The Digital Business Model
The business model for digital media associated with the
solution construction kit typically supports two target groups :
- advertisers doing their business in fragmented local / regional markets,
- younger user groups up to the age of 45, which have turned away from classic media.
The value proposition for advertisers is to optimize the impact of their placed adverts by specifically utilizing mobile devices
for ad display (e.g. the localization information). Thematically, only those ads will be displayed to users, for which the corresponding ad theme -
or a generalization thereof - has been selected by the user in his personal interest profile (see below). Furthermore, ads will be in particular and proactively displayed to users, when their current location will be in the vicinity of a sales or event location for the specific offer.
For the user of a digital media, the value proposition is an information plenitude covering his / her individual interests especially for the
living environment and which can be easily configured with respect to the individual interests. Together with the interactive participation in
communication at eye level.
The value chain for adverts especially includes the regular (e.g. daily) analysis of the publishing company about the ad
displays happened, when ads have been displayed to users where and how long rsp. often. More demanding special services of the
publishing company for the advertiser might include the identification of regular customers, which visited a sales or event location repeatedly,
in order to offer to those customer rebates, specials, ... . In detail, the advertiser will be offered the possibility to change and update the
content of this ads by himself at any time, based on the delivered analysis.
The value chain for editorial content encompasses the preparation of content to be published by the location of events and thematic categories, in
order to make this content eligable for mobile display with respect to the specific interest profile. It includes the enrichment of content by
editorial background material as well as the the automatic, proactive inclusion of additional rapporteurs in a scattered news situation.
The yield mechanism of the business model is based on two revenue sources:
Beside standard positions like marketing and sales expenses, on the cost side of the business model the costs for editorial operations and the
highly available delivery of the information offers via Internet will be accounted. The abandonment of printing works, paper and a distribution
organization for the handling of physical products constitutes a not negligible cost advantage against classic print media, but also the cessation
of the so far market entry barrier for competitors.
- ad revenues, which will be differentiated by the placement period, the number of sales and event locations and the
multimediality of the advert, and may be extended by special services for advertisers like the identification of regular customers,
- subscription fees for the provisioning of content with the selected thematic categories. In contrast to the stationary
Internet, the user's willingness to pay for apps rsp. content and services for mobile devices is given.