Hidden Revenue 21#
The logic that the user is responsible for the income of the business is abandoned. Instead, the main source of revenue comes from a third party, which cross-finances whatever free or low-priced offering attracts the users. A very common case of this model is financing through advertisement, where attracted customers are of value to the advertisers who fund the offering. This concept facilitates the idea of 'separation between revenue and customer'.
Examples: Iconic Cases
How they do it: Google’s search engine is free to use for all customers. However Google monetizes its search users through providing companies targeted advertising which allows them to target exactly the customers that are looking for a certain product or service and also enables the customers to better find what they are looking for.
Learn more about Google →
How they do it: Mozilla doesn’t charge its users for the download or use of the software. However by using the software, Mozilla gets access to the users data and searches, which the company can then market to search engine operators and other advertisers.
Learn more about Mozilla →
How they do it: A lot of apps in the AppStore are available for free to the user, however while using the app the user is exposed to various advertisements.
Learn more about Apple iPhone/AppStore →
How they do it: The advertising model, popular with industries such as media (radio, TV, websites), was adopted by Ryanair. If there is a flat surface anywhere on a Ryanair plane, chances are good that they have placed an advertisement on it. Advertisers can also place ads on the booking website, Ryanair.com.
Learn more about Ryanair →
How they do it: Facebook is free for private individuals and businesses. The main monetization happens through the possibility for companies for targeted advertising.
Learn more about Facebook →
Below, the top industries for the pattern "Hidden Revenue" are displayed, in order to get insights into how this pattern is applied across different industries. We've collected data from 5 firms using this pattern.
Top Industries
67% of firms using pattern
26% of firms using pattern
18% of firms using pattern
All Industries
Below, the pattern "Hidden Revenue" is analyzed based on co-occurrence, in order to get insights into how this business model pattern is applied in combination with other patterns within the firms we studied.
Top Co-Occurrences
11 pattern co-occurrences
7 pattern co-occurrences
6 pattern co-occurrences
