Although the advertising revenue model can be suitable to many companies, a thorough inspection of each product is needed before implementing such model. As listed below, both pros and cons exist for advertising business models.
Pro
- A proven method of offering free online services
- Users are also used to the freemium model (pay to remove ads)
- Good for companies with meaningful traffic
- Good for companies with a focused group of users with a high willingness to pay
Con
- Much harder to offer a frictionless user experience
- Users might form a resistance to the company
- If numerous ads pop-up (mentioned in the reading) or two much ad coverage on the page, company may be deemed as spam
