Online Business Models

Australia Council Major Performing Arts Workshop, April 09

Online Business Models

Australia Council Major Performing Arts Workshop, April 09

Crisis in many public institutions

- difficulty connecting with young audiences- harder to cut through media clutter

- changing audience behaviours/trends- rapidly evolving new media landscape

Australia Council Major Performing Arts Workshop, April 09

Crisis, what crisis?

- formulate a new media strategy- start a conversation with your constituents

- think of ways to engage people online- build community loyalty

Australia Council Major Performing Arts Workshop, April 09

Business Models/Building Value

- value in building an online audience- value in listening to your audience needs- value in establishing affiliate relationships

- value in building community loyalty- value in arts partnerships

- you don’t have to sell ringtones (but you can!)

Australia Council Major Performing Arts Workshop, April 09

Long Tail Economics

Australia Council Major Performing Arts Workshop, April 09

What can I give away for free?

- most online business models start here- great free content/services attracts traffic

- up-to-date and dynamic content attracts traffic- rich content (video, audio, music) attracts traffic

- recommendations attract traffic

Australia Council Major Performing Arts Workshop, April 09

Freemium Business Model

- most common online business model- Freemium = Free + Premium

- Typical trial-to-purchase conversion rate is 1 - 5%

Australia Council Major Performing Arts Workshop, April 09

Online Advertising

- Contextual advertising- Google Adwords

(Your ads on sponsored links)- Google Adsense

(Google ads on your site)- Pricing: auction for search terms

Australia Council Major Performing Arts Workshop, April 09

Online Advertising

- Facebook Ads(Ability to target to niche interest groups)

Australia Council Major Performing Arts Workshop, April 09

Facebook Profiles - your content everywhere

Australia Council Major Performing Arts Workshop, April 09

Online Video Advertising

- YouTube Advertising

- Next generation video advertising driven by speech

recognition

Australia Council Major Performing Arts Workshop, April 09

In-game Advertising

Australia Council Major Performing Arts Workshop, April 09

Partnerships

- diversify referral traffic in addition to search engines

- Affiliate relationships - pay for click model

- where does your traffic come from?

- link to other organisations - reap the benefit of analytics

YOUR CONTENT

UpstreamAffiliate

Downstream

Pay perclick/sale

Income per click

Australia Council Major Performing Arts Workshop, April 09

Partnerships

- aggregation ofarts and

entertainmentorganisations

- inclusion of member reviews

Australia Council Major Performing Arts Workshop, April 09

Community The Power of Loyalty

Australia Council Major Performing Arts Workshop, April 09

- users have a high investment in both time and emotion - Obama campaign an example of grass roots community building - building a privileged relationship with members - exclusive previews and opportunities- community recommendation systems- community reviews and comments can build trust and online profile

Community The Power of Loyalty

Australia Council Major Performing Arts Workshop, April 09

Power of Recommendation - make it easy to email information to a friend or recommend your content to social bookmarking site