Demand Media Harvard Case Solution & Analysis

Google search helped Demand Media grow to be $ 1.9 billion in the publisher's site. Then, social media and smartphone apps have started to change the way people navigate the Internet. How Demand Media react? Business worked on a brand new model in which the stable of 10,000 freelance contributors delivered content, Internet search engines has brought him 75 million readers a month, and advertising revenue. He took the guesswork out of content, with algorithms that indicated what topics were search and content created respectively. Demand refers to his online 5000 articles published in the day, as an investment, not a cost, change the traditional model of media. In addition to being able to bring the interests of consumers with the algorithm, the company had a formula to calculate the lifetime value of each piece of content. The business models of print and electronic media decreased demand figured out how to use digital and social media tools to reduce the cost of content creation and find an audience. In spring 2011, the leaders of the five-year-old company was pleased with the Company's billion dollar IPO, the largest Internet IPO, as Google, but the changes in consumer behavior in the online survey were binding model. "Hide
by John Deighton, Leora Kornfeld Source: Harvard Business School 18 pages. Publication Date: March 17, 2011. Prod. #: 511043-PDF-ENG

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