The other day in class we presented our “key terms” that we were assigned in order to become familiar with words we will inevitably be using in the digital age.
Then, in our last class, we put many of those terms and concepts to the test when we examined how a profitable blog is run. What makes the blog successful – the ads or the content?
In this chicken or the egg dilemma, we definitely realized the value of advertising. It’s something that is essential for profit, but it must be effective. You don’t want to sell your soul (or journalistic integrity) by alienating your readers with pointless ads, but ads done well can provide a win-win for the business and the consumer.
That brings me to our new key word – AdKeeper. Scott Kurnit created this service from one of the most succesful business models of today – putting himself in the shoes of the customer.
Though ads are a necessary evil, one thing that makes them so annoying is their interference. In today’s issue of the Wall Street Journal, the new idea is explained as “bookmarks for banner ads or TiVo for advertisements.”
When we visit a website, we most likely aren’t there to go trolling for ads. Those ads tend to get in the way of what we’re actually there for. Perhaps if we saw an ad that looked interesting, but could save for later, that could prove more beneficial than just clicking on the x to get rid it. The new kind of ad would have a small k, in which we can click on to save it to a separate page and look at later.
Here’s how the revenue works, as outlined in the WSJ article:
The advertisers will be charged when viewers recall their ads in the ad-storage page called the “Keeper.” The advertisers will be charged roughly half of the rate they paid the publisher where the ad first appeared.
AdKeeper will provide the advertisers with aggregate data about the popularity-or “keepability” of their ads.
The company will also provide advertisers new metrics, such as data on which of their ads were “kept” the most and how frequently the ads were shared through the Keeper’s email, Facebook and Twitter’s sharing tool.
Kraft Foods and 20 other major companies have signed on for the new advertisement method, which plans to officially launch in January. Right now it’s in the testing phases.
I think this is a great idea, considering the latest statistics of the decline of ad display ad usage.