15 November, 2013

1-1-9-8 value creation, the forms of value: audience aggregation

what is audience aggregation? It is advertising

look what I am doing here

  1. I identify some people with a common interest: get a simple access to the science of business administration 
  2. I am posting these amazing out of the world posts :) about BA. And I keep you gathered with consistent materials you are interested in
  3. you, people interested in the topic, enter and read and interact with the blog
  4. so I have gathered people with common interest around my blog 
  5. there is a 3rd party who is interested in buying the interest, info, addresses of the people interested in BA, or may just need a space to advertise his services, products in front of you 
  6. I get some cash out of that
  7. KABOOM, everyone wins. you get to benefit from the original value, he gets the interest of the market he is targeting, and I get paid ;)
notice that 
  • usually, this value form is based on another business
  • the blogs advertising thing may be the nearest thing to a pure business based on advertising 
  • you basically are selling access to a people with common interests to someone interested in addressing these people 
another thing, this may seem to be a very easy business, but it is one of the most challenging businesses in the market for the following reasons 
  1. you have to provide a long-life consistent materials, focused enough to address the segment of people an advertiser would be interested in. I, for example, can't think of anything to keep gathering people around this blog after I finish explaining this course 
  2. you need a LARGE number of audience for a decent amount of time, that is not an easy task
  3. you must not alienate your audience with the amount of advertising, scams and mails
  4. also, not alienate them with sudden overwhelming info (like I am doing now :)  or unrelated stuff they are not interested in (of course you notice that all the time in facebook pages :S sooo annoying) 
  5. you have to balance between how much time,effort and attention you are giving to your audience vs the time, effort and attention you are giving to the advertisers 
  6. after all that, the advertisers may just stop working with you, because they aren't getting the results they wish for (for any reason out of your control)
examples: blogs, youtube channels, inside-games billboards, basically any kind of advertising medium