We can
say that now is a pretty good time to be a publisher, whether you
are large like MSN or smaller like the rest of us. Regardless of
size though, publishers must make a decision about what ads
they want to run. It would seem that picking the right ads
would, for the most part, mean picking the hottest and the
highest paying. More and more though, that’s only one tiny
piece of the decision process.
https://www.lynxtrack.com/signup.php
It hasn’t
taken long for me to mention one of my favorite topics, the
registration path sites, but they help illustrate the point
above. Registration path sites offer an unthinkable variety
in the products they offer, all with a low barrier to entry.
But what makes them so good also makes many publishers,
especially email publishers, dislike them. What is the very
thing that email publishers cherish? Active users. And, what
is it that these registration path sites capture? Email
addresses… from obviously active users. In the minds of many
publishers, the registration path sites may give them money
but at the expense of one of their users. Post-reg path
conversion, their cherished active user receives more mail,
and is less likely to respond to their offers. The publisher
has received compensation for this increase in clutter but
psychologically, they still have a hard time thinking that
it wasn’t worth it.
In the example just mentioned, the publisher
still ran the offer. Some other publishers, if they sense
competition, won’t run the offer. I couldn’t find it on their
site, but those that have advertised on MSN know they won’t
allow any products that directly compete with Microsoft
brands. They will not run the free ipod offers because the
ipod works with Apple’s iTunes but Microsoft promotes their
Windows Media Player, an application that directly competes
and does not interface with the ipod.
Another example is Yahoo. Regular readers know
my respect for them. I admire how they quietly add features
and services to engage users and entice them to become more
involved with Yahoo. As part of that strategy, that means
Yahoo will zealously guard its users and not want to
directly or indirectly inform or lead users to use other
services that Yahoo also offers. Yahoo and emailers are very
different in their size and operations, but share the same
concerns about their users.
If people had the same view about the
environment as they do about their users, policy would be
much longer term and our lives better for it. The truth is
that people often want the money. I’m not saying that
running competitive products equates to destroying the
planet or that it is wrong. In many cases, I’d argue it
makes perfect monetary sense. For this I point to adware
providers, and in a broader context this argument
illustrates the power and equality of direct advertising.
Among the ads that adware providers loath to run
are the anti-virus / anti-spyware ones. They see this as
inviting uninstalls. Similarly, they often will not run any
download of any sort. They see other downloads whether
directly competing with them, or not, as leading to the
dilution of their users, to less responsive users. It’s the
same argument that email publishers make. If I “give” up a
user because they convert on an email address only offer, I
have somehow lost money. A typical install for an adware
user runs between $.25 and $1.00. A typical cost per sale
for a spyware removal product can net upwards of $25. Even
if that user cost $1, making $25 off them earned you a huge
return. If one’s users cost $.25 and another software
product earns you $.50, why not try to convert all of your
users to their users. You will have doubled your return on
advertising spend.
This isn’t to say that Yahoo should go out and
immediately start allowing competing products. When your
revenues depend on a recurring user base it makes sense to
protect it. The smart publishers seem to segment out their
traffic allowing competing products to run on those segments
where new user acquisition stays steady. Most people find it
hard to get over the mental roadblock of advertising
products that in name cannibalize their user base.
Objectively though, we can show that in many instances
running an ad for a competitor or a product that monetizes
your users better only adds to your bottom line and ability
to recruit more in the future. Let go of the emotional
aspect and you can use your competitors to your advantage.
