INTERNET BUSINESS STRATEGY

MAY-JUNE 2016

MARCOS WESTPHALEN
MWESTPHALEN@GOOGLE.COM

THE SCALE OF THE INTERNET OPENS UP NEW BUSINESS

OPPORTUNITIES FOR EVERYONE

INTRO TO INTERNET BUSINESS MODELS

DEFINITION. INTERNET BUSINESS MODEL: MECHANISM BY WHICH A COMPANY OR
BUSINESS OWNER HAS THE CAPACITY TO GENERATE ONLINE PROFIT SUSTAINABLY.
4 TYPES OF INTERNET BUSINESS MODELS
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E-COMMERCE: USER PAYS FOR A GOOD OR SERVICE (PHYSICAL OR VIRTUAL GOOD)

SUBSCRIPTION-BASED: USER PAYS FOR CONTENT THAT IS CONSUMED ONLINE
ONLINE ADVERTISING: ADVERTISER PAYS - CONTENT IS FREE FOR THE USER
FREEMIUM: BASIC SERVICE IS FREE FOR THE USER, WHO CAN PAY FOR PREMIUM SERVICE

[GROUP ACTIVITY 1] CLASSIFY THE FOLLOWING COMPANIES ACCORDING TO THE 4

TYPES OF INTERNET BUSINESS MODELS.

[GROUP ACTIVITY 2] CHOSE 1 COMPANY WITHIN YOUR INTERNET BUSINESS MODEL TYPE. IF YOU
HAD TO CHANGE BUSINESS MODEL, WHAT WOULD BE YOUR STRATEGY AND WHY?

E-COMMERCE

SUBSCRIPTION-BASED

ONLINE ADVERTISING

FREEMIUM

GROUP DISCUSSION

BUSINESS MODEL I: E-COMMERCE

IN 2016, E-COMMERCE SALES ARE EXPECTED TO BREAK THE $2T MARK

DRIVERS:

Emerging markets

M-commerce

Better payment methods and

shipping options

International expansion of large

brands

ROI MODEL FOR A TYPICAL E-COMMERCE PLAYER

ROI MODEL FOR A TYPICAL E-COMMERCE PLAYER

TRAFFIC ACQUISITION STRATEGY

Es esencial conocer el valor generado por cada visita en el sitio (como el valor generado por cada clic de una
campaa)
Ingresos por ventas
Margen
Ganancias por ventas
Ganancias a largo plazo
Valor total
Clics obtenidos
Valor por clic (VPC)

15,000 EUR
40%
$6,000 EUR
$10,000 EUR (Life-time value)
$16,000 EUR
20,000
$0,80 EUR

VPC tan importante como el CPC

TRAFFIC ACQUISITION STRATEGY

OPTIMIZING THE SHOPPING EXPERIENCE

El 40% de los usuarios dice abandonar un sitio web que demora ms de 3 segundos en cargar. Una
demora de 1 segundo puede resultar en una reduccin del 7% de las conversiones.
Impacto en variables clave:

Tasa de Rebote
Tasa de Conversin
SEO (impacto sobre adquisicin de trfico)

Herramientas:

OPTIMIZING THE SHOPPING EXPERIENCE

OPTIMIZING THE SHOPPING EXPERIENCE

OPTIMIZING THE SHOPPING EXPERIENCE

OPENING UP TO NEW REVENUE STREAMS

BUSINESS MODEL II: SUBSCRIPTION

BUSINESS MODEL III: ONLINE ADVERTISING

BUSINESS MODEL IV: FREEMIUM

BUSINESS MODEL IV: FREEMIUM

FREE + PREMIUM

THE RISE OF AD BLOCKING: 198M MAUs GLOBALLY (+41% YoY)

AD BLOCKERS ARE DESTROYING THE VALUE CHAIN AND BUSINESS

MODEL OF MOST ONLINE BUSINESSES