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

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Voici la présentation que je vais donner au séminaire annuel de meteorage, sur le thème de l'économie du gratuit et des modèles reposant sur l'abondance à l'heure d'internet

Voici la présentation que je vais donner au séminaire annuel de meteorage, sur le thème de l'économie du gratuit et des modèles reposant sur l'abondance à l'heure d'internet

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  • 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

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
  • 38.
    • Thanks !