Monday, July 2, 2007

Advertising to Paid Audience - A Cool Idea or an Economic Non Starter

Advertising to paid audience is an economic non-starter. The businesses have little reasons to advertise on such platforms because on is perverse economic incentive. as the receiver of ads are solely driven by incentive to make money will not have need in most of the cases for services/products that they choose to receive communication for.

enidhi blog has an interesting analysis of mGinger business model. Checkout if you want to understand the economics around a model that leverages paid audience as ad consumers.

3 comments:

Anonymous said...

The idea of Advertising audience has worked in UK. Mginger is more or else a copy of a model that took off well there. Though what is astonishing is mGinger claims to have 4.5 lakh registered users. Heres the link to the interview with mGingers CEO http://www.watblog.com/?content=detail&id=786

Rajiv
www.watblog.com

Subodh G. Vinchurkar said...

Thanks Rajiv for your comment.

Thinking as a mobile subscriber, I would also be glad to signup and make money while sending all the messages from mGinger to auto-delete.

The basic economics problem with this model is not on the receivers' side but on the advertisers' side.

Shrinidhi Hande said...

Hi.

I’ve finally moved my blog to own domain, http://www.enidhi.net Can you please update your blog post accordingly?

The permalink for the mginger aricle now stands as http://www.enidhi.net/2007/06/mginger-feasibility-study-should-i.html

Thanks in advance.