How to balance your online advertising and your offline conscience

Google in 1998, showing the original logo
Image via Wikipedia

I recently found an interesting example of  a website that both makes a lot of money and yet is much more efficient than any free or non profit. It is called ECOSIA

If you see a website that wants to balance administrative costs  plus have a transparent way to make the world better- this is a great example.

  • http://ecosia.org/how.php
  • HOW IT WORKS
    You search with Ecosia.
  • Perhaps you click on an interesting sponsored link.
  • The sponsoring company pays Bing or Yahoo for the click.
  • Bing or Yahoo gives the bigger chunk of that money to Ecosia.
  • Ecosia donates at least 80% of this income to support WWF’s work in the Amazon.
  • If you like what we’re doing, help us spread the word!
  • Key facts about the park:

    • World’s largest tropical forest reserve (38,867 square kilometers, or about the size of Switzerland)
    • Home to about 14% of all amphibian species and roughly 54% of all bird species in the Amazon – not to mention large populations of at least eight threatened species, including the jaguar
    • Includes part of the Guiana Shield containing 25% of world’s remaining tropical rainforests – 80 to 90% of which are still pristine
    • Holds the last major unpolluted water reserves in the Neotropics, containing approximately 20% of all of the Earth’s water
    • One of the last tropical regions on Earth vastly unaltered by humans
    • Significant contributor to climatic regulation via heat absorption and carbon storage

     

    http://ecosia.org/statistics.php

    They claim to have donated 141,529.42 EUR !!!

    http://static.ecosia.org/files/donations.pdf

     

     

     

     

     

     

     

     

     

     

    Well suppose you are the Web Admin of a very popular website like Wikipedia or etc

    One way to meet server costs is to say openly hey i need to balance my costs so i need some money.

    The other way is to use online advertising.

    I started mine with Google Adsense.

    Click per milli (or CPM)  gives you a very low low conversion compared to contacting ad sponsor directly.

    But its a great data experiment-

    as you can monitor which companies are likely to be advertised on your site (assume google knows more about their algols than you will)

    which formats -banner or text or flash have what kind of conversion rates

    what are the expected pay off rates from various keywords or companies (like business intelligence software, predictive analytics software and statistical computing software are similar but have different expected returns (if you remember your eco class)

     

    NOW- Based on above data, you know whats your minimum baseline to expect from a private advertiser than a public, crowd sourced search engine one (like Google or Bing)

    Lets say if you have 100000 views monthly. and assume one out of 1000 page views will lead to a click. Say the advertiser will pay you 1 $ for every 1 click (=1000 impressions)

    Then your expected revenue is $100.But if your clicks are priced at 2.5$ for every click , and your click through rate is now 3 out of 1000 impressions- (both very moderate increases that can done by basic placement optimization of ad type, graphics etc)-your new revenue is  750$.

    Be a good Samaritan- you decide to share some of this with your audience -like 4 Amazon books per month ( or I free Amazon book per week)- That gives you a cost of 200$, and leaves you with some 550$.

    Wait! it doesnt end there- Adam Smith‘s invisible hand moves on .

    You say hmm let me put 100 $ for an annual paper writing contest of $1000, donate $200 to one laptop per child ( or to Amazon rain forests or to Haiti etc etc etc), pay $100 to your upgraded server hosting, and put 350$ in online advertising. say $200 for search engines and $150 for Facebook.

    Woah!

    Month 1 would should see more people  visiting you for the first time. If you have a good return rate (returning visitors as a %, and low bounce rate (visits less than 5 secs)- your traffic should see atleast a 20% jump in new arrivals and 5-10 % in long term arrivals. Ignoring bounces- within  three months you will have one of the following

    1) An interesting case study on statistics on online and social media advertising, tangible motivations for increasing community response , and some good data for study

    2) hopefully better cost management of your server expenses

    3)very hopefully a positive cash flow

     

    you could even set a percentage and share the monthly (or annually is better actions) to your readers and advertisers.

    go ahead- change the world!

    the key paradigms here are sharing your traffic and revenue openly to everyone

    donating to a suitable cause

    helping increase awareness of the suitable cause

    basing fixed percentages rather than absolute numbers to ensure your site and cause are sustained for years.

    Q&A with David Smith, Revolution Analytics.

    Here’s a group of questions and answers that David Smith of Revolution Analytics was kind enough to answer post the launch of the new R Package which integrates Hadoop and R-                         RevoScaleR

    Ajay- How does RevoScaleR work from a technical viewpoint in terms of Hadoop integration?

    David-The point isn’t that there’s a deep technical integration between Revolution R and Hadoop, rather that we see them as complementary (not competing) technologies. Hadoop is amazing at reliably (if slowly) processing huge volumes of distributed data; the RevoScaleR package complements Hadoop by providing statistical algorithms to analyze the data processed by Hadoop. The analogy I use is to compare a freight train with a race car: use Hadoop to slog through a distributed data set and use Map/Reduce to output an aggregated, rectangular data file; then use RevoScaleR to perform statistical analysis on the processed data (and use the speed of RevolScaleR to iterate through many model options to find the best one).

    Ajay- How is it different from MapReduce and R Hipe– existing R Hadoop packages?
    David- They’re complementary. In fact, we’ll be publishing a white paper soon by Saptarshi Guha, author of the Rhipe R/Hadoop integration, showing how he uses Hadoop to process vast volumes of packet-level VOIP data to identify call time/duration from the packets, and then do a regression on the table of calls using RevoScaleR. There’s a little more detail in this blog post: http://blog.revolutionanalytics.com/2010/08/announcing-big-data-for-revolution-r.html
    Ajay- Is it going to be proprietary, free or licensable (open source)?
    David- RevoScaleR is a proprietary package, available to paid subscribers (or free to academics) with Revolution R Enterprise. (If you haven’t seen it, you might be interested in this Q&A I did with Matt Shotwell: http://biostatmatt.com/archives/533 )
    Ajay- Any existing client case studies for Terabyte level analysis using R.
    David- The VOIP example above gets close, but most of the case studies we’ve seen in beta testing have been in the 10’s to 100’s of Gb range. We’ve tested RevoScaleR on larger data sets internally, but we’re eager to hear about real-life use cases in the terabyte range.
    Ajay- How can I use RevoScaleR on my dual chip Win Intel laptop for say 5 gb of data.
    David- One of the great things about RevoScaleR is that it’s designed to work on commodity hardware like a dual-core laptop. You won’t be constrained by the limited RAM available, and the parallel processing algorithms will make use of all cores available to speed up the analysis even further. There’s an example in this white paper (http://info.revolutionanalytics.com/bigdata.html) of doing linear regression on 13Gb of data on a simple dual-core laptop in less than 5 seconds.
    AJ-Thanks to David Smith, for this fast response and wishing him, Saptarshi Guha Dr Norman Nie and the rest of guys at Revolution Analytics a congratulations for this new product launch.

    A Laptop for A Child for Christmas

    I recently won some 250 $ for contributor of the month at www.analyticbridge.com.  Since I enjoy doing that ,contributing to analytics communities – it was hardly work for me. So I decided to donate 200 $ to One Laptop per Child. It is based on the concept (my opinion) that if you give someone a fish, he will eat for a day , if you teach someone how to fish , they will eat for a lifetime. Here are the official words from them.

    Laptop Project
    Laptop Project
    five core principles
    Child OwnershipI wear my XO like my pair of shoes.
    Low AgesI have good XO shoes for a long walk.
    SaturationA healthy education is a vaccination, it reaches everybody and protects from ignorance and intolerance.
    ConnectionWhen we talk together we stay together.
    Free and Open SourceGive me a free and open environment and I will learn and teach with joy.

     

    10 Sep 2008

    Dear AJAY,

    Thank you for your contribution of $200.00 to the One Laptop per Child
    Foundation. Further we confirm that no tangible benefits were received by you,
    the donor, in exchange for the gift referenced above.

    The mission of the One Laptop per Child (OLPC) movement is to ensure that every
    school-aged child in the lesser-developed parts of the world is able to engage
    effectively with their own personal laptop, networked to the world, so that
    they, their families and their communities can openly collaborate as they learn
    and learn about learning together.

    The OLPC Foundation is focused on enhancing and sustaining learning among those
    children, their families and communities in lesser developed communities by
    ensuring rich, diverse and open access to innovative learning materials and by
    encouraging interactive learning, communication and exploration with their XO
    laptops. For this purpose the Foundation provides grants and other support for
    the development and use of collaborative learning resources and other
    initiatives that enrich children’s learning and learning about learning. We
    will also provide support the purchase of laptops for children.

    Your contribution will help us move forward with these important programs for
    children. Please tell your friends and colleagues about the One Laptop per
    Child program (www.laptop.org) and encourage them also to support our mission.

    Sincerely,

    Robert D. Fadel
    Treasurer, 
    One Laptop per Child Foundation

    How many children are you going to teach computers this Christmas ? ? ?

    http://laptop.org/en/index.shtml
    http://laptop.org/en/index.shtml