This plug-in enables wordpress blog owners to track and manage the performance of:
- Content published on a WordPress platform across social media (phase 1)
- On page advertisements related to published and shared content essentially closing the loop between content and ad performance (phase 2)
Benefit: being able to maximise monetisation of WordPress through the performance management of content.
Passive Income = $3,000 p/m | $36,000 p/a
In terms of market what needs to be established is:
- Is the nature of the market growing / slowing?
- What is the potential pool of customers for this product? (addressable and reachable market)?
- What is the total available market (TAM) size?
Establishing the nature of the market
Google trends reveals that the volume of searches for “wordpress plug-ins” and “wordpress analytics” is steadily increasing over time meaning that the market is a growing one.
The potential pool of customers
[Addressable market size]
I define an ‘addressable market’ as the number of people who know how to search for and find your product.
Googles keyword planner for related search terms reveals that there are approximately 31,190 monthly searches for related search terms.
Assumption: people who are looking for wordpress analytics plug-ins would potentially be interested in the product. This needs to be tested as part of a customer discovery process.
[The reachable market]
On Facebook, the reachable market is roughly 1,080,000. I’ve chosen these territories because they represent the primary regions who are looking for “wordpress analytics” solutions and who like wordpress related pages on Facebook.
Then another important consideration is the number of available users on plug-in marketplaces like Code Canyon (easily the biggest). While it’s not possible to drill down on the specific market size for “plug-ins” it is a good indicator as to the size of the potential market.
By using the average of the two key indicators, the total reachable market for analytics related plug-ins is estimated to be around 2.2 million.
The total available market size
Here is the formula for establishing this:
(Number of available customers) x (Value of each customer) = TAM
Number of available customers = 31,190 [addressable market]
Value of each customer = $15 [average sale price of two closest competitors]
TAM (monthly) = $467,850
TAM (annually) = $5,614,200
Ideally I am looking at a TAM > $1,000,000… So I’m happy with the market size.
In terms of competitors what needs to be established is:
- How many competitors are there?
- What is the estimated market share for the primary competitors?
- Can they compete on price?
- Can they compete on product?
The number of competitors
Based on research carried out on Code Canyon, there are two primary competitors:
This one plug-in and widget and this one
Estimated market share
Based on the number of downloads (sales) the primary competitors have extremely low market share.
Competition on price
On review it seems like there is little to no marketing taking place and that both competitors are relying on traffic / conversion from Code Canyon. I’ve identified numerous areas where they can be out-marketed and further differences in the use of a specific business model(s) could also come into play. There is definitely an opportunity for 1st mover advantage.
Competition on product
I would regard the competing products as MVP’s for social analytics – however, the concept in mind is version 2 of what is currently being offered. Example of where competing products fall short is illustrated below:
In terms of audience what needs to be established is:
- Who precisely is it for?
- What story are they telling themselves?
- What job are they hiring the product to do for them?
- What problem does this solve / what pains does the product alleviate?
- Have they bought a solution like this before?
The target audience
WordPress platform (personal blog or business) with the following criteria:
- Must be producing content on a frequent basis and where the performance of that content is important because either their platform(s) are monetised online (advertising) or linked to the provision and delivery of services offline e.g. small to medium companies possible using wordpress commerce solutions
- WordPress blog owners in the US, Netherlands, Ireland, Sweden, Australia, Spain, Canada and the UK
The story being told
Essentially this revolves around the audience not knowing what content performs best in their niche at any given time and how that affects the performance of monetisation.
The solution job
To increase monetisation through content performance management.
Problems and pains
- Poor monetisation of their platforms
- Lack of content performance visibility
- Reduced potential of cashflow (financial risk)
- Time spent creating content that doesn’t work
- Using solutions that don’t close the loop between content publication and platform monetisation
While there isn’t a solution exactly like this on the market, there are numerous other products that only tell half the story. The value that a product like this would represent to this target audience would be immense in both the short and long term.
Product (concept) development
In terms of product what needs to be established is:
- What is going to be built?
- How will this idea be validated?
- What is the budget for this project?
Product scope (high-level)
- Content management and classification:
- Focus: user generated content labeling
- Content performance tracking:
- Focus: Social analytics tracking: shares, likes, reach, comments, influencers, klout scores, etc across platforms like Facebook, Twitter, G+, Reddit, LinkedIn, etc
- Advertising inventory management:
- Focus: inventory ad serving according to content performance
The desired outcome is to enable wordpress platform owners with the means to establish what is the best performing content on each social media channel and then match the return traffic to the best performing banner / creative / message to that content realising optimised monetisation of the wordpress platform.
The budget for this project will depend on the scope that is clarified basedon what the MVP as a result of a customer discovery process.
The product will need to be validated based on an understanding of the ecosystem within which this product will live. This is illustrated below:
Essentially, this would now be a multi-side platform (MSP) business model which would require scale for both audiences i.e. platform owners and advertisers. As this typically is quite a difficult, time consuming and often cash heavy problem to solve the product solution may need to be be revised to exclude ad performance management and only focus on on content performance optimisation (CPO).
CPO by itself, lends itself to significant value creation:
Best performing content (by channel) = increased reach and engagement = increased traffic = increase in monetisation (adsense, leads, banners, etc)
Therefore, validation can simply involve testing the aforementioned assumptions by either contacting wordpress platform owners who meet the eligibility criteria and running an adwords campaign directing users to buy the product in advance of development.
An improved and validated product covering content management, classification and performance tracking should be the focus and an improved marketing strategy could support the capture of market share in the wordpress analytics niche.
If you have any feedback for me on the above I’d love to hear from you.