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Which option is more suitable?

• Option-1:
A banner advertisement with ₹ 10/CPM, which had a
predicted CTR of 2.5% and is designated to reach
100000 viewers with a creative cost of ₹ 3000.
• Option-2:
A high quality list of 100000 e-mail address with an
expected open rate of 12%. The cost per thousand e-
mail address is ₹ 250 and creative cost will be ₹ 400.
E-Business Models
Brokerage Model:

• This model brings buyers and sellers together to create markets. 


Brokers can operate in the B2B, B2C or even C2C space.  this could
involve:
• Marketplace exchange: creates a market to facilitate buying and selling (e.g. eBay)
• Auction brokers: conducts auctions and collects a listing fee and commission
• Transaction brokers: providing a third-party payment facility for buyers and sellers to
complete a transaction
• Coupon promotion
Advertising Model:

• A website provides content to the reader (usually, but not always


free) and services (e.g. email, instant messaging), mixed with
advertising, such as banner advertisements or sponsored content. 
Large information based portals such as Facebook, Google and
news.com suit this model as its effectiveness is influenced by high
viewer traffic.  News.com.au is an Australian based news site, deriving
advertising revenue from advertisements that are delivered with its
free news content.
Subscription Model:

• The subscription model generates revenue by charging a periodic fee


for access to a service or to content.  Often the business will have a
combination of free content, and a subscriber ‘premium’ level
content.  Netflix and Adobe are two well-known businesses
representing different subscription approaches, with Netflix offering
content and Adobe, application services.
Utility Model(pay-as-you-go)

• Revenue is generated on a pay as you go ‘metered’ approach to


service use.  It differs from the subscriber model that charges for
access, whereas the utility model charges based on a consumer’s
usage.
• Amazon Web Services and Trend Micro are two companies
successfully capitalising on the utility model.
Infomediary Model:

• This model involves the reselling of useful data.  Infomediaries


provide value by gathering and organising large data sets to on sell to
those who want the information. 
• Examples include: Nielsen Net Ratings and Compare the Market .
Affiliate Model:

• This is based on offering financial incentives to affiliated partner sites. 


• It is completely measurable, with affiliates only being paid when a
sale is made via their affiliation.  
• The Amazon Affiliate program is one such leading example of this
model in action. Other examples are Policy Bazar.com, Bankbazar.com
etc.
Aggregator Model:

• This model connects individuals, with the model based on loyalty and
engagement. 
• Revenue can be generated through a variety of ways, including sale of
ancillary products, voluntary contributions, contextual advertising or
subscriptions. Airbnb is a current strong example of the community
model. 
e-tailing model
• Marketplace model
Types of Marketplace Model
• B2C — business to customer
• This is the most traditional model, enabling the interaction between sellers and
customers. On such platforms, there are always many offers. The best online
marketplace examples are AliExpress and Booking. High competitiveness provides a
strong incentive for sellers to better their client service and provide quality products.
• B2B — business to business
• In this case, the business sells to the business. B2B marketplaces are useful for wholesale
shopping and entrepreneurs that look for suppliers. Good examples is Indiamart.
• C2C — customer to customer
• This model assumes equal communication between customers. Usually, participants in
such platforms are not entrepreneurs and businessmen. On such platforms, people
exchange skills and services. Examples of such marketplaces are BlaBlaCar.
• D2C- Direct to Consumer
Inventory model

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