wk 3 - digital business models and advertising Flashcards
1
Q
Business model - 3 interpretations
A
- As an observable attribute of a real firm
- As a cognitive or linguistic schema - i.e images or interpretations of real systems held by managers - not the real system themselves
- As a formal conceptual representation describing the activities of a firm
2
Q
Internet impact of business models
A
- Giving rise to new kinds of (digital) business models e.g google
- Reinventing tried and true models e.g Ebay
- Many of these new, digital business models often referred to as “disruptive” models
3
Q
Brokerage
A
- Brokers are market-makers : they bring buyers and sellers together and facilitate transactions
- Usually a broker charges a fee or commission for each transaction
- Can be in the form of B2B e-marketplace, online auction sites, price comparison sites
4
Q
Direct model
A
- Company that produces a product or service reaching consumers directly and thereby compressing the distribution channel
5
Q
Content provider
A
- Provides digital content
- Very often advertising provides revenue
6
Q
Social media
A
- Facebook, linkedIn, Instagram
- Upload and share content
7
Q
“freeium” pricing model
A
- A product/ service is provided free of charge to a large number of users but costs more for advanced features e.g Skype
8
Q
other business model categories
A
- Online advertising
- Referral
- Subscription
- Rental
9
Q
Multi- sided platforms (MSP’s)
A
- Defined as “ technologies, products or services that create value primarily by enabling direct interactions between two or more customer or participant groups” (Hagiu,2014)
- E.g Uber, Airbnb, enable interactions between those willing to share an asset or offer a service and those who want to make use of it
- Create value by reducing search and / or transaction costs or participants
- Economies of scale
- Potentially high switching costs or high costs
10
Q
Challenges for MSP’s
A
- How many sides to bring on board - more could mean greater cross-side network effects, large scale and diversified sources of revenues
- Decide on pricing structure
- How to regulate third party actions
11
Q
Why is online advertising so important
A
- Consumers spend ever more time online
- Mechanisms to target ads to the right audience
- Generates data used to measure return on investment and optimise ad campaigns
- Different forms available, each with their own attractions to advertisers
12
Q
Display advertising (form of online advertising)
A
- The publisher provides content and / or services mixed with advertising messages ( like email)
- Works best when the volume of viewer traffic is high, highly specialised or ads are highly targeted
- E.g news sites, social media
13
Q
Native ads ( form of online adverting)
A
- Designed to match the form and function of the platform upon which they appear
- E.g promoted stories in news feed
14
Q
Pricing models
A
- CPM : Cost per thousand impressions (i.e number of times an ad is served)
- CPC : cost (pay) per click ; fixed prices or auction
- CPA : cost per action - generated lead ( e.g vistor registers or requests info via online form)
- CPI : cost per install of an advertised app
15
Q
Contextual and behaviour targeting
A
Contextual targeting - based on publishers content e.g through keyword matching
Behavioural targeting - based on past browsing behaviour
