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ASIDIC Spring 2007 Meeting GETTING MONETIZATION RIGHT: BLENDING MODELS FOR ONLINE AND THE ENTERPRISE. Patrick Spain pjspain@highbeam.com. And Now a Word from the Other Side….
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ASIDIC Spring 2007 MeetingGETTING MONETIZATION RIGHT: BLENDING MODELS FOR ONLINE AND THE ENTERPRISE Patrick Spain pjspain@highbeam.com
And Now a Word from the Other Side… I want to say those words again for everyone within the sound of my voice to hear and to heed, and especially for you, Mr. Leonsis: From my cold dead hands!
HighBeam Research, Inc • HighBeam.com • Paid online service with 45 million premium articles from 3000+ magazine, newspaper & newswire sources • $100/year or $30/month • Serves individuals, primarily consultants, small business, writers, and some academics • Encyclopedia.com • 250K reference articles from Columbia, Oxford, Britannica & others • Accompanied by 4 million free articles from several hundred magazines, newspapers, newswires, etc. • Free-to-the-user advertiser supported model • Provides an introduction to HighBeam.com • Serves the millions looking for a quick answer – competitive advantage is articles allow deeper entry
Learnings • Mixing free & paid content is very tricky & potentially confusing • Using free content to promote & get paid content articles indexed is working well • Ads on paid content are not a problem, though there is always balancing to do when you are using it to acquire customers • Users prefer free content but not yet, in our case, to the point where we make the same from free as paid content
Final Thoughts: I suspect that Ted is right: • Online advertising in 2006 was $16.8 billion, up 34% from 2005, according to IAB • Online advertising will be an $80 billion business in 2011, according to Piper Jaffray • The last data on online paid content was OPA’s 2005 report - $2 billion, up 15% from 2004, the increase driven largely by iTunes • So….