Saving Posts by Making Markets

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Henry Johnson
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1 Saving Posts by Making Markets Marshall Van Alstyne Boston University & MIT Postal Vision 2020 Washington, DC April 11, Van Alstyne et. al Van Alstyne, permission granted to redistribute so long as all copyright information is preserved.

2 1 st 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

3 Source: USPS Financial Report 2012 Form 10-K 3 PlatformEconomics.org

4 4 PlatformEconomics.org

5 You ve just paid $15 to see Ironman when you re presented with Unsolicited car ad Unsolicited preview 5 PlatformEconomics.org

7 7 PlatformEconomics.org

8 Digital Ad Revenue Crosses $10B Source: Internet Advertising Report PlatformEconomics.org

Google refines its matching algorithm Wash Preferences +

10 Google Platform User Platform Advertiser 1. Users declare interests 2. Advertisers buy attention 3. Google refines its matching algorithm Wash Preferences + Rinse Interactivity + Repeat Feedback 10 PlatformEconomics.org

11 11 PlatformEconomics.org

12 12 PlatformEconomics.org

13 We Need to let recipients express their preferences interactivity feedback to drive improvement to route flows of partnerships with industry mail, of data, of money a business model. 13 PlatformEconomics.org

14 doing all this ALL BUILT AROUND PAPER? 14 PlatformEconomics.org

15 Consider a new kind of stamp 15 PlatformEconomics.org

16 Sender Recipient Content Date 16 PlatformEconomics.org

17 17 PlatformEconomics.org

18 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! 19 PlatformEconomics.org

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,

19 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 20 PlatformEconomics.org

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

20 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 21 PlatformEconomics.org

Platforms get enormous value from 3 rd party developers Most firms can only Profits increase when others concentrate on most valuable add to platform s Long Tail apps

21 Platforms get enormous value from 3 rd party developers Most firms can only Profits increase when others concentrate on most valuable add to platform s Long Tail apps These are ecosystem partners USPS can have its version of MS Word / PowerPoint / Excel and let business do everything else. 22 PlatformEconomics.org

22 Challenges What about elderly access? DMA: Trend is extremely favorable Works for any device with web access & camera 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! 23 PlatformEconomics.org

23 Opportunities Total Ad Market $167B Total E-Commerce Market $225 Television Desktop Internet Mobile Internet Newspapers Magazines 135% Outdoor Radio Cinema 24 PlatformEconomics.org

24 Opportunities 25 PlatformEconomics.org

25 Opportunities Australia Austria Belgium Canada Cypress Denmark Finland France Germany Greece Hungary Iceland Ireland Italy Luxemburg New Zealand Netherlands Norway Portugal Spain Sweden Switzerland UK USA 26 PlatformEconomics.org

26 Redeemable Information Coupons let recipients express their preferences provide interactivity feedback to drive improvement route flows of partnerships with industry mail, of data, of money a business model. 27 PlatformEconomics.org

For more on Redeemable Information Coupons How to Strengthen Ad Mail

(Van Alstyne, Parker, Tushar) OIG RARC report 14-002 Dec 11, 2013

com/abstract=2377476 An Economic Response to Unsolicited

27 For more on Redeemable Information Coupons How to Strengthen Ad Mail by Building a Digital Information Market. (Van Alstyne, Parker, Tushar) OIG RARC report Dec 11, An Economic Response to Unsolicited Communication (Loder, Van Alstyne Wash) Advances in Economic Analysis & Policy 6(1) (2006) 28 PlatformEconomics.org

28 Money Saving Posts by Making Markets Marshall Van Alstyne Boston University & MIT Postal Vision 2020 Washington, DC April 11, Van Alstyne et. al.

OECD WORK ON AMR: TACKLING THE NEGATIVE CONSEQUENCES OF ANTIBIOTIC RESISTANCE ON HUMAN HEALTH. Michele Cecchini OECD Health Division

OECD WORK ON AMR: TACKLING THE NEGATIVE CONSEQUENCES OF ANTIBIOTIC RESISTANCE ON HUMAN HEALTH Michele Cecchini OECD Health Division Antimicrobial Resistance is a Global Threat Modern medicine and surgery