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The web economy in 20 minutes
- 1. The Web Economy in 20’ Business English Presentation Authors: Mauro Cavallaro Daniele Papa
- 3. Cost
- 4. Fixed
- 5. Variable
- 6. Revenue
- 7. Price
- 8. Advertising
- 10. Financial Times
- 11. SlideShare
- 12. Fotolia
- 13. Bloomberg
- 15. INFORMATION Information = everything you can digitize Text Image Audio Video VALUE Consumer goods Factors of production 3
- 16. VALUE SYSTEM MAKE ADV $ Provide Information BUY Attention USER GENERATED CONTENTS USER $ Information Money Attention 4
- 17. INFORMATION COST Cost TC Information Cost TFC InfrastructureCost FC VC Cost per Unit Marketing Cost ATC MC Connectivity Cost VC Volume TC: Total Cost TFC: Total Fixed Cost VC: Variable Colst 5 ATC: Advrage Total Cost MC: Marginal Cost
- 18. COST: Fixed Costs Information Cost Infrastructure Cost Marketing Cost MAKE BUY DESIGN SOFTWARE HOSTING/HOUSING ADV SEO/SEM OTHER 6
- 19. COST: Variablecosts (long run) Cost per Giga per Month Gigabytesofbandwidth LOW COST HOSTING VIRTUAL SERVER HOUSING TYPE 7
- 20. REVENUE: Advertising “Google AdWords is a service that lets you create and run ads for your business, quickly and simply.” Google Adword keyword competition 1 4 2 5 3 6 7 SERP 8 9 10 8
- 21. REVENUE: Price PRICE DISCRIMINATION Revenue Revenue Financial Times Slide Share Price Price Price $/U $/U $/U P*2 P* P*1 Volume Volume Volume 9
- 22. UGC vs Make/Buy: Pros & Cons 10 MAKE/BUY UGC Higher information quality Lower Fixed Costs Information property Better knowledge of users Higher Fixed Costs Need of critical mass High breakeven point Need of moderation Pros Cons
- 23. Facebook MAKE ADV Information Cost FaceBook BUY InfrastructureCost FC USER UGC Marketing Cost Connectivity Cost VC 11
- 24. Financial Times MAKE ADV Information Cost Ft.com BUY InfrastructureCost FC USER UGC Marketing Cost Connectivity Cost VC 12
- 25. SlideShare MAKE ADV Information Cost SlideShare BUY InfrastructureCost FC USER UGC Marketing Cost Connectivity Cost VC 13
- 26. Fotolia MAKE ADV Information Cost Fotolia BUY InfrastructureCost FC USER UGC Marketing Cost Connectivity Cost VC 14
- 27. Bloomberg MAKE ADV Information Cost Bloomberg BUY InfrastructureCost FC USER UGC Marketing Cost Connectivity Cost VC 15
- 28. Google MAKE ADV Information Cost Google BUY InfrastructureCost FC USER UGC Marketing Cost Connectivity Cost VC 16
- 29. Conclusions MAKE ADV $ Provide Information BUY Attention Revenues Costs USER GENERATED CONTENTS USER $ Information Money Attention Information Cost Price Discrimination InfrastructureCost FC Marketing Cost Advertising Connectivity Cost VC 17