l'economie du gratuit à l'heure d'internet
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Alban MARTIN @ Pau, 14th October 2009 Freeconomics on the internet
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Voici la présentation que je vais donner au séminaire annuel de meteorage, sur le thème de l'économie du gratuit et des modèles reposant sur l'abondance à l'heure d'internet
Transcript of l'economie du gratuit à l'heure d'internet
Alban MARTIN @ Pau, 14th October 2009
Freeconomics on the internet
Alban Martin – Conference @ Pau – 14 / 10 / 2009 – Creative Commons by-nc-nd
Alban Martin – Conference @ Pau – 14 / 10 / 2009 – Creative Commons by-nc-nd
Agenda
• Why free, specially online ?
• How to make money with free stuff
• Concrete examples of business strategy around free products or services
• Emerging trends of online advertising
Alban Martin – Conference @ Pau – 14 / 10 / 2009 – Creative Commons by-nc-nd
Agenda
• Why free, specially online ?
• How to make money with free stuff
• Concrete examples of business strategy around free products or services
• Emerging trends of online advertising
Alban Martin – Conference @ Pau – 14 / 10 / 2009 – Creative Commons by-nc-nd
Correspond to the way innovations are created online…
• Only 3 ways to innovate when launching a new online service or product (Jyri Engestrom)– Simpler– Or cheaper– Simpler and cheaper
• Consequences: driving prices down from one service (or version) to the next one
Alban Martin – Conference @ Pau – 14 / 10 / 2009 – Creative Commons by-nc-nd
…enabled by structural elements…
• Cheaper bandwidth & Cheaper storage
Source graphic: G. Champeau
Alban Martin – Conference @ Pau – 14 / 10 / 2009 – Creative Commons by-nc-nd
…enabled by structural elements…
• Cheaper technology• Ex Transistors prices :
– 1961 : 10 dollars– 1965 : 2.5 dollars– 1968 : 1 dollar– 1975 : 0,1 dollar– 1982 : 0,01 dollar– Today: 2billion transitors
for 300dollars = 0,00000015 dollar
Source : C. Anderson, Free, Pearson education France, septembre 2009
Alban Martin – Conference @ Pau – 14 / 10 / 2009 – Creative Commons by-nc-nd
…enabled by structural elements…
• « Web 2.0 » tools to engage and interact with the audience and cocreate value with customers
Alban Martin – Conference @ Pau – 14 / 10 / 2009 – Creative Commons by-nc-nd
…enabled by structural elements…
• New forms of copyright (=copyleft) protecting digital creators AND enabling copies
Alban Martin – Conference @ Pau – 14 / 10 / 2009 – Creative Commons by-nc-nd
…enabled by structural elements…
• Fluidity of information – online social links– efficient recommendation tools
Alban Martin – Conference @ Pau – 14 / 10 / 2009 – Creative Commons by-nc-nd
…enabled by structural elements…
• Critical mass of potential users (=audience)• The online advertising market
Display
Magazines
Press
Radio
TV
Digital
Others0
20
40
60
80
100
2005 2006 2007 2008 2009 2010
30%
14%
6%
29%
14%
6%
CAGR
20%
3%
3%
2%
1%
4%
Source:Zenith Optimedia; Yankee Group; Jupiter Research; ABI Research
Advertising investments Western Europe - (Billion €)
Alban Martin – Conference @ Pau – 14 / 10 / 2009 – Creative Commons by-nc-nd
…and increased by abundance…
• Online copy = does not prevent from using the « original » copy = Non rival goods
• Abundance of content, products and services versus scarcity– Democratization of creation and editing tools– Read write rewrite media– User Generated Content
Alban Martin – Conference @ Pau – 14 / 10 / 2009 – Creative Commons by-nc-nd
…and increased by abundance…
• 57% of teens are content creators online (Pew internet)
• 2 billions pictures on FlickR (3/4M per day) and 4 billions sur Facebook• Facebook users translated the site from English to Spanish via a Wiki in
less than 4 weeks and cost Facebook $0 (source: socialnomics)
• More than 1.5 million pieces of content (web links, news stories, blog posts, notes, photos, etc.) are shared on Facebook…daily (socialnomics)
• 70 000 videos uploaded per day on youtube• 2 millions articles on Wikipedia • 8000 music albums on Jamendo and 250 000 songs on soundclicks
Alban Martin – Conference @ Pau – 14 / 10 / 2009 – Creative Commons by-nc-nd
…deeply modifying resources management
Source:C. Anderson, free, pearson education 2009, and online http://www.wired.com/techbiz/it/magazine/17-07/mf_freer?currentPage=2
Alban Martin – Conference @ Pau – 14 / 10 / 2009 – Creative Commons by-nc-nd
Agenda
• Why free, specially online ?
• How to make money with free stuff
• Concrete examples of business strategy around free products or services
• Emerging trends of online advertising
Alban Martin – Conference @ Pau – 14 / 10 / 2009 – Creative Commons by-nc-nd
Eight models for monetizing digital content
Source : Forrester Research, 8 models for monetizing digital content, june 2009
*
*
**
Alban Martin – Conference @ Pau – 14 / 10 / 2009 – Creative Commons by-nc-nd
4 models in particular are “monetizing” free products and services
Source: C. Anderson, “Free”
Cross-subsidies
Example: iTunes and iPod
Give a software + free content (or below market price content) for selling another expensive one
MP3 Margin : 1%-60 cents record company-19c VAT-7c right owner-3c artists-1c bandwith-1c transaction costs-1c DRM-5c marketing & plateform hosting
iPod Margin : 30%
Alban Martin – Conference @ Pau – 14 / 10 / 2009 – Creative Commons by-nc-nd Source: C. Anderson, “Free”
4 models in particular are “monetizing” free products and services
Example: Gmail free 8Gigas mail box
Alban Martin – Conference @ Pau – 14 / 10 / 2009 – Creative Commons by-nc-nd Source: C. Anderson, “Free”
4 models in particular are “monetizing” free products and services
Example: Free weather but paying full info
Alban Martin – Conference @ Pau – 14 / 10 / 2009 – Creative Commons by-nc-nd Source: C. Anderson, “Free”
4 models in particular are “monetizing” free products and services
Example: Wikipedia
•If you were paid a $1 for every time an article was posted on Wikipedia you would earn $156.23 per hour
•+200K persons occupied by +150K open source projects (source: Ohloh)
Alban Martin – Conference @ Pau – 14 / 10 / 2009 – Creative Commons by-nc-nd
Agenda
• Why free, specially online ?
• How to make money with free stuff
• Concrete examples of business strategy around free products or services
• Emerging trends of online advertising
Alban Martin – Conference @ Pau – 14 / 10 / 2009 – Creative Commons by-nc-nd
Example of 1-800-GOOG-411
• 7 billion dollars market per year for AT&T and other operators in the US
• 50cents to 1.75 dollars per call• Google enters the market with free information (whereas it could
be charged 1Euros• Estimated “loss”: 144Million dollars until 2012• Why and for which benefit?
Alban Martin – Conference @ Pau – 14 / 10 / 2009 – Creative Commons by-nc-nd
Example of 1-800-GOOG-411
• Innovation: cheaper AND simpler
• Quicker growth of market share compared to entry market strategy with paid information
• Obtain for free millions of data for fine-tuning voice recognition system (=14M dollars worth of data)
• According to Google’s Peter Norvig, “1-800-GOOG” serves as a trial for a mobile vocal search engine !
• Search on mobile market will be worth 2.5billion dollars in 2012
Source: C. Anderson, “Free”
Alban Martin – Conference @ Pau – 14 / 10 / 2009 – Creative Commons by-nc-nd
Example of Google Maps
Source: C. Anderson, “Free”
• Innovation: cheaper AND simpler
• Rapid growth and dominant market position thanks also to “open” API
Alban Martin – Conference @ Pau – 14 / 10 / 2009 – Creative Commons by-nc-nd
Example of Google Maps
Money for google
Money for google
Money for google
Alban Martin – Conference @ Pau – 14 / 10 / 2009 – Creative Commons by-nc-nd
Example of Google Maps
Money for google
Money for google Money for google
Alban Martin – Conference @ Pau – 14 / 10 / 2009 – Creative Commons by-nc-nd
Example of Google Maps
Example of 3rd party use of googlemap: http://earthquakes.tafoni.net/?hl=en
If more than 50K Pages views per day generated by 3rd party using googlemap
consider it is a dedicated business
charge
Alban Martin – Conference @ Pau – 14 / 10 / 2009 – Creative Commons by-nc-nd
10 rules of free – C. Anderson
1. If it is digital, it will become sooner or later free2. Atoms would also like to be free, but not that
easy3. Free cannot be stopped4. You can earn money with free5. Redefine your market6. Pull price down as much as possible7. Sooner or later you will compete with free stuff8. Waste9. Free is making other things more valuable10. Manage abundance not scarcity
Alban Martin – Conference @ Pau – 14 / 10 / 2009 – Creative Commons by-nc-nd
Agenda
• Why free, specially online ?
• How to make money with free stuff
• Concrete examples of business strategy around free products or services
• Emerging trends of online advertising
Alban Martin – Conference @ Pau – 14 / 10 / 2009 – Creative Commons by-nc-nd
What if the time spent online with the products was entertaining?
• Development of online brand content– “relatively new form of advertising medium that blurs conventional
distinctions between what constitutes advertising and what constitutes entertainment” (source: wikipedia)
– Short movies, online series, clips– Events– web-tv– Guides– Calendars– Consumer magazines, books– Advergaming, advertainment
Alban Martin – Conference @ Pau – 14 / 10 / 2009 – Creative Commons by-nc-nd
What if the time spent online with the products was entertaining?
Alban Martin – Conference @ Pau – 14 / 10 / 2009 – Creative Commons by-nc-nd
What if your consumers were doing your job?
• Cocreation of advertising– Dailymotion « motion
maker »– Eyeka « creatives »– Blogbang « creatives
and bloggers »
Alban Martin – Conference @ Pau – 14 / 10 / 2009 – Creative Commons by-nc-nd
What if your consumers were doing your job?
Alban Martin – Conference @ Pau – 14 / 10 / 2009 – Creative Commons by-nc-nd
R&D Marketing Sales
Another model for lowering prices to the maximum : the cocreation of value
Alban Martin – Conference @ Pau – 14 / 10 / 2009 – Creative Commons by-nc-nd
11/04/23
R&D
WHO? niche, mainly B2B, start-ups, SMEs, independant, also students
HOW? cooperation & co-creation plateforms, in real life happenings (workshops, barcamp, conference)
KPIs? # contributions, deals/new partners, ideas, suggestions
Another model for lowering prices to the maximum : the cocreation of value
Alban Martin – Conference @ Pau – 14 / 10 / 2009 – Creative Commons by-nc-nd
11/04/23
R&D Marketing Sales
WHO? Targeted and small audience, geeks, early adopter
HOW? beta test, “netnology”, online discussion monitoring, forums
KPIs? # answers, ratings, feedbacks
Another model for lowering prices to the maximum : the cocreation of value
Alban Martin – Conference @ Pau – 14 / 10 / 2009 – Creative Commons by-nc-nd
11/04/23
R&D Marketing Sales
WHO? opinion leaders, From small to large market,
HOW? Blog marketing, Word of mouth marketing, Social Media Optimization
KPIs? Audience, followers, transmission-rate, interaction with the message
Another model for lowering prices to the maximum : the cocreation of value
Alban Martin – Conference @ Pau – 14 / 10 / 2009 – Creative Commons by-nc-nd
Thanks !
