l'economie du gratuit à l'heure d'internet

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    Notes on slide 1

    47M oeuvres

    Si Myspace était un Pays  5 ème le plus peuplé (220 000 000) FBK: 300M users  4ème

    Pay for the maps (navteq for satellite), but proposed for free (=innovation) = rapid growth and market share B2B charge business B2C free thanks to ads

    +2500 mash ups

    Given away for free

    Given away for free, high quality product / services

    Given away for free, high quality product / services

    Given away for free, high quality product / services

    Traditional model with commercial communication/sales pitch in the end toward newer and more complex interaction model with the audience Good news is that : these interactions are also part of the selling process 

    Tone of voice: interact ! Challenge !

    Opinion leaders: from bloggers to journalists

    1 Favorite

    l'economie du gratuit à l'heure d'internet - Presentation Transcript

    1. Alban MARTIN @ Pau, 14th October 2009 Freeconomics on the internet
    2.  
    3. Agenda
      • Why free, specially online ?
      • How to make money with free stuff
      • Concrete examples of business strategy around free products or services
      • Emerging trends of online advertising
    4. Agenda
      • Why free, specially online ?
      • How to make money with free stuff
      • Concrete examples of business strategy around free products or services
      • Emerging trends of online advertising
    5. Correspond to the way innovations are created online…
      • Only 3 ways to innovate when launching a new online service or product (Jyri Engestrom)
        • Simpler
        • Or cheaper
        • Simpler and cheaper
      • Consequences: driving prices down from one service (or version) to the next one
    6. … enabled by structural elements…
      • Cheaper bandwidth & Cheaper storage
      Source graphic: G. Champeau
    7. … enabled by structural elements…
      • Cheaper technology
      • Ex Transistors prices :
        • 1961 : 10 dollars
        • 1965 : 2.5 dollars
        • 1968 : 1 dollar
        • 1975 : 0,1 dollar
        • 1982 : 0,01 dollar
        • Today: 2billion transitors for 300dollars = 0,00000015 dollar
      Source : C. Anderson, Free, Pearson education France, septembre 2009
    8. … enabled by structural elements…
      • « Web 2.0 » tools to engage and interact with the audience and cocreate value with customers
    9. … enabled by structural elements…
      • New forms of copyright (=copyleft) protecting digital creators AND enabling copies
    10. … enabled by structural elements…
      • Fluidity of information
        • online social links
        • efficient recommendation tools
    11. … enabled by structural elements…
      • Critical mass of potential users (=audience)
      • The online advertising market
      Source: Zenith Optimedia; Yankee Group; Jupiter Research; ABI Research Advertising investments Western Europe - (Billion €) 30% 14% 6% 29% 14% 6% CAGR 20% 3% 3% 2% 1% 4%
    12. … and increased by abundance…
      • Online copy = does not prevent from using the « original » copy = Non rival goods
      • Abundance of content, products and services versus scarcity
        • Democratization of creation and editing tools
        • Read write rewrite media
        • User Generated Content
    13. … and increased by abundance…
      • 57% of teens are content creators online (Pew internet)
      • 2 billions pictures on FlickR (3/4M per day) and 4 billions sur Facebook
      • Facebook users translated the site from English to Spanish via a Wiki in less than 4 weeks and cost Facebook $0 (source: socialnomics)
      • More than 1.5 million pieces of content (web links, news stories, blog posts, notes, photos, etc.) are shared on Facebook…daily (socialnomics)
      • 70 000 videos uploaded per day on youtube
      • 2 millions articles on Wikipedia
      • 8000 music albums on Jamendo and 250 000 songs on soundclicks
    14. … deeply modifying resources management Source: C. Anderson, free, pearson education 2009, and online http://www.wired.com/techbiz/it/magazine/17-07/mf_freer?currentPage=2
    15. Agenda
      • Why free, specially online ?
      • How to make money with free stuff
      • Concrete examples of business strategy around free products or services
      • Emerging trends of online advertising
    16. Eight models for monetizing digital content Source : Forrester Research, 8 models for monetizing digital content, june 2009 * * * *
    17. 4 models in particular are “monetizing” free products and services Source: C. Anderson, “Free”
      • Example: iTunes and iPod
      • Give a software + free content (or below market price content) for selling another expensive one
      • MP3 Margin : 1%
      • -60 cents record company
      • 19c VAT
      • 7c right owner
      • 3c artists
      • 1c bandwith
      • 1c transaction costs
      • 1c DRM
      • 5c marketing & plateform hosting
      • iPod Margin : 30%
      Cross-subsidies
    18. 4 models in particular are “monetizing” free products and services Source: C. Anderson, “Free” Example: Gmail free 8Gigas mail box
    19. 4 models in particular are “monetizing” free products and services Source: C. Anderson, “Free” Example: Free weather but paying full info
    20. 4 models in particular are “monetizing” free products and services Source: C. Anderson, “Free”
      • Example: Wikipedia
      • If you were paid a $1 for every time an article was posted on Wikipedia you would earn $156.23 per hour
      • +200K persons occupied by +150K open source projects (source: Ohloh)
    21. Agenda
      • Why free, specially online ?
      • How to make money with free stuff
      • Concrete examples of business strategy around free products or services
      • Emerging trends of online advertising
    22. Example of 1-800-GOOG-411
      • 7 billion dollars market per year for AT&T and other operators in the US
      • 50cents to 1.75 dollars per call
      • Google enters the market with free information (whereas it could be charged 1Euros
      • Estimated “loss”: 144Million dollars until 2012
      • Why and for which benefit?
    23. Example of 1-800-GOOG-411
      • Innovation: cheaper AND simpler
      • Quicker growth of market share compared to entry market strategy with paid information
      • Obtain for free millions of data for fine-tuning voice recognition system (=14M dollars worth of data)
      • According to Google’s Peter Norvig, “1-800-GOOG” serves as a trial for a mobile vocal search engine !
      • Search on mobile market will be worth 2.5billion dollars in 2012
      Source: C. Anderson, “Free”
    24. Example of Google Maps
      • Innovation: cheaper AND simpler
      Source: C. Anderson, “Free”
      • Rapid growth and dominant market position thanks also to “open” API
    25. Example of Google Maps Money for google Money for google Money for google
    26. Example of Google Maps Money for google Money for google Money for google
    27. Example of Google Maps Example of 3rd party use of googlemap: http://earthquakes.tafoni.net/?hl=en
      • If more than 50K Pages views per day generated by 3rd party using googlemap
      • consider it is a dedicated business
      •  charge
    28. 10 rules of free – C. Anderson
      • If it is digital, it will become sooner or later free
      • Atoms would also like to be free, but not that easy
      • Free cannot be stopped
      • You can earn money with free
      • Redefine your market
      • Pull price down as much as possible
      • Sooner or later you will compete with free stuff
      • Waste
      • Free is making other things more valuable
      • Manage abundance not scarcity
    29. Agenda
      • Why free, specially online ?
      • How to make money with free stuff
      • Concrete examples of business strategy around free products or services
      • Emerging trends of online advertising
    30. What if the time spent online with the products was entertaining?
      • Development of online brand content
        • “ relatively new form of advertising medium that blurs conventional distinctions between what constitutes advertising and what constitutes entertainment” (source: wikipedia)
        • Short movies, online series, clips
        • Events
        • web-tv
        • Guides
        • Calendars
        • Consumer magazines, books
        • Advergaming, advertainment
    31. What if the time spent online with the products was entertaining?
    32. What if your consumers were doing your job?
      • Cocreation of advertising
        • Dailymotion « motion maker »
        • Eyeka « creatives »
        • Blogbang « creatives and bloggers »
    33. What if your consumers were doing your job?
    34. Another model for lowering prices to the maximum : the cocreation of value R&D Marketing Sales 
    35. Another model for lowering prices to the maximum : the cocreation of value 12/10/09 R&D WHO? niche, mainly B2B, start-ups, SMEs, independant, also students HOW? cooperation & co-creation plateforms, in real life happenings (workshops, barcamp, conference) KPIs? # contributions, deals/new partners, ideas, suggestions
    36. Another model for lowering prices to the maximum : the cocreation of value 12/10/09 R&D Marketing Sales  WHO? Targeted and small audience, geeks, early adopter HOW? beta test, “netnology”, online discussion monitoring, forums KPIs? # answers, ratings, feedbacks
    37. Another model for lowering prices to the maximum : the cocreation of value 12/10/09 R&D Marketing Sales  WHO? opinion leaders, From small to large market, HOW? Blog marketing, Word of mouth marketing, Social Media Optimization KPIs? Audience, followers, transmission-rate, interaction with the message
      • Thanks !

    + alban martinalban martin, 1 month ago

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