Current digital revenue models tend to be weaker than traditional revenue models (Berman et al. 2011), and the fragmentation of the online audience has created niche groups that are difficult and unprofitable to serve. Different commercial platforms for user-generated content are intensifying the competition for consumer interest and advertising revenue. Because of these reasons, there is an existing need for complementary business models, and leveraging users as content creators through revenue sharing programs is one possible addition to these models.
In this first part of the publication, the concept of revenue sharing is discussed based on the literature and existing examples. It is also likely that favorable topics for content will be found in local and personal spheres and that professional bloggers are unlikely to contribute. The results of the survey show that, from the users' point of view, there is a high demand for user-generated content.
This includes local news and, for example, topics where the author has his or her own experimental knowledge. Payments to user-generated articles received almost the same support as certain product gifts or publicity to article topics or to the author.
Sharing (Advertising) Revenues in Commercial Mediaspaces
Creating the Original Content: Citizen Journalism
Creating the Original Content: Blogging
User Participation in Online Commercial Media
Measurement and Encouragement of Quality UGC
Fraud Prevention and Copyright Issues
Elements of Possible Success
Drawbacks and Benefits of Revenue Sharing
Open Issues for Future Research
Revenue Sharing of Online Communities – A Survey Study
Web Survey
The questionnaire was created and published with Digium1 software, which is a web-based tool for collecting data and making analyzes and reporting of collected data. Kaksplus3 is a popular news and map service with a focus on pregnant women and parents with young children. News and chats in Ellit4 are focused on topics such as fashion, health, interior design and food.
Respondents’ Background
The scenarios helped respondents to understand different revenue share opportunities in different contexts and to inspire ideas for new concepts. All respondents used social media and were members of various online communities (Figure 3).
Content Themes for Amateur Writers
- Topics for Amateur Writers
- Different Locations
The writing style can be personal and humorous, but respondents emphasized that articles should be well written. They wanted to read stories by amateur writers about daily incidents, grocery bills and local news. Kaksplus respondents were also most interested in letters to the editor, interviews, testimonials and eyewitness accounts.
Recommendations
- Bloggers as content creators
The respondents also thought that a service offering advertisers and sponsors to blogs would be a good idea. The respondents had more confidence in user-generated content when their themes and topics were known to the author. Kaksplus respondents thought that amateur writer's food receipts, interviews, entertainment-related stories, product tests and local news were reliable.
Articles and reviews published with real name or registered nickname are reliable, but anonymous judgments and comments like "this product was totally useless" are not very reliable. Articles are always based on author's interpretation and personal preferences, but that doesn't matter to me.
Compensation to amateur writers
- Revenue share models and different ways to pay
- Financial payment as a compensation
- Revenue share methods
Respondents were mostly open and ready to the idea of being able to write to an Internet service if they were financially compensated. Compensation encourages focus on quality and research references so you can write a high-quality article. Respondents were mostly open and ready to the idea of being able to write stories for online media for a small monetary compensation.
I don't have too much extra time, so compensation would be very motivating if I write and publish articles. Compensation encourages you to focus more on quality and research topics so that you can write a high-quality article. Female, 22 years Some respondents also believed that the user-generated content should mostly be based on voluntariness.
All the different reward models received support: payment by length, payment by user time, discounts, giveaways, topic or writer publicity, and new and important contacts. Ads are only acceptable if they are related to my article and the revenue must be credited to me. It would not be a credible product review article if it has a product advertisement.
Overall View
The reason for reading amateur writings was that they were seen as independent, different and inspiring. Articles written by amateurs contain new points of view, and it is inspiring to read something that is not written by professional journalists.
Revenue share models and users
Amateur writers are very familiar with their subjects, and they tell personal and honest experiences. Respondents were also ready to write their own articles if they were paid from it. This includes local news and, for example, subjects where the writer has his own experimental knowledge.
Recommendations of different products and services were also considered important subjects for amateur writing. gadgets, various tech gadgets, good babysitters, food recipes, etc. have been suggested as some topics to amateur writers. In addition, amateur writers usually have extensive knowledge and high motivation related to their topics of interest. User measurement was seen as a good option to conclude the quality of the user created article.
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Web survey form (in Finnish)
1 = Täysin eri mieltä, 2 = täysin eri mieltä, 3 = hieman samaa mieltä, 4 = täysin samaa mieltä, 0 = en osaa sanoa.
