We also specialize in website development with a crowdsourcing focus. We can assist your company in the development of your own crowdsourcing platform as well as marketing strategies and content development that set your company apart from the crowd by engaging the crowd. Wired Magazine first defined the term back in 2006. As the practice of obtaining needed services, ideas or content by soliciting contributions from a large group of people or online community rather from traditional Employees. We believe INTERNET DEMOCRATIZATION and the use and evolution of the Internet have drastically changed many of our Standard Business Models in ways many of us didn’t expect. One of the most prominent models the Internet has affected is The Standard Advertising Model, and yet this business model is still the hope of every Internet startup and the way they will monetize their product or service. Yet the value of that Advertising has dropped along with the ever increasing introduction of new Advertising channels. In the case of the following example The TV Market and the Internet, Internet Democratization makes it more difficult to attract a large enough audience to monetize their efforts.
See Blog below: THE END, AD MODEL AND THE INTERNET PART I
We feel that this democratization can be fought on the local level by crowdfunding efforts both informational and actual commerce, to help spur and re-kindle the local market.
So hopefully in 5 years we all don’t end up with only one option, buying our toothpaste and refrigerators from Amazon Prime.
The Ad Model may still work on a local basis but on a national basis it simply does not work. Let’s take a look at some simple facts. Thirteen Years ago a small business Ad on Yahoo would probably have cost about a thousand dollars, today if they charged you more than a dollar they would be overcharging. CPM (Cost Per 1000 Impressions) have dropped about 1000% on National Ads in 13 years! Look what has happened to the music and publishing industries, they have been totally decimated by the Internet, and it has nothing to do with piracy. The Cost Per Engagement Model has benefits and it quantifiable, but the size of the audience has also dwindled. The CPE only pays on quantifiable links, but still there is a the bigger picture. The value is diminishing on all forms of Advertising because internet democratization is lowering the Dollar value of all channels you can distribute Advertising on. That’s why engagement with social media is important in monetizing the numbers.
Television is another example, maybe the Ads on TV do engage the Audience, but the quality of TV programming itself have suffered greatly with the Democratization of media!
Have you watched any good TV Shows lately? Most likely no, since they don’t make good Television anymore it has been replaced by low-quality reality TV. Not because content creators can’t produce them they can, they just can’t monetize them with the fragmented audiences. All due to the breakdown of this one business model. For the full Blog Article please visit my blog.
Changing Business Models have a major impact on the Success of your Business.
Don’t believe us, here are a few statistics that now most small businesses have to deal with in 2016.
Now (40%) of all retail purchases are purchases on the internet. Here are a few reasons:
No real website development in local communities 50% of small businesses in 2014 didn’t even have a website! So they are making most of those online purchases on large national websites not locally!
The rise of the intent giants that have made location (local Stores) and the convenience of that called Commercial Friction irrelevant and the lowest price now is the only determining factor in the sale!
Top all that off with an unfair internet tax that hurts local small business! A Tax, the Giants, don’t have to pay!
This was the point, I was trying to make and so far the major benefactors of this change have been the large internet companies and as well as the large big box stores. Big Box Stores, now have seen a major loss in market share due the internet giants. The stores however, still pose a problem to local small business. I know this is something we all have come to know well here in the northland.