Get More from Search - Trends in Search & Social Media

Consumers want more: cable, internet, website and app subscriptions and mobile access. And local media companies would love to acquire more of that “more” but most are failing to do so. Why? Many companies view the internet as a means to promote their existing products, e.g. newspapers, TV and radio; they define their business model by their legacy products despite the data on those mediums being dismal.

The data , two of the three largest yellow page companies are bankrupt, radio listeners are down, TV prime time viewers are down and viewers are switching to Internet viewing instead. The reality is: consumers are getting the information they need but from other sources. Local media companies aren’t selling products that get the job done for consumers. And as a result, these companies lost their majority share of all local online advertising in 2005 to pure play internet companies.

In an interview with Harvard professor and author Clay Christensen, Gordon Borrell asks “how can local media survive?” The answer is provided in his book, “The Innovators Dilemma” which proposes that the next phase of local media innovation will be by companies that “get it” and retool: they’ll need to put dollars and strategy into new people, systems and processes.

As it is now, many local media companies believe that their current staff can translate their offline experience into new media but it’s not working. The result is that they’re supplying a product with a declining audience: they integrate the wrong elements into their traditional-converged products and fail to supply what the consumer really wants. Instead, they need to develop better user experiences that will set them apart from the competition.

A good example was provided in an interview with Christensen, where he mentioned the  home furnishings brand Ikea. There is no clear competitor to Ikea’s unique customer experience. In the furniture business, companies generally focus on a specific customer segment and product segment. But with Ikea, it’s about the experience. You can furnish an entire apartment in an afternoon with one stop and get lunch while you’re at it. Customers want the experience that Ikea offers and they keep coming back.

If the “more” that consumers want is essentially more information delivered in the form that they want it, local media companies will need to scrap the old paradigms (numbers of viewers, readers, listeners) and build a new model around the consumer experience.

Learn more information about Vortaloptics’ local media focused online advertising solutions.

Vortaloptics custom search engines include revenue components that empower its clients to maximize the return on investment from their engines. Since the engine is completely controllable by the client, they can improve the relevancy of the search results and also place key partners and affiliates into their engines.

Vortaloptics never recommends listing irrelevant content just to profit from clicks, but rather consults our clients to focus on the most relevant content that users are seeking and match advertising, affiliates and partners to the search results pages to those search phrases to build a better user experience.

Because the content on our client results pages is hyper-relevant to the search terms and those results pages provide contextual ad and partner content, the ROI from clickthroughs is typically much higher for our clients than from traditional ads placed on blogs, for instance.  Search results page ads typically outperform regular page advertisements anyway, but because our clients can control the content of their results pages the ROI is on average, 10 times greater.

Affiliate marketing—using one website to drive traffic to another—is a form of online marketing, which is frequently overlooked by advertisers. While search engines, e-mail, and website syndication capture much of the attention of online retailers, affiliate marketing carries a much lower profile. Still, affiliates continue to play a significant role in e-retailers’ marketing strategies.

With clients being able to hone in top performing ads, they can now focus on the search phrases and clickthroughs that pay the most. Optimizing your website revenue is particularly important in a tough economy. One way to do this is to seek out the top affiliate programs and add as organic search content and banner listings.

As an example, Speedy Cash is launching a new affiliate program with one of the highest commissions per lead in the financial payday loans industry. Vortaloptics’ local search clients could signup for the Speedy Cash affiliate program and insert banners, text links and search results into their search engine for this payday loans affiliate program. When users search for or click on the financial services subcategory, the Speedy Cash program can receive prominent placement.

Being able to maximize revenue efforts by focusing on the top paying affiliate, partner and advertising initiatives makes good business sense. A well placed $85/lead link is worth the effort over a $1/lead program. Vortaloptics provides the technology to help administrators quickly focus their efforts on the top ROI programs and provide better value to their users.

Post by David Gosse.

The social media hype continues and is enticing companies of every shape and size to dabble in creating new networks. To facilitate the craze, dozens of open source social networking platforms have launched. Jeremiah Owyyang’s blog lists over 60 brandable software platforms that can plug into your existing domain, allowing you to create your very own social network.  But should any company build a social network?

In a Deloitte study of 100 businesses with online communities, Ed Moran found that 35% of these communities have less than 100 members and less than 25% have 1000 members. 6% of the businesses studied spent over $1 million on their social networks. Sadly, all too many fail at their attempts to connect customers to their brand because instead of focusing on the community itself, businesses are focusing on the value that social community could provide for their business.

Despite the failures, there are definitely industries that DO have ready-made communities with well-established brand alliance, and have a greater chance of building successful online communities. These verticals might include: local television networks (daily news watchers), radio (listening audiences), niche local communities (apartment renters, child-safe search) and education (school districts, private schools, universities).

Clark County School District, the 5th largest school district in the nation with nearly 300,000 students, was a few years back, reportedly the largest user of bandwidth in the Las Vegas valley. Schools are instant communities – not just in the “will you be my friend” sense of students, but in the student to teacher, student to parent and teacher to parent and relationships. Because they already have distinguishable groups in these necessary and long-standing relationships, Clark County can foster those relationships through a community network, which they’ve begun to explore with the CCSD website.  Feedback mechanisms aren’t yet extant, but Homework Hotline, a public television program, gives students an outlet during the week to call in and ask teachers their tough homework assignment questions. Their content management system, my.CCSD.net reach the three main constituents in these ways: 1) teachers can create personalized websites to communicate with students and parents; 2) students can access to homework resources and assignments; 3) parents can locate their children’s classroom and assignment information online without involving the child or teachers. A cursory look at some teacher sites didn’t provide a lot in the way of content or personalization, but it is summer after all; the start of the school year should light this online community back up.

Another example where community exists is the multifamily industry. Most multifamily companies have a couple clear-cut missions in life (e.g. collecting rents and driving occupancy rates), and one of those is to establish and promote their brand for longer-term connection with an increasingly transient population.  Before signing a rental contract, an individual needs to identify with what that apartment provides. Thus, the rental market is now driven by amenities. “Lifestyle” is the buzzword for providing more than a roof over people’s heads at the right price and location. Now, apartment companies need to provide online services ranging from rent pay to pet sitting to VIP concierge services and customized local search while hosting real live social activities such as community pool parties, golf instruction classes and more. While it may sound exhausting (and it probably is), apartment companies are finally optimizing their built-in community of residents and finding creative ways to connect the residents together, along with meaningful lifestyle amenities that cement the value of their brand, while gaining loyalty in the minds of renters.

Riverstone Residential, the nation’s third largest apartment management company representing around 340,000 residents, offers a moving program, Riverstone-to-Riverstone. This amenity helps transfer residents to another Riverstone community within a metro or across the country, sans application process and deposit fees. Combined with their Living Made Easy features, including “Your Neighborhood Directory,” a local search engine launched in three metros, where users can find just-down-the-street local businesses via a true search results format (e.g. not just Yellow Page data), residents benefit from buying into the Riverstone community and the value it provides to their daily lives.

Morals of the story:

• If you don’t have a pre-existing community, don’t assume that you can create one (and don’t spend a lot of money trying to create one).
• If you do have a pre-existing community (and they already visit your website regularly), focus on the value that your social network will provide to your users.