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Measuring SuccessWhat works online, and how you can tell
Dylan Tweney
InfoWorld
www.infoworld.com
ASSUMPTION #1Your site serves a business purpose
ASSUMPTION #2Y2K is not the end of
the world
Web business models DOOMED TO FAIL
• Advertising-supported content• Falling CPM and click-through rates• Big media consolidation (e.g. AOL-NSCP)
• For-fee content• Micropayment technologies: dead• Only very valuable content can command $
U.S. online ad market
0
2
4
6
8
10
12
1998 2003
Ad revenue(billions)
Source: Forrester Research
Online ad market vs U.S. online retail sales
0
20
40
60
80
100
120
1998 2003
Ad revenue
Retail commerce
Source: Forrester Research
… vs. overall worldwide I-commerce
0
500
1000
1500
2000
2500
3000
3500
1998 2003
Ad revenue
Retail commerce
Overall commerce
Source: Forrester Research
Web business models with a chance of success
• Commercial• sales• customer management / customer service• marketing
• Corporate• Intranets, extranets
• Communitarian• Group / community facilitation
Implications:
Successful Web pages
will be...
Transaction-oriented
• Lead user to a transaction• exchange of information or money• response• interaction
• Lead user away from passive consumption
• Action-oriented
• FUN! -- to encourage repeat business
Measurable
• Revenue
• Cost per order
• Cost of customer acquisition
• Repeat customer rate
• Time spent on site
• Customer conversion rate (success of leading users to transactions)
Usable
• Good application design
• Easy to navigate
• Easy to find information
• Easy to make a purchase
Useful
• Must offer potential customers something they want, need, or find entertaining
CASE STUDIES
A quick look at the Web after 2001
Bandwidth boom
• More households will be wired
• Internet will be everywhere: airports, restaurants, bus stations, cars …
• Pipes will be fatter
Back to the 2nd dimension
• Widespread adoption of flat-panel displays
• Web pages will be used more like books, magazines, newspapers
• Possible second chance for ad-supported content
Dylan Tweney