Ayman Rahman Mr.

Faisal Wali
Roll: ZR-29 Guest Faculty
Section A Course Instructor,
BBA 21st W301: Entrepreneurship
 ROCKETFEED BUSINESS MODEL CANVAS

-Developing algorithm “Exploring content that

-Investors and resonates with you” - Automated Service -Multi-sided platform
stakeholders
-Platform development - Mass customization
-Mobile app that uses -Mobile application
-Online content behavioral targeting to users
-Increasing user base
creators recommend contents
-Advertisers and
-Social networking -Appeals to audiences
who don’t know what marketers
websites
they are looking for
-Online content
-Technological -Content database -Also a widget that creators
-App stores
alliances provides websites
-Developers additional revenue by -Social Network -Other websites
-Advertisers and showcasing third-party
sponsors -Active user base recommendations -Website and API

- Servers and data centers -In-app advertisements

-Research and development -Sponsored content

- Operational and administrative costs - Ad revenue from external website widgets

-Marketing cost -Analytics

The value proposition of RocketFeed is straight forward,

The proposition focuses on 3 main aspects. “Exploring”, “Content” and “Resonates”.

Ever get the feeling there is nothing worth watching on television, despite there being 100+
channels? That same paradox is even greater on the web, given the enormous and ever
increasing amount of internet content.

RocketFeed is an app that uses behavioral targeting to recommend interesting articles, news
stories, slideshows, blog posts, photos or videos to a reader attempts to create a solution in the
online content marketplace. Recommending and connecting people to sites that may resonate
with them is the core of RocketFeed’s business vision. The service appeals to audiences who
don’t know what they are looking for as majority of habitual internet users, including educated
ones, frequently fall in this category.

There are three ways people get to consume content on the internet.

(1) Search: If they knew what they were looking for and specifically
searched for that content.

(2) Social: if a friend of theirs or a page they followed shared it and they
came across it on their homefeed.

(3) Opportunistic: they just happened to be on a page and see a title that
attracts them.

RocketFeed will mainly focus on that third type of interaction and connecting people around
the world with content that they might like. Also a widget that provides websites additional revenue
by showcasing third-party recommendations. In essence and core value, RocketFeed claims to be
the reverse of search engine results. While search engines provides exactly what the user is
searching for, RocketFeed recommends content proactively based on user’s preferences, which
are, in turn, based on RocketFeed’s algorithms.
RocketFeed’s recommendations are meant to boost readership on different sites by referring
readers to different articles that they might enjoy. It also provides publishers an additional
revenue stream by serving up recommendations from other outside publications that readers
or viewers can relate to. So, it’s a multi-platform venture.

1. Mobile App Users: They are our primary customer base. They will be the ones downloading
the apps and the content provided to them would be based on the algorithm catering to their
preferences.

2. Marketers and Advertisers: Marketers and Advertisers are the ones who would take the
decision to provide us with sponsored content and advertisements. They will be the main
influencers through which the biggest chunk of the revenue stream would be acquired.

3. Content Creators: Online content creators are going to be the ones providing us with the
content that the entire venture is based on and are a crucial segment of our business model. By
ensuring a steady flow of quality content that we can showcase and the readers can relate to is
vital to our business.

4. Other Websites: They will be responsible for the web widget along B2B links and
partnerships that will enhance our relationship with the clients. They will use the widget to
drive traffic to their sites and act as advertisers who pay for this incoming traffic from other
sites.
RocketFeed's algorithm module determines which content within the network is interesting and
relevant to individual users. It is an automated process that follows the mass-customization
model.

A larger set of algorithms is run in parallel to determine a set of candidate recommendations.

The decision of which recommendations to serve the user is made by machine learning
techniques. The algorithmic methods RocketFeed uses can be divided into numerous
categories, some examples are: contextual, behavioral and personal algorithms.

Users can also tell us which content they don’t want to see recommended. Whenever a user
sees a recommendation, rather than click on it, they can mouseover and will see an “X” in the
top right-hand corner. Click it, and the system will remove it and ask why you don’t want to see
the content in question. Choose one, and once you’ve given the feedback, it’ll take that choice
into account. This also comes into play if a cookie-base browser comes across the RocketFeed’s
external recommendations widget.

It also allows the content creators to refine the content suggestions that are seen on their sites.
With user-based recommendations, their readers and viewers will be providing even more data
and feedback into its system. And the analytics can also help them to create content that will
appeal to their desired readers.

There might be one issue maintaining a good relationship with the customer. Methods, images,
and language used by marketers and content creators are often perceived as misleading spam,
promoting low-quality distasteful content, including saleable items that aren’t relevant or
practical.

To tackle this issue, the content must be filtered and spammy links and misleading content
should be taken care of to give the customer the best experience.
For a venture like RocketFeed, healthy partnerships are instrumental in making the business
success or a failure. We can optimize its resource utilization, create new resource streams or
mitigate risks behind major business decisions by taking on a partner before starting a new
course of action.

RocketFeed will have various partners who will provide resources as well as services that are
vital to our success. Some of these partners will have to play their roles during the initial stages
whereas others will play their role continuously as the firm runs its operations.

These partners include,

Investors and stakeholders

Online content creators

Social networking websites

Technological alliances

Advertisers and sponsors

There can also be strategic partnerships between partners. Such a partnership will help spread
the risk both companies may take. It may also help when both partners are trying to do
something new. Partnering up can additionally mean a confirmed supply of content or
advertisements.

RocketFeed will be a platform for websites to promote and grow themselves. And they will be
facilitated by Search Optimization & recommendation. Maintaining a good relationship with
these partners can produce a win-win situation for all the involved parties that can result in a
fruitful market scenario for everyone.
The key activities can be divided into three major segments,

Developing Increasing
Algorithm Userbase

Platform
Development

Developing the algorithm would be the most crucial part. The whole recommendation system
would be based on the algorithm.

Each platform (e.g. iOS, Android, Windows) offers its own SDK (Software Development Kit) and
that can be used to make platform specific apps. For developing the app, a six stage model will
be implemented:

1. Have a fair understanding of programming languages involved

2. Define a concept
3. Determine the audience
4. Address a need with the app
5. Consider the content
6. Practice good UI (user interface) design processes

RocketFeed would have to work very hard to increase its customers. Because in the long run,
there will be high possibility that there will be new players in the market. So the competition will
increase and we will have to maintain high quality service to sustain our business. We will also
have to figure out effective marketing strategies to cope with the ever-changing market and to
not let the new players acquire a significant portion of the market.
RocketFeed is an infrastructure based business venture. The key resources of RocketFeed are
directly relevant to the number and type of key activities the company can engage in.
Ultimately, the quality of these key resources will impact the sustainability and profitability of
the company. The resources should be able to meet the business requirements and also handle
the additional demand if it comes in the future.

The major resources that the venture would require can be divided into three basic sectors.
These sectors would require the most investment in the initial stage.

Content database Developers Active user base

A functional and ever-evolving database is a must for RocketFeed. This is the most fundamental
resource that is required by the firm. We will have to invest in the infrastructure to sustain their
profitability in the long-term.

The developers and programmers are key human resources that RocketFeed depends on.
Constant monitoring is vital for the filtering and management of contents. They not only
provide us with human resources but also are invaluable intellectual resources for the
company.

And finally an active user base ensure that the content remains relevant and resonates well
with them. The more they use the app, the more the algorithm becomes accurate. Due the
machine learning nature of it, the users themselves would be ensuring that they get what they
would like.
It is vital for the app to be available to majority of the target market and the issue of
sustainability should also be addressed. So, it would not be much effective in the long run to go
for all the existing platforms as it will be costly and the return on investment will not be
satisfactory. For that reason, RocketFeed will be available on the platforms that will render
most fruitful and the market penetration will be feasible. The app will be available on the
following stores,

Specifics
An alternate app store for Android OS catering to Amazon
consumers; consists of 3800 apps
App store for Apple iOS apps; consists of over 650,000
apps
App store for Android OS apps; consists of over 850,000
apps
App store for Windows Phone apps; consists of over
120,000 apps

The app will also be available for download on its official website.

Although RocketFeed’s network will not reach its users directly, it will create value for them.
The main purpose of the network is to maintain constant communication with the clients and
content creators.

The main distribution channel would be based on technology that enables seamless integration
of a marketplace where hundreds of sites are hosting widgets/links/ads, while others are
getting desired traffic--with all activity in terms of clicks, payouts, quality of content, user
engagement, and similar analysis being tracked in real-time through algorithms designed to
increase customer engagement.
90% of new businesses fail in the first 3 years because they fail to understand their costs or
what it will take to create the goods and services they have promised in their value
propositions. One must evaluate the cost of creating and delivering the value proposition,
creating revenue streams and focus on long-term customer relationships.

The major sectors where investment is needed and the costs would occur are,

1. Servers and data centers

2. Research and development
3. Operational and administrative costs
4. Marketing cost

It has to be admitted that, within the growth stage, the app will not be able to return the profit.
Therefore, choosing costly promotional tools is not an option. The purpose of the initial stage is
to build considerable users, to grow and release versions, and to be known as a brand that
performs the role of provider of quality content among the users.

All of the sunk costs will be incurred during the initial stage of the business. Such costs include
the development of database and algorithm, development of apps and website, purchase of
domain etc. The development of such a huge database and complex algorithm will be the most
expensive and difficult task for RocketFeed.

RocketFeed intends to have a permanent database administrator and a team of developers.

There will be a number of employees who will be working under the database administrators.

Algorithm developed during the initial stage will be updated periodically in order to make the
suggestions to the users more accurate. So a significant portion of the investment would be
spent behind research and development.
RocketFeed’s main source of revenue would be from four major segments.

In-app advertisements Sponsored content

Ad revenue from website widget Analytics

The app itself would follow a freemium model. It would be free to download but you will have
to pay more for advanced features.

Sponsored content would be featured more and ensured that it reaches its target
demographics. RocketFeed would provide its recommendation engine for free. External sites
that employ the traffic acquisition service pay on a daily pay per click (PPC) or cost-per-click
(CPC) basis with links to third-party content appearing as recommendations alongside editorial
content from the web's biggest publishers.

Content publishers seek to attract and retain visitors as their revenue is generally generated
through advertising. Brands and publishers, for example newsmedia websites, are able to
engage their audience onsite by surfacing their own editorial content that they have published
in the past, displayed as "You May Also Like..." or "We Recommend". These take the form of
tracked links that are routed through RocketFeed's servers.

Also, the widget tool also provides a way for publishers to buy and sell traffic by providing third-
party links to relevant content.