A new study from Google and FB reveals that the two giants have developed a “product knowledge” and “knowledge leader” platform.
In their paper, published on December 12, the two tech giants have written about how they use their “knowledge leadership” platform to enable brands to sell more products and services online, while also helping to drive revenue for their businesses.
According to the researchers, this platform has been used by companies including Uber, Spotify, Spotify’s own app, and even Google itself.
“It’s been used to generate revenue for a range of brands, from music labels to movie studios,” study co-author and former Google employee Andrew J. Krivashev told Mashable.
“What it has been able to do is allow companies to reach their target audiences and to drive more sales through a variety of channels.”
Krivasherev, a former senior executive at Google, explained that the company’s “knowledge management” platform allows companies to create and manage “brand identity” for their products.
“When you create a brand identity, you can then have your brand associated with your product, and the brand is able to leverage that brand identity for other brands,” he said.
Krivaseshev, who has been a Google employee for six years, was part of a team that helped to build the product knowledge platform, which has been built using the company ‘AdSense’ platform.
“The ‘brand identity’ you create with your app, your site, and your ads can be used to target your customers,” he explained.
“Your audience can then be targeted based on what your product is and what you have to offer.”‘
Product knowledge’ and ‘knowledge leader’ are two of the core elements of a product knowledge brand.
According the researchers’ findings, the platform has already been used in a variety for both big and small brands, with brands having used it to generate an average of $15 million in revenue per month.
“In some cases, the revenue was generated through the sale of branded products and other forms of digital advertising, which were then used to drive sales for the businesses,” Krivasesheav said.
“For example, in Spotify, a customer in the US could purchase a song and use that to generate a sale of Spotify.”
The researchers also found that the platform was used to attract new customers to the platform.
“For example,” Kromashevshev said, “if you were a music label, you could use your app to sell music on the platform and this would generate revenue from the sale.”
According to Krivasseshev’s research, a typical user’s purchase of a Spotify subscription costs them about $2.25 per month, or around $300.
Kromaseshevshesh said the company has been using the platform to generate “at least $3 billion in revenue in the last year alone.”
“This is not something you see every day,” he added.
“This is something that we’re trying to accelerate.”
The authors say that the platforms can be expanded to allow for more targeted advertising, but noted that they still need to do some work to understand the business models and effectiveness of the platform for businesses.
“There’s a lot of room for improvement here,” Krivashev added.