Sunday July 1, 2007 15:11
Chris Anderson: Sell AD after Subscription
It’s one of episodes in Seoul Digital Forum. I think SDF was very expensive conference as much as Web 2.0 Summit, but it was based on free invitation only. Chris Anderson’s speech was impressed me too, in fact I met him and heard his long tail speech in Ebay Developer Conference in last year.
But this speech offered very good insights in media area specially old media and advertisement market. You can watch a clip of this speech via Youtube
In speech, I was very impressed on marketing strategy of Wired.com via 1) Reach (Generate traffic by optimizing for use of search, 3rd party linking and feeds 2) Reader experience (Keep traffic) without advertisement, 3) Selling subscriptions (gathering qualified customers) and 4) Selling advertisement to only subscribers.
His point is very important to make traffic by linking strategy with a unit of each story or page and offers convenient reading experiences. Once one became royalty customer, in that time you would offer advertisement to them, so you get very high effect of advertisement.
I had very similar experience in Feedburner Advertisement Network. A number of subscribers to my Korean blog feed is almost 5,000 people. From March to June, the CTR is average over 10%.
It means effect of subscription-based advertisement is higher than web page advertisement such as Google AdSense. Chis’s point is very important to old media web sites and company such as newspapers and magazines.