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Advertising doesn’t work, content does

by Dennis Howlett on March 10, 2008

If you look at the right hand side of the site you’ll maybe notice a Sponsored Feeds block. This is me eating my own lunch while finding a way to pay the bills. This is how it works:

I’m using Newsgator’s widget creation tool (you need a premium account for this) to build a set of aggregated feeds. The feed shows the latest inbound story. Next to the feed, there is an image which the sponsor can have point anywhere they like. Those who are interested can lift the widget and place it on their website – for free.

Clever bit part 1

The exact position each sponsor occupies doesn’t depend on them paying a premium or haggling over sizes of ad block etc. They all pay the same so they all know what I am taking from the site. That’s transparency in action. It depends entirely on when they create content. That of itself should encourage more content production. But it doesn’t end there. Readers like good headlines. Therefore, sponsors need to be at the top of their game when thinking about what that content is going to look like. It means that rather than pushing messages at readers, they can now think about telling stories.

Clever bit part 2

I want content to reach the widest possible audience. Therefore, anyone can lift the widget and put it on their own site, entirely free of charge. Click the Get This thingy and you’re off to the races. It takes about a minute.

No questions, no crazy terms of service, no copyright, no ah-but etc. It’s free as in zero. “Hey, wont’ that drive traffic away?” Nah – they’ve got to come here to get the code for a start and maybe people will hang around and look at other stuff. Oh heck – that means I’ve got to be at the top of my game as well.

Clever bit part 3

All this means that readers are not being assaulted by adverts but presented with more content and links to other content. For me as a content producer, it doesn’t get much better than that.

Future stuff

So the next question is how can I get even more content into the sponsored feed block but without it all disappearing under the fold? For this, I have an evil plan. It will take a bit of working out but I’m confident I can code it. If not then I know a lot of folk who can help out.

Developer note

CODA’s feed is not one but three brought together through a simple Yahoo! Pipe. If you particularly like CODA content, the pipe is free as well.

Endnote

I don’t like using the ‘d’ word too often but I think this is seriously disruptive. It marries content to brand recognition in a way that was previously unimaginable and in a way where everyone wins. I’m happy because I’ve got content and a contribution towards paying the bills. Content producers are happy because they get branded distribution. Readers are happy because they get to consume more content on the things that (hopefully) interest them. Newsgator is happy because it demonstrates a fresh use of their tools and might even encourage a few people to get their desktop tools (which are also free) and maybe try this for themselves (which isn’t.)

Traditional media can attempt to emulate this if they want, but they wont. Why? Because I am making this available at ‘cab fare pricing.’ Most of all, it gets away from the horrific world of banner ads that even the current crop of tech writer super stars haven’t avoided. This kind of thinking is not in their DNA but it is in mine. That’s cool because there is room for both models.

One more thing

Finally, I’d like to publicly express my thanks to the Newsgator people and especially my friend Jeff Nolan for making it happen and Dan Borrego for helping me iron out the wrinkles. To my sponsors – what can I say? You’re taking the financial risk but I hope it encourages you to up your communications game. And to all the folk who have wandered past this site over the last few years, helped me shape content and got me to this point – I couldn’t have done it without you. As Hugh MacLeod might say: rock on.

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  • It doesn't - at least not directly - but it does provide additional content for which you don't have to pay.
  • Dennis

    I am being very thick, but how does copying this widget onto one of my sites earn me money?

    Thanks
  • re: Google and advertising, Paul Strassmann says that Google is not necessarily a long term success player.
  • Nice idea - but you really should go for EFT for inbound payments from customers. The only way to go.
  • Following on from my previous comment, please see my new blog and its first ever posting: http://topaccountants.typepad.com/.

    If you have a look at the About the Writer page you should be able to deduce that I am using the content of the blog to try to drive traffic to other websites that I have a financial interest in [like www.accountantswebsites.com]. That said, the main purpose is actually to provide me with the pleasure of the writing!

    As a seasoned blogging pro Dennis, your comments on my fledgling effort would be appreciated!
  • Hi Dennis and Philip,

    I am not a fan of online advertising and subconsciously "screen-out" banner ads as a matter of course it seems. So Dennis's main thrust, that more attention will be paid to relevant news, seems to be absolutely right to me - effectively a form of permission marketing that I am sure Seth Godin would approve of. BUT, if the advertisers do not se a return from their spend with Google then the latter company will surely stop making money too? And if advertising stops making Google money, where will that leave all the users of its free products?
  • You - you can pick up the widget and add it to your site. It will take the entire widget 'as is.' It's not blog platform dependent so can go on any site able to execute a Javascript item.
  • Dennis

    I may be feeling dumb (it happens, honest) but:

    a) Is there a Wordpress version? I guess there must be as I think you use is, but it isn't on the list

    b) If I use this Do I get your ads?

    I'm sure I don't, but I just wanted to check. So far I haven't cashed in on my traffic, but the time might come

    Richard
  • Thanks for the mention Dennis. It was my pleasure helping you get this cool stuff up and running.
  • Dennis H
    @Adrian: you got it right. Google makes money, advertisers?
  • Hi Adrian

    Yes, it is an attention grabbing title. Advertising does work IMO, but the returns seem to be diminshing particularly with TV advertising. Banner ads on sites rarely interest me, although I will click on Google ads if they are relevant. What I find more appealing is the Amazon consumer targeted approach. I think this is something Dennis is leaning towards with his widget.
  • If advertising doesn't work, how is Google making so much money whilst giving its products away for free? And why is Microsoft trying so hard to catch-up?
  • This is an interesting. Let's face it how many of us see the banner ads (sometimes flashing annoyingly) and ignore them. This is different. Here is a chance for the advertisers to show that they understand their target audience and bring them something that they value. The competition element is also important - no business likes to be seen to be behind the competition giving a driver to produce fresh content.
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