The research here is amazingly flawed.
They ASKED users what they wanted.
If you've every done anything with behavioral analysis online you'll quickly learn that users say they want one thing and then often behave the exact opposite.
First. If you ask users if they would use a site that has ads, the percentage that say they don't want ads (which is probably a majority) are also the same ones that won't pay for the site.
This is a demonstration of consumer irrationality. It's usually either A or B.. not neither A nor B.
There are basically three main revenue models online:
1. ads. 2. paid content. 3. you're the product.
Now #3 might not ALWAYS be bad. Duolingo for example can use the feedback they get from users using the app to improve the service and some users DO pay to remove the ads. When you're using it in a freemium capacity you're actually paying to help train Duolingo.
With Facebook they're mostly #3...
A better way to do this would be behavioral analysis.
The first is to find out if consumers want ads or would they rather pay for a service directly.
The answer is overwhelmingly in favor of them NOT paying directly. They would rather be the product or see ads.
Don't believe me? Do you see any social networks that charge money? There are some somewhat freemium platforms like Wordpress (which still has ads) but for the most part the vast majority of the revenue online does not come directly from consumers.
Now... do users want customized ads?
Again. The data is overwhelming here.
Between two ads, one tailored to the user , and another random ad, the more targeted it is the greater conversion rate.
from Hacker News - New Comments: "WordPress" http://bit.ly/2HRKDJp
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