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Communal Advertising Budget?

Filed under: Community

For the first time since I started this project I find myself bogged down in “other” work (ie. things I’d rather not be doing), which has meant reduced time for active development of OIO. What it has meant is that I’ve had more time to think about the direction OIO should be taking in the future; from 3rd party addons to the subject of this article, the marketplace.

I recently read an article by Lee Ka Hoong that looked at the benefits of BuySellAds. Lee ended by saying:

I have my own direct advertisers, but why I still want to pay commission to BuySellAds by selling banner ads [is] because I don’t have to do anything and I get advertisers.

It’s a common view-point and one that OIO is unable to fully address at the moment. Yes, this website does contain a marketplace, but it’s not able to channel advertisers through properly yet.

Why aren’t advertisers being channelled effectively through the marketplace?

1.) The link-up between the OIO script and the marketplace isn’t great. The data from individual sites needs to be better accessible from the marketplace to make it useful (ie. searchable ad zone data, pricings, availablility). There is too high a proportion of dead sites or sites that no longer use OIO (resulting in less meaningful searches).

2.) No promotion. Money needs to be spent on the marketplace – I’m sure that a setup such as BuySellAds spends a lot on promotion – rather than just focusing on selling the script. Essentially, a move away from product to product + added value services.

What can be done about it?

Reason #1 is something I can / will deal with during the development of v3 of OIO. Integration of fully fledged web services will mean more available data exchange, as well as more current data.

Reason #2, as mentioned, is about money. Just as other services use the commission they take from each ad sale to promote themselves, OIO would need a way of doing a similar type of thing. Product sales won’t cut it (and ultimately I’m in favour of making the product free), so it falls back to producing a recurring revenue stream.

If publishers like Lee are willing to pay 25% commission to ensure a stream of advertisers, then it stands to reason that they would be willing to pay a flat monthly fee to help advertise the OIO marketplace (providing it was of sufficient quality, of course). One step closer to the ultimate goal of direct sales and guarenteed advertisers.

This  “communal advertising fund” could then be used to push a stream of advertisers through to sites they are interested in, via the marketplace.

I think I’ll keep it in mind….

6 Comments so far

Lee Ka Hoong | November 17, 2009

Thanks for mentioning about my blog post in this article, appreciate it!

I’ve been using BuySellAds and OIO Publisher Marketplace for quite some times, I’ve received quite some advertisers from BuySellAds, but zero from OIOPublisher Marketplace, perhaps the reason is the two that you mentioned above.

Perhaps you need to have something similar or different from BuySellAds, you can also spend some money buying advertisement in various form, banner or sponsored review.

Again, thanks for the mention! :)

Cheers,
Lee


Simon | November 17, 2009

No problem; when I came across it I thought it was a good time for a post. The marketplace has always been an after-thought to this point, as I’ve focused on the product.

The main challenge for v3, other than the product itself, will be creating a centralised service (marketplace) that can act as an SBA-style focal point. As mentioned above, I think achieving that will require a quality and up-to-date data stream (between OIO installs and the marketplace) and enough revenue to effectively promote it.


George | January 15, 2010

I appreciate that you want to make the marketplace the focus of ad sales, but I still think you should include a benefit for our own sites to recruit advertising affiliates for OUR OWN site ads. That is: to have our own two-tier affiliate system built-into OIO Pub. That way, all of us users sites can better become sales pages for the marketplace and be able to afford to pitch-in, say, 5% to the marketplace from each 2nd tier ad sale.

You can leverage all our sites to market your marketplace.


Chris Guthrie | March 3, 2010

Hey Simon,

I think you should work with other companies like BuySellAds etc. on a way to interface with them and share the ad space available for sale on our blogs to be listed on there’s as well.

That way people can still be able to use the amazing plugin to display their own ads while at the same time benefiting from an external fully funded marketplace (i.e. BuySellAds) at the same time.

Thoughts?


Simon | March 13, 2010

At the end of the day, finding the best way to combine direct selling (zero commission) with a fall-back option (centralised marketplace) is the end goal.

A partnership could certainly fill that gap, so I will give it some thought.


Chozen | May 1, 2010

I don’t like BuySellAds personally for the simple fact that they take 25%. I can part with 15% at most and wouldn’t mind as long as I can still sell ads directly without splitting the commission with anyone , since I’m the one that generated the sale. The other thing about BuySellAds is that you can use place holder ads the way you can with OIO, so if you don’t have any advertisers you can fill those ad blocks with network ads like Google and Advertising.com.

You meed to revamp the site to make feel more like a marketplace, right now it doesn’t have that effect, from a Advertiser perspective it doesn’t scream this is where you should buy ads.

I made a few suggestions to version 3 and it seems they all made it into the 1st draft, I hope it’s released soon I didn’t expect to go into May without at least a release date. I did very well with OIO last year and I have multiple sites and I want to pretty much create a marketplace around my sites and sell ads from one location which isn’t possible with the current version but judging from the specs from version 3 I can definitely see that being a possibility.


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