Univision

UnivisionCase study : Univision : www.univision.com

Business

Univision Online, Inc. is the interactive division of Univision Communications Inc. (NYSE:UVN), the premier Spanish-language media company in the United States. Univision Online owns and operates the most visited Spanish-language Internet destination in the U.S., located at www.univision.com. Each day, users visit Univision.com nearly 850,000 times, accessing everything from the latest entertainment and sports news to classified ads and reader forums. Univision Online, Inc. is a wholly owned subsidiary of Univision Communications Inc. Univision Communications Inc’s portfolio includes television, radio, music and Internet offerings that entertain and inform more Hispanics each day than any other media company in the country. Television operations include the Univision Network, TeleFutura Network, Galavisión, and Univision and TeleFutura Television Groups. Other operations include Univision Radio and Univision Music Group.

Approach

“We’ve had significantly better results since switching to Google. Google helps us monetize our site better.”

Javier SaraleguiPresident of Univision Online

Maximizing revenue from its popular online property is one of Univision’s chief goals. Univision Online discovered early on that contextual ads are a meaningful way to do just that. As a result, Univision.com began delivering contextual ads in January 2004. Although the ads immediately generated income, Univision Online sought to increase revenue even further, as well as improve click-through rates and ad quality. “We were doing relatively well with contextual advertising,” recalls Charles Walter, Director of Product Development for Univision Online. “But we also had a suspicion that we could improve our metrics manifold, including click-through rates, revenue per thousand impressions and overall income.”

In addition to boosting revenues, Univision Online sought to ensure that they delivered ads that were relevant, tasteful and useful to visitors – ads that meshed well with the content and site design of Univision.com. Among the biggest considerations was the ability to deliver a mix of ads in both English and Spanish. This is especially important because of the prominence of the Spanish language among the more than 40 million US Hispanics. The US Hispanic population makes up approximately 14 percent of the total U.S. population, and is driving the nation’s population growth. Analysts predict advertisers will spend more than $3.4 billion this year to get their attention.

With these goals in mind, Univision began investigating contextual advertising more fully and changed ad vendors, implementing Google AdSense for Search and AdSense for Content in June 2005.

Results

Walter reports that it was easy to get up and running with AdSense, and that AdSense “runs itself.” According to Walter, Google ads are highly appropriate. He notes that he was immediately impressed with Google’s content matching and ability to crawl the Univision website with unmatched accuracy.

In terms of revenue, the Univision team immediately saw positive results. Gauging the success of AdSense a year later, Univision has seen AdSense for Search revenues grow by 160 percent. Revenue from both Google AdSense for Search and AdSense for Content increased by 103 percent. Univision has subsequently expanded its use of Google tools by implementing site targeting with the goal of attracting advertisers who want to promote their brand specifically to Univision’s highly sought after user base.

“We’ve had significantly better results since switching to Google,” said Javier Saralegui, President of Univision Online. “Google helps us monetize our site better.”
For Univision, AdSense has become an exceptional complement to traditional advertising. It produces revenue without requiring an internal sales staff, providing a way to fill ad space at lower fixed costs and letting smaller advertisers benefit from the broad reach of Univision Online.

“Google is an important strategic partner,” says Saralegui. “Not only are we pleased with the relationship, but we believe both users and marketers on our site are benefiting as well.”

About Google AdSense

Google AdSense is a program enabling online businesses to earn revenue from serving ads precisely targeted to specific web content and search pages. With service levels ranging from online sign-up to dedicated support management, a broad range of sites profit from AdSense. Thousands of Google advertisers also benefit from AdSense by gaining exposure on sites across the Google Network, which includes many of the Top 100 Media Metrix sites such as AOL, About.com, Amazon, Ask.com, and Lycos.

Google AdSense Case Study

Google AdSense Case Study

HometipsCase study : Hometips : www.hometips.com
HomeTips.com nails down big revenue with Google AdSense.
Home advice website HomeTips.com started out in a backyard clubhouse. Seeking a quiet, woodsy spot for writing home improvement books, author Don Vandervort converted the bottom floor of his sons' two-story treehouse into a small office. He launched HomeTips.com from that office in 1997, essentially as an online portfolio to promote his books.

In the decade since, HomeTips has grown into a large and popular site, thanks to the authority Vandervort has developed and the volume of content he has collected and posted from his more than two dozen books, scores of magazine articles, and many television appearances on ABC and HGTV.

Challenge

Until about three years ago, HomeTips' main source of revenue came from writing, publishing, and licensing books and content to other companies, such as Sunset Books and Microsoft. This business expanded significantly after Vandervort moved to larger offices in Glendale, California, and assembled a team of editors, writers, and artists.

Though his book and content business was thriving, the website's meager revenue came from online sales of guides and reports. When a visitor requested one of these, Vandervort would email it to them and trust them to send three dollars. "At that time, I couldn't find a good system for these small transactions," he recalls. "It was an interesting way for us to stay in touch with our visitors' needs, but a money-losing proposition. We needed advertising for the web business to be viable." But the small editorial team was far too busy working at their core business of creating content to develop an advertising program.

Results

In 2003, Vandervort heard about the Google AdSense program and thought it might be helpful for creating incremental revenue that could work for HomeTips. As he notes, "It took about 20 minutes to set it up - and that 20 minutes completely changed our business."

He started by testing AdSense on a few pages. During the first week, he remembers that AdSense revenue paid for coffee; the second week, it paid for lunches. The model clearly worked, so he began expanding the program across the entire site. Now AdSense revenue pays for all salaries, overhead, and business development.

"Google's ability to deliver targeted ads is remarkable," says Vandervort. "In fact, because the ads are so relevant to the content on any given page, we believe that they are a very useful resource for our visitors. This is evidenced by the fact that, on many of our pages, more than 10 percent of our visitors click through to the advertisers for more information," he adds.
HomeTips now sees more than 1 million online visitors each month. "Solid content is the secret to developing a following," says Vandervort. "If you write expert content with your visitor's needs in mind, the rest will follow."

As the business has grown up, so have the sons whose backyard clubhouse Vandervort first commandeered for an office. Now they bring media experience to the business: Gabriel as a former writer/producer of shows for The History Channel and Christian as a cinematographer and film editor. HomeTips anticipates online video to be the next area of growth. "Nothing can show you how to do something as clearly and adeptly as a video," says Vandervort. "As we see the migration of advertising dollars from television to the web, we expect video content and advertising to do very well."

The HomeTips team constantly tests site design, navigation, and ad optimization to improve both the user experience and the success of advertising. Vandervort points out the fact that channel reporting and Google Analytics are a big help in this effort. "These analytics help us zero in on where we're doing the best job and where we need to do more. As a result, our performance just keeps going up."

About Google AdSense

Google AdSense is a program enabling online businesses to earn revenue from serving ads precisely targeted to specific web content and search pages. With service levels ranging from online sign-up to dedicated support management, a broad range of sites profit from AdSense. Thousands of Google advertisers also benefit from AdSense by gaining exposure on sites across the Google Network, which includes many of the Top 100 Media Metrix sites such as AOL, About.com, Amazon, Ask.com, and Lycos.