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Online Business Models




         Australia Council Major Performing Arts Workshop, April 09
Crisis in many public institutions

- difficulty connecting with young audiences
     - harder to cut through media clutter
   - changing audience behaviours/trends
  - rapidly evolving new media landscape




                    Australia Council Major Performing Arts Workshop, April 09
Crisis, what crisis?

       - formulate a new media strategy
- start a conversation with your constituents
   - think of ways to engage people online
            - build community loyalty




                    Australia Council Major Performing Arts Workshop, April 09
Business Models/Building Value

      - value in building an online audience
   - value in listening to your audience needs
   - value in establishing affiliate relationships
       - value in building community loyalty
            - value in arts partnerships
- you don’t have to sell ringtones (but you can!)



                       Australia Council Major Performing Arts Workshop, April 09
Long Tail Economics




        Australia Council Major Performing Arts Workshop, April 09
What can I give away for free?

      - most online business models start here
     - great free content/services attracts traffic
 - up-to-date and dynamic content attracts traffic
- rich content (video, audio, music) attracts traffic
          - recommendations attract traffic



                       Australia Council Major Performing Arts Workshop, April 09
Freemium Business Model

       - most common online business model
            - Freemium = Free + Premium
- Typical trial-to-purchase conversion rate is 1 - 5%




                        Australia Council Major Performing Arts Workshop, April 09
Online Advertising

      - Contextual advertising
         - Google Adwords
  (Your ads on sponsored links)
         - Google Adsense
     (Google ads on your site)
- Pricing: auction for search terms


                      Australia Council Major Performing Arts Workshop, April 09
Online Advertising

               - Facebook Ads
(Ability to target to niche interest groups)




                            Australia Council Major Performing Arts Workshop, April 09
Facebook Profiles - your content everywhere




                      Australia Council Major Performing Arts Workshop, April 09
Online Video Advertising


                                        - YouTube
                                        Advertising

                                  - Next generation
                                  video advertising
                                  driven by speech
                                     recognition



          Australia Council Major Performing Arts Workshop, April 09
In-game Advertising




        Australia Council Major Performing Arts Workshop, April 09
Partnerships                          Upstream
                                               Affiliate
  - diversify referral traffic in
                                                                            Pay per
  addition to search engines
                                                                           click/sale
     - Affiliate relationships
                                          YOUR
      - pay for click model
   - where does your traffic
                                         CONTENT
            come from?
                                                                            Income
 - link to other organisations
                                                                            per click
- reap the benefit of analytics
                                       Downstream
                               Australia Council Major Performing Arts Workshop, April 09
Partnerships

                             - aggregation of
                                  arts and
                              entertainment
                               organisations

                              - inclusion of
                             member reviews



Australia Council Major Performing Arts Workshop, April 09
Community
The Power of Loyalty




        Australia Council Major Performing Arts Workshop, April 09
Community
            The Power of Loyalty
- users have a high investment in both time and
emotion
- Obama campaign an example of grass roots
community building
- building a privileged relationship with members
- exclusive previews and opportunities
- community recommendation systems
- community reviews and comments can build trust
and online profile
                     Australia Council Major Performing Arts Workshop, April 09
Power of Recommendation
- make it easy to email information to a friend or
recommend your content to social bookmarking site




                         Australia Council Major Performing Arts Workshop, April 09

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Online Business Models

  • 1. Online Business Models Australia Council Major Performing Arts Workshop, April 09
  • 2. Crisis in many public institutions - difficulty connecting with young audiences - harder to cut through media clutter - changing audience behaviours/trends - rapidly evolving new media landscape Australia Council Major Performing Arts Workshop, April 09
  • 3. Crisis, what crisis? - formulate a new media strategy - start a conversation with your constituents - think of ways to engage people online - build community loyalty Australia Council Major Performing Arts Workshop, April 09
  • 4. Business Models/Building Value - value in building an online audience - value in listening to your audience needs - value in establishing affiliate relationships - value in building community loyalty - value in arts partnerships - you don’t have to sell ringtones (but you can!) Australia Council Major Performing Arts Workshop, April 09
  • 5. Long Tail Economics Australia Council Major Performing Arts Workshop, April 09
  • 6. What can I give away for free? - most online business models start here - great free content/services attracts traffic - up-to-date and dynamic content attracts traffic - rich content (video, audio, music) attracts traffic - recommendations attract traffic Australia Council Major Performing Arts Workshop, April 09
  • 7. Freemium Business Model - most common online business model - Freemium = Free + Premium - Typical trial-to-purchase conversion rate is 1 - 5% Australia Council Major Performing Arts Workshop, April 09
  • 8. Online Advertising - Contextual advertising - Google Adwords (Your ads on sponsored links) - Google Adsense (Google ads on your site) - Pricing: auction for search terms Australia Council Major Performing Arts Workshop, April 09
  • 9. Online Advertising - Facebook Ads (Ability to target to niche interest groups) Australia Council Major Performing Arts Workshop, April 09
  • 10. Facebook Profiles - your content everywhere Australia Council Major Performing Arts Workshop, April 09
  • 11. Online Video Advertising - YouTube Advertising - Next generation video advertising driven by speech recognition Australia Council Major Performing Arts Workshop, April 09
  • 12. In-game Advertising Australia Council Major Performing Arts Workshop, April 09
  • 13. Partnerships Upstream Affiliate - diversify referral traffic in Pay per addition to search engines click/sale - Affiliate relationships YOUR - pay for click model - where does your traffic CONTENT come from? Income - link to other organisations per click - reap the benefit of analytics Downstream Australia Council Major Performing Arts Workshop, April 09
  • 14. Partnerships - aggregation of arts and entertainment organisations - inclusion of member reviews Australia Council Major Performing Arts Workshop, April 09
  • 15. Community The Power of Loyalty Australia Council Major Performing Arts Workshop, April 09
  • 16. Community The Power of Loyalty - users have a high investment in both time and emotion - Obama campaign an example of grass roots community building - building a privileged relationship with members - exclusive previews and opportunities - community recommendation systems - community reviews and comments can build trust and online profile Australia Council Major Performing Arts Workshop, April 09
  • 17. Power of Recommendation - make it easy to email information to a friend or recommend your content to social bookmarking site Australia Council Major Performing Arts Workshop, April 09