Retaining ROI to Sell Advertising
To build and operate a fully monetizing web site that accommodates the revenue generated by advertising real estate sold to third parties, the Client must facilitate, either directly, or through third parties two functions:
- Sell the advertising. The Client must be able to sell the advertising to willing parties who pay in advance for their advertising to be featured on the web site.
- Serve the Ads. The Client must serve the ads where, and when the Advertising Client requires, and provide real time analytics to the Advertisers.
The Client either determines to do these two functions, or sub-contract the functions out to third parties and focus on their primary business.
Selling Advertising: Many Clients want a fully monetizing web site, but do not wish to:
- Create an advertising sales department
- Recruit and train an advertising sales staff
- Create and manage a multiple customer relationship management (CRM) system that is responsive to the advertising sales business model
- Create an ecommerce system designed for the advertising sales industry
- Find Prospective Customers, and Sell the ads to those Customers who become Advertisers
- Provide real time analytics to the Advertisers
- Provide customer service to advertisers
- Expand the Advertiser base
Serving Advertising: A Client that wishes to sell real estate on his web site can do it easily by simply carving out some real estate, and providing a third party like Google access to that space. If the site has several million page views monthly, the Client can expect to earn a few thousand dollars monthly for this type of relationship. It is simple. And it leaves, for this amount of traffic, several hundred thousand dollars of income on the table! Or...
A fully monetizing design can earn gross income in the mid to high six figures per year on the same traffic counts. However, a fully monetizing site must accommodate the broad advertising requirements of third parties for both ad size, design, placement, measured and geo targeted campaigns, and real time analytics. This requires a platform that can manage and display, and provide analytics for 30M, 50M, or 200M unique ads, in all the various IAB sizes, per month.
To achieve this type of capacity, and potential for robust income, the Client must take two steps with a fully functioning content management and ecommerce platform (SaaS):
- An interface between the Client.s web site and the Ad Serving Platform service must be created.
- A monthly service agreement must be entered into to serve the ads and provide analytics to the advertisers. Typically this agreement is a monthly access fee based on the number of advertisers, and the number of ads served. In the early days of the site development and the traffic development, the fees are less, and as the site begins serving 30M or 50M ads per month, the price for service increases. Of course, the Client revenue is increasing as well.
The One Stop Turnkey Solution
ROI provides a turn key solution for selling and administering the advertising real estate for a Client. An affiliate of ROI, theHUB Company, working cooperatively with ROI, will provide the Client the capacity to serve the ads, and provide analytics to the advertiser.
How does a Client engage ROI to sell their advertising real estate? As ROI only makes significant monies when they can sell several hundred thousand dollars of advertising real estate per annum for a Client, ROI only accepts advertising selling contracts that have the potential and capacity to build to a $500,000 minimum sales per annum per client within a two to three year time horizon.
If a Client is committed to this business model, these are the steps to get through the process:
- ROI is engaged to do a monetizing feasibility study for a Client.s web presence and business model to determine if the site is viable as a candidate for monetizing. (Package 1 and Package 4 under ROI Proprietary Monetization Services Consulting Packages.)
- ROI and Client agree on the implementation of the Business Model design produced by this consultative process.
- ROI is engaged to design or Re-design, as needed the web site of the Client. (Package 5 under ROI Proprietary Monetization Services Consulting Packages.) It is impossible to sell advertising in the amounts and frequency ROI requires without a web platform that will accommodate such sales.
- When the monetizing design is complete, ROI is engaged to create an advertising selling capacity for the client, which includes a customization of its Customer Relationship Management (CRM) to accommodate the Client.s advertising real estate and the procurement of the Advertising Prospect Data Base.
- theHUB Company is retained to create an interface between the Client.s web site, and theHUB Platform. This custom gateway allows the advertising to be sold, served, and analyzed.
- theHUB Company is retained to create an advertising display and analytics module for the advertising customers of the Client. (generally the cost for steps 5 and 6 is about $9300.)
- theHUB Company is retained to serve the advertising sold by ROI on behalf of the Client. (This contract amount is dependent on content and the millions of ads served monthly.)
- ROI is retained on a commission basis to sell the advertising real estate of the client on a negotiated fee for sales contract. (Negotiated fees range from 60% of the sales revenue down to 40%, dependent on market, customers, and Client.s audience, and the advertising real estate.)