Purchase decisions & pricing · 0:38
Who Pays for an Ad-Supported Product?
An ad-supported service has users and paying advertisers. Examine how those different roles can shape engagement goals and create incentive tension.
IN THE CLIP
Transcript
You see this to the extreme on the internet, which is like free services supported by ads. So your social networks are a classic example or your search engines are another example. It's, I want to give access to absolutely everybody, but then I'm going to change my business model where my customer, I have sort of a 2 headed dragon where the user who uses my product. I still need to keep them engaged, but really, the people and companies paying for it are advertisers, and those are my true customers. So that's where you get into some incentive misalignment, which can cause problems.
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