Business Models

This week we will focus more on the  business side of the equation, more importantly on how the market has evolved since the launch on the World Wide Web. I found this interesting website  that argues that everything old is being recycled in the web. The Internet has created new business models but some of them are just digital versions of oldies but goodies. For example, the Brokerage Model which include popular companies such as Priceline.com with the feature "name your price" and Ebay.  Brokers are market-makers and this model focuses on bringing together buyers and sellers facilitating transactions. Brokers play a frequent role in business-to-business (B2B), business-to-consumer (B2C), or consumer-to-consumer (C2C) markets. Usually a broker charges a fee or commission for each transaction it enables. Another business model is the Advertising model found in YAHOO! and Monster.com. These sites offer free features like email or search engines but charges its clients to post ad banners. This model is an extension of the traditional media broadcast model.

So after all, it is not about the "new business models" but adapting already existing concepts into the new technology era.

Have a great e-week!

Ding Ding Digg

So i was doing some research online for the latest e-marketing news and found  this. This week the battle is between Digg and America. Digg is a website initiated by a 20 year old kid. The purpose of Digg is to allow its users to vote for news so the stories can raise to the top. Different sources estimated that the founder made $60 million dollars in the first 18 months of the website's life. You might be wondering... WOW i should really start a website right about now! The article reported that the kid did not make $60 million but that is what the website was worth in shares. Also, that amount of money was not referring to revenue but to estimated value in terms of visitors or audience. The article goes on to report that Digg makes about $15 million a year and is still operating at a loss. As we have seen in the past, it is not enough to have a great idea but you also need a business plan to actually bank of your mind. What do you think are some ideas of how to keep Digg afloat? The website is quickly loosing its momentum... What are they lacking? Did you know about Digg before reading this? I sure didn't but I am going to check it out and you can too by clicking here: Digg

Blue icon for privacy

Oddly enough, it depends of the advertisement that this icon receives in order for consumers to know about it. If the icon is just placed on the web page and it waits on the consumer to click on it to learn more about it, not many people will pay attention to it. Also, customers will know the meaning of the icon if enough companies sign up for this and if the icon is present in many places as to arise curiosity in the consumer. Personally, I do not feel that it is a violation of my privacy if ads that might be of interest to me are shown on the sites that I visit. If I have to deal with pop up ads, banners and everything in between I rather be something that I am interested in rather something that I am not. For more information on the mystery icon click here.

Check out the 7 principles of the Self-regulatory program here

Internet Eyes

Well, isn’t this idea just wonderful! There is a new program on the web that pays you for catching retail criminals…from the convenience of your home. Having worked in retail for more than 3 years, I can tell you that someone is ALWAYS watching. Retail stores have trained Asset Protection personnel that is in charge of catching shoplifters. These people have been trained and know what to look for in a shoplifter and what their behavior is like. They undergo rigorous training and an extensive background check before being hired. I feel very uncomfortable knowing that a plain old folk that had nothing to do with the store that I am shopping at would be watching me while I shop.  Also, what if someone reports a false crime, making an honest mistake (since no experience is required)? This could get the company that created this software, Internet Eyes, and the retail in big trouble for wrongly accusing a person.  If you check out the FAQ on the website, the procedure is described as a game, only that it is not. The viewer gets “rewards” and “free additional alerts” when they report a crime that results in apprehension. Also, there is no background check for participants only “a seamless ID and Age verification check” along with a monthly, quarterly or annual subscription fee. What about privacy issues? Just think about this since, anyone that lived in the EU and is registered could be watching you while shopping.

Check out this links on internet privacy
Privacy Rights
New York Times

The Future of Print Media

Hi There,

So this week's topic deals with the future of print media. I would like to start by saying that I love magazines, not the ones that you read online but the ones that arrive on the mail and you can flip through the pages. There is something very exciting about getting the latest magazine all wrapped up in a plastic cover before the non-subscribers and getting the dish on the latest beauty and fashion trends. I like that I can smell the latest scents and test the new skincare through the integrated samples. Also, how many of us catch up on the latest celebrity scandals on the checkout lanes at the supermarket? I know you are smiling right now.

The fact is that now more and more print publications are going online but also more and more people are subscribing to print magazines online as well. Since print publications cannot stop the online craze they are adapting to it. How? By integrating their print editions with their online content. Readers now can get behind the scenes look at photoshoots, interview and special features by going to the magazine's online website. They can enter sweepstakes and even write comments or "letters" (more like e-mails) to the magazines. Magazines should look at this culture change as an opportunity rather than a threat. They have the availability to connect more easily, effectively and faster with their readers. Also, from a marketing perspective, now more than ever publications have the opportunity to get insight into the lifestyles of their readers therefore making the content of the magazines and reaching their target audience more effectively. 

 I still love grabbing a book and flipping through the pages. I feel it is more personal than an online version and I get into the story more intensely than through an e-book. Hard copy books help me keep focused on the story.  
Now newspapers are a complete different animal. This industry is really suffering. I never liked the oversize pages, they are too uncomfortable to hold... When it comes to news, I prefer the online version because I can search for what I want and can get different perspective simply through the click of a mouse.

I encourage you to read the pictures posted as this is a great example on what the print industry thinks about the online craze. I came across this ad while flipping through the pages of W magazines and thought it is worth sharing with all of you. Also, take a look at this YouTube VIDEO which features top magazine CEO and their view on the evolving technology and this one which gives some interesting facts on magazine subscription.

PS: I wrote this post before finding the videos. :)