Revenue streams and digital content providers: an empirical investigation

Gallaugher, John; Auger, Pat; BarNir, Anat

doi:10.1016/s0378-7206(00)00083-5

Cited by 75 publications

(59 citation statements)

References 17 publications

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“…The study of different revenue models and their effect on firms' revenue performance has been extensively carried out in the context of information goods and/or EC by a vast and multidisciplinary literature (Amit and Zott 2001;Gallaugher et al 2001;Afuah and Tucci 2003;Chai et al, 2007;Amit and Zott 2008;Enders et al 2008;Pauwels and Weiss 2008;Clemons 2009;Teece 2010;Wirtz et al 2010;Zott et al 2011;Halbheer et al 2014;Wagner et al 2014). For instance, Pauwels and Weiss (2008) have empirically investigated the revenue consequences of moving from a pure free strategy to a paid/freemium strategy for online content providers, demonstrating that the gain or loss in revenue after the change in the revenue model depends on a number of factors such as whether the price is high relatively to the willingness to pay of users, whether all contents are affected by the change in the strategy, and whether the momentum of new free subscriptions has been completed.…”

Section: Theory and Hypothesesmentioning

confidence: 99%

Revenue models, in-app purchase, and the app performance: Evidence from Apple’s App Store and Google Play

Roma

Ragaglia

2016

Electronic Commerce Research and Applications

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a b s t r a c tIn this paper, we empirically examine how the revenue model (paid, free, or freemium) adopted for a given app affects the app revenue performance as measured by the app daily revenue rank. We also study the impact of in-app purchase on this measure of performance. Moreover, we study how such relationships are contingent upon the distribution platform where the app is marketed as well as the type of category to which the app belongs. We test our hypotheses relying on a large sample of top grossing apps from the two major app stores, namely Apple's App Store and Google Play. Our findings reveal that in the Apple's App Store, paid and freemium models are equivalent and both are more effective than the free model in terms of app revenue performance. On the other hand, in Google Play no significant differences between paid and free revenue models emerge, whereas the freemium model is shown to be less effective even than the free model. Moreover, while in-app purchase is shown to positively influence the app revenue performance in Apple's App Store, this effect is reversed in Google Play. Finally, the type of category is also shown to influence the effects of the revenue model and in-app purchase (the latter to a lesser extent) on the app performance.

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Section: Theory and Hypothesesmentioning

confidence: 99%

Revenue models, in-app purchase, and the app performance: Evidence from Apple’s App Store and Google Play

Roma

Ragaglia

2016

Electronic Commerce Research and Applications

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“…Affiliate marketing (Gallaugher, Auger and Barnir 2001) involves paying affiliates (e.g., Amazon) a percentage of the sales revenue generated when a customer is redirected from the website of the affiliate to that of the company (e.g., Sony). Hoffman and Novak (2000) find a low effectiveness of online banner ads, and propose affiliate marketing as a more efficient way of customer acquisition.…”

Section: Customer-initiated (Online) Media Versus Firm-initiated (Offmentioning

confidence: 99%

The impact of brand familiarity on online and offline media synergy

Pauwels

Demirci

Yıldırım

et al. 2016

International Journal of Research in Marketing

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Rooted in the Integrated Marketing Communication framework, this paper conceptualizes how brand familiarity affects online and cross-channel synergies. The empirical analysis uses Bayesian Vector Autoregressive models to estimate long-term elasticities for four brands. The authors distinguish customer-initiated communication (typically online) from firm-initiated communication (typically offline). Their results indicate that within-online synergy is higher than online-offline synergy for both familiar brands but not for both unfamiliar brands. Managers of unfamiliar brands may obtain substantial synergy from offline marketing spending, even though its direct elasticity pales in comparison with that of online media while managers of familiar brands can generate more synergy by investing in different online media.

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“…The main features analysed were: (1) interactivity with the reader; (2) information format; (3) revenue streams (Gallaugher, Auger & Barnir, 2001), (4) innovation (Byrne, 2003); and (5) Other distribution channels (PDA or mobile phone service). Although each of the analysed cases is not explained in detail in the paper, examples from the exploration of the websites are used to illustrate the concepts that emerged.…”

Section: Methodsmentioning

confidence: 99%