Advertising Business Model

The main principle of the advertising model is that the user doesn’t pay to use the product or the service. The service or product is financed by the advertisers who pay to show their ads.

Well-known examples are:

  • Some weather apps
  • Metro newspaper
  • Google PPC

As you will see below the advertising model has great benefits for the user but it can cause to the platform and the advertiser.


Before you start

  • Ensure you can produce relevant content on a large scale.
  • Identify target audience
  • Make sure target audience is big enough to be relevant to advertisers.

How to start?

  • Create content for a small section of the target audience

What are the key success factors?

  • Size of audience
  • Recognition as a trusted source by the audience

How to cope with threats?

  • Dependence on economic situation and on evidence of efficiency
    • Propose a no cure no pay model
    • Organise audience surveys to measure the efficiency of campaigns
    • Move to the freemium model
  • Low barriers to entry
    • Improve the content quality by calling in recognised experts

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