Quote:
Originally Posted by Paul Markham
I understand that and actually developed an online presence because I knew it was the future, when loads of other better content producers did nothing. The debate is over whether the industry made more money before Tubes ruined the industry.
IMO the best years were around 2000 to 2006. Offline sales were still good but not great, with DVDs, Cable, Mags, Phone lines, cable TV etc run on a country by country basis. Online sales were great as well on a world wide web basis.
To really coin it with an advertising based model online porn has to be accepted by mainstream advertisers. So ads for people like this. https://www.wordstream.com/articles/google-earnings
The porn industry is very much restricted to selling porn related products with it's advertising, with a few exceptions.
Tubes can't afford to buy content and certainly couldn't afford to relay content if BW were to rise. But for now Tubes are given loads of content and BW is priced very low. |
paul, listen - i will give you a short explanation of marketing.
a market size is the result of a multiplication where is the number of buyers before the x and the price after the x.
no matter if you increase the number before or after the x it will have a higher result.
a porn movie and any digital good that you are able to simply copy have only ONE price - these are the cost of production. it is not the same as a salami sandwich that you have to produce for each single buyer.
so in fact the value of this video can be calculated based on the numbers of buyers and the price they are willing/able to pay for it.
in this case you might produce a video for letīs say 1000 dollar and sell it for 2000 or 2500 to someone who will hopefully make 4000 on a very very long term by finding 1000 customers who want to buy it for 4 dollar.
but you can also do a very other calculation by assuming that this video can be served to 100 million visitors for free. if each visitor "pays" indirectly though advertising only 0,0005 US the final market size for this video is not 4.000 but 50.000 dollar.
of course it is not sold to ONE buyer for 2500 dollar but maybe to 2000 buyers for 2,50 dollar.
what kind of products are promoted on this video doesnīt matter. we have already so many options with products that do not care to advertise in adult. especially dating, gambling, enhancement, cams, amateurs, ebooks are buying more traffic as any network have but we do also have buyers from the very nonadult world who start to understand that wankers are consumers.
even if this number is not THAT much yet there are again thousands of mediabuyers with nonadult product pages where all this products that we do not have yet directly are promoted and sold. the products do not want to be visable on a porn site but they do not care where the shopsite get itīs traffic from and here we are in another buyer market that did not exist 10 years ago.
on top of that every smart advertiser (and i would say 10% of them are already smart) is not really dependent on the sale of the product that it advertises - this is the reason why many product advertisers are calculation on single opt in.
marketing is above the product - the value is in the connection to the consumer and keep this connection alive.
if a marketer does have this connection to a consumer, he is able to sell him ANY KIND OF PRODUCT later. and this makes a simple emailadress or phone number MUCH MORE valuable as the sale of the product this user was originally catched.
as the internet (and especially the adult internet) is not a place where 2 or 3 big players getting all - you have to rethink the strategy of production. you will not be able to find enough buyers for a 50 dollar video but you will be able to find thousands for 2,50.
so in fact the market today is MUCH bigger as it was before - just the always yesterday people like you did not catch this ball and swim with the stream - instead of that you are praising since years that the stream will go back to the old direction - but this will NEVER happen because too many people making too much money with a much bigger market as the one you are still dreaming from.