WordWatch Freemium

Todd Wilkinson CEO, WordWatch

Google:
+/- $35 billion revenues/yr almost all from advertising AdWords = flagship product SMB advertisers = largest revenue driver

AdWords:
(Relatively) easy to set up / difficult to manage SMBs set & forget bid prices .but search market like airfares constantly in flux

WordWatch:
Launch Mar 11 (Paid plans since Nov 11) Automatically manages keywords / bidding Optimizes budget for ROI Deliver more clicks / less cost / no hassle

Customer Base:
SMB advertisers (no one does AdWords for fun!) If you advertise, need optimal ROI / need WordWatch Clear Value Prop: more performance/less cost higher commitment (also lower churn)

Pricing:
5 tiers: Free; $49/mo; $99/mo; $199/mo; $399/mo All paid plans = CC up front / first (trial) month free Free plan = 1 campaign; optimize for Clicks only

Why Freemium?
Need for maximum growth (i.e. volume over quality) (Some) percentage will convert to paid (eventually?) 15-20% direct to paid

Conclusions:
Jury still out for our user base Freemium conversion rates/effects still unclear De-values paid services? Free users ravage CPA! Lower commitment (activation/usage) levels Free users = less sophistication = more support

Questions?

Todd Wilkinson todd@wordwatch.com