Sistema con que la publicación Nextdoor maneja la data de localización verificada para construir calladamente un gran negocio de anuncios
Nextdoor, the 7-year-old social network for neighborhoods, is after more advertising dollars. The quick pitch: Nextdoor is home to only users with verified addresses across 190,000 U.S. neighborhoods. That means advertisers can target real people by their specific location, merging the online and offline worlds.
Nextdoor tripled its revenue over the last year, said Lauren Nemeth, Nextdoor’s chief revenue officer. The company, which is backed by $285.2 million in venture capital funding from big investors such as Kleiner Perkins and Benchmark, declined to disclose the total revenue for 2018 as well as whether it’s profitable. In an earlier interview with Fortune, Nextdoor CEO Nirav Tolia had projected “tens of millions” in revenue for 2017.
The platform has “tens of millions” of users, the company said, without providing additional specifics.
“We tripled our ad business, not just because I’m a genius and have a team of geniuses. It’s more that we dramatically evolved the ad product to be frictionless. Before we were a walled garden and not taking third-party data, but now we do CRM ingestion and lookalike modeling,” Nemeth said.
Indeed, Nextdoor has been investing in maturing its ad platform. In December, it introduced a programmatic offering so advertisers wouldn’t necessarily have to work directly with Nextdoor’s sales team. Nextdoor now works with “hundreds of advertisers,” Nemeth said. Top industries include home security, retail, dining, financial services, tech, telecoms and automotive.
Nextdoor offers several ad formats, including native display, native video, rich media and email ads. The minimum spend is $25,000 and CPMs range from $8 to $30 depending on the ad format and the targeting, Nemeth said, and buyers confirmed.
HomeAdvisor, the IAC-owned online marketplace for homeowners, began advertising on Nextdoor in late 2017. Nextdoor had launched sponsored posts in April 2017 for its news feed and its newsletters. HomeAdvisor CMO Allison Lowrie said her company was interested due to its matching audience of owners. Nextdoor said 74 percent of its members are homeowners.
“The home service category is massive, but only a small portion of the hiring activity is happening online. Most people turn to friends or neighbors. Nextdoor creates a bridge between the traditional offline word of mouth and online behavior,” Lowrie said.
Schlage Locks, a door hardware manufacturer, began running ads on Nextdoor last summer and during the holiday season. Jason Owens, director of consumer marketing at Schlage Locks, said he has been a Nextdoor user for a couple years and was interested in how his company could use it to reach homeowners.
“We had that desire to reach verified homeowners in a less crowded advertising space, where we could get past the noise in other digital marketing,” Owens said.
Of course, Nextdoor isn’t the only platform offering advertisers the ability to reach neighborhoods and very specific local markets. Craigslist and Yelp offer local listings as well as Angie’s List (which is owned by IAC and combined with HomeAdvisor in 2017). Facebook and Google also allow local listings, and Facebook has been working to expand its local product.
Nemeth said that a desire for verified identities is one of the most common interests she hears from advertisers. Nextdoor verifies user identities by requesting proof of address such as a cell phone bill. This is one way Nextdoor is able to compete against other platforms. Facebook, for instance, may also tout real names and community, but the platform is still rampant with fake accounts as well as harassment.
Advertisers can target campaigns based on location and time of day. They also can target specific users through interests, household composition and local behaviors. For example, Nextdoor would know if a user has a dog. The platform also offers third-party targeting through Oracle and LiveRamp. Advertisers can also upload their own CRM data and can use Nextdoor’s lookalike modeling.
“We like how we can locally target, and it wasn’t just about specific engagement rates, but we also got to understand users who commented and asked questions [about our products]. There was more of an intimate dialogue,” Owens said.
Nextdoor’s 2019 road map is focusing on “eliminating buying friction” for agencies and brands, Nemeth said. The platform also plans to release more ad formats and improve ad targeting and personalization.
There’s also a part of Nextdoor that has yet to be monetized: local businesses. Nemeth said 2 million small businesses are part of the platform, but they don’t require them to pay if they want to post about their services on their neighborhood’s news feed. Mary Guy from Roseville, Minnesota runs one such small business. She offers lawn and garden care and has been using Nextdoor to promote her services.
“I appreciate Nextdoor’s tolerance of businesses such as mine being allowed to promote themselves, and my postings stay up there forever, and people see them and the recommendations all the time,” Guy said. “I would say every year I pick up [approximately] a dozen to two dozen inquiries.”
En UK los anuncios regionales y nacionales disminuirán en 2019 a pesar del crecimiento digital
Overall ad spend on national newsbrands is set to drop by 2.3 per cent in 2019, despite a predicted 8.1 per cent increase in digital ad spend.
Similarly, regional newsbrands will see ad spend fall by 4.4 per cent, despite 9.3 per cent digital ad growth, it has been forecast.
In their quarterly expenditure report, Advertising Association and marketing agency WARC calculate that ad revenues for magazines are expected to fall by 6.2 per cent in 2019.
The report has predicted that spend on television advertising will rise by less than half a per cent this year (0.4 per cent) while advertisers are expected to spend an extra 4.8 per cent with radio stations.
Internet ad spend – which includes video-on-demand, newsbrand and magazine digital revenues, radio station website and mobile advertising spend – is forecast to enjoy growth of 9.8 per cent this year.
Total UK advertising spend is expected to grow by 4.6 per cent in 2019 – a slight fall from an estimated 6 per cent growth last year.
Total UK ad spend in 2017, the latest full-year figure, was £22.1bn, which included:
- Internet ad spend was more than £11.5bn (of which £5.2bn mobile)
- National newsbrands £1bn (of which £275m digital)
- Regional newsbrands £887m (of which £212m digital)
- Magazines £776m (of which £271m digital)
- Radio £679m (of which £35m digital)
“We are predicting continued ad spend growth of 4.6 per cent in 2019 and an agreement with the EU that keeps disruption at a minimum and keeps trade and talent flowing will greatly help this growth.
“UK advertising is the best in the world and we need a deal that ensures we keep it that way.”
WARC data editor James McDonald said: “Our projection of 4.6 per cent growth in the UK’s ad market this year is firmly based on a business favourable outcome from the EU withdrawal agreement, and would mark a decade of continuous expansion since the last advertising recession.
“Further, a preliminary estimate of 6 per cent growth in advertising investment last year represents a faster rate of expansion than was recorded in 2017, and is therefore indicative of an industry in rude health.
“This is particularly true in relation to digital ad formats, all of which are currently forecast to attract higher levels of investment in 2019.”
The AA/Warc report revealed that advertising spend on national, regional and magazine brands fell in the third quarter of 2018.
Spending on ads with national and regional newsbrands fell by 7.1 per cent and 5.3 per cent respectively, while magazine ad revenue fell by 2.8 per cent.
Digital ad spend on national newsbrands was up by 3.7 per cent, while regional newsbrands saw a 10.9 per cent climb for digital.
Radio advertising income rose by 5 per cent year-on-year as internet advertising spend grew by 12.3 per cent.
Nordon de Japon está creando plataformas de editores para agrupar medios y reducir costos
Social media remains a dominant source of news for consumers in many countries, outpacing newspapers in 2018 in the U.S., where 45% of people get news from Facebook. News providers need any edge they can get to compete in a time of declining profitability and fake news.
It’s no wonder, then, that outsourcing content management is now seen as an increasingly viable option for digital newsrooms.
Jesse Knight, who spent more than seven years building an international-first platform for Vice Media, recently called for a common publishing platform, arguing it would let outlets use their resources more strategically: “If companies can set aside their (considerable) differences and use a single publishing platform, they could collectively mount a winning fight against Facebook.”
Nordot is a Tokyo-based joint venture launched in April 2015 with backing from Japan’s biggest news companies, Kyodo News Digital and Yahoo Japan. It operates on exactly the kind of model Knight called for: a common publishing platform that offers more than 50,000 articles from hundreds of publishers in Japan.
Nordot's Ryutaro Nakase, right, and Yoshiaki Machi, left, are hoping to take their product global. Photo by Timothy Hornyak.
Connecting providers with distributors
Nordot brings together content providers and distributors so that both can minimize costs, and has just launched an English-language version of its website.
Major outlets can source news at no cost while smaller publishers can reach a far larger audience, with both ends earning ad revenue, according to Nordot. The startup says the Kumamoto Nichinichi Shimbun, a regional newspaper in southern Japan, doubled its ad revenue per story by using Nordot while growing its audience and brand recognition.
“This is a completely new platform and there’s no other service like this in Japan or overseas,” says Ryutaro Nakase, founder and CEO of Nordot. “It can bring together producers and distributors, which have been separate, in a new form of media.”
In a demonstration at Kyodo News in Tokyo, Nakase showed how a local newspaper in Kyushu, southern Japan, could search for popular topics in Japanese media such as articles about movies, sports and pets. Adding the results to a feed or website was a simple matter of a few clicks.
“It can be difficult for smaller content providers or distributors to work with more powerful ones, for instance a smaller regional newspaper might face major hurdles in selling its articles to Japan’s biggest news aggregator websites,” says Nakase.
“Our platform can help correct this imbalance. In addition, users don’t have to negotiate about content sharing and ad revenue.”
Some 400 publishers are already on Nordot, most of which are major regional newspapers in Japan. Photo by Timothy Hornyak.
Growing regional and international appeal
Nordot says its platform already has some 6 million readers. About 400 publishers are using the platform, the majority of which are regional newspapers in Japan such as the Kyoto Shimbun, Kobe Shimbun and Hokkaido Shimbun.
Other users include major media brands Quartz and Huffpost, sports and entertainment sites like Rakuten NBA News and Cinema Today, as well as websites focused on foreign cities such as New York and Macau.
Providers can store their content on Nordot’s cloud service in CMS, RSS and API formats. Editors can then search for and select what they want to include on their sites, apps or social media. Content can also be automatically uploaded once keywords are chosen.
When users click on a preview, articles and graphics will appear in a pop-up under Nordot’s domain with the provider’s brand at the top, links to the provider’s site and social media accounts, as well as a slew of suggested articles at the bottom.
Revenue from the ads that appear under the articles is allocated 61.8% to content providers and 38.2% to distributors, but if no distributors are involved it all goes to providers. Providers can also act as distributors, in which case they get 38.2%. Nordot takes a 19% fee at the end.
Building a ‘collective newsroom’
A former journalist, Nakase founded Nordot after working at business publisher Nikkei BP, Yahoo Japan and Kyodo. He wanted to create a “collective newsroom” that could offer a more equitable balance of large and small players in the content business.
Kyodo agreed to invest in the Nordot concept with an 85% share, and Yahoo Japan putting in 15%. The company now has about 10 staff across Japan, the U.S. and Malaysia. In a rare setup for a Japanese startup, Nordot has no offices and, aside from occasional meetings, all work is done online.
“We have a very small team but we were able to build this cloud service to offer many benefits to users,” says Nordot chief technology officer Yoshiaki Machi.
With its new English-language site, Nordot is now focused on growing English-language publishers and increasing its presence outside Japan. Its new model couldn’t come at a more critical time for smaller content providers.
“There’s a sea of media outlets and bloggers in the web age, and as ads are also ubiquitous, ad revenues have declined,” says Nakase.
“It’s inefficient for publishers to try to do everything themselves. Meanwhile they have to try to compete with massive, powerful news distributors like Google and Yahoo.
“That’s why it’s best for publishers to cooperate. We’ve developed our model to further that cooperation.”