What are the pros and cons of an advertising revenue model for your product, and the internet overall?
Our product, Plates, connects individuals together via affordable, delicious, and convenient meals. We partner with restaurants in the area to provide to-order meals for university students. If Plates were to adopt an advertising revenue model in replacement of our current business model, the ad model could decrease the commission fee needed to generate revenue from restaurants. This would in turn lead to more restaurants wanting to partner with us and be potentially willing to decrease their prices even further (due to the bulk nature of each order), leading to our customers having more diverse food options and discounted prices compared to in-restaurant dining.
The downsides to the advertising revenue model, however, include the detraction from Plates’ friend-matching and food ordering experience. As a user, I would not personally appreciate pop-ups every thirty seconds about something unrelated to an app. It would annoy me to no end, and I believe that I speak on behalf of many of our potential consumers.
Regarding the advertising in the internet overall, I believe that it does allow for many web services and websites to stay economically viable and democratized. Advertising enables individuals who, in an alternate universe, would not be able to afford certain online services and content to gain indefinite access. However, this is at the expense of their privacy and oftentimes, sense of security. Thus, although the advertising model has its upsides, there is much room for improvement. Exploration of other economic models for the internet may prove fruitful in developing a better digital experience for everyone.
