Diversifying revenue sources in an e-commerce site - dinos’ success story

dinos is a Japanese mail order company that relies on catalogs, TV and the Internet for its business. In their online shopping site, visitors can purchase items they've seen on TV or in catalogs. Their site was established in September 2000 and, as of July 2012, dinos now receives 2.5 million user visits and 58 million page views per month. Revenue from their site accounts for about half of dinos' total revenue.

We recently interviewed Hiroyuki Kikuchi from the dinos marketing team, to find out more about the company’s experiences with AdSense.

■ Inside AdSense (IA): Could you tell us why and how you started to use AdSense?
We started to use AdSense to diversify the sources of revenue from the site and also to monetize the traffic from users leaving the site. The major reason why we decided to use AdSense is because of its flexibility: we can shut off or turn on a campaign at any time. We started out with a pilot in April 2012. Then in May, we began using AdSense more, dramatically increasing the number of pages with ads. As a result, our revenue increased significantly.

■ IA: Did you use any other service before you implemented AdSense?
We used an affiliate service before using AdSense. We piloted this service because it provided control over which ads we served. We also analyzed the results from our pilot to be able to optimize our ad network implementation later on. Our main concern with trying AdSense was that we would not be able to choose the ads we served, but after implementation, we found that we could easily control the ads at the URL and ad category levels. The revenue coming from AdSense is much higher than the revenue we earned from the affiliate network.

■ IA: When implementing AdSense, was there any opposition from within the company?
There was internal concern that using AdSense would decrease product sales on dinos.com. We explained that sales revenue had not changed since AdSense was implemented. In addition, we offered to stop using AdSense if we received any complaints from our users. In the end, sales levels remain constant and we did not receive any complaints. This shows that we're providing useful information to our users and showing high quality ads

■ IA: Was it easier to implement AdSense than you’d expected?
It was very easy to introduce AdSense. It was very helpful that we could set up the ad categories that we wanted to block in the account interface. It was also good that we could block ads on a URL basis.

■ IA: What resources do you use to manage your account?
Since we don’t need many resources to manage AdSense, only one person is managing it.

We hope you enjoyed learning about another publisher's AdSense journey. Stay tuned for more stories.

Posted by Kensuke Ishida, Strategic Partner Manager