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REVENUE STRATEGY FOR DIGITAL PLATFORMS

Adithi Reddy Kallem

Srishti Mohan

Suparna Shetty

Swapnil Jitin Kadakia

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The U.S. Digital Market is Estimated at $155.3 Billion in 2021.

Source: https://www.globenewswire.com/news-release/2021/10/19/2316414/0/en/Global-Digital-Advertising-and-Marketing-Market-to-Reach-786-2-Billion-by-2026.html

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FLOW

  • Understanding the Data.
  • Visualizations.
  • Customer Segmentation
  • Market Strategy

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EXPLORING AND UNDERSTANDING THE DATA.�

01

Cleaning the data and extracting useful insights.

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DATASET

  • We have used the Deloitte Digital Democracy Data (2011) for our analysis.

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  • The dataset has 2131 rows and 198 columns.

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  • We have divided our data into two parts.
    1. Demographic Data
    2. Features

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DEMOGRAPHIC DATA

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FEATURES

Some of the features in the data tell us about -

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  • The devices owned

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  • The watching habits of people

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  • The time spent on streaming

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  • Advertisement preferences

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VISUALIZATIONS�

02

Graphs and charts to analyse the data

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ANALYZING ENTERTAINMENT CHOICES

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SOURCE OF ENTERTAINMENT

(MOVIES)

SOURCE OF ENTERTAINMENT (SPORTS)

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SOURCE OF ENTERTAINMENT (NEWS)

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ANALYZING SMARTPHONE USAGE

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  • Social media town-halls
  • Social networking platforms launching new features

Sources-

https://robertkatai.com/what-happened-on-instagram-in-2016-infographic/

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HOUSEHOLD PURCHASES

  • Home internet and PayTV most valued

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    • Increase in online shopping and e-commerce
    • PayTV second highest, yet way less than home internet
    • Rise in cable bundle cost

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  • Streaming video, music, print media least valued

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    • YouTube and Netflix only popular streaming services until 2016
    • Growth of news accessed via social media

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Sources-

https://www.nbcnews.com/business/business-news/cable-satellite-tv-costs-will-climb-again-2016-n484531

https://en.wikipedia.org/wiki/Timeline_of_online_video

https://www.digitalnewsreport.org/survey/2016/overview-key-findings-2016/

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SPENDING CHOICES

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  • Most users unwilling to share personal information

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  • Willing to view ads at reduced cost of subscription

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  • Majority willing to pay for news and sports for no ads

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SPENDING CHOICES

Sources-

https://www.fcc.gov/reports-research/reports/measuring-broadband-america/measuring-fixed-broadband-report-2016#:~:text=The%20median%20speed%20across%20all,of%20advertised%20speeds%20or%20better.

https://mashable.com/ad/feature/2016-spending-habits

  • For most of the major broadband providers - actual download speeds 100% of advertised speeds or better.

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  • Spending money on a desirable experience over buying a desirable thing - influence of social media

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On Smartphones most frequent digital activity is social networking, browsing

Home internet and PayTV - preferred purchase choice.

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TV/Smartphone preferred mode to consume content

On Smartphones most frequent digital activity is social networking, browsing, streaming video

For the above activities users willing to pay for home internet

But not willing to pay for higher speeds

Finally, users are not willing to share personal information unless subscription is offered at a reduced cost

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CUSTOMER SEGMENTATION���

03

Understanding our customers better to devise revenue strategies

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BASIS FOR SEGMENTATION

Purchase patterns with respect to demographic data

Individual Purchase patterns

Household purchase patterns

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STREAMING DEVICE

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CLUSTERING

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Younger Generation

Older Generation

Customers’ willingness to pay for streaming content over advertisements

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MARKET STRATEGY���

04

Identifying spending patterns of the user using classification and forming suggesting marketing strategies.

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Target Variable 1: Willing to view ads for reduced cost

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Feature Importance for target variable - View Ads for Reduced Cost

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Target Variable 2: Willing to share personal information for targeted ads

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Feature Importance for target variable - Provide personal information for Targeted Ads

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Target Variable 3: Willing to pay more for download speed

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Feature Importance for target variable - Pay more for download speed

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OLDER USERS

02

  • HIGHER SUBSCRIPTION FEES
  • SLOWER DATA SPEEDS
  • FEWER ADS

YOUNGER USERS

01

  • LOWER SUBSCRIPTION FEES
  • FASTER DATA SPEEDS
  • INCREASED NUMBER OF ADS

CONCLUSION

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Apart from the current subscription model, the company can introduce two more new subscription models targeted to -

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THANK YOU