Wednesday, 3 October 2018

It's the age of Advertisments

The moment you open any browser app to the moment you go online and search for something, each and every move of yours over this world called Internet is tracked and stalked by someone. You just can't avoid any eye here, just all you can do is make it not something obvious to pay attention at. This isn't the topic I am going to write about here.

With all the businesses these days coming up with free models or as they more appropriately call as freemium models of earning, there are some who actually are annoyed by these things called adverts and rest just don't mind.

From some random music or video streaming app to OEMs, there are steps where your everyday driver like your so called feature packed smartphone is nothing but just a personalised display to show you ads? I know this is looks like some sort of paranoid thinking but its true. But the main question is why ads? Why not just make it paid subscription and let people enjoy content free of annoyances?

The issues lies here in the mindset of the mainstream public and media. Ads aren't bad, without ads, you won't be knowing anything even out of the 1km radius of area you live in everyday. But when does something get annoying? Do ads really benefit the companies and businesses that much that every single firm you can think of is busy running behind these ad giants?

Companies like Facebook, Google, Amazon, etc.. track your even minor details like your height, weight, heart rates and what not to serve you 'personalised ads'. The reason that all of this is booming is because people love free stuff.

When you aren't paying for the product, you are the product.
Lets see how this works in the real life of Joe and Harry. Joe and harry launch a new business which is a new online video streaming service investing billions into the business. Joe heads for the traditional pay to watch model where Harry prefers the freemium model. Harry decides to place and show ads in the app to while people don't have to pay anything. They can just login and watch whenever however they like. Also alongside Harry decided to launch an option to remove ads by paying monthly some amount which is lesser than Joe's business model.

The people who were heavily against the ads decided to stick with Joe and pay while they enjoyed their content free from all sorts of intrusions. But slowly Harry's app interested people more with more content coming to his platform with exclusivity. Harry's app was used by masses and hence guaranteed more eyes to watch for all those content creators and revenue for them. Even though Joe's app wasn't in loss but it wasn't known by people or used that much since they had to pay to watch. While harry's app continued to gather more attention since there were options for both to watch for free and also if you get bored of ads, you can pay to watch just like Joe's app.

With time Joe's app was about to go down as since there weren't any more increasing number of users to his app, no more content creators were interested in giving streaming rights as much forget the option to make something exclusive  to their app. Since there wasn't much content to be discovered anymore people stopped paying to Joe and moved on to Harry's app and paid to get rid of ads.

While here Joe's app was taken off the market since it wasn't profitable anymore. Harry gauging the situation decided to make the premium price higher since there wasn't competition anymore around to catch up with him. Ads were paying him more than the premium subscribers and he wanted to maximize the profits out of his business while he could. Here Joe decided to ditch his paid model of business learning from the Harry's Model of doing business and started his own another app totally based on free viewing with ads concept. Now Joe's app was fairly new and to get more attention he decided to take the help of ads. Now he paid for the ads campaigns which got streamed on the Harry's app which was showing the ads.

Slowly people started giving Joe's app a chance and the cycle begins again.

You see, ads actually pay these businesses more than the paid models and also attracts way more people quickly than any other thing. Guess the reason? People like free stuff, it allows them a chance to explore things in much better manner. Ads aren't the evil but as long as people decide to love free stuff more ads are here to stay and business will always run in the way to earn more profit.
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