04 May 2011 by Paperlit

Internet Hey Days and iPad

In the hey days of the internet bubble, there were some really creative inventions that were supposed to generate value.

First of all there was, the value of an internet subscriber, that went from 10 dollars to 3,000 in a year’s time.

Then there was the “spend as much money as you can scenario”, so you can get an even higher evaluation and more money to spend.

And finally there was the barter deal or I buy this from you for a ridiculous price, you buy this from me for an even more stupid price and there we go, we have some great revenue to show for absolutely no deal at all.

I do not want to go any further into the origins of these internet start up hallucinations, nor do I want to have a cathartic experience by going on, but I would like to say this.

If we had been able, with a very reasonable and simple strategy, to charge 1 penny for each email our customers sent or if we had invented 1 value added service where 5% of our customer base paid usd 5 per month,  the simplicity and effectiveness of the in-app store purchase would not seem so revolutionary.

The good news is that nobody did really figure that out and that makes the impact of the in-app purchase and Google Checkout (we hope) that much more powerful.

Steve Jobs, with one fell swoop, resolved once and for all what all of us in the internet industry were trying to figure out for a decade.

One second, one click and one user id to charge access to premium content or services for digital distribution.

On top of this, “its too good to be true, click to pay process where my kids get me to pay $3 for Angry Birds after 5 minutes of turning my iPad on for the first time and this gets me in the mood to buy something serious like Wired for iPad”, something revolutionary is happening around advertising on the iPad and tablets in general.

It is a bit early to have exact figures on iPad advertising prices but it is safe to say that iPad advertising is being sold at higher rates than internet and that often this advertising is being sold in bundle with offline advertising or with sponsorship models rather than cpm.

Maybe Wall Street Journal could have remained independent and The New York Times wouldn’t have had to sell its crown jewels if they had seen the in app-purchasing and tablet advertising revenues on the horizon.

We all know it is real easy to play the Monday morning quarterback and that is not what I am here for so, let me get to my point.

Revenue on iPad and Tablets is real. It is incredibly simple to set up , even if you already have a digital subscriber base, and it is not expensive or time or resource demanding. So, we are all now facing an opportunity which seems to good to be true. Where is the trick?

The trick is that a lot of us have a hard time doing the most obvious and simple thing that everybody else is doing.

Some of us think we still need to invent some super complicated schema for the future of business etc. That may well be the case in phase II or III of all of this. But for now, the name of the game seems to be, get your product out there.

 

 

 

 

Posted in Mobile Trends

Paperlit

Paperlit

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