saving posts by making markets

© 2013 Van Alstyne et. al.

Saving Posts by Making Markets

Marshall Van AlstyneBoston University & MITTwitter: @[email protected], [email protected]

Postal Vision 2020Washington, DCApril 11, 2014

© 2014 Van Alstyne, permission granted to redistribute so long as all copyright information is preserved.

Geoff ParkerDirector, Tulane Energy [email protected]

Tushar ShankerBoston [email protected]

mailto:[email protected]



1st Class + Std Mail ~ 70% Rev, 90% Vol

$4.8B loss in 2012 ($15.9 including mandatory health and retirement)

Source: USPS Financial Report 2012 Form 10-K

Twitter: @InfoEcon 3 PlatformEconomics.org

Source: USPS Financial Report 2012 Form 10-K


You’ve just paid $15 to see Ironman when you’re presented with…

Unsolicited car ad Unsolicited preview

Which ad makes you happy?

Which ad makes you happy?


Consequences of ads that don’t make people happy.


Digital Ad Revenue Crosses $10B

Source: Internet Advertising Report 2013

Puzzle: mail ads are declining but digital ads are rising?


User Advertiser

Google Platform

1. Users declare interests2. Advertisers buy

attention3. Google refines its

matching algorithmPlatform

User Advertiser

Wash…Rinse…

Repeat…

Preferences +Interactivity +

Feedback


Even broadcastis going interactive.


We Need…

… to let recipients express their preferences… … interactivity…

… feedback to drive improvement…

… to route flows of mail, of data, of

money…… partnerships with industry …

… a business model.


ALL BUILT AROUND PAPER?… doing all this…


John L. Webb

47 East River St.

New Brunswick, NJ 08901

Consider a new kind of stamp


Sender

Recipient

Content

Date

Recipient gets this!


Stop Sending

Love It!

Tell Me More

☐

☐


Win for Recipients

• Gets Voice!• Archival, on-demand

retrieval of ad content and coupons

• Green, less landfill• Get buy-it-now option• Bi-directional: Can request

info, declare intent to purchase home furnishing, schedule oil change, try new restaurant

• Get Paid!


Win for Mailers• Learn what they like and what

they don’t• Like permission based ads,

much higher response rate• Can reward for forwarding ads

to friends and family• Notification of delivery,

opening, interest in product, interest in seller

• Physical mail becomes portal to mobile access

• Can motivate behavior, not just clamor for attention


Win for USPS• Avoids Do-Not-Mail• Can charge more for unwanted

mail• “Move Updates” at the press of

a button• New source of revenue from

escrowed funds• Closes data feedback loop

enabling value proposition relative to Google and Facebook

• Enables electronic commerce• Data layer creates platform for

ecosystem of biz partners


Platforms get enormous value from 3rd party developers

Most firms can only concentrate on most valuable

apps

Profits increase when others add to platform’s “Long Tail”

USPS can have its version of MS Word / PowerPoint / Exceland let business do everything else.

These areecosystem partners


Challenges• What about elderly access?

– DMA: Trend is extremely favorable– Works for any device with web access & camera– Can pre-load app & starter account on mobile devices

• How handle rollout?– Use public records: driver’s license, voting, phone records, even direct

mail lists– Advertising pays for rollout and even motivates adoption– Solves problem of hybrid mail

• What happens to unclaimed coupons?– Simply expire and can be reused

• What happens when people claim coupons but never buy?– Advertisers will figure this out fast!


Opportunities

Total Ad Market $167B Total E-Commerce Market $225

TelevisionDesktop InternetMobile InternetNewspapersMagazinesOutdoorRadioCinema 135%


Opportunities


Australia Austria Belgium Canada Cypress Denmark

Portugal Spain Sweden Switzerland UK USA

OpportunitiesFinland France Germany Greece Hungary Iceland

Ireland Italy Luxemburg New Zealand Netherlands Norway


Australia Austria Belgium Canada Cypress Denmark

Portugal Spain Sweden Switzerland UK USA

Opportunities

Finland France Germany Greece Hungary Iceland

Ireland Italy Luxemburg New Zealand Netherlands Norway


Redeemable Information Coupons

… let recipients express their preferences… … provide

interactivity…… feedback to drive

improvement…… route flows of mail, of data, of

money…… partnerships with industry …

… a business model.


For more on Redeemable Information Coupons• How to Strengthen Ad Mail by

Building a Digital Information Market. (Van Alstyne, Parker, Tushar) OIG RARC report 14-002 Dec 11, 2013 http://ssrn.com/abstract=2377476

• An Economic Response to Unsolicited Communication (Loder, Van Alstyne Wash) Advances in Economic Analysis & Policy 6(1) (2006) http://ssrn.com/abstract=1762212

http://ssrn.com/abstract=2377476

http://ssrn.com/abstract=1762212

© 2013 Van Alstyne et. al.

Saving Posts by Making Markets

Marshall Van AlstyneBoston University & [email protected], [email protected]

Postal Vision 2020Washington, DCApril 11, 2014

Money

Geoff ParkerDirector, Tulane Energy [email protected]

Tushar ShankerBoston [email protected]© 2014 Van Alstyne, permission granted to redistribute so long as all copyright information is preserved.




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