A new revenue model for E-books?
Posted: January 24th, 2010, 4:11 pm
So, the NY Times reported a couple of very interesting things this weekend: That Kindle is opening up to apps and that the apple tablet is going to be revealed soon... and knowing apple this will also be something you write apps for.
How do websites make money? Either you pay for content (like WS Journal, Economist, etc) or through advertising. E-books are digital content, and there are two ways that revenue can be generated for the author: They sale it (either through a publisher or they do it themselves) or they get nothing for it. Hmm... the second half of the equation is missing. You can't advertise in E-books (effectively).
Or can you? It should be possible for someone to write an e-Reader app for the Kindle/Nook/Tablet/iPhone that will take advantage of the 3G/GPS capabilities, which will use the GPS and connectivity to deliver very targeted advertising within the book. Granted you would have to be careful to keep it from interfering with the reading experience, but you could imbed key words, which if a user clicked on would bring up ads. Everytime it is clicked the author gets a chunk of the per click revenue (same way google adwords works). Or maybe you could deliver full or half page (I think 1/2 page would work better since the reader has to stay on the page to continue reading) ads like a newspaper does, but have the ad target the readers specific location (which he App could do by reading their last GPS location).
So if you are an e-Reader type, would you rather pay $9.99 with no ads, or get it for free with ads? At what point would you rather pay? $6.99? $3.99? $0.99?
How do websites make money? Either you pay for content (like WS Journal, Economist, etc) or through advertising. E-books are digital content, and there are two ways that revenue can be generated for the author: They sale it (either through a publisher or they do it themselves) or they get nothing for it. Hmm... the second half of the equation is missing. You can't advertise in E-books (effectively).
Or can you? It should be possible for someone to write an e-Reader app for the Kindle/Nook/Tablet/iPhone that will take advantage of the 3G/GPS capabilities, which will use the GPS and connectivity to deliver very targeted advertising within the book. Granted you would have to be careful to keep it from interfering with the reading experience, but you could imbed key words, which if a user clicked on would bring up ads. Everytime it is clicked the author gets a chunk of the per click revenue (same way google adwords works). Or maybe you could deliver full or half page (I think 1/2 page would work better since the reader has to stay on the page to continue reading) ads like a newspaper does, but have the ad target the readers specific location (which he App could do by reading their last GPS location).
So if you are an e-Reader type, would you rather pay $9.99 with no ads, or get it for free with ads? At what point would you rather pay? $6.99? $3.99? $0.99?