The Popular New Monetization Model That Requires No Funding Or Advertising

10 Comments

Ty Ahmad-Taylor is the founder and CEO of FanFeedr, a real-time personalized sports feed. Previously, he was SVP of Strategy and Product Development at Viacom (NYSE: VIA) and, before that, Comcast (NSDQ: CMCSA). He tweets at @tyahma

If you are a consumer-facing startup pitching to VCs, the conversation is very short if your monetization strategy leads with advertising. It may, in fact, actually be a longer conversation if you simply say you don

10 Comments

John Bailo

Then the new model is starlets and one-hit wonders…getting fame(=prestige) that draws customers suddenly, en masse, but next week will you still top the BillBoard charts?

Chris

I heard all of these stories during the first two bubbles. Other than phone subscription scams, how much are Farmville players worth to an advertiser?

Oleg

HI-END FOR ADVANCED USERS

Hi-End in meaning of Prestige and something extremely new! Along with technical development there is another big (or even bigger) part – marketing!

In the article – http://vas-inventions.com/index.php?page=hi-end you will find marketing ideas of how to sell your stuff with more profit!

Say briefly – most important in this job is to find right sticker! It’s valid nor HW producers, not just SW and Appl.

CoryJ

Ty, you raise a good point in whether virtual currencies can be applied to sites outside of gaming. However, how do you consider this to not be advertising? Gambit/Offerpal/whoever go out and match up offers with your visitors. That’s advertising, regardless of whether a display ad is used. Perhaps more importantly, isn’t the reason for the high CPMs related to the scammy offers these virtual currency networks are so well known for? (Obviously this has been well-documented on paidcontent and elsewhere: http://paidcontent.org/article/419-amid-scam-accusations-social-ad-firm-offerpal-installs-a-new-ceo/)

Ed Dunn

Let’s also remember it was newspapers who originally had “prestige monetization” in classified ads. You can pay extra for bold type if you want in your classified ads. Also, on Valentine Day, you can take out a big chunk of the classifieds for everyone in town to see. Some of us think Facebook who is peddling icons on people birthday invented this process when the newspapers did.

It’s interesting how the newspapers invented the majority of these monetization models, eh?

So let’s be honest – it’s not the newspaper model, it is the non-diverse, status quo people who commute in from the suburbs that is the real issue. That’s why I laugh when I read about these “status quo panels” instead of hearing about audience/viewer participation in newspaper monetization solutions. Because in 2010, these editors and publishers are still about egocasting and pushing their bias upon their consumer base instead of retooling their process for the 21st century.

gester1

“Prestige” is a loyalty & promotion variant – not particularly new. As a “tag” for a marketing expert, it is very good. Ty, you should be receiving more call for advice.

Haydon

They may as well go for real money. In the UK certain newspapers run fantasy football leagues.

Readers pick their own team from a pool, pay an entrance fee, then play for a prize of around £100,000.

The Football League takes nine months to complete so the “players” are interacting with the newspaper for all those months. The number of entries they get far outweighs the prize fund.

It has worked well.

Can’t see the point of playing for virtual money.

Rebecca Watson

Excellent article Ty. Prestige has long fueled consumers online (think of all the “online social celebrity” lists), but it’s only now proven to be a successful monetization model. We at gWallet continue to hear from new publishers and content owners that they want to de-emphasize banner ads and replace them with virtual currency options. A hundred dollar eCPM vs. $1 CPM? Definitely a smart move.

Politickr

When it comes to news and social gaming, prediction markets make the most sense as the next step. Eventually, prediction markets on politics and current events will be integrated into more news sites (especially political ones). They’d have a bigger effect if real money were involved (especially for newspapers’ bottom lines), but they certainly get readers engaged, compel politicos to spend more time on news sites, and provide more stats to feed the 24/7 news cycle.

Comments are closed.