03-17-06
Category: e-Commerce, Internet Culture
Key Points:
- Small online publishers such as bloggers and podcasters, have a different sense of influence (and often place less emphasis on the importance of online ad revenue) than large publishers.
- The metrics small publishers should pay more attention to are those that reflect the depth of their influence.
- Small publishers do not seek revenue; they are not creating or contributing to a long-term franchise. Their only stakeholders are themselves. This makes them "irrational competitors."
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Excerpt - for full article, please visit MediaPost
DESPITE THE HYPERGROWTH OF BLOGGING, podcasting, video blogging, photocasting and the other output of small online publishers, the 80/20 rule still holds true for online publisher ad revenues--that 80 percent of the revenues are generated by the top 20 percent of publishers. And this rule will hold for quite a while. Why? Because so far, the "nanopublishers" aren't interested in advertising revenue. They have different objectives that bring a whole different set of metrics to analyze. Large publishers should understand these objectives and monitor progress against them--both to keep an eye on a growing competitive source, and to remain in step with what their own audience is responding to.
Sphere of influence over unduplicated reach. Online publishing businesses are most concerned with the metrics that allow them to drive the greatest advertising revenues--those that create the greatest number of ad impressions at the highest perceived value. Small publishers publish, in most cases, simply to be heard. Their end-game is not the media kit, but growing their sphere of influence. How many page views they generate, or the demographics of their readers, can't accurately measure the volume and clarity of their individual voices. The metrics small publishers should pay more attention to are those that reflect the depth of their influence.
Traffic out over traffic in. Well-placed trackbacks and reciprocal links help drive traffic, but do little to measure influence. A better gauge is where small publishers are directing their own traffic, and how much of it they are able to direct. If a blog on local shopping and dining gets 20 percent of its daily traffic from Google, that's a testament to Google. But if that same blog features a handbag sale at a nearby merchant, the percentage of its audience that clicks through to the merchant's site is a clearer indication of the site's influence on, and understanding of, its audience.
Small publishers should also pay attention to entry and exit referrers to see what other sites are serving a similar purpose, and where their own site fits into the choice set. If a local restaurant review site sees users bouncing in from CitySearch or Zagat, it has entered the game. Once its publishers see traffic exiting to CitySearch or Zagat, they'll know they have the upper hand, and are viewed as a resource even before these well-established authorities.
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