Study: Apps and Content Startups Miss Out Because Affiliate Model Is Broken

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Skimlinks, the platform which gives publishers greater control over affiliate links and content monetization, releases some major research today which could well concentrate the minds of online “publishers”, and that includes apps, startups and bloggers.

It’s white paper reveals that while editorial or social websites can point a user towards a product they might go on to buy, publishers rarely receive the financial reward for doing so because of problems with the “Last Click” attribution model used in affiliate marketing. Now, while the study is clearly a ploy to get apps and content publishers to run their affiliate programs through Skimlinks rather than through traditional affiliate platforms, the research itself does bear examination.

The study found that content sites were the first place users read about a product 27% of the time, and were in the first quarter of the user’s path to purchase 36% of the time. And when a user started their journey to a purchase with a content site, she or he was a new customer 55% of the time. However, content sites were the Last Click only 6% of the time and 94% of the time, the content affiliate was NOT awarded the sale. Plus, 65% of the time when a content site is the first click in a purchase journey, sparking purchase intent, another channel is the last click, taking all the credit for the sale.

They also found that content sites drove nearly 30% more new customers to brand sites than the average of all other channels. In addition, when consumers started reading about a product on a content site their desire to purchase grew over time: in this case, 9% of the sales would occur within one hour, 16% within 24 hours and 31% happened within 3 days.

In other words, if online marketers shifted their affiliate strategy away from the Last Click attribution model towards online publishers, apps and social sites, they’d basically get faster and more robust sales.

This would be music to the ears of many social and content sites.

Alicia Navarro, CEO and co-founder of Skimlinks says: “The general view is that better attribution is required – that distributes the cost-per-acquisition across multiple parties responsible for creating and driving purchase intent. By only remunerating the last-click publisher, you create the wrong incentives, and end up with a ton of low-value deal/coupon sites, rather than rich apps and content, who have less incentive to link out to merchants because they don’t get paid for top-of-funnel activity via affiliate marketing.”

Ryan Jones of Shop Direct, where the study was based, points out that it’s a two-way street: “Retailers are probably missing out on exposure as commercially savvy content sites tend to promote the brands they earn more from.”

For the research Skimlinks analyzed data provided by Shop Direct’s ecommerce site, Very.co.uk, which spanned all orders between July and November 2012 that included a click from a Skimlinks content site.

Skimlinks clients include Conde Nast, Gawker, AOL Europe, WordPress, Hearst Digital, Haymarket Consumer Media, Telegraph Media Group, among others.

Skimlinks’ main competitors are the Google-backed VigLink and the seed-backed startup Yieldkit. This year it completed an undisclosed growth financing round led by Greycroft Partners and others.

Dorm Room Fund-Backed Skillbridge Is A Freelance Marketplace For High-End Professional Services

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A startup called Skillbridge is trying to create a new kind of marketplace for freelance work – not for the programming and writing jobs that you’d find on a site like Elance, but for strategy, finance, marketing and other professional services.

The company is announcing today that it has been backed by First Round Capital’s Dorm Room Fund, the firm’s student-run investment arm that offers mentorship and $20,000 in funding to each company. (Skillbridge is also part of Highland Capital’s summer incubator and the MassChallenge accelerator..)

Co-founders Brett Lewis and Raj Jeyakumar have worked as consultants themselves – Lewis, for example, spent nearly three years at Bain & Company. They’re both recent graduates of Wharton Business School, and they said that when they were students, they wanted to use their experience for freelance work. However, they discovered that it was incredibly difficult to actually find interested companies, so they created Skillbridge to match qualified workers with businesses looking for professional services.

Lewis outlined the vision in a post for the Wharton Entrepreneurship Blog, where he said that the United States’ freelancers have grown from 6 percent of the total workforce in 1990 to 20 to 30 percent now: “Elance, an early talent marketplace, has focused on low-end providers of technology and creative talent. Yet the biggest growth trends are in areas of financial planning and analysis, accounting and legal strategy, where only behemoth white-shoe firms have dominated until now.”

Lewis and Jeyakumar said their core talent base consists of stay-at-home parents and graduate students who have either an MBA or at least three years of experience at a finance or consulting firm. These are people who either aren’t in a position to work full-time or aren’t interested, but they are willing to take on smaller projects or part-time work with flexible hours. And by hiring these workers, companies don’t have to pay for the overhead of a traditional consulting firm.

Not that Skillbridge is trying to replace the big firms. Jeyakumar compared them to Ferraris: “There will always be a need for Ferraris, but there are people for whom a BMW is just fine.” If the BMW doesn’t seem like much of a compromise, that’s Jeyakumar’s point. With Skillbridge, companies that probably couldn’t afford to hire a traditional consulting firm can still pay for high-quality work. He added that there’s already been interest in companies ranging from “pre-revenue startups that need help with market sizing for their pitch decks” to large e-commerce organizations.

The company supposedly delivers a “highly curated” experience, where it provides customers with templates for work requests, identifies two or three of the best matches that they can choose from, and helps to create milestones for the project to ensure that things stay on track. It’s currently in beta testing, with plans for a full launch later this year.

Amazon Cloud Drive Photos App Expands To Support Video Upload & Playback On Android

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Amazon Cloud Drive Photos, the photo-uploading utility that helps move photos from a mobile device into Amazon’s online storage, may have to change its name. Now, the tool doesn’t just support photo uploads, it supports videos, as well. Videos can be manually uploaded one by one, or users can opt to have videos auto-save from their devices directly into Amazon’s cloud.

This automatic upload option was already available for photos through an update out at the beginning of the year, but videos within Cloud Drive Photos had not yet been supported, whether manually or through the auto-upload feature within the application.

Amazon says that videos are restricted to 2 GB in size or 20 minutes in length, whether they’re being uploaded or downloaded from the Cloud Drive service – that’s slightly longer than YouTube’s default setting ahead of account verification. This is fine for the majority of users’ personal videos, of activities, pets, kids or events, for example, recorded on their mobile devices.

After the files are in Amazon’s cloud, the video can be played back to any device, including, of course, the Kindle Fire and other Android tablets. According to a post on Amazon’s Web Services blog about the technical underpinnings to the new feature, Amazon’s Elastic Transcoder service was used, which supports over 20 file formats and 40 video codecs. The team says its goal was to have videos transcoded within 15 minutes after uploading, but ended up achieving videos that are often ready within a minute or two. They also went ahead and processed all the videos stored in Amazon users’ Cloud Drive libraries ahead of launch.

Though the company offers a version of its Amazon Cloud Drive Photos app on iOS devices, too, only the Android version has received the video support at this time. That makes sense because not only is the Kindle and Android-based tablet, and therefore Amazon’s priority, the Android app was also the first to launch, back in November 2012.

The iOS version didn’t arrive until this May, and it serves as a viable alternative to Apple’s own iCloud sync and storage service, with reasonable pricing of 5 GB for free, then $10/year for 20 GB, $25/year for 50 GB and so on, all the way up to 1,000 GB for $500/year. Keep in mind that the storage goes up so high not because users need so much space for photos (and now videos, too), but because Amazon Cloud Drive is meant to serve as a competitor to Google Drive or Dropbox, with support for a variety of file types, including office documents and music, which can also be streamed back through Amazon Cloud Player.

In other words, this isn’t the first time users could upload videos to Amazon’s cloud. This is just making it possible to do so within the Cloud Drive Photos application.

The updated Cloud Drive app is available now on Google Play and Amazon’s Appstore.

London, We Want To See You At Our Pitch-Off+Meetup On Monday

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In preparation for TechCrunch Disrupt Europe I’ve been running around the Continent for more than a month, hitting the Balkans for a huge tour and Warsaw for an amazing meet-up. Now I’m back for a meet up+pitch-off with our own Mike Butcher and the rest of the UK team. Tickets are free so grab yours now.

There will be great networking opportunities, and a battle to the death to see which entrepreneurs can dazzle and excite in under 60 seconds.

PitchOff details:

LONDON INFO HERE

  • Participants interested in competing in the pitch-off will have 60 seconds to explain why their startup is awesome. These products must currently be in stealth or private beta.Application form for London is here or simply enter below.

    ONLY FILL OUT **ONE** APPLICATION.


Office hours details

  • Office Hours are for companies selected for the Pitch-off, these 15 minute 1 on 1 talks will be held on the day of the event. We’ll hear about your company, give feedback, and talk about the best pitch strategy for the 60-second rapid-fire competition. More information on Office Hours will follow in a post on TechCrunch.

Pitch-off winners

  • We will have 3 judges who will decide on the winners of the PitchOff. First place will receive a table in Startup Alley at the upcoming TechCrunch Disrupt Europe in Berlin. Second Place will receive 2 tickets to the upcoming TechCrunch Disrupt. Third Place will receive 1 ticket to the upcoming TechCrunch Disrupt.

Venue in London

  • Ground Floor – CAMPUS LONDON, 4-5 Bonhill Street, London EC2A 4BX
  • Event runs from 3 p.m. – 5:30 p.m. on Monday July 29th, 2013
  • We will de-camp to a local bar afterwards, sponsors welcome to support (email sponsors@techcrunch.com)

Remember we are holding our Berlin meetup later this week so if you don’t want to wing your way North we’ll come to you. Application form for Berlin is here.

Questions about the events? Please contact: events@techcrunch.com.

How To Become A Sponsor

  • For more information on sponsorship packages and to discuss becoming a sponsor, please contact sponsors@techcrunch.com.

And whether you’re an investor, entrepreneur, dreamer or tech enthusiast, we want to see you at the event, so we can give you free beer and hear your thoughts. Come one, come all.

Wunderlist Pro Gets File Sharing And Business Plan Pricing As Wunderlist Nears 5M Users

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Berlin-based 6Wunderkinder is adding more features to its new Wunderlist Pro paid tier of service today, answering the number one request of its users with the addition of file upload and sharing. Users can add files to tasks and synchronize them across devices and team members for collaboration purposes. That, along with newly introduced pricing plans for Wunderlist Pro aimed at businesses, should help growth of the revenue-driving service skyrocket, says 6Wunderkinder founder and CEO Christian Reber.

“We had large corporations contacting us the first day we launched Wunderlist pro and ask us ‘Can we use this in our business, what can I do to sign up my entire team of 250 people?,’ etc.” he said in an interview. “That was exciting for us but unfortunately we didn’t have the business accounts yet, we didn’t have the dashboard to manage those people.” This change will help them sign on these new customers who have just been waiting for an opportunity to get on the platform.

The changes today aren’t only aimed at business customers big and small, however; Reber says that file sharing is something that should appeal across its user base, and drive up the value perception even for individual Wunderlist users who have been considering the paid option. “We think that files is a feature that everyone wants, and we think that we will see a very high conversion rate of free users to premium users also, because it’s a feature that everyone just asked us to build,” Reber explained.

Reber says they “quadrupled” their own internal expectations for new user growth with the introduction of Wunderlist Pro. The entire user base of nearly 5 million Wunderlist users (including free and paid) is around 29 percent U.S.-based, he said, but 40 percent of the paid customers come from the States. Over 40 percent of paying customers are businesses, too, which is why the business plan rollout is designed to unlock more of that potential market.

Ultimately, 6Wunderkind’s strategy is to become just as essential and widespread a productivity tool as a Dropbox or an Evernote, Reber tells me. Those have validated their business model, he says, though they target a completely different market. The aim is to grow from a simple to-do list to more full-featured collaboration software, while retaining focus on both individuals and business customers, instead of just one or the other.

Reber wasn’t ready to share specifics about conversion rates on Wunderlist Pro just yet, but he says that 6Wunderkinder does plan to be much more transparent about that kind of data with future releases, since it believes there’s value in showing other startups how it’s doing building a business, so expect to see more granular detail about how Wunderlist’s monetization strategy is working out in the near future.