Ken Hayes President, Nami Media Inc. “Monetizing New Media – how is it done?” Surviving Internet Advertising

Ken Hayes  Personal Mission since 1994: Make commercial sense of new media  President, Nami Media Inc. u Internet advertising technology company u Build and sell pick-axes  Founder / CEO, IMS Learning A/S u European web-based training company  Member, Pasadena Angels u Investment group in 45+ tech/web startups

Economic Forces on Internet

Size of Internet Advertising Source: IAB / PricewaterhouseCoopers LLP, compiled by Oversee.net Ad Formats ($ in millions) 2005A $% of Total% Growth Search (e.g. Google) $5,14241%33.6% Display Advertising4,26434%13.6% Classifieds2,13217%23.0% Referrals / Lead Generation7536%290.2% 2512%161.5% Total$12,542100%30.3%

Website Ad Model Users: “Traffic” Organic and / or Paid Content Sources: - UGC - Editorial - Scraped / Syndicated Site’s Added- Values: - Look’n’Feel - Functionality - Organization Advertisers: - Flat Rate - CPM - CPC - CPA Publishers One Link in the Chain

Content is King? Not!  Traffic is King  “Own your traffic” – Lawrence Ng  Where do you get your users? - At what cost?  River u Drops of water = users u Dams and generators = websites u Electricity = ad revenue, merchandising u Once the drop flows by, lost your chance  Explosion of choice, fragmentation purpose – not just entertain / inform.

Content Challenges  Your content will get hijacked / scraped.  Content must contain the ability to monetize itself. u e.g. embedded links  Revenue share w/content creators? u Maybe / maybe not u How to measure?  Value created may not necessarily be in the re-broadcast of a work.

About.com - NYT

Other Revenue Sources  Besides Advertising…  Subscription (e.g. WSJ)  Merchandise (Zazzle, Cafepress)  Build lists (e.g. About.com)  Services (e.g. JibJab) “Ultimately, Monetize the Brand, Not the Content”