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Your Questions About New Niches

Carol asks…

Whats the difference between a market segment and a market niche?

Difference between market segment and market niche…..

New Niche Finder answers:

A market segment is usually considered to be a very broad area. For example, let’s say I produce LCD TV’s. I have just tapped into the Flat Screen Television Segment (some also include price in the segment, it’s pretty varied). Now, what if this LCD TV cost’s $10,000 and is made for animation companies. Then I have just tapped into a “niche” (i.e. A specialized area where it is possible to dominate). Tapping into Niches are important to some companies because here you can sell high margin products and sometimes have a monopoly over this small market. Small niches are also less volatile than an entire market segment.

Donna asks…

What are the best subjects/niches to target adsense income?

I love the google adsense income opportunity. I have a cooking site with google ads but have not made much. I avg. $10 a month. I want to do this full time but have a hard time trying to figure what subject or niches to target. Seems like the market is saturated with the same subjects and niches. Need to get started but don’t know where to begin. I am living money on the table not doing this business. “Help”!

My cooking site: http://www.cookingfanatics.com

New Niche Finder answers:

The best topics with Adsense are those topics where the people actually want to spend money on the site — e.g. Mortgage topic where the visitors are looking for tips on getting a mortgage and the ads are from mortgage companies; business planning site where the site talks about how to create a business plan and visitors are highly interested on business plan software and writing services; product review sites where people are actively researching to buy something such as electronics.

I went to your site and saw that you only have Adsense ads on the recipe pages, not in the homepage or in the main topic pages. Understand that In terms of earning money on Adsense, your mileage varies. One website with 10,000 uniques a day can earn $50 a month while another may earn $5,000. It is not easy to predict how much you will earn from Adsense. The only way you can learn about how your site will perform with Adsense is through trying it.

The amount you can earn will depend on the

1. Responsiveness of audience to the ads = A travel website that provides information on travel to Spain will attract visitors looking for ways to arrange their travel and spend money on their vacation to Spain. Your site provides the info, but the ads will provide hotels, travel agencies, tourist destinations, car rentals — ads that are likely to get the attention of the users of your site. This is a site that will most likely do well with Adsense. However, if you are a gaming website where the main purpose of the user is to play games on your site, then Adsense will not perform as well.

2. Ad format = some types of ads do better than others depending on your content and layout. In our case, large rectangles in the middle of the content is the best, while leaderboards do not generate as much as income. Skys are the worst for us. Experiment and measure the results via channels and see which formats work best for you.

3. Ad placement – check Google’s heat map as they have tested where the best placements are https://www.google.com/support/adsense/bin/answer.py?answer=17954&ctx=en:search&query=adsense+heat+map&topic=0&type=f

4. Ad colors – sometimes ads blended into the content works wonders, but sometimes ads that contrast your site colors work best

5. Number of ad units on a page = we are allowed maximum of 3 ads + 1 ad links + 1 search box on a page. Maximize the allowed number based on the resulting look of your page (you don’t want an overkill of ads). Users going to your page and reading your content may ignore the banner or rectangle at the top of the page, but may click on the ad at the bottom of the article

6. Smartpricing – the big unknown in Adsense. No one knows how this actually works. But it can affect the pricing of the ads on your site. If the advertiser paid for $0.50/click – but your site is smartpriced – then the cost may be discounted lower (e.g. $0.25). So you may try to develop a site based on high paying keywords but if smartpricing gets to you, then you may not get as much per click as what you are expecting from your keywords.

Here is Google’s explanation of smart pricing https://adwords.google.com/support/bin/answer.py?answer=9562&query=smart+pricing&topic=0&type=f

Google’s smart pricing feature automatically adjusts the cost of a keyword-targeted content click based on its effectiveness compared to a search click. So if our data shows that a click from a content page is less likely to turn into actionable business results — such as online sales, registrations, phone calls, or newsletter signups — we reduce the price you pay for that click.

Experiment with the factors above (except smartpricing, which you can’t control), and see which combination works best. Remember though that not all sites do well with Adsense – even if you get gazillions of traffic but your visitors are not interested in looking for ways to spend their money, they won’t be interested in your ads and won’t click.

William asks…

I want to understand why the term Niche Marketing is associated with Market segmentation & why many analysts?

& why many analysts regard a niche marketing approach as dangerous

New Niche Finder answers:

I’m not aware of anyone who considers niche marketing to be dangerous.

“Niche marketing” usually refers to focusing some marketing efforts on a narrow field, rather than broad-based audiences.

I’m not sure what “market segmentation” refers to in your question; it probably just means the notion of slicing a large market into smaller niches.

For example, if I sell lawn mowers, I might focus 10% of my marketing budget to target landscaping contractors, who buy multiple lawn mowers each year (perhaps I’d buy ads in industry publications, or do a direct mailing; and another 10% of my marketing budget to reach managers of apartment properties that have landscaping staff; I might budget 20% of the marketing budget to reach resellers (dealers, stores) that sell lawn mowers; and I might allocate the other 60% of my marketing budget to reach consumers.

If I sell herbs and spices, I might choose to allocate some of my marketing budget to consumers who seek specific health benefits from herbs and spices, as compared to consumers who simply seek flavor.

If I sell two-line cordless phones, I might target small businesses and perhaps even a specific industry (dentists or pawn brokers) that my research indicates are likely buyers of two-line cordless phones.

Every product sold serves multiple “niche markets,” and every market can be divided into segments.

If there is any danger, it would be in focusing too much on a single niche or segment, and missing opportunities in other niches or segments. A great example is “destination travel” or “tourism,” where marketers seek to attract tourists to visit a specific location (Orlando, Chicago, San Francisco, Paris). Apparently, gay couples spend more on such trips than most other “market segments,” and therefore it can be profitable to allocate marketing dollars to target that audience. However, if the marketer chooses to exclude that niche (for whatever reason), there is a danger that other marketers will capture that niche, and earn more profits. Likewise, if 90% of the budget is spent on “gay tourism” then there is a risk not only of not “reaching” other potential visitors, but even of creating an impression that the destination is a “gay” or even “gay-only” destination, which might deter straight people from visiting.

Paul asks…

What niche products do you like to buy?

What type of niche product would you like to regularly buy online, but can never find?

New Niche Finder answers:

The real difficulty seems to be too many choices, too many decisions available. For example, I want a new notebook computer. It is ridiculous to find products online with pretty much what I really want. So the problem is to find some more efficient way find a product, just like a travel agent can help with travel so we need internet “agents” to help surf through all the tripe.

Ken asks…

How does the concept of niche differ from an organism’s habitat?

What is the difference between the fundamental niche and a realized niche? Thanks Alot for your help with this question.

New Niche Finder answers:

An organisms fundamental niche is where it is able to live and survive. The realized niche is where the organism actually lives. For example: An animal might be able to live within an entire forest, but say because of other animals and noise from humans, it only lives in a small area of the forest. So, the fundamental niche is the whole forest, and the realized niche is just the small part of the forest that the animal actually lives in. I hope this helps and makes sense!

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