- Digital Asset Investor
- 🪦 "Content Websites Are Dead"
🪦 "Content Websites Are Dead"
This week I discuss digital magazines (i.e. newsletters) replacing content sites, a two word crypto .com and Opepen NFT for the culture
Hey there 👋,
In this week’s newsletter, I discuss:
Whether the content site model is dead
Two word crypto .com for half a mil?
Opepen back to all time high
Richard Patey - @richardpatey
I used to build, buy and sell content sites back in my 2017-2020 heyday. But since then, due to seeing too many six figure assets tank due to more frequent and violent google updates, I now view them as a traffic source for a real business model:
2013 - newsletters are a traffic source for your website
2023 - websites are a traffic source for your newsletter
— patey.eth (@RichardPatey)
Mar 27, 2023
Marc sent out an email earlier this week titled: “Why do I believe content websites are dead?”:
It is not that:
RPMs are down 40% to 50% year on year
AI Content is here to disrupt everything
Google updates are getting more and more frequent
The biggest issue is that WE DO NOT CAPTURE ENOUGH VALUE!
Marc explains with a real case study on one of their websites, where they drove 30K visits to the best golf cart page and received $100 in ad revenue, a low but typical website CPM of $3.33.
However, if he had been selling golf products as an ecommerce store, and achieved just a 0.1% conversion rate then that’s $300K in revenue vs $100.
Like in my tweet above, Marc states that:
With how expensive content is and how much the RPMs have declined year on year, it should be an acquisition channel and not a business model, it is better to drive one sale for a $40,000 luxury travel trip from 10,000 views where we make $4,000 than just $300 from programmatic ads.
Similarly, Jon Dykstra from FatStacks published a video last month titled Are niche sites dead? Should you even start one now? where he discusses the fallout from the forthcoming Google SGE where users won’t need to visit a website for most searches:
Jon talks about how he has developed a new traffic source that is now larger than organic search, that he is directing to his site. However I would argue that you should direct that source straight to your newsletter, especially due to platform dependency he mentions:
Realistically you’re going to need to be dependent on another platform, whether it’s earning most of your revenue on that other platform like Youtube of Instagram, or you’re driving traffic from that platform
At the end of the video, Jon talks about other monetization models such as ecommerce (that Marc Roca mentioned above) because losing search clicks is not only a traffic issue, but a monetization issue.
Website ads typically won’t pay enough for paid acquisition to work. Whereas newsletter sponsorships where you can achieve a minimum 10x in CPM, combined with paid recommendations such as Sparkloop Upscribe certainly can work.
At the same time, we’re looking at the onset of ChatGPT and the ability for generative AI to fundamentally disrupt search. While interest in this has certainly died down, no executive should feel calm. The best building gets done when the excitement has died away. But if chat-based search is the future, heavily search dependent publishers are in for a world of hurt.
He argues that what’s left are niche media players that serve a very specific audience, that looks like a digital magazine newsstand.
These will be subscription first and sponsorships second, plus their own revenue products within a funnel:
This is an inflection point for media. The winners are going to be the tens of thousands of smaller operators serving specific niches. This is what media looked like before the internet and it’s what it’ll look like going forward. It could be a lot worse.
For me, the new magazine is the newsletter business.
CryptoDesk .com SOLD for a staggering $500,000 💣💣💣🤯🤯🤯
— Latest DN Sales (@LatestDNSales)
Jul 16, 2023
Although it’s likely exaggerated and certainly not confirmed, it’s still an amazing win for the seller:
As pointed out by many, the price is not confirmed, but the domain is now developed, the last price as seen by archive.org was 180,000 Euro on DAN and is still for sale on GoDaddy for $196,000. Thanks for @BrandAimCom & @dom@domainretailthers for pointing this out.
— Latest DN Sales (@LatestDNSales)
Jul 16, 2023
Opepen (which I own) is back to its all time high, due to an incredible move by project founder Jack Butcher to create a 1/1 NFT for influencer and prolific content creator ThreadGuy. The whole backstory is in this thread, even Beeple got involved:
Opepen has taken over the entire web3 timeline, all due to one simple change.
They’ve had an 80% increase in just the last week.
This will change web3 creators forever🧵👇
— Juan (@0xfJuan)
Jul 17, 2023
As Juan says in the thread:
If you have a trusted audience, you will end up winning always.
The floor is now back to over 0.8ETH:
Interested in reaching 4,500+ subscribers with your message?
(Or know of a brand who could be a good fit?)
Disclaimer: Nothing in this email is financial advice and I am not a professional investment adviser. I send weekly updates on digital asset news and what I'm doing personally - consider it informational and for entertainment purposes only.