The Road to Website Profitability
As with all websites, experience is tied to profitability. Statistics show that 42% of Online Content websites that have been online three or more years are profitable. Their primary purpose is more to provide information (89%) than to sell products or services (79%) online.
In contrast to B-to-B or B-to-C emarketers, Online Content sites generate a much smaller proportion of their total revenues from product sales (46%) and much more from advertising and sponsorship (52%). The most important means for generating revenue among these sites is through paid links / buttons to advertiser sites and through E-commerce store hosting fees.
Only about half of Online Content websites provide compensation for link exchanges. However, the most profitable sites are more likely to be engaged in these activities (71%). Compensation to external links most commonly takes the form of bartering for advertising space or click-though advertising.
VP of Market Research Harry Wolhandler said, "Half of today's Online Content websites were established online. This is larger than B-to-C or B-to-B businesses. By 2002, Online Content firms expect this percentage to reach 66%. These sites are extremely active and receive a very large number of "hits" compared to other types of sites. On average, their sites receive 25,000 site visitors per week, half of whom are past visitors. These may be subscribers who return frequently to review new content. One-third of these sites change content daily and another third changes content weekly. Their commitment and use of the Internet is unmatched."
Recent Online Media Daily Articles
-
Yahoo Search Experiments With New Look May 23, 6:30 p.m.
Yahoo Search has been experimenting with colors, features and layouts, as the company tries to determine ... -
Path Seeks Dismissal Of Wireless-Spam Case May 23, 5:07 p.m.
Mobile social network Path is asking a federal judge to dismiss a lawsuit alleging that the ... -
Amazon Appstore Goes Global May 23, 4:59 p.m.
Amazon may have been late to the app store game, but that hasn’t stopped it from ... -
Data Is Springboard For Product Development May 23, 4:44 p.m.
iProspect named Ben Wood to global president Thursday; he's tasked with growing the company's network and ... -
Vice, Twitter Partner For Mobile Show May 23, 2:14 p.m.
Simultaneously expanding its video and social strategy, Vice on Thursday unveiled #dailyvice -- a daily show ... -
MediaVest Database Charts Brand Experience, Social Media Impact May 23, 12:11 p.m.
After a year-long research effort, Publicis Groupe’s MediaVest has created a massive database designed to help ... -
Discovery Launches TestTube.com, Ups Digital Video Involvement May 23, 11:27 a.m.
Discovery Communications is looking to get into digital video platforms in a big way -- launching ... -
Network Advertising Initiative Proposes New Mobile Privacy Rules May 22, 9:03 p.m.
Moving forward with its plan to issue mobile privacy rules, the self-regulatory group Network Advertising Initiative ... -
Entertainment, Travel Bet On Mobile Banners May 22, 4:16 p.m.
Banner ads have long been the whipping boy of online advertising, and the same is now ... -
Marketers Should Tailor Specific Pitches To Tablet, Smartphone May 22, 2:51 p.m.
Don’t lump tablets in with mobile. That’s the takeaway of a new Forrester study looking at ...
Be the first to comment on "The Road to Website Profitability"
Leave a Comment