Transcript Overview Online Business Models

AdVolve
Developing Industry Knowledge
Content
•Overview
•Online Business Models
What is a business model?
• 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
• Internet commerce has given rise to new kinds
of business models
Merchant
Utility
Subscription
Brokerage
Online
Business
Models
Infomediary
Advertising
Community
Affiliate
Merchant Model
Sales may be made based on list prices or through
auction by wholesalers or retailers.
•Virtual merchant/e -retailer
•Bit vendor
•Catalog merchant
Brokerage Model
Brokers bring buyers and sellers together and
facilitate transactions. They charge a fee or
commission for transactions.
Community Model
Heavily dependent on user loyalty either for the
investment of time or to aid with providing with
financial investment. Thrives on contextual
targeting, voluntary contributions, subscriptions for
premium services, etc.
Affiliate Model
A pay for performance model, even if the affiliate fails to
generate sales, it represents no cost to the merchant. It provides
purchase opportunities wherever people may be surfing. It does
this by offering financial incentives to affiliated partner sites. The
affiliates provide purchase-point click-through to the merchant.
• Pay-per-click -site that pays affiliates for a user click-through.
• Revenue Sharing - offers a percent-of-sale commission based
on a user click-through in which the user subsequently
purchases a product.
Infomediary Model
Works on providing insights and insider
knowledge, for instance, data on consumption
habits of consumers, to its customers to help
them target marketing campaigns to the right
audience.
Subscription Model
Users are charged a periodic fee to subscribe to
a service.
Utility Model
Based on "pay as you go" approach. Unlike
subscriber services, metered services are based on
actual usage rates.
Advertising Model
Form of promotion that uses the Internet and World Wide Web for
the expressed purpose of delivering marketing messages to attract
customers.
•Portal
•Classifieds
•Query based paid placement
•Content targeted advertising
•User registration
Types of Display Ads
Google AdSense
• Fast and easy way for website publishers of all
sizes to display relevant Google ads on their
website's content pages and earn money
• The ads are related to what your visitors are
looking for on your site — or matched to the
characteristics and interests of the visitors
your content attracts
• Revenue is generated either on CPC or CPM
basis
Difference between Google AdWords
and Google AdSense
• Google AdWords is a self managed advertising
medium through which you create your ads
and advertise online. Whereas, Google
AdSense is a way to earn revenue by
displaying ads on your own website
• You pay for AdWords and you earn through
AdSense
• The 2 accounts cannot be linked and need
separate transactions
Summary
• Broadly eight online business models
• Each one has a different way to generate
revenue
• Types of Advertising models
• Types of Ads
• Google AdSense
• Difference between Google AdWords and
Google AdSense
Helpful Links
• www.adwords.google.com
• www.google.com/adsense
Thanks!