welcome to segment two of show 14 of hip
mojo we’re going to now talk about
advertising models which was always seen
as like the the holy grail of internet
you know monetize a monetization but now
there’s a school of thought that says
you know with a handful of companies ie
facebook google yahoo AOL and microsoft
controlling ad budgets maybe add only
models are doomed maybe you need to
introduce ecommerce maybe you need to
introduce subscriptions i never believed
that consumers want to pay for content I
don’t think consumers really pay for
your average articles I think Wall
Street Journal is always the exception
because people expense it we produce a
lot of videos I think they’re great
videos people wouldn’t pay for it
because there’s good enough similar free
content out there you might pay on
itunes to download avatar or get dexter
but that’s very different so I think
we’re not going to focus too much on
subscriptions unless you want to go
there but what about e-commerce do you
think that any publisher that is
producing free ad-supported content can
they survive on ads only or do they have
to start going into e-commerce I’m going
to be a little Wiley here i’m gonna say
i actually think ad supported media is
the future i think what we have to do is
start thinking about advertising in
different terms you know still like the
world in general most of us have this
hanging up when we think about ads it’s
still click like the concept we have in
our mind is still harkens back to when
there was a printed ad on a physical
printed piece of paper or an ad slotted
in between segments of a TV show but
really all advertising is as far as a
publisher is concerned is a way to
promote a certain product or service to
their targeted readership which is also
the marketers targeted audience so as
far as going ecommerce i still see that
as ad supported i think it makes a lot
of sense and if i actually think it’s
imperative for publishers to either look
at how they can you know sell their own
merch or partner with people to move
merch more effectively because really
that’s all they’re doing at the at the
end of the day I’m driving so i’m
assuming merch is like the hip way of
saying merchandise just
hi fi for the users the users the
viewers I kick fair enough now okay yes
at the end of the day there’s an
advertiser a marketer that’s
underwriting everything so yes ecommerce
it’s either CPC cost per click cpa cost
per action or Cpl cost per lead
advertising is usually CPM cost per
thousands of impressions or CPC or
sponsorship I get that but come on
there’s a fundamental difference between
you’re reading something or you’re
watching something and there’s a
commercial message and it doesn’t matter
what you do you just have to basically
be have a pulse and not even that will
count as an impression and okay here you
gotta buy the shoe you gotta book this
trip I mean there is a fundamental
difference this is not semantics no it’s
it’s not but like for example I might
read a lifestyle publication because I
trust them to curate you know whatever
trends and tell me what’s actually
important and how things are trending
but make sure the trendsetter not eating
with this beer I am and even with
financial publications you know I’m
trusting them to again curate relevant
stories they’ve done such a bang-up job
by the host guys but as a result if
they’re if they’re actually going to be
shaping my opinions that much I think
it’s acceptable provided it’s not
directly tied into editorial decisions
to actually curate you know some of my
purchasing decisions you know if it’s a
lifestyle publication why not show me a
featured collection and try to get me to
buy it or if it’s a financial one why
not you know try to sell me a certain
stock or a certain software to manage my
money okay so if you take a look at the
web the three C’s you got content
community and commerce so as an example
you could argue that let’s say yahoo
historically was content you could argue
that you know let’s say ebay was
commerce commerce you could argue amazon
was was commerce as well but i mean they
all sort of spill into community and if
you think about it amazon is a massive
publisher of content to through all the
reviews you know and it’s good
user-generated content basically so they
not a community there there’s a lot of
community exactly but Mike wet and then
you could argue that the friend stergios
cities all and you know myspace and
Facebook those are the community guys
but my question is this now is it easier
for an e-commerce play like Amazon and
eBay to get into advertising or do you
think it’s easier for an advertising
play like yahoo or cnet or IGN or
watchmojo to
then get into e-commerce um that’s a
good question I’m we only ask good
questions I’m really not sure I think it
would depend a lot on you know
idiosyncratic factors such as like who’s
actually heading it up and how they’re
going about doing it see because when i
see amazon launched an ad network with
all their data i go i just don’t see
them having advertising in their DNA
right so I I see that I don’t want to
knock amazon and Jeff Bezos amazing
company amazing entrepreneur executive
it’s just not part of what they do so I
see that as like a probable fail and
then conversely when I take a look at
let’s say the IGN’s and the cnet’s you
know these big brands yahoo who are
commanding amazing rates amazing
sponsorships premium advertisers almost
easy money just you know put up a banner
put a pre-roll skin the page to then
start to say okay well we’re going to
put this thing and you know if a million
people click on it and then maybe one
percent will end up going on this
landing page and four percent converts
and all we make maybe 10,000 bucks or a
million bucks or whatever I just think
that’s like a lot of work for maybe
something probably nothing so I’ve
always been and this is probably a
weakness i’m not saying this the way to
go I’ve always been very like wary of
that at my old company ask man I drove
so much revenue from advertising that
the e-commerce never really amounted to
much so we sort of overlooked it and
that was all that was an earlier day too
in a way okay but here’s the thing now
if you take a look at thrillist which
you could argue is like the next askmen
sort of you know evolving the men’s
model they had a successful daily
newsletter it was sort of like they they
pitched a sent an email on things to do
in New York things to do in Miami or
whatever but then they bought
Jackthreads which is like their
e-commerce you know let’s say gilt
groupe for men and their revenues really
took off so there’s another company
sugar media sugar media was basically a
network of blogs for the female audience
founded by Lisa and Brian sugar Brian
sugars on the smartest guys and Lisa
sugar is amazing in terms of you know
editor knowing what the hell to publish
and all that but they are largely an
e-commerce shop like you know as that
does a lot of Commerce and that does a
lot of content and then last but not
least if you take a look at gilt that’s
come out of nowhere and going
gangbusters and then
of course I think the king of social
commerce regardless of whether or not in
a year we look back and laugh at it as a
punch line or we say man you know like
this was a google group on so I
personally even though I’ve always been
not an expert in e-commerce almost not a
believer I’m starting to believe that
like we’re watchmojo if we would have
gone back as of day one and said every
time we produce a video we offer within
the video an opportunity to let’s say
it’s a travel video to book a trip if
it’s a fashion video to buy the jeans if
it’s a makeup video to say this is like
who’s mascara we’re using and tie it
with offers in hindsight I mean people
say I don’t regret anything I
think people generally do regret it
people don’t like to admit the pediatric
I realized that men we should have
probably done a better job of e-commerce
and when I look at growth opportunities
i’m like yeah you know what i should
probably hire a guy that just you know
one foot in editorial one foot in biz
dev and just say let’s actually think of
e-commerce and what needs to be done so
you know it’s not my forte but i
disagree with you i think as much as
people won’t pay for people will not pay
for content and advertising is the way
to go i think the only way you could
really build a big business and just get
a higher i hate to say it monetization
per user is through e-commerce well I I
don’t think we disagree you know to go
back to the three C’s well content is
what it is but if you think of any
content producers audience whether their
readers or viewers that that that
audience has a certain demographic you
know they share a certain interest at
least to the extent that they’re
consuming the same kind of content if
you give them the ability they can
quickly become a community and as far as
you know advertising goes I think that
is the the commercial aspect it’s just
for the first time in history you can
quickly tie a promotion directly to a
sale in the immediate future yep so um I
I really think that’s where things are
going to go up agree on something
nothing uh yeah don’t like your shirt
hey I dropped the suit today okay we’re
gonna take a short break we’re gonna
come back with lightning round and talk
about MC Hammer and that’s all you need
to know MC Hammer those two word more
time those two words should just bring
you back for the next segment
mojo we’re going to now talk about
advertising models which was always seen
as like the the holy grail of internet
you know monetize a monetization but now
there’s a school of thought that says
you know with a handful of companies ie
facebook google yahoo AOL and microsoft
controlling ad budgets maybe add only
models are doomed maybe you need to
introduce ecommerce maybe you need to
introduce subscriptions i never believed
that consumers want to pay for content I
don’t think consumers really pay for
your average articles I think Wall
Street Journal is always the exception
because people expense it we produce a
lot of videos I think they’re great
videos people wouldn’t pay for it
because there’s good enough similar free
content out there you might pay on
itunes to download avatar or get dexter
but that’s very different so I think
we’re not going to focus too much on
subscriptions unless you want to go
there but what about e-commerce do you
think that any publisher that is
producing free ad-supported content can
they survive on ads only or do they have
to start going into e-commerce I’m going
to be a little Wiley here i’m gonna say
i actually think ad supported media is
the future i think what we have to do is
start thinking about advertising in
different terms you know still like the
world in general most of us have this
hanging up when we think about ads it’s
still click like the concept we have in
our mind is still harkens back to when
there was a printed ad on a physical
printed piece of paper or an ad slotted
in between segments of a TV show but
really all advertising is as far as a
publisher is concerned is a way to
promote a certain product or service to
their targeted readership which is also
the marketers targeted audience so as
far as going ecommerce i still see that
as ad supported i think it makes a lot
of sense and if i actually think it’s
imperative for publishers to either look
at how they can you know sell their own
merch or partner with people to move
merch more effectively because really
that’s all they’re doing at the at the
end of the day I’m driving so i’m
assuming merch is like the hip way of
saying merchandise just
hi fi for the users the users the
viewers I kick fair enough now okay yes
at the end of the day there’s an
advertiser a marketer that’s
underwriting everything so yes ecommerce
it’s either CPC cost per click cpa cost
per action or Cpl cost per lead
advertising is usually CPM cost per
thousands of impressions or CPC or
sponsorship I get that but come on
there’s a fundamental difference between
you’re reading something or you’re
watching something and there’s a
commercial message and it doesn’t matter
what you do you just have to basically
be have a pulse and not even that will
count as an impression and okay here you
gotta buy the shoe you gotta book this
trip I mean there is a fundamental
difference this is not semantics no it’s
it’s not but like for example I might
read a lifestyle publication because I
trust them to curate you know whatever
trends and tell me what’s actually
important and how things are trending
but make sure the trendsetter not eating
with this beer I am and even with
financial publications you know I’m
trusting them to again curate relevant
stories they’ve done such a bang-up job
by the host guys but as a result if
they’re if they’re actually going to be
shaping my opinions that much I think
it’s acceptable provided it’s not
directly tied into editorial decisions
to actually curate you know some of my
purchasing decisions you know if it’s a
lifestyle publication why not show me a
featured collection and try to get me to
buy it or if it’s a financial one why
not you know try to sell me a certain
stock or a certain software to manage my
money okay so if you take a look at the
web the three C’s you got content
community and commerce so as an example
you could argue that let’s say yahoo
historically was content you could argue
that you know let’s say ebay was
commerce commerce you could argue amazon
was was commerce as well but i mean they
all sort of spill into community and if
you think about it amazon is a massive
publisher of content to through all the
reviews you know and it’s good
user-generated content basically so they
not a community there there’s a lot of
community exactly but Mike wet and then
you could argue that the friend stergios
cities all and you know myspace and
Facebook those are the community guys
but my question is this now is it easier
for an e-commerce play like Amazon and
eBay to get into advertising or do you
think it’s easier for an advertising
play like yahoo or cnet or IGN or
watchmojo to
then get into e-commerce um that’s a
good question I’m we only ask good
questions I’m really not sure I think it
would depend a lot on you know
idiosyncratic factors such as like who’s
actually heading it up and how they’re
going about doing it see because when i
see amazon launched an ad network with
all their data i go i just don’t see
them having advertising in their DNA
right so I I see that I don’t want to
knock amazon and Jeff Bezos amazing
company amazing entrepreneur executive
it’s just not part of what they do so I
see that as like a probable fail and
then conversely when I take a look at
let’s say the IGN’s and the cnet’s you
know these big brands yahoo who are
commanding amazing rates amazing
sponsorships premium advertisers almost
easy money just you know put up a banner
put a pre-roll skin the page to then
start to say okay well we’re going to
put this thing and you know if a million
people click on it and then maybe one
percent will end up going on this
landing page and four percent converts
and all we make maybe 10,000 bucks or a
million bucks or whatever I just think
that’s like a lot of work for maybe
something probably nothing so I’ve
always been and this is probably a
weakness i’m not saying this the way to
go I’ve always been very like wary of
that at my old company ask man I drove
so much revenue from advertising that
the e-commerce never really amounted to
much so we sort of overlooked it and
that was all that was an earlier day too
in a way okay but here’s the thing now
if you take a look at thrillist which
you could argue is like the next askmen
sort of you know evolving the men’s
model they had a successful daily
newsletter it was sort of like they they
pitched a sent an email on things to do
in New York things to do in Miami or
whatever but then they bought
Jackthreads which is like their
e-commerce you know let’s say gilt
groupe for men and their revenues really
took off so there’s another company
sugar media sugar media was basically a
network of blogs for the female audience
founded by Lisa and Brian sugar Brian
sugars on the smartest guys and Lisa
sugar is amazing in terms of you know
editor knowing what the hell to publish
and all that but they are largely an
e-commerce shop like you know as that
does a lot of Commerce and that does a
lot of content and then last but not
least if you take a look at gilt that’s
come out of nowhere and going
gangbusters and then
of course I think the king of social
commerce regardless of whether or not in
a year we look back and laugh at it as a
punch line or we say man you know like
this was a google group on so I
personally even though I’ve always been
not an expert in e-commerce almost not a
believer I’m starting to believe that
like we’re watchmojo if we would have
gone back as of day one and said every
time we produce a video we offer within
the video an opportunity to let’s say
it’s a travel video to book a trip if
it’s a fashion video to buy the jeans if
it’s a makeup video to say this is like
who’s mascara we’re using and tie it
with offers in hindsight I mean people
say I don’t regret anything I
think people generally do regret it
people don’t like to admit the pediatric
I realized that men we should have
probably done a better job of e-commerce
and when I look at growth opportunities
i’m like yeah you know what i should
probably hire a guy that just you know
one foot in editorial one foot in biz
dev and just say let’s actually think of
e-commerce and what needs to be done so
you know it’s not my forte but i
disagree with you i think as much as
people won’t pay for people will not pay
for content and advertising is the way
to go i think the only way you could
really build a big business and just get
a higher i hate to say it monetization
per user is through e-commerce well I I
don’t think we disagree you know to go
back to the three C’s well content is
what it is but if you think of any
content producers audience whether their
readers or viewers that that that
audience has a certain demographic you
know they share a certain interest at
least to the extent that they’re
consuming the same kind of content if
you give them the ability they can
quickly become a community and as far as
you know advertising goes I think that
is the the commercial aspect it’s just
for the first time in history you can
quickly tie a promotion directly to a
sale in the immediate future yep so um I
I really think that’s where things are
going to go up agree on something
nothing uh yeah don’t like your shirt
hey I dropped the suit today okay we’re
gonna take a short break we’re gonna
come back with lightning round and talk
about MC Hammer and that’s all you need
to know MC Hammer those two word more
time those two words should just bring
you back for the next segment
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