Digital Revenue Models

Digital Revenue Models

Prepared and presented by Tuan BurahJune 2014$

We are fast approaching a total of 1 billion websites, a milestone which at this rate will be reached by the end of 2014.

Online Stats

Top Consumer Reasons For Shopping Online

Percent of Survey Citing Reason

Time Saving 73 %More Variety 67 %Easy to Compare Prices 59 %No Crowd 58 %Lower Prices 55 %Spend Less on Gas 40 %Less Taxes 30 %Other 3 %

Social Network StatsTotal number of Facebook users worldwide 1.4 Billion

Total percentage of people on Earth who use Facebook 11%

Total amount of minutes people spend on Facebook every month 700 billion

Total amount of people who access Facebook with phone 250 million

Total amount of websites that have integrated with Facebook 2.5 million

Total amount of unique YouTube users per month 490 million

Total amount hours spent on YouTube per month 2.9 billion

Total amount of articles hosted by Wikipedia 17 million

Average pictures uploaded to Flickr per minute 3,000

Average amount of tweets per day 190 million

So how do we make some money online ?

Revenue from Subscription based access to content

Types of Revenue Models

1

The Freemium Concept

Perhaps the most common model used by Web services.

The idea here is to sell a basic free product to as many customers as possible, but keep the premium features exclusively for paying customers.

For instance, Dropbox offers 2GB of free cloud data storage. But if one wants more space, one has to pay up.

Types of Revenue Models

1

Revenue from Pay Per View access to document/videos

Types of Revenue Models

2

Revenue from Display advertising on site

Revenue from CPC advertising on site (pay per click text ads)

Types of Revenue Models

3

Adverts: One of the oldest money-making sources

Display Ads – e.g. Yahoo!

Search Ads – e.g. Google

Text Ads – e.g. Google, Facebook

Video Ads – e.g.  YouTube

Audio Ads – e.g. Saavn

Promoted Content – e.g.  Twitter, Facebook

Recruitment Ads – e.g.  LinkedIn

Classifieds – e.g.  JustDial, Quikr

Featured listings – e.g. Zomato, CommonFloor

Email Ads – e.g. Yahoo!, Google

Location-based offers – e.g.  Foursquare

Types of Revenue Models

3

Revenue from Sponsorship of site sections or content types

Types of Revenue Models

4

Sale of products and services

Types of Revenue Models

5

Affiliate revenue and Referral commissions

Types of Revenue Models

6

Who’s the largest of them all?

The confusing and complex world of online hotel room reservations

250,000 + 175,000 + 350,000 + 500,000 = 225,000 hotels

1%

.5%

.25%

.75%

End. Thanks