(Stanford BUS-21)Martin Westhead
Mastering Marketing
Mindshare: Reputation and Attention
How to make money by giving things away
Overview
Motivation Non-monetary Economies
- Attention- Reputation
Quantification- PageRank- Page Views / Engagement
Conversions - Reputation -> Attention -> Money
Motivation
Why would you offer a free product?- Network effects- (Related) Mindshare
Previously talked about network effects This lecture is on Mindshare
- How mindshare markets work- Conversion of mindshare to money
Non-monetary economies
Every abundance creates a new scarcity
“In an information-rich world, the wealth of information means the dearth of something else: a scarcity of whatever it is that information consumes. What
information consumes is rather obvious: it consumes the attention of its recipients. Hence a wealth of information creates a poverty of attention” – Herbert Simon
(Social Scientist)
Maslow’s need hierarchy
Scarcity helps us navigate abundance – and keep score
Mindshare Economies
Attention Economy - TV shows compete for this
Reputation Economy - Brand compete for this
Are these really economies?- Economics: The science of choice under scarcity –
Adam Smith
Celebrity business model
Reputation Attention Money ($$)
Make / publish content
Collect royaltiesPopular content
Convert ConvertBuild
Quantifying Reputation
“If the attention I pay to others [arrow 2] is valued in proportion to the amount of attention earned by me [arrow 1], then an accounting system is set in motion which quotes something like the social share price of individual attention.
It is in this secondary market that social ambition thrives. It is this stock exchange of attentive capital that gives precise meaning to the term “vanity fair”.
–George Franck Economist, 1999
1 2
Value connection
Attention Attention
me
Reputation: Citation Analysis
Scientific papers Authors reputation
- based on number of citations Metric: Number of references to a document
references
Internet References: The URL
Uniform Resource Locator Core technology Invented by Tim Bernes Lee (1989) IETF RFC 3986 http://<domain>/<path> Like citations, links measure reputation
- Link says: Go to this other place, leave my site- If you like it maybe you will think more of me- Ideally this exchange leaves both parties richer
Reputation: PageRank
Google’s Algorithm for ranking search results Rank of a page depends on
- The number of pages linked to it- The number of pages linked of each of those- …and so on…
PageRank is a sophisticated reference metric
hyperlink
hyperlink
Quantifying Mindshare
Measure of reputation- PageRank
Measure of attention- Page Views
Google: central bank of reputation, control:- Inflation - as the web grows- Counterfeiting – via link spam
Attention Reputation Cycle
Paid trafficUser finds site
Advertiser pays for user attention
Build
SEO and marketing
Many Economies
PageRank is the gold standard of reputation- USD of reputation currency
There are other measures in Web 2.0- Facebook friends- Twitter followers- Number of bookmarks (e.g. Delicious)
Attention and Engagement
Attention (page views)- Easy to quantify- Hard to know if action is valid
- Just because someone opened a page, did they read it?
- Easy to fake - Easy to automatically generate fake page views
- Lower value to advertisers Engagement
- Complex to quantify- Too many metrics: Facebook like, a Digg, Google+1
- Mostly action clearly valid- Harder to fake
- Need many Facebook accounts to fake Likes
- Higher value to advertisers
Engagement Measures
bounce rates, CTR, days since last visit, exit rate, entrance rate, frequency, number of new visitors, number of visitors, number of returning visitors, number of bookmarks (e.g. on Delicious), number of comments posted, number of content syndication (RSS), content contribution (adding a comment, adding a review, rating, uploading an image or video), number of repeated visitors, page views, time spent (dwell time), visits per visitors, number of tags (e.g. on Flickr), number of emailed and printed stories, number of Facebook likes, number of re-tweets, number of messages sent (instant, email), number of conversions (e.g. subscribing, buying), number of Facebook fan pages, number of search queries, common paths (e.g. from front page to mail tool then exit), external comments and reviews (for products), etc …
“User Engagement – A Scientific Challenge” -Mounia Lalmas
Summary
Motivation Non-monetary Economies
- Attention- Reputation
Quantification- PageRank- Page Views / Engagement
Conversions (R -> A ->$)
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