Monetize Your Users

Joel A. KlineConsultant & Associate Professor/Director of

Digital Communications, Lebanon Valley College

What is Monetization?

• Conversion of digital assets, most likely information or users, to money

• The lingua franca of the digital economy• Nothing new for most publishing or media

companies• Requires planning on how to customize

and target• Spending money to make money still

holds true

Why the term Users ?

• Your target market uses the information and offers you provide.

• We understand that users are people who use products or software.

• Many companies in traditional publishing or marketing call them “customers”, “clients”, or sometimes “viewers”.

• Because channels of communication are now interactive, all customers are users.

• If they only “view” information, you have failed!

Execution

The strategy and success is not in the concept…but in the execution. Consider three strategies of monetization for the following example…

You cultivate and build an opt-in email list of customers who regularly visit local restaurants. These patrons are willing to receive information from restaurants via email. Do you:

1. Charge different local restaurants a fee to send

coupons bi-weekly to this email list.2. Sell this list of cultivated restaurant goers to a

direct marketing company.3. Deliver various email marketing to this list

because they have opted-in

…which I term the good, the bad, the ugly

The Good

1. Charge local restaurants a fee to send coupons to this email list bi-weekly.

This example provides value (coupon) to a targeted group (restaurant goers) using an acceptable frequency.

The Bad

2. Sell this list of cultivated restaurant goers to a direct marketing company.

• Your users will be bombarded with all types of advertising that has no value to them

• You’ll have no control over the frequency.• The preferred channel (email) will be abused,

along with other channels (if provided)

The Ugly

3. Deliver a variety of email marketing to this list because the customers have opted-in.

This allows you to retain control. However, problems can occur in value and frequency. Restaurant-goers get offers for something else (not targeted). With limited lists, there is a tendency to oversend offers (frequency).

4 C’s of Monetization

• Customers

• Content

• Connections

• Customization

Monetization Equation

(Value + Frequency) * Target = Success

What Have We Learned - Value

• Deliver something of value• If you have trouble determining if something is

valuable then ask customers.• I’ve personally witnessed the terms “Special

Offers” and “Promotions” used to include a lot of junk.

• If you’re building a list, explain what value you’ll deliver: updates on industry policy, coupons, tips on risk prevention, savings on car rentals, etc.

What We Have Learned - Frequency

• There is a sweet spot of frequency for most people

• Start with critical questions:– “Would users like industry news daily

(maybe), weekly (probably), or monthly (too stale)?”

– “Do users need rental car coupons daily (NO)

• Strike a balance between oversaturation and infrequency

What We Have Learned - Targeting

• Use the power of information technology to harness targeting

• Missing the target is missing the point: your users take time to read a message. Any non-targeted message consumes user time and destroys your relationship

• Provide value for obtaining personal information. Consider how Amazon.com provides lists, reviews, and purchase recommendations after you’ve created a profile.

Questions ?

Joel Kline

jkline@lvc.edu