Probably the most used internet telephony or Voice over IP (VoIP) service provider in the world, Skype is now adding advertisement to it’s PC users experience in order to develop new channels of revenue ahead of its intended public offering.
Skype, owned by Ebay, generates its revenue mainly from consumers paying for a subscription to its services or buying call credits. However this is clearly not enough revenue as the company will now display ads on its software installed on Windows PCs.
Skype’s fourth quarter results of 2010 revealed that the company has a monthly user base of over 145 million clients on average. During peak usage, there can be as many as 29 million people using its services at the same time. This is a very attractive market for companies wanting to advertise their products on Skype.
According to Skype, the ads will be shown on the home tags of users. The first few companies to have signed up to display their ads on the sky platform will be Groupon, Visa and Universal Pictures. The ads will be initially targeted to the USA, UK and Germany.
In an effort to make the ads not interfere with the user experience of the Skype platform, the company initially plans to only show one ad per brand per day in the countries where they will be selling the ads.
So far it has not been made clear if the ads will only be shown in Skype’s free services or if paid subscribers will also be seeing the ads. One thing the company does make clear though is that the ads will not interrupt your user experience. They will not be pop up ads or flashy ads.
Judging from reactions to the news that Skype will be running ads on its Windows platforms, it is clear that majority of their paid subscribers do not want to see the ads.
It is believed the move to serve ads is to increase Skype’s revenue channels aheard of its unscheduled IPO.







