Making money on the web A review of business models
What do we mean by Business models? <ul><li>In the most basic sense, a business model is the method of doing business by w...
The nine models Broker Advertising Infomediary Retail Manufacturer Affiliate Community Subscription Pay as you go
Broker
Infomediary
Retail
Manufacturer
Affiliate
Community
Subscription
Pay as you go
Advertising
Doom and Gloom!
Media scare stories..
Online Advertising <ul><li>Still showing growth </li></ul><ul><li>First half 2009 - £1.75 billion </li></ul><ul><li>Up 4.6...
… and what about Mobile
Its all about Apps 100,000 Apps available in the iTunes App store 2 billion downloaded 65% are games
Where next <ul><li>Facebook and Twitter don’t make money </li></ul><ul><li>But those working with them do… </li></ul><ul><...
THANK YOU
Why Multi-platform and why now?
What do we mean multi-platform? <ul><li>No strict definition </li></ul><ul><li>Cross platform vs. multi-platform </li></ul...
What are the key drivers of change? <ul><li>Channel proliferation </li></ul><ul><li>Audience fragmentation </li></ul><ul><...
Channel proliferation and audience segmentation
The 3 parameters of exponential online growth 1. Individual Ingenuity and Creativity 2. Increasing  Speed of  Connectivity...
Independent Production <ul><li>The Broadcast Act 1990 – 25% of all production has to come form independents </li></ul>
Convergence
You Tube You Tube is the 4 th  most popular website in the UK September 2009
iPlayer
The rise of online video <ul><li>UK internet traffic to video websites has increased by 41% in the last twelve months (Feb...
The rise of online video <ul><li>Video is a core component of the online landscape in the UK </li></ul><ul><li>Since early...
The rise of online video <ul><li>iPlayer was the 20th most popular site in the UK in July 2009 overtaking MySpace taking 2...
Content remains king
Social Networking vs. Online Video
The rise of the Digital Native
The rise of the Digital Native <ul><li>You want freedom in everything they do, from freedom of choice to freedom of expres...
The key to Digital Natives
What does this all mean? <ul><li>Vanilla is dead… </li></ul><ul><li>You want your content whenever and wherever </li></ul>...
What does this all mean? <ul><li>Its no longer just the quality of the story… </li></ul><ul><li>But the quality of the sto...
THANK YOU
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Business Models

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  • LYNNE
  • Business Models

    1. 1. Making money on the web A review of business models
    2. 2. What do we mean by Business models? <ul><li>In the most basic sense, a business model is the method of doing business by which a company can sustain itself - that is, generate revenue. </li></ul><ul><li>The business model spells - out how a company makes money by specifying where it is positioned in the value chain. </li></ul><ul><li>eCommerce will give rise to new kinds of business models. But the web is also likely to reinvent tried-and-true models. </li></ul><ul><li>Auctions - The Web has popularized the auction model and broadened its applicability to a wide array goods and services. </li></ul><ul><li>Nine basic models – we can expect more… </li></ul>
    3. 3. The nine models Broker Advertising Infomediary Retail Manufacturer Affiliate Community Subscription Pay as you go
    4. 4. Broker
    5. 5. Infomediary
    6. 6. Retail
    7. 7. Manufacturer
    8. 8. Affiliate
    9. 9. Community
    10. 10. Subscription
    11. 11. Pay as you go
    12. 12. Advertising
    13. 13. Doom and Gloom!
    14. 14. Media scare stories..
    15. 15. Online Advertising <ul><li>Still showing growth </li></ul><ul><li>First half 2009 - £1.75 billion </li></ul><ul><li>Up 4.6% YOY on a like for like basis </li></ul><ul><li>Overall ad industry declined 16.6% </li></ul><ul><li>Online advertising is now 23.5% of the total market </li></ul><ul><li>It is now bigger than TV advertisng </li></ul>
    16. 16. … and what about Mobile
    17. 17. Its all about Apps 100,000 Apps available in the iTunes App store 2 billion downloaded 65% are games
    18. 18. Where next <ul><li>Facebook and Twitter don’t make money </li></ul><ul><li>But those working with them do… </li></ul><ul><li>Content is going to have to be paid for </li></ul><ul><li>But how since none of us want to! </li></ul>
    19. 19. THANK YOU
    20. 20. Why Multi-platform and why now?
    21. 21. What do we mean multi-platform? <ul><li>No strict definition </li></ul><ul><li>Cross platform vs. multi-platform </li></ul><ul><li>Is it about the platform or the purpose of the content </li></ul><ul><li>Is it about migration or creation? </li></ul><ul><li>Who controls the content the viewer or the broadcaster? </li></ul><ul><li>How do siloed industries that never speak to each other cope in this new world ? </li></ul>
    22. 22. What are the key drivers of change? <ul><li>Channel proliferation </li></ul><ul><li>Audience fragmentation </li></ul><ul><li>Broadband and wireless internet </li></ul><ul><li>Independent production </li></ul><ul><li>Convergence – 4Play </li></ul><ul><li>You Tube </li></ul><ul><li>iPlayer </li></ul><ul><li>Consumer attitudes – digital natives </li></ul>
    23. 23. Channel proliferation and audience segmentation
    24. 24. The 3 parameters of exponential online growth 1. Individual Ingenuity and Creativity 2. Increasing Speed of Connectivity 3. Decreasing Cost of Data Storage 9/10 households can get broadband 6/10 have it
    25. 25. Independent Production <ul><li>The Broadcast Act 1990 – 25% of all production has to come form independents </li></ul>
    26. 26. Convergence
    27. 27. You Tube You Tube is the 4 th most popular website in the UK September 2009
    28. 28. iPlayer
    29. 29. The rise of online video <ul><li>UK internet traffic to video websites has increased by 41% in the last twelve months (Feb) </li></ul><ul><li>29% YOY to end of July…. </li></ul>
    30. 30. The rise of online video <ul><li>Video is a core component of the online landscape in the UK </li></ul><ul><li>Since early 2006 when You Tube was in its infancy traffic has increased 37-fold </li></ul>
    31. 31. The rise of online video <ul><li>iPlayer was the 20th most popular site in the UK in July 2009 overtaking MySpace taking 26% more traffic than it </li></ul><ul><li>UK internet searches for iPlayer have trebled over the last 12 months </li></ul><ul><li>It was the second most popular video site in July with over 13% of traffic </li></ul><ul><li>During July 4 of the top twenty websites were from the BBC </li></ul><ul><li>Even the Sky player saw 300% increase in traffic pushing it up to 16th in Entertainment category </li></ul>
    32. 32. Content remains king
    33. 33. Social Networking vs. Online Video
    34. 34. The rise of the Digital Native
    35. 35. The rise of the Digital Native <ul><li>You want freedom in everything they do, from freedom of choice to freedom of expression </li></ul><ul><li>You love to customize, personalize </li></ul><ul><li>You are the new scrutinizers </li></ul><ul><li>You look for corporate integrity and openness when deciding what to buy and where to work </li></ul><ul><li>You want entertainment and play in their work, education, and social life </li></ul><ul><li>You are the collaboration and relationship generation </li></ul><ul><li>You have a need for speed - and not just in video games </li></ul><ul><li>You are the innovators. </li></ul>
    36. 36. The key to Digital Natives
    37. 37. What does this all mean? <ul><li>Vanilla is dead… </li></ul><ul><li>You want your content whenever and wherever </li></ul><ul><li>Broadcasters have made it available across all available channels </li></ul><ul><li>They have made it as engaging, interactive and bite –size because your attention span is short </li></ul><ul><li>… and you have grasped the opportunity to shape and share with your communities </li></ul><ul><li>With this in mind the old rules of content creation have changed forever </li></ul>
    38. 38. What does this all mean? <ul><li>Its no longer just the quality of the story… </li></ul><ul><li>But the quality of the storytelling… </li></ul><ul><li>… and reaching a commercially viable audience </li></ul><ul><li>… by using the right mix of channels </li></ul><ul><li>… understanding their characteristics </li></ul><ul><li>But never forget - without great ideas it just become an efficient delivery process </li></ul><ul><li>Just like Royal Mail! </li></ul>
    39. 39. THANK YOU

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