The web economy in 20 minutes

1. The Web Economy in 20’ Business English Presentation Authors: Mauro Cavallaro Daniele Papa

3. Cost

4. Fixed

5. Variable

6. Revenue

7. Price

8. Advertising

10. Financial Times

11. SlideShare

12. Fotolia

13. Bloomberg

14. GoogleCONCLUSIONS

15. INFORMATION Information = everything you can digitize Text Image Audio Video VALUE Consumer goods Factors of production 3

16. VALUE SYSTEM MAKE ADV $ Provide Information BUY Attention USER GENERATED CONTENTS USER $ Information Money Attention 4

17. INFORMATION COST Cost TC Information Cost TFC InfrastructureCost FC VC Cost per Unit Marketing Cost ATC MC Connectivity Cost VC Volume TC: Total Cost TFC: Total Fixed Cost VC: Variable Colst 5 ATC: Advrage Total Cost MC: Marginal Cost

18. COST: Fixed Costs Information Cost Infrastructure Cost Marketing Cost MAKE BUY DESIGN SOFTWARE HOSTING/HOUSING ADV SEO/SEM OTHER 6

19. COST: Variablecosts (long run) Cost per Giga per Month Gigabytesofbandwidth LOW COST HOSTING VIRTUAL SERVER HOUSING TYPE 7

20. REVENUE: Advertising “Google AdWords is a service that lets you create and run ads for your business, quickly and simply.” Google Adword keyword competition 1 4 2 5 3 6 7 SERP 8 9 10 8

21. REVENUE: Price PRICE DISCRIMINATION Revenue Revenue Financial Times Slide Share Price Price Price $/U $/U $/U P*2 P* P*1 Volume Volume Volume 9

22. UGC vs Make/Buy: Pros & Cons 10 MAKE/BUY UGC Higher information quality Lower Fixed Costs Information property Better knowledge of users Higher Fixed Costs Need of critical mass High breakeven point Need of moderation Pros Cons

23. Facebook MAKE ADV Information Cost FaceBook BUY InfrastructureCost FC USER UGC Marketing Cost Connectivity Cost VC 11

24. Financial Times MAKE ADV Information Cost Ft.com BUY InfrastructureCost FC USER UGC Marketing Cost Connectivity Cost VC 12

25. SlideShare MAKE ADV Information Cost SlideShare BUY InfrastructureCost FC USER UGC Marketing Cost Connectivity Cost VC 13

26. Fotolia MAKE ADV Information Cost Fotolia BUY InfrastructureCost FC USER UGC Marketing Cost Connectivity Cost VC 14

27. Bloomberg MAKE ADV Information Cost Bloomberg BUY InfrastructureCost FC USER UGC Marketing Cost Connectivity Cost VC 15

28. Google MAKE ADV Information Cost Google BUY InfrastructureCost FC USER UGC Marketing Cost Connectivity Cost VC 16

29. Conclusions MAKE ADV $ Provide Information BUY Attention Revenues Costs USER GENERATED CONTENTS USER $ Information Money Attention Information Cost Price Discrimination InfrastructureCost FC Marketing Cost Advertising Connectivity Cost VC 17

30. Thankyouverymuchforyourattention!AnyQuestions?