(TechCrunch, 2010)
Be Seated is not wholly dissimilar to TripAdvisor in the model it will use to remain sustainable. While TripAdvisor is based on travel, Be Seated will exist in the venue/entertainment sphere. It is therefore worthwhile to review how TripAdvisor generates revenue.
How TripAdvisor generates revenue?
- User-generated Reviews, kept loyal through further social networking features.
- Search Engine optimisation for publicity and promotion.
- Use of other services to attract users, such as Facebook.
- Majority of revenue through click-based advertising and display advertising.
- Has large amount of traffic and generates a large number of reviews so gains a large authority over comparable sites. Traffic becomes valuable.
How this relates to Be Seated?
Be Seated plans to utilise a very similar method to generate revenue. Venues and the entertainment industry, much like the travel industry, have a vested interest in advertising on Be Seated and we feel click-through advertising, when kept to a certain limit, will be a successful model to adopt.
It is also certainly wise to try to integrate with many existing successful services to generate new users more quickly and more efficiently. Likewise optimising Search Engines to make sure we are near the top of any search is incredibly useful, given that most internet users rarely skip through the first few pages of search and the first 2 results are the most likely to be followed (Moz) (Search Engine Watch). Once the service becomes popular enough we hope to establish ourselves as an authority in this area and capitalise on dominating this area of the market.
Concerns?
This model is not without its faults. Many have criticised that TripAdvisor has bombarded users with ads which has created an ugly user experience (TechCrunch). There is a fine balance between generating revenue and putting off customers. Likewise, Google is now a competitor in review sites and has had a few run-ins with TripAdvisor over competing for similar territory. Noticeably after disagreements and changes to Google’s Search algorithm TripAdvisor saw a decrease in traffic. Services like Be Seated, which potentially compete with Google, must be wary not to offend more powerful companies.
References
Cocotas, A. (2011). How $3 Billion TripAdvisor’s Business Works. [online] Business Insider. Available at: http://www.businessinsider.com/how-tripadvisors-business-works-2011-12?IR=T [Accessed 11 Apr. 2015].
Lee, J. (2013). No. 1 Position in Google Gets 33% of Search Traffic [Study]. [online] Search Engine Watch. Available at: http://searchenginewatch.com/sew/study/2276184/no-1-position-in-google-gets-33-of-search-traffic-study [Accessed 11 Apr. 2015].
Petrescu, P. (2014). Google Organic Click-Through Rates in 2014. [online] Moz. Available at: http://moz.com/blog/google-organic-click-through-rates-in-2014 [Accessed 11 Apr. 2015].
Siegler, M. (2013). *AD HERE* TripAdvisor: Plan *AD HERE* Your Vacation *AD HERE* Here *AD HERE* Please. [online] TechCrunch. Available at: http://techcrunch.com/2010/11/12/tripadvisor-is-a-great-advertisement/ [Accessed 11 Apr. 2015].
