shopinterest
Joined 13 years ago
Joined 13 years ago
So, what I think is missing in the discussion that, perhaps by flaw or mistake, but the original sin of the web (ads) is now the currency for many websites, apps, etc... and it maintains the small, medium and large publishers and companies.
Ad blocking as-now targets the independent web more than anything. It will force Advertisers to give to Google/Facebook/Apple more and basically just suck the revenues of an industry into the hands of a handful of platform. Content has already been centralized by force, now they want the ads as well.
People who say, 'if your content requires ads then its not worth it, or you are in the wrong side of history, blah, blah, blah' fail to recognize how ad monetization happens on web/apps - yes it gets annoying, but it works. Independent sites (arts, news, etc...) like a favorite of mine ArsTechnica, depend on Ad revenue.
Apple releasing Ad Blockers the same day their News app becomes permanent and with Ads that cannot be blocked its not a coincidence. And that is quite a strategic move aimed to move more ad revenue into fewer companies. I don't know if that's the right side of history then. I hope not.
However, it's all in the defaults - 90% of online users (and I cant imagine app users are any higher) never touch the defaults. Sure, a number of 20MM may have downloaded adblockers online, but it is still small. But once the option is there, one day, the iPhone7 might default to 'ad block yes' and obliterate a mobile ad industry. No one likes to defend marketers, but moving us to a system controlled by a few platforms is a bad idea. Say, a presidential election could be influenced by a company deciding it won't allow ads of candidate Y or Z etc... or Donation campaigns won't be able to afford a market price of higher ad prices.
This is a bad idea folks.
Just came from seeing the 'Everest' movie based on this incident I did read both the original article you are looking for, (not online) and the book.
I also watched the 2 seasons of the reality show Everest: The Death Zone- precisely based on Russell Brice's company.
It's brutal, and I guess people forget it from time to time for a very small number of years. But the Mountain Never forgets.
The movie is only worth a see on IMAX, enjoy the scenery. Pretty much follows the 'Into Thin Air' book, focused on the American clients + Scott & Rob
1)I've never seen a freemium business reach above 15% paid users from total active base - if your economics cannot support this for a long time, get out right away. Most freemium business are roaches surviving on 1-5% conversions.
2) Freemium works best when:
- User has to urgently do something now that is limited (faster=paid, free= slow, those annoying download places that make you wait 1 min for each download or sign up to download now do make money of this simple fact)
- User finds content worth paying for in the sea of free content (NYT)
- User has low barriers to start, but would be hard to leave (e.g. upload photos) service
- User uses service, then gets to bill usage to others (e.g. malware software, document delivery, b2b stuff)
- User base can easily reach limits of free service and will require more eventually (e.g. data storage)
- User base can clearly be defined as amateur vs. professionals, and the professionals will need more features and pay (e.g. Wordpress plugins, Salesforce API apps, etc...)
- User base will be so large the business can be sustained with advertising (what most people want to build but ends up failing all the time - cant get done properly without a miracle)
My advice is start with the paid, always. It will give you a realistic conversion result + you can always go lower/free later. If some people already want to pay you, take their money! You might want to bill first, offer the freemium solution later via email to 'grow' truly interested users that would convert at some point. Freemium 'fools' a lot of business who do NOT track everything religiously.
The freemium business is fragile like a soufle, so when everything is perfect it works but when not, its an epic fail. Proceed with caution.
Some companies want you to be an unicorn yourself, I've gone through stuff like:
'So you have years of mobile ad marketing and also years of online security service experience, years doing app marketing, already know our reporting and tracking systems, but you DONT have experience specific marketing on an online security app? Thanks for coming'