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Business Models

The document discusses business models for making money on the web. It identifies nine basic models including broker, infomediary, retail, manufacturer, affiliate, community, subscription, pay as you go, and advertising. Online advertising continues to show growth compared to the overall declining advertising industry. The rise of apps on mobile devices and need to find ways to generate revenue from social media platforms like Facebook and Twitter are also covered.

Business◦Technology◦
Making money on the web A review of business models
What do we mean by Business models? 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. The business model spells - out how a company makes money by specifying where it is positioned in the value chain. eCommerce will give rise to new kinds of business models. But the web is also likely to reinvent tried-and-true models. Auctions - The Web has popularized the auction model and broadened its applicability to a wide array goods and services. Nine basic models – we can expect more…
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 Still showing growth First half 2009 - £1.75 billion Up 4.6% YOY on a like for like basis Overall ad industry declined 16.6% Online advertising is now 23.5% of the total market It is now bigger than TV advertisng
… 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 Facebook and Twitter don’t make money But those working with them do… Content is going to have to be paid for But how since none of us want to!
THANK YOU
Why Multi-platform and why now?
What do we mean multi-platform? No strict definition Cross platform vs. multi-platform Is it about the platform or the purpose of the content Is it about migration or creation? Who controls the content the viewer or the broadcaster? How do siloed industries that never speak to each other cope in this new world ?
What are the key drivers of change? Channel proliferation Audience fragmentation Broadband and wireless internet Independent production Convergence – 4Play You Tube iPlayer Consumer attitudes – digital natives
Channel proliferation and audience segmentation
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
Independent Production The Broadcast Act 1990 – 25% of all production has to come form independents
Convergence
You Tube You Tube is the 4 th most popular website in the UK September 2009
iPlayer
The rise of online video UK internet traffic to video websites has increased by 41% in the last twelve months (Feb) 29% YOY to end of July….
The rise of online video Video is a core component of the online landscape in the UK Since early 2006 when You Tube was in its infancy traffic has increased 37-fold
The rise of online video iPlayer was the 20th most popular site in the UK in July 2009 overtaking MySpace taking 26% more traffic than it UK internet searches for iPlayer have trebled over the last 12 months It was the second most popular video site in July with over 13% of traffic During July 4 of the top twenty websites were from the BBC Even the Sky player saw 300% increase in traffic pushing it up to 16th in Entertainment category
Content remains king
Social Networking vs. Online Video
The rise of the Digital Native
The rise of the Digital Native You want freedom in everything they do, from freedom of choice to freedom of expression You love to customize, personalize You are the new scrutinizers You look for corporate integrity and openness when deciding what to buy and where to work You want entertainment and play in their work, education, and social life You are the collaboration and relationship generation You have a need for speed - and not just in video games You are the innovators.
The key to Digital Natives
What does this all mean? Vanilla is dead… You want your content whenever and wherever Broadcasters have made it available across all available channels They have made it as engaging, interactive and bite –size because your attention span is short … and you have grasped the opportunity to shape and share with your communities With this in mind the old rules of content creation have changed forever
What does this all mean? Its no longer just the quality of the story… But the quality of the storytelling… … and reaching a commercially viable audience … by using the right mix of channels … understanding their characteristics But never forget - without great ideas it just become an efficient delivery process Just like Royal Mail!
THANK YOU