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Product You

With free online services, you’re the product.

How Google Sells You:

Adwords provides a link between you and products
Top Cost-Per-Click’s for adwords:
1.) Insurance: top CPC of $54.91
24% of keywords
2.) Loans: top CPC of $44.28
12.8% of keywords
3.) Mortgage:top CPC of $47.12
9% of keywords
4.) Attorney: top CPC of $47.07
3.6% of keywords
5.) Credit: top CPC of $36.06
3.2% of keywords
6.) Lawyer: top CPC of $42.51
3% of keywords
7.) Donate: top CPC of $42.02
2.5% of keywords
8.) Degree: top CPC of $40.61
2.2% of keywords
9.) Hosting: top CPC of $31.91
2.2% of keywords
10.) Claim: top CPC of $45.51
1.4% of keywords
11.) Conference Call: top CPC of $42.05
.9% of keywords
12.) Trading: top CPC of $33.19
.8% of keywords
13.) Software: top CPC of $35.29
.8% of keywords
14.) Recovery: top CPC of $42.03
.7% of keywords
15.) Transfer: top CPC of $29.86
.6% of keywords
16.) Gas/Electricty: top CPC of $54.62
.6% of keywords
17.) Classes: top CPC of $35.04
.5% of keywords
18.) Rehab: top CPC of $33.59
.5% of keywords
19.) Treatment: top CPC of $37.18
.4% of keywords
20.) Cord Blood: top CPC of $27.8
.4% of keywords

Turns out you’re worth a lot:
96% of Google’s revenue comes from online ads
$38.6 billion[3]
More than Panama’s GDP, and the 31 poorest countries in the world combined.
Or a third of all advertising revenue online.[3]

How Twitter Sells You:

The average Twitter user follows 5 or more brands.[4]
With Twitter mobile users likely to follow 11 or more brands.
With $316.9 million in revenue
($269 million in ad revenue, 85% of total)
Mobile users are 53% likelier to recall seeing an ad on Twitter than the average Twitter user.

How do you use Twitter?
You use Twitter for entertainment: $.63 per user
You use Twitter in search of deals, clicking on ads:$3.16
(based on revenue/active users)

With Chinese ads leading the way:
[twitter users by location][5]
China: 35.5 million
India: 33 million
U.S.: 22.9 million
Brazil: 19.6 million
Mexico: 11.7 million
With 77% of monthly active users coming from outside the U.S.
(Even though the Chinese government has blocked Twitter!)

With Twitter earning $200,000 per promoted trend:
Such as :
[from March 2013][6]
(3/8) #TheNextBigThing (Samsung)
(3/9) #TheBible (History Channel)
(3/11) #FeedTheBeat(Taco Bell)
(3/13) #BurtWonderstone (Warner Brothers)
(3/14) #501s (Levi’s)
(3/15) #TheCallMovie(Sony Pictures)
(3/16) #3dollarsub(Subway)
(3/18) #BatesMotel(A&E)
(3/19) #TheHobbit(The Hobbit Movie)
(3/20) #HotNSpicy(McDonald’s)
(3/21) #BracketBusters(University of Pheonix)
(3/20) #NickyFlash(AT&T)
(3/23) #RallyCry(Capital One)
(3/25) #Blackberry10 (Blackberry)
(3/26) #ItsNotComplicated (AT&T)
(3/27) #NYIAS (Toyota)
(3/28) #TheHost(Twilight Movie)
(3/29) #GiJoeRealiation(movie)
(3/30) #OrphanBlack(BBC America)
(3/31) #TheWalkingDead(AMC)

Adding up to $5.2 million that month in the U.S. alone.[8]

How Facebook Sells You:

Facebook has the largest database of personal information ever compiled.
With 1 billion Facebook profiles, a vast number of engaged users in a social graph becomes a real asset.[11]

If Facebook users were citizens of Facebook nation.
Facebook would be the 3rd most populous country in the world
After China, and India.[9]

88% of Facebook’s revenue is from ads
But Facebook is losing out on the ad’s game:
With marketing referrals from Facebook dropping 20% in 2013.[10]
While Pinterest and Twitter jumped substantially.

But Facebook makes money as a payment provider.
Facebook Credits, used to purchase virtual goods (like Farmville) [10]
Were 18% of Q1 profit in 2012: or $200 million[10]

With marketing targeted by free services, and data mining companies.
Building profiles of internet and spending behavior, as well as interests.

Acxiom Corp. is a “database marketing” corporation

– 23,000 servers in Conway, Arkansas
– Holds 1,500 data points on 500 million online consumers worldwide
– Reviews 50 trillion data “transactions” yearly
– Consumer rankings

PersonicX

– Categorizes consumers into
– 70 clusters, and
– 21 life stages

– You aren’t a number, you’re a pithy phrase, such as:

– Early Parents
– First Digs
– Collegiate Crowd
– Young Workboots
– Rolling Stones
– Married Sophisticates
– Children First
– Career Building
– Spouses & Houses
– Outward Bound
– Truckin’ & Stylin’
– Home Cooking
– First Mortgage
– Resolute Renters
– Mobile Mixers
– Cartoons & Carpools
– Cluster 62 Kids & Rent
– Urban Scramble
– Pennywise Mortgagees
– Resilient Renters
– Shooting Stars
– Hard Chargers
– Dynamic Duos
– Savvy Singles
– Kids & Clout
– Tots & Toys
– Country Comfort
– Soccer & SUVs
– City Mixers
– Solo and Stable
– Modest Wages
– Rural Parents
– Metro Parents
– Rural Rovers
– Summit Estates
– Skyboxes & Suburbans
– Lavish Lifestyles
– Solid Single Parents
– Apple Pie Families
– Midtown Minivanners
– Farmland Families
– Country Single
– Fun & Games
– Mid Americana
– Metro Mix
– Urban Tenants
– Established Elite
– Corporate Clout
– Career-Centered Singles
– Country Ways
– Acred Couples
– Work & Causes
– Community Singles
– Humble Homes
– Downtown Dwellers
– Pennywise Proprietors
– The Great Outdoors
– Rural Retirement
– Still Truckin’
– Sitting Pretty
– Full Steaming
– Platinum Oldies
– Clubs & Causes
– Suburban Seniors
– Raisin’ Grandkids
– Devoted Duos
– Family Matters
– Rural Everlasting
– Thrifty Elders
– Timeless Elders

And Rubicon, a competitor:
Crafting ads that 97% of internet users deal with in a month.

The Internet offers an unparalleled opportunity to monitor and mold user experience, pulling you towards purchases. If a product is free, you’re probably the product.

Product-You_THUMB

Citations:

  1. http://searchenginewatch.com/article/2095210/How-Google-Makes-Its-Billions-The-20-Most-Expensive-AdWords-Keyword-Categories
  2. http://www.investopedia.com/stock-analysis/2012/what-does-google-actually-make-money-from-goog1121.aspx
  3. http://mashable.com/2013/08/28/online-ad-revenues/
  4. http://www.huffingtonpost.com/lili-balfour/how-much-are-you-worth-to-twitter_b_4099327.html
  5. http://www.forbes.com/sites/victorlipman/2013/05/01/the-worlds-most-active-twitter-country-hint-its-citizens-cant-use-twitter/
  6. http://www.mediabistro.com/alltwitter/promoted-trends-earnings_b39637
  7. http://www.mastersinit.org/digital-afterlife/
  8. http://www.technewsdaily.com/16515-facebook-personal-information.html
  9. http://www.biztechmagazine.com/article/2012/06/dollars-and-cents-behind-facebook-apps-infographic
  10. http://www.washingtonpost.com/business/technology/facebook-earnings-report-the-details-are-in-the-ads/2013/10/30/ee6280be-418a-11e3-a624-41d661b0bb78_story.html
  11. http://www.businessweek.com/articles/2012-05-18/nine-things-you-should-know-about-facebooks-ipo
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