Thursday, October 04, 2012
Do Sales Rise as Discoverability Cost Increase?
As the roles across the value chain of the various publishing sectors change we find ourselves asking, how much does it cost to acquire a new customer, to retain them and to do business with them in an environment where prices remain at best unstable and at worst are falling?In the old world costs are fairly well defined, but in the new world these become far more complex and all tend to add small increments to the overall cost of doing business
Who should do what, and spend what to promote what, is an interesting challenge with authors, publishers, retailers all trying to be the communications hub with their consumers? The buzz word today is 'discoverability' and how we can all channel our resources (money and effort) to making it work.
Google, Twitter, Facebook all are about advertising and maximising their opportunity for businesses to pay to be see over the crowd. If you want to be seen at the top of the search then search optimisation is a key and money is the answer. If you want your tweets to resonate then again money is the answer and now Facebook is to join the game which gives you details on how many people have viewed what has been written.
Anything that gets searches, tweets and events and posts ‘seen’ is fair game and with it obviously comes an army of helpers to enable businesses to exploit these facilities at an additional cost. Facebook now plan is to introduce their new post service in the US and has begun tests in New Zealand. The cost is thought to be $7 a post and obviously could raise significant revenues for the social giant.
What is clearly now starting to appear is a whole series of new toll boths and additional cost options to doing business on the internet, or as some would suggest – doing business. Social and Search giants are not alone in creating new additional and compelling charges , the banks, insurance and other financial institutions have done it for years. The questions are now whether the market can sustain the overall costs, who should respond and how and who should channel their resources elsewhere?
It is after all easy to spend money but often much harder, or increasingly harder, to make it>