Jonathan Mendez's Blog

What Social Check-Ins Forgot: The Value of Landing Pages

I have yet to become a fan or user of social/location based check-in services though I am a fan of the beaconing strategy they employ. As I’ve written before, value creation on the web involves more than a one-to-one exchange of value. A trifecta of goal fulfillment between your product or service, your audience and a third party (advertiser, restaurant, etc.) is required to create value. This is where these services fall short for me and thanks to recent tweets from my friend and SEO guru Natasha Robinson I’ve finally realized why.

As Natasha says, the check-in links syndicated through social media verge on unclickable. The reason is rather simple. The landing pages provide no value to the referrer. Yet, the landing page is the spot where the triangulation of goals must align. The whole value chain for this product converges at the landing page.

While we can clearly see the potential of these services to provide tangible value to the establishment where check-ins occur and some (for now less tangible) value to the Mayor McCheeses and people doing the check-in, I would argue that the service only works if there is strong value being created in the stream. Without this newfangled linkbait, the fish ain’t gonna bite.

Let’s take a look at each of the content areas on Foursquare’s landing page and see what is and isn’t working for a referrer and the value triumvirate as a whole.

  

1) As a referrer I already know from my stream the name of the establishment. I already know that the person that has checked in here. There is huge immediately actionable value for the establishment though. Many locations would benefit from an announcement categorizing everyone who entered it. Of course that can provide parallel value to the person checking in.

2) The amount of check-ins and visitors does not really tell me much, especially for a new service that is building scale -- it’s very difficult for a naïve user to asses this value. Again, most of this value rests for the establishment.

3) The images of the Mayorship and the people who’ve been here have negligible transactional value to anyone.

4) Maybe most interesting for a location based service the map has very little value. In most cases the address above is sufficient information for a referrer at the moment of landing. The establishment and check-in already know where they are.

5) Tips can be helpful but their value is tied to a small segment of temporal traffic (the moment or prior to check-in). While this value is highly dynamic tips have the most shared value among troika of user, establishment and audience.

6) Tags are fairly generic. They likely provide the most value to Foursquare to provide classifications however it doesn’t appear that many users are adding tags. Also it appears there are some negative aspects to user tagging that can affect the value chain.

So the question remains, and of course has become heightened with Yelp adding a location based feature to its service last week and others soon to enter the fray, what improvements can Foursquare and other services make to encourage CTR on their linkbait and then create value from all from those visitors. That’s a rather big question so I’ll just tackle it form the referrer perspective.

As a landing page the primary success metric needs to be converting visitors to register for the service. As the product grows there are many more success metrics that can add value for optimization (e.g. new visitors to location pages that eventually check-in). For existing users there are also important metrics to optimize on against bounce rate/use. What good is a notification service if those notified don't take action?

As mentioned in the dissection above there is nothing on this page that is persuasive and inexplicably there is not a call to action. Is this a game? Then tell me what makes it fun or challenging. Is this a place to make plans? Then what are the tools that make that helpful and easy. Why do I want to use this service? What are the benefits to me? Until the answers to those questions are obvious landing on this page has no value for a referrer and products like this are missing a golden opportunity that may be as temporal as the very content they distribute.

The Value of Search Ads for Brand Keywords

On Search Engine Land today I saw a nice post on understanding the dynamics of Paid vs. Organic (or Natural) search.

As David Roth explains it:

What keywords are we really talking about? Those that match exactly with your brand name or branded product name, where there is generally no competition. So if you are Acme Widget Company we would be talking about keywords like “acme” and potentially “acme widget.”

A couple of years ago I put the questions of the value created by branded keyword ads to the test. The posts were very popular and I still get asked these questions all the time. Since there are probably a ton of new marketers and followers that missed it the first time and in light of the renewed interest David's thoughtful SEL post might bring, I thought I would bump this three part series back to the top.

Part 1: Do I Purchase My Brand Keywords or Has Google Improved So Much I Don’t Need To?

Part 2: ROI Factors of Brand Keywords: Paid vs. Organic

Part 3: Buy Branded Keywords? A Case Study on Traffic, Conversion and RPV

I followed this series of posts with a the following presentation at SES San Jose on the Ad Testing Research & Findings panel.

SES San Jose Ad Testing Research & Findings

View more presentations from jonathanmendez.

Of course the question that comes out of all this data is why. Why were the ads in this instance (and this is not the only one I've seen, just the one I could share) so helpful to improving results? Some of my early thoughts are in Part 3. Since then I've come to think that the influence of Google itself has something to do with it too. Remember, (as @aarongoldman reminded me a few weeks ago) 62% of searches are unaware of the differences between paid and natural results. The copy in the ads is a much an endorsement from Google (the #1 brand in the world) as the company themselves. That's persuasion based off a brand-leverage strategy at it's finest.

I hope you find these thoughts and data helpful. If you still don’t know the answer by now about whether you should run PPC ads on your brand keywords, it’s test!

The True Media Value Delta

The slide above is one I've been sharing with a select number of people in the industry the past six months. However, Fred Wilson's blog this morning on his personal experience with the inequities inherent in the current digital media landscape inspired me to share it publicly now. 

What is it? This is data from two weeks of a performance advertising campaign in the online education vertical. 

What it shows is the problem existing in digital media that Fred called out. Unless solved, this value delta threatens to undermine the entire industry. The buy-side of the media landscape is capturing all the value of the media while the sell-side, the side where the value is being created with content & audience is getting played. Amazing, isn't it?

There a couple of other issues the data points out. One is the large margins ad networks are taking. The other is the large volume of clicks that never get to the landing page due to multiple re-directs. For those interested the only data layer added to this was basic geo-targeting.

Followers of my blog and those I've been speaking with since the Spring will know that I've become zealous about finding answers to this problem for publishers. Solutions will not be easy but they are possible. So with the momentum like only Fred can muster, and to paraphrase Mr. Jagger, "think the time is right for palace revolution."

Digital Spaces That Excite Me for 2010

Last year I was very fortunate to meet some incredible people involved in shaping the future of digital media. I enjoyed learning about what interests them, hearing their points of view and discovering what problems they were working on solving. Needless to say, digital media evolves at an astounding velocity so I thought this was a good moment to take a personal snapshot and share it with you. In no particular order, the areas of digital media & advertising that I’m most excited and interested in right now.

NWA – Numbers with Answers: There was incredible amount of M&A consolidation in the world of web analytics from 2003-2006. The result over the past few years has been a dark period with little innovation. The basic data retrieval systems, log-files, .js and packet sniffing have been in place a very long time yet the reporting output of these systems has not progressed much. Making matters worse many C-level execs, creative agencies and digital verticals do not trust analytics (newspaper sites reported not believing Omniture/Google Analytics data in the 9/09 ITZ Publishing survey). The bottom line is this: insights and actions are just too hard to cull. Presenting the data in more interesting ways has become vogue but this is not the answer. Legacy analytics solutions are asking (in the best case) old questions and (in the worst case) wrong questions. I sense that not only the questions but more importantly the answers will begin to change in 2010.

China - The Supernova Market: The Search and Display advertising opportunity in China has never been better. It will continue to gain velocity over the entire decade. There are 350 million Chinese on the Internet (vs. 200mm US).  Half of them are under the age of 25. Almost all of them (94%) are on broadband. That colossal user number...it is only a 25% penetration rate (vs. 72% US). Commercial web transactions are now starting to shoot through the roof.  There are some incredibly exciting web companies emerging from China and some really interesting US start-ups that are co-located in China. In 2010 I plan on being much more active in understanding this market and looking for opportunities in it. In fact, I’ve started already. It is simply shortsighted strategy not to.

Testing Reaches Critical Mass:  In the two years since I left Offermatica/Omniture I’ve been approached by about twenty start-ups in the testing and targeting space. Some of those companies have launched already and a good number more will emerge over the next year. This makes sense because two things have happened in the market. 1) Similar to Analytics, almost all the major players have been acquired leaving a void of innovation; 2) More marketers (especially mid-sized) understand the need to focus on post-click optimization. It seems pretty clear that this space will undergo a renaissance beginning in 2010 with a focus on lighter, faster and more simple solutions. I’m excited to continue having a role in the evolution of the testing & optimization space both on this blog and in my advisory capacity with a couple of emergent players including Performable.

Local Zooms In: This could just as easily been a blurb about the Facebook-Google war that has been going on now for over a year. Clearly Google has stepped up its game – its local pages have never been better and the UGC continues to increase in volume and curatical efficiency. I see this battle as critical to Facebook’s future. Yes I know how big they are and their growth rate, but their RPV (revenue-per-visitor) is incredibly low. They can’t sustain their business as a voyeuristic photo site for many more years. The key to their success is tied in developing local business pages attached to social graphs with the requisite search advertising capability. One of these two companies will crack this nut to the tune of $20B of incremental revenue over the next few years and $100B by the end of the decade. We’ve always known local is the Holy Grail. My bet is on Google because at the core all this local stuff is search, but it will be fascinating to watch this play out over the year.

New Display Formats: Without a doubt display advertising performance suffers from standardized sizes. The IAB has eighteen standard sizes for display ads yet 90% of ads are created in three of those sizes. The effect of this compounded with standardized placements of those sizes creates an insurmountable challenge for the attention of users. Part of the onus of solving this problem is on publishers. As masters of their domain they have the ability to innovate. Two start-ups I’m involved with are working in this area and seeing incredible results matching a data layer with breakthrough creative formats. The challenge of course is getting this to scale but the performance (we’re talking CTR of 10-20% in some verticals) warrants tremendous excitement as these companies go from bootstrap to chinstrap in 2010.

POS Closes the Loop: Two of the most mind-blowing conversations for me this past year were speaking with companies actively involved in using offline POS (Point-of-Sale) data in the digital marketing loop. This is “first-party” data at its finest. After learning about how they are working I have no doubt that the future of targeting, re-targeting, eCRM and increasing LCV (Lifetime Customer Value) rests in this area. The verticals where this data can be effective are limitless. The platforms where it can be used are ubiquitous. That is one giant market that can’t be ignored. This is but one space where I think we’ll see dollars shift from soft metrics to hard metrics around retention and increased customer value. The über competitive nature of 2010 and beyond demands it.

 

2009 Recap: My Faves, Posts & Presos

"A friend is one before whom I may think aloud." - Emerson

2009 was an amazing year of discovery for me and I tried to share as much of that here as I could. This year also presented a sea change in my writing because I started using a new communications platform, Twitter (you can follow me here). Many ideas that in the past would have become full-blown posts got tweeted into the stream (or is it an abyss). As a result my pieces tended to be more thought out, longer and less frequent. Also, my subject matter took a distinct turn. Last year I mainly blogged about challenges facing advertising while this year my focus was on the challenges facing publishers. So in case you missed something the first time or want a refresher I have curated a years worth of posts and shared my favorites below.

The Publisher's "Penta-tech":

Transcendence: The Power of Publishing is Marketing

Reaping The Ads You Sow

People & Performance NOT Pages & Prices

Pubs Need to Get the Performance $ignal

Read All About It: Online News Has No Clue About Optimization

Other Stuff:

API Battle Plans: Fighting for Next

Data is Easy. Optimization is Hard.

A Study of Value Creation in Real-Time Search

The Market Forces Killing Display Advertising

Audience: Display Advertising’s Cat in the Hat?

Presentations:

Advanced Landing Pages - SMX West

Interviews:

Interviewed by Aaron Wall at SEO Book

Interviewed by AdExchanger

Lastly, happy and healthy holidays to all my readers, commenters and subscribers both old an new. I truly appreciate and value your interest in what I have to say. See you in 2010.