How to Build a Profitable Internet Site

Transcription

1 Internet Profits for Magazine and Newspaper Publishers Hannon Hill Corporation 950 East Paces Ferry Road Suite 2440, Atlanta, GA o: f:

2 Table of Contents Background...3 Secondary Success Factors...3 XML-Based Content Management...3 Key Features...4 Search Engine Optimization...4 Unique Content...4 Common Custom Built CMS Problems...4 Context Advertising...5 Premium Subscription...5 Banner Ads...5 Context Advertising...5 Conclusion...6 About Hannon Hill...7

3 Title 3 Background The Internet traditionally hasn t been viewed as a core business profit center for publishers of small-tomedium size magazines and newspapers due to lack of both a robust content management system (CMS) and a way to easily monetize their main product unique content. Publishers typically fall into one of three distinct groups: 1. Simple Internet presence that doesn t generate revenue or have the articles and content from the magazine or newspaper; 2. Developed Internet presence that was built in-house, isn t a direct profit center, and lacks articles and content from the magazine or newspaper; 3. Developed Internet presence that was built in-house and is a direct profit center with articles and content from the magazine or newspaper, but is cumbersome to maintain due to heavy customization of the systems. Two major developments occurred recently that significantly changed the Internet landscape for traditional publishing companies: robust XML-based content management tools and the advent of context-sensitive advertising like Google AdSense. With these two developments, the Internet is now a direct profit center opportunity for traditional publishers. Secondary Success Factors Two secondary factors have also enhanced the ability of traditional publishers to profit from the Internet. The most notable is the concept of search engine optimization (SEO), whereby original content is presented in a format that makes it more likely to be found when people type in keywords in an Internet search tool like Google or Yahoo. An XML-based content management system positions content properly from an SEO point of view, which in turn drives traffic to a site via search engines. This increases revenue from the context-sensitive advertising delivered to the new site visitors. The magazine or newspaper will obtain a completely new audience from around the world delivered by standard search engines. The other secondary factor is the ability to import and export XML from pre-press layout programs like QuarkXPress and Adobe InDesign. Traditionally, content had to be copied and pasted from the layout programs into the corresponding web pages and then re-formatted with the appropriate styles. With XML as the data interchange format, content can be exported from the pre-press program and imported directly into the XML-based CMS without any additional reconfiguration. Conversely, the XML-based CMS can generate XML that automatically populates templates in the pre-press layout program. The result is a tremendous amount of saved time and energy. XML-Based Content Management Over 1,000 software programs labeled as content management systems exist in the market today. They all help accomplish the simplest goal of enabling non-technical people to update a website. In form and function,

4 Title 4 these CMS applications vary wildly. The advent of XML-based CMS products proved to be instrumental in efficiently exchanging information with pre-press layout programs and providing the necessary tools to manage a profitable, content-rich website. Key Features Several key items to look for in an XML-based CMS include: Intuitive browser-based interface Flexible publishing outputs like HTML, printer friendly, and PDF Strong content syndication features like RSS and Overture IDIF Native XML import and export Search Engine Optimization Another critical aspect of the CMS is the ability to publish the resultant website in a format that enhances search engine optimization. The CMS is directly involved in structuring the content so that metadata fields, like the title of the document, are required from the content author and accentuated on the published page. Combining the page-level content with auto-generated hyperlinks that incorporate the metadata fields on pages (like a site map) helps enforce the important keywords. In addition, it provides an easy mechanism for search engines to index all of the available content, maximizing the unique content on a site. Unique Content Search engines love unique content. Magazines and newspapers that haven t been putting their articles and content online have a plethora of information just waiting to be indexed by the search engines. Archived publications should be put online immediately providing additional unique content for search engines, thus driving more traffic to the site. Common Custom Built CMS Problems Historically magazine and newspaper publishing companies, due to a lack of comprehensive CMS tools, built their own applications to manage content online. While these tools initially proved effective with limited needs, eventually the lack of certain fundamental architecture-level issues became an insurmountable obstacle. Three common problems from the custom-built systems include: 1. Lack of a unique title in the title bar of the browser; 2. Page presentation tightly coupled with the content; 3. Dynamic URLs that make it difficult for search engines to index content. It becomes cumbersome to manage these custom applications there is a better solution. Modern XML-based CMS products solve these problems and provide a framework for a profitable Internet site.

5 Title 5 Context Advertising Premium Subscription Multiple magazine and newspaper publishing companies attempted to capitalize on the web several years ago, offering premium content subscriptions whereby a nominal fee was charged to site visitors. This business model failed miserably for the vast majority of the sites, with the Wall Street Journal Online being a rare exception. People don t want to pay for online content. Banner Ads Another common business model for generating revenue is that of banner ads. Large graphics, often with animations, were presented horizontally and vertically on a page. The more times these pages were viewed by site visitors (impressions), the more revenue was generated by the site. This worked well until the Internet bubble burst and advertising expenditures dried up. Now, advertisers that want to build brand exposure and target a broad audience use banner ads but small advertisers typically stay away from them. Example page with a horizontal and vertical banner ad Banner ads are still an important option for publishers that generate a significant amount of site traffic but are not as pleasant for the end-user experience. There has to be a better way to advertise online enter context advertising. Context Advertising Context advertising involves showing ads, often in text form, related to the content on the page. For example, a page providing information about bike equipment would have text ads linking to different online sites selling biking equipment. The advertising augments the page content without hindering the experience of the enduser. Not only is this better for the users of the website, this is also better for the advertisers. It is commonly

6 Title 6 done with a pay-for-performance model where the advertiser is charged based on the number of times their links are clicked a direct correlation with traffic to the advertiser s site. Thus, it is a win-win situation for both parties. Example page with context advertising from Google A second type of context advertising actually highlights select keywords in the content of the page and makes them a link whereby you can mouse-over the keyword or phrase and an ad will come up related to the content. This has the added benefit of being inline with the content right where the site visitor is reading in a non-distracting format. Several companies now provide this type of advertising and it is gaining in popularity from publishers see vibrantmedia.com for more information. In the context advertising model, companies like Google and About.com act as the broker, enlisting advertisers to bid on select keywords and then providing the engine to serve the context advertisements. These companies have such a large advertiser base, they have ads for all types of content even esoteric subjects. Advertisers bid different amounts for various keywords and some bids reach into the tens of dollars per click. The amount paid for the click is then split 50/50 between the broker, like Google AdSense, and the site that served the ad, like the magazine or newspaper site. Google s generation of billions of dollars a year in revenue is a testament to the success of this business model. For every dollar in revenue Google receives, an advertiser receives $.50, resulting in billions of dollars of revenue earned by the advertiser. The model works. Conclusion Print publications now have the technologies and advertising medium to make the Internet a strong profit center. CMS technologies are mature and the pay-for-performance context advertising business model has been proven. CMS applications combine ease of use for a minimal learning curve along with a robust, advanced feature-set to efficiently manage a growing site. Context advertising is the revenue backbone for the

7 Title 7 high profile search engine Google and can be seen on millions of sites today. Numerous testimonials are available advocating the use of context advertising and the success it can bring. With more and more people turning to the Internet for information, the potential audience continues to steadily grow. All magazines and newspapers should embrace XML-based content management systems and context advertising to maximize Internet profits. About Hannon Hill Hannon Hill Corporation makes Web content management solutions that give people the freedom to manage their Internet, Intranet, Extranet and Portal content with ease. Our solution, Cascade Server, is ideal for midsize organizations including education, healthcare, technology and publishing. Designed for any network environment, Cascade Server is as easy as and gives IT departments much needed deployment flexibility, a zero footprint client and a fast implementation. Since 2001, Hannon Hill solutions have been trusted by organizations including Duke University, Carnegie Mellon University, MCG Health Systems, PGP Corporation, Reed College and SCOREGolf Magazine. For more information about our award-winning Cascade Server, go to or contact us directly at