Get premium membership and access questions with answers, video lessons as well as revision papers.

Discuss five types of internet revenue model

      

Discuss five types of internet revenue model

  

Answers


Faith
1. Revenue from subscription access to content: The subscription model applies to the companies that charge subscribers a fee, normally to view text or graphical information. A range of documents can be accessed for a period of a month or typically a year. Here, one of the main challenges the companies are facing is, marketing to a much smaller niche audience who are willing to pay the regular fees, as opposed to a much larger audience that might use the services at no charge. For example, I subscribed to FT.com for access to the digital technology section for around ‚ 80 GBP per year a few years ago. Smart Insights Expert members have an annual subscription in this form.
2. Revenue from Pay Per View access to document: Here payment occurs for single access to a document, video or music clip which can be downloaded. It may or may not be protected with a password or Digital Rights Management. For example, I've paid to access detailed best practice guides on Internet marketing from Marketing Sherpa. Digital rights management (DRM) The use of different technologies to protect the distribution of digital services or content such as software, music, movies, or other digital data.
3. Revenue from CPM display advertising on site: (e.g. banners ads and skyscrapers). This model relies on advertising to make money. CPM stands for "cost per thousand" where M denotes "Mille". The site owner such as FT.com charges all the advertisers a rate card price (for example 50 GBP CPM) according to the number of its ads shown to site visitors. Ads may be
served by the site owners' own ad server or more commonly through a third-party ad network service such as Google Ad Sense as is the case with my site.

Banner advertising refers to the use of a rectangular graphic display that stretches across the top, bottom, or sides of a website or online media property. Banner ads are image-based rather than text-based and are a popular form of online advertising.


Example of a banner for higher education

The image on the left side of the ad; I think it evokes a feeling of community, of being part of something bigger than yourself. Never underestimate the power of a simple visual.
Secondly, the copy addresses a common complaint about online college: that it fails to deliver the benefits of a traditional university. By reassuring prospective students they’ll enjoy the flexibility of online classes and the advantages of a physical campus,

5.Revenue from CPC advertising on site (pay per click text ads): CPC stands for "Cost Per Click". Advertisers are charged not simply for the number of times their ads are displayed, but according to the number of times they are clicked. These are typically text ads similar to sponsored links within a search engine but delivered over a network of third party sites by on a search engine such as the Google Ad sense Network. Typical costs per click can be surprisingly high, (i.e.) they are in the range GBP 0.10 to "‚ GBP 4, but sometimes up to GBP 40 for some categories such as "life insurance" that have a high value to the advertiser. The revenue for search engines or publishers from these sources can also be a fair proportion of this. Google Network Revenues through Ads generate around one third of Google's revenue. For me, the Google's content networks are one of the biggest secrets in online marketing with search engines such as Google generating over a third of their revenue from the network, but some advertisers not realizing their ads are being displayed beyond search engines and so not served for this purpose. Google is the innovator and offers options for different formats of ad units including text ads, display ads, streamed videos and now even cost per action as part of its pay per action scheme.
NB.
GBP is the abbreviation for the British pound sterling, the official currency of the United Kingdom and its territories.
0.1 Pound sterling equals 0.14 United States Dollar which is equal to 15.32 Kenyan Shilling
4 GBP is around 5.55 US dollar and equivalent to 607.45 Kenyan Shilling
5. Revenue from Sponsorship of site sections or content types (typically fixed fee for a period):
A company can pay to advertise a site channel or section. For example, bank HSBC could sponsors the Money section on a media site. This type of deal is often struck for a fixed amount per year. It may also be part of a reciprocal arrangement, sometimes known as a "contra-deal" where neither party pays. A fixed-fee sponsorship approach was famously used by Alex Tew in 2005, a 21-year-old considering going to University in the UK who was concerned about paying off his university debts. This is no longer a concern since he earned $1,000,000 in 4 months when he set up his Million Dollar Homepage. His page is divided into 100-pixel blocks (each measuring 10x10 pixels) of which there are 10,000 giving 1,000,000 pixels in total. Alex spent £50 on buying the domain name (www.milliondollarhomepage.com) and a basic web-hosting package. He designed the site himself but it began as a blank page.
6. Affiliate revenue (CPA , but could be CPC ): Affiliate revenue is commission base. For example I display Amazon books on my personal blog site DaveChaffey.com and receive around 5% of the cover price as a fee from Amazon. Such an arrangement is sometimes known as Cost Per Acquisition (CPA ). Increasingly this approach is replacing CPM or CPC approaches where the advertiser has more negotiating power. For example, in 2005 manufacturing company Unilever negotiated CPA deals with online publishers where it paid for every e-mail address captured by a campaign rather than a traditional CPM deal.
However, it depends on the power of the publisher who will often receive more revenue overall for CPM deals. After all, the publisher cannot influence the quality of the ad creative e to click which will affect the Click through rate on the ad and so the CPM.
Affiliate marketing is the process by which an affiliate earns a commission for marketing another person’s or company’s products. The affiliate simply searches for a product they enjoy, then promotes that product and earns a piece of the profit from each sale they make. The sales are tracked via affiliate links from one website to another.
CPA (Cost Per Acquisition)
CPC (Cost Per Click)

7. Subscriber data access for e-mail marketing: The data, a site owner has about its customers, is also potentially valuable since it can send different forms of e-mail to its customers if they have given their permission that they are happy to receive e-mail either from the publisher or third parties. The site owner can charge for advertisements placed in its newsletter or can deliver a separate message on behalf of the advertiser (sometimes known as list rental). A related approach is to conduct market research with the site customers.

Titany answered the question on September 23, 2021 at 12:10


Next: Describe the G2B business model
Previous: Describe a web auction

View More E-Commerce Questions and Answers | Return to Questions Index


Learn High School English on YouTube

Related Questions