Paolo Barberis Presents DADA
Thanks to the netwo guys for this second invite. After Yahoo we met DADA to talk about web and internet momentum.
All DADA’s top management is incredible. They list impressive DADA’s numbers but they look like your school fellow.
They built a success strateegy focussing on:
- localization of services (they deliver contents and manage communities in several countries)
- mashing up mobile and internet value added services and contents
- mixing premium contents and user generated contents
- exploitation of micropayments (here in italian)
We discussed about business models. Is possible to go beyond advertising? In the early stage of a start up or bootstrapped company this seems really difficult: free is mass.
In the next stages it is possible. DADA business model it is the demonstration. They mix entertainment, news, social network and messaging with the glue of advertising and micro-payment. It is a successful formula but quite complex to manage.
What’s new in dada is an interesting evolution of advertising based models. DADA friend$ is the new program of revenue sharing with dada users: they generate content being rewarded by google adsense advertisers. It seems a great idea. From the user point of view to be rewarded for having fun it is not so bad even if this is not the way to get rich.
To be close in contact with people that play an important role on internet it is really exciting for many other reasons. We had first hand informations about some management issues of a competitive firm. First it is quite difficult to depict a competitors’ map. Entertainment, broadcasters, telco are all converging on the internet market; to draw clear boundaries it is not for long possible.
So what’s your compass needle?. Innovating services, creativity and user lifetime value. Micro-payment strategy seems to be successful because does not charge users with the aim to gain all his purchasing power. It is more valuable to take care of the users lifetime value giving him the opportunity to make several purchasing in the mid and long term.
From this point of view rewarding them with and easy to use advertising program it means to fund their future spending in community activity and value added services.
Such a difficult market rapid and fluid makes also the relationships with financial analysts rocky. You cannot give them a clear competitor’s map; you need to make assumptions on complex business models cash flow forecasts, you have to develop metrics and accounting systems sized on your unique industry.
This is a topic that netwo should address more in details, organizing a meeting with some financial partners or consultant.
What they asks to their “web oriented” customers?
Here it is the Viki’s Podcast