What Does Advertising-Supported Revenue Model Mean?


What Does The Future of  the Ad-Supported
Revenue Model Mean to the Internet and Technology?

An advertising-supported revenue model is a business approach that emphasizes the sale of advertising as a major source of revenue. This structure is most prominent in traditional broadcast and print media, as well as online media. Media businesses generally earn revenue from advertising, customer subscriptions or a combination of the two.

Traditional Media

TV and radio shows, along with newspapers and magazines, generally serve to entertain or inform viewers or readers. TV and radio have traditionally been largely advertising-supported. While networks and TV stations do often earn revenue through subscriptions to satellite or cable television, much of their income is earned from advertisers trying to appeal to viewers. Similarly, magazines and newspapers charge subscription or purchase fees, but advertisers pay to place ads within these print media.

E-Commerce

The emergence of the Internet in the mid-1990s has affected the advertising-supported revenue model. Newspapers, for instance, have tried to adjust to increased demand for online content and limited growth in print publications. Thousands of media websites have been born online, which often offer free access to content for users. This attracts users and enables the publishes to sell banner ads and advertorial ad spaces. Traditional newspapers have offered free content as well, but many are trying to figure out how to combine ad revenue with subscription fees as of 2013.

Benefits

The benefit of an advertising-supported revenue model is that if you have an audience, you can almost always find companies that want to pay to reach it. This is especially true when you can provide specific details about the nature of your audience. When you operate with a 100 percent ad-supported model, you can more easily attract users with free content. Newspapers have long given away hundreds of copies to businesses and organizations in communities to drive up their circulation and readership, and subsequently, ad revenue potential.

Drawbacks

The major drawback of an entirely ad-supported revenue model is the inherent lack of diversification. Businesses generally prefer multiple revenue streams when possible. In a down economy, advertisers might back off their investments, which can more negatively affect a medium that has no subscription revenue. Plus, print publications, and even some websites, have high costs. Even a small subscription rate can help cover some of these costs. Local newspapers charging, say, 35 cents per issue can't use that to cover all production costs, but the fees do help offset costs and allow revenue to build.

Facebook Reports Soaring Revenue, Buoyed by Mobile Ads

On Wednesday, Mr. Zuckerberg’s social-networking company, Facebook, reported another quarter of soaring revenue. The company said sales in the fourth quarter rose 52 percent from a year ago, to $5.84 billion, while profit increased to $1.56 billion, more than doubling from $701 million a year ago. For the full year, the company reported $3.69 billion in profit on $17.93 billion in revenue, an increase of 44 percent from 2014.

The numbers far surpassed Wall Street’s fourth-quarter expectations of $1.2 billion in profit on $5.37 billion in revenue. Investors welcomed the performance by pushing up Facebook’s stock more than 12 percent in after-hours trading.

The results were largely a result of Facebook’s enormous success in selling advertising on mobile devices, a business that the company was not even in just a few years ago. Mobile ads made up 80 percent of the company’s total ad business in the fourth quarter, compared with 23 percent in the same quarter of 2012.

“We have a Super Bowl on mobile in the U.S. every single day,” Sheryl Sandberg, chief operating officer of Facebook, said in an interview.

The results offer a bright spot in a tumultuous climate for many American technology stocks. Shares of Twitter, Facebook’s most visible social networking competitor in the United States, have tumbled more than 55 percent during the last year. Yelp, the local-review service, is down about 60 percent. LinkedIn, the professional social networking service, is off more than 15 percent.

Facebook is a much larger company than many of its peers, yet it is able to keep its growth rate high. The company has notched double-digit jumps in ad revenue and in the expansion of its user base. Facebook now has 1.59 billion monthly visitors, up 14 percent from a year ago. About 1.44 billion of those people visit the site on a mobile device; 1.04 billion visit Facebook every day.

That growth engine has given Facebook lots of room to play in different areas — like virtual reality, messaging and even building drones capable of delivering Internet service to far-flung places around the world — that seem to have little to do with Facebook’s core business of advertising.

Facebook is spending billions of dollars developing those projects, and Mr. Zuckerberg has repeatedly said the company has no plans to make money on them in the near term. In an earnings call with investors, David Wehner, Facebook’s chief financial officer, said the company projected that expenses would increase roughly 30 to 40 percent over the course of 2016 compared with last year.

One example of the spending is on Oculus, Facebook’s $2 billion bet on bringing virtual reality to the mainstream. The unit will begin selling its first headsets to consumers in March. Facebook has said it plans to sell the hardware, called the Rift, at a loss to help the technology catch on with a large audience.

“These are long-term bets, but we don’t think they’re particularly large bets relative to the size of Facebook,” said Ben Schachter, an Internet analyst at Macquarie Securities. “They’ve gone out of their way to say they’re not Google and going after health care, for instance.”

Other analysts said they also saw potential for profit in the hundreds of millions of people who regularly use Facebook Messenger and WhatsApp, a messaging service also owned by Facebook.

They are also bullish on the potential for Instagram, the photo-sharing service that has more than 400 million regular monthly users, to become a significant source of revenue in the future. The company does not disclose what portion of revenue Instagram accounts for in Facebook’s overall sales. Ms. Sandberg said 98 of the top 100 advertisers on Facebook also advertised on Instagram in the last quarter.

As for Mr. Zuckerberg, he spent a portion of the investor call on Wednesday talking about his new role as a father to his daughter, Max.

“With a new addition to my family, I’ve been reflecting a lot on the legacy we want to pass on to the next generation,” he said, adding that he wanted Facebook to “continue to focus on solving the fundamental challenges facing the world, and bringing the world closer together.”

David https://markethive.com/david-ogden

How many groups can you join on Facebook per day?

First of all, how many groups are there on Facebook?  Facebook may know the exact number, but according to rough Google estimates there are from 600 million to up to 1 billion groups on Facebook.

If you want to join a large number of Facebook groups, that is fine, but you will have to do it fairly slowly on a day by day basis.  If you try to join too many groups at once, you may get a message from Facebook that you are restricted from joining groups on Facebook.  

Usually, this restriction lasts for one week, but if you are a habitual abuser of adding too many groups too quickly there may be more severe penalties in store for you.

I am wondering how many of you have every faced this situation on Facebook.

I am taking a survey about joining Facebook groups with 3 questions.

1) On average, how many groups do you join per day on Facebook?  __________

2) Do you join a fairly consistent number of groups per day?   __________

3) If you have ever been suspended for joining too many groups, do you know how many groups you had tried to join in the last 24 hours when the suspension occurred?   __________

Please post your answers as comments below, and I will tabulate the responses and report back the results.

Thank you.

 

John Lombaerde – Goldfinch Digital Publishing

 

David https://markethive.com/david-ogden

How to Post on my Facebook Profile and my Facebook Groups

Sponsored by Markethive –  THE social network for entrepreneurs

What are the rules of etiquette on Facebook and how should I observe them on my Facebook profile and in my Facebook groups? No matter what we do in life, or where we go, there are standards that apply, right? In the workplace, at school, in church, even at a baseball game.

No matter where we are, there are expectations of how we should behave in order to not just get along, but to harmonize with others. The same is true online, but the rules of the game are a little different. Somehow the rules online have changed, and people say things online that they would never dream of saying in front of people they know.

There is widespread political bashing from the left and the right online now, of which you are probably very well aware, but it by no means is it limited to politics. In perhaps a vain attempt to bring a little civility to the online world, and especially to Facebook where the rules of the “Old Wild, Wild West” seem to reign supreme, I would like to talk about Facebook etiquette from the online marketers point of view.

I know, to use a crude analogy, I may be merely spitting into the wind here, but it seems to me someone has to point this out, and I guess I might as well be the one to do it. What does political bashing inside a Facebook group of pro-Trump, or pro-Hillary supporters actually accomplish? This is a real enigma for me.

Who are they going to influence in a group where everyone shares the same political view? If they wanted to try and change someone’ viewpoint, maybe they should all go together and post all over one of the pro-Hillary sites until the owner of the site would just give up in frustration, (or vice versa).

I really don’t want to go here, but it also seems like there is an awful lot of Muslim bashing on Facebook. Where did this come from? I fully understand the frustration with the wars in the Middle East, but especially at the time of the 4th of July when we celebrate the Constitution, isn’t freedom of religion one of the fundamental principles of the pilgrims, to the Founding Fathers and the Revolutionary patriots? Jeesh, give the complaints against Muslims, especially Muslim-Americans a rest already.

OK, now here is the practical side to this post for those who want to promote on Facebook. You may ask “How should I post on my Facebook profile and my Facebook groups”? 

One thing that should be said upfront, you should probably develop a thick skin if you don’t have one already, since there is someone, somewhere who will want to beat up on you, (verbally), for one reason or another. If you can’t take the heat, I suggest you get out of the fire and leave Facebook.

There is no rush whatsoever to join any group on Facebook. I have heard that there 8 million groups on Facebook, so there are plenty of groups to join, and they will be waiting for you, so do a little research before you click that join button.

There are a very large number of groups that are nothing but classified ads sites. If you post to these groups, your p ost is just one of thousands of other ads that no one is really paying attention to, so do not waste your time with these groups.

On these groups, there is no interaction, almost no comments, and no intelligent life as far as I can tell. Why would you want to waste a post on this kind of site?

A good sign of a healthy group is the number of new members, as well as your first reaction in viewing the most recent posts. Are there just ads, or are they promoting a discussion of any kind? Is there any discussion at all? If so, then maybe this group is worthwhile. If not, no problem, just move on to another one of the 8 million groups on Facebook. No harm, no foul.

Also do not waste your time posting out the same message to all of your groups. Change it up a little. Obviously there some of the people you want to add as friends and want to connect with that are members of many of the same groups you are. You look like a spammer if you post the same information everywhere.

The one exception to this rule would be a Holiday greeting. I used this method in a non-promotional way to wish my friends and people in my groups Happy Memorial Day, and I did it again, for The 4th of July. I received hundreds of likes,
and comments and they were still coming in several weeks after the Holiday.

This is when I realized that promotional methods on Facebook have a potential to reach tens or even hundreds of thousands of people.

So my advice is as follows:

1) Be polite, don’t push your own agenda all the time.

2) Inspire people with your message and they will follow you and want to be your friend.

3) Join groups with growing membership, and make sure you check the rules of
group and act accordingly.

4) Interact as much as possible on groups, especially with the moderators, influencers, or people active on the group.

5) Reply to messages in a timely manner. (same day if possible)

6) Have something inspiring to say with short test messages and images. Ideally do not promote directly through your text message, but you can link to another page with useful information and links to your offers. This indirect method of promotion will be more effective in the long run than just splashing your ad everywhere like most people do.

7) Have fun and keep your sense of humor. Don’t forget that Facebook started as a fun place for people to connect. In growing so big, Facebook has lost quite a bit of that “fun” spirit, but use your creativity to keep trying new things, and experimenting to see what works and what doesn’t. By following these guidelines your experience on Facebook will be more enjoyable, AND more profitable.

Sponsored by Markethive – – THE social network for entrepreneurs

John Lombaerde – Goldfinch Digital Publishing

.

David https://markethive.com/david-ogden