A Major Challenge for Premium Companies Today

A major challenge is in the way for a lot of companies out there.

Especially the companies that cater to high-income users.

To give you the context on how things are moving in this space –

Every company out there is moving into a freemium model, where users can use the service for free with ads or a premium without ads.

Scenario 1 – Netflix has partnered with Microsoft to bring ads to the platform.
Disney+ is planning to bring in the ads.

Scenario 2 – Apple has come up with ios-14 changes that enable people to opt-out of tracking online. It highly limits all kinds of online targeting specially Fb targeting.

This is the core reason why Mark is pushing the Meta verse game and moving aggressively in this space. Because this change by Apple has threatened the backbone of Facebook.

The whole focus shift of Facebook into Meta verse is majorly due to the recent limitations in tracking and that results ineffective targeting.

You take scenario 1, premium customers/high-income customers pay the premium and opt out of ads on these platforms(streaming and others).

To be honest, a majority of the people out there don’t like a large chunk of the ads – unless it’s value-adding to their lives through highly targeted messaging to the right audience.

We at beingplato do this highly targeted messaging for the right audience type of ads. Hit us up if you want us to help you.

Now coming back, when high-income users get an opportunity to opt-out of the ads, a lot of them tend to choose that.

Most high-income users opt-out of the ads as they’re more than happy to pay a premium to do that.
And companies who want to reach out to this audience miss this pie.

So the companies that cater their products and services to this type of audience don’t get a chance to reach them effectively.

And what are those companies – Apple, Peloton, Mercedes, Porsche, premium vegan companies,…

Other companies where audience lie across low and mid spectrum audience doesn’t get affected here.

They’re going to thrive here.

Companies catering to low and mid income users are going to thrive as they get more real estate online to advertise. And the attention in these streaming platforms are invaluable.

A lot of their audience opts for the ads+ services.

Hence, they get a ton of more opportunities to reach in front of their users.

Do you think Apple and others are going to back out from this game?

No way, they’re going to figure out a better way.

Digital is the future. And they’ll figure this out by any chance.

Companies that cater to the high-income audience will figure out a better way for sure

Because problems and challenges always create new opportunities to innovate.

We at beingplato digital are excited.

Why – this gives us the chance to bring in innovative ideas into this market.

I’d love to know your thoughts.