression Count/Person RPM # Impressions Targeting & Placement  Level of Targeting RPM # Advertisers Advertiser Base RPM Content / Ad Relevance Relatedness RPM

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Jay Weintraub, Startonomics LA

  • 1. Revenue The Internet Wants to Be Free, but You Need to Get Paid
  • 2. How I Got Here Andrew Chen
  • 3. How Online Companies Make Money From Ads CPM CPC CPA / affiliate, leads From Users ecommerce subscriptions virtual goods
  • 4. From Users ecommerce subscriptions virtual goods
  • 6. Transactions as funnels Source: Andrew Chen User enters Browses Adds to cart Buys
  • 7.
  • 8.
  • 9. From Ads CPM CPC CPA / affiliate, leads
  • 10. Understanding Risk Advertisers Publishers Risk CPM CPC CPA CPM CPC CPA Equal Risk. Not surprising CPC became dominant pricing method.
  • 11.
  • 12.
  • 13.
  • 14. An Imperfect World You Have (1) Message Find Out Right Now Who. Hint: They Are On Your Friends List myluvcrushmsg.com Is It Love? Take The Quiz Enter Your Names To Check This Is So Accurate, It's Scary! NewCrushAlert.com
  • 15. Monetizing Your Inventory Option Pros Cons In-house Sales Team Better Rates, Full Control Pricey, Need Staff Ad Networks Quick set-up, Great Reporting Limited Ads, No Guarantees Ad Sense Strong Adv Base, Solid Yields Restrictive Terms, Ad Crack Affiliate/CPA Programs Flexibility, More Integration Options Hit or Miss, More Manual
  • 16.
  • 17. When East Meets West From Ads CPM CPC CPA / affiliate, leads From Users ecommerce subscriptions virtual goods Ad Payment Platforms Ads Instead of $
  • 19. What Is It Users Want Something The Problem: They Don’t Want To Pay with Cash Social Media Apps Software The Solution: They Will “Pay” Through Ads Movie Tickets Source: Trialpay.com
  • 20. Flow Social Media – App Developer Digital Goods – Consumer Proposition Source: Trialpay.com Source: OfferPal Media Source: Super Rewards Social Media - Integration
  • 21.
  • 22. Mix And Match From Ads CPM CPC CPA / affiliate, leads From Users ecommerce subscriptions virtual goods Ad Payment Platforms Ads Instead of $ One Style Does Not Fit All
  • 23. Questions? Jay Weintraub jay.weintraub[at]gmail.com Blog: jayweintraub.com @jayweintraub @leadscon
  • 24. Four Factors Affecting RPM Impression Count/Person RPM # Impressions Targeting & Placement Level of Targeting RPM # Advertisers Advertiser Base RPM Content / Ad Relevance Relatedness RPM