• by March 27, 2001

According to ActivMedia Research's "Success Strategies in Online Content Markets" report, one-quarter of today's Online Content websites (media, portal, information and publisher sites) are profitable. Intense competition from both online and offline sources may be squeezing these firms, but 29% expect to reach profitability next year.

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."