Valuing Media Rich Content

Understanding how media-rich content focusing on video and images might be undervalued because of the way in which it is handled by search engines, we need to come up with a model for discounting the value of on-page media in according to its contextual relevance. From there, we can determine if there is an opportunity for building up the value of that particular piece of the asset by improving the inadvisability of the content from an indexing perspective, and therefore improve the page’s ability to drive traffic independently.

As mentioned in the previous article, one of the most common ways to make a piece of media-based content indirectly indexable is by including a description box next to the media itself, and use it to explain what is going on in the image or video in great detail. While users might simply ignore this section, it provides something for the search engines to use as a reference point to index off of.

As such, the description box of a piece of rich-content should be valued as a full article on its own, because that’s how the image will be represented from an SEO standpoint. Unfortunately, that will constitute the tangible cash-flow potential of the content itself, along with a small premium for the quality of the media itself.

Upon determining the capability of the content to generate organic traffic, we then need to determine the tangible value of the media from a cost-perspective. Because of the obvious cost differences between media and text content, we need to keep in mind that the cost of procuring this level of media will represent both the opportunity value, and an indication of the intangible worth that is adding to the overall worth of the page itself.

Assuming we were to contract out this sort of job, we’d probably be looking at anywhere between $200 and several thousand dollars being put into an on-page video, while a high-quality image might cost anywhere between $50-800, depending on the amount of research and time that is put into it. However, we must then discount whether or not the information being communicated is particularly relevant to a specific time-period. For example, an info-graphic depicting information from the year 2012 might not be worth as much in the year 2020.

With an understanding of both the traffic-generating and production-based opportunity value of a media-rich piece of content, we are able to finally able to come up with a dollar value denoting the tangible worth of its contribution to an overall website’s asset value. Upon combining that framework with the other strategies we have discussed for understanding the worth of text-based content, we can then come up with a good estimate of what kind of value a sophisticated media-rich content page will create for an overall web-asset as a text, image, video, and social platform.

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Understanding Media Rich Content

Having looked at all of the different text-based content types that can have an impact on the tangible value of a web-page, it is time to look at how it is that some of the more sophisticated content types can have a major impact on the worth of a website. Specifically, it is important to have a valuation framework in place for determining the worth of images, videos, and animated functionality on a page.

While all of these content-types provide a great deal of tangible value to a web-page in the way that they increase its complexity and ability to engage incoming traffic, it is important to remember that search engines still do not have sophisticated mechanisms in place for breaking down media-based content into keyword indexes. Because of this caveat, we must be careful to differentiate between the tangible value of media content, and the intangible benefits that come with it.
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Valuing Social Media Content

When valuing content in a modern website, it is become increasingly important to understand what kind of benefits are given to the asset through its social integration. Ignoring then the sheer power of viral traffic, the worth of social media integration can generally be broken down into two main components: content value and technical value. In continuing the theme of examining the value of content on a web asset, this section will discuss the value of social media through the content it creates.

The first two aspects of social media that create value for an asset as a form of content are similar in the way that they are short strings of text that are relevant to contexts of the page itself. While comments and tweets both differ in application, it is important to recognize their similarities. Essentially, a tweet is a short comment that appears off-page and links in, and a comment is tweet that occurs on page. By simplifying these two forms of content, we can price them at the same general point, with perhaps a slight premium placed on the external tweet to accommodate the potential for viral value.
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Valuing User Created Content

While adding content manually as an explicit article entry is still a successful practice for building up an asset’s integrity, truly effective websites have been able to scale their content base by providing more of a platform than a depository.

By adding venues for user-based contributions, a website is able to build up its content-base without any explicit effort or cost. This has been taken to the point at which there exist some extremely successful sites that simply have users contribute all of the content that is indexed on the site. Because of the difference in the way which a content-platform creates asset-value in comparison to a traditional article-based website, it is important that we valuate these sites in a way that recognizes their fixed-asset value, and ability to scale.
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Valuing Content Through Page Rank

Having looked at how existing content creates value, it is important to recognize how it is that off-page content can serve to exponentially increase the value of the fundamental keyword anchors that are created by on-page content.

By linking in contextually relevant content to on-page articles we are able to achieve a benefit of scale, in that many links can be directed inbound to a single page. The net result is that the on-page content will improve in quality in the eyes of the search engines, and therefore produce a greater amount of organic traffic. The way we do this is by understanding how it is that the Page Rank metric (from Google of course) helps us to value the net benefit of inbound links and their on-page contextual anchoring)

In general, SEO professionals have been able to ball-park the comparative values of different page ranks into a basic PR table. This table illustrates the kind of scale that search engines use to value a PR1 link in comparison to a PR2. In general, this table is summarized as follows:

While this chart serves only as a mathematical demonstration of the comparative values, it provides a useful tool for understanding the difference between each incremental page rank. This essentially means that a single inbound link from a PR10 website is worth almost 10 million times more than a link from a PR1 site. That being said, this does not necessarily mean that the PR10 link is worth $10 million dollars, it simply suggests that the time and effort value of the link is extremely high, to the point at which procuring them could be seen as a competitive advantage.

With these link values in mind, we can then proceed to use a back-link indexing tool to determine what kind of value off-site content is creating for the page. By discounting the value of these inbound links in accordance to a weighted average of their relative value, and then taking into account the value of the keywords that they are referencing into the site, we are then able to determine a tangible value for the value created by the inbound links.

Ideally, we can then identify value-opportunities by looking at the cost-benefit break even of procuring hundreds of cheap links from off-site content, or focusing on developing high-quality links from guest-posts in order to boost page-rank efficiency.

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Valuating Website Assets

The tangible value of a website stems almost entirely from its content, functionality, and design. These aspects of a site are what drives, engages, and converts visitors respectively. By investing in all of these areas, a property owner is building up the ability of the site to generate cash, and therefore building up the fundamental value of their asset as a whole. With quality then in mind, we are able to build a valuation framework for valuing exactly how much the actual assets of a property are worth, and what kind of value they create for a purchaser.

Content

A common saying in the web properties business is that “Content is King”. This saying stems from the fundamental assumption that organic search engine traffic, which has been indirectly generated by carefully engineered content, is the most cost effective mechanism for an asset to generate revenues. Through its consistency and ability to be quantified, organic traffic represents an extremely tangible aspect of fundamental valuation.
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How Domain Name Length Affects Value

This is a continuation post of The Different Types of Valuation Models for Websites.

Number of Words & Length

The numbers of words and length of a domain is important because of the way in which it associates the site itself with a set of keywords, and the way in which the consumer engages the brand that the URL creates. If the name is excessively long, it will generally be worth less than a particularly concise alternative. In the most extreme cases, the value of a single-word domain can extend into the millions of dollars simply because of its effectiveness (ie. Sex.com, one of the most expensive domains ever sold).
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The Different Types of Valuation Models for Websites

The market for buying and selling websites, domains, and templates has exploded over the last few years, despite a general decline in the affiliate industry itself. While payouts decline and costs increase, there seems to be a steadily growing demand for finished assets, to the point at which designers have gone so far as to design, improve, and flip websites as a full time profession.

That being said, who is it that’s making these purchases? And more importantly, how is it that they’re able to distinguish between which website is worth tens of thousands of dollars, and which is worthless? By combining some financial valuation tricks with an understanding of how it is that traffic creates value for a web-page, we can come up with a framework for exactly how to value a website based on tangible worth.
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