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DBM presentation

WEB Business

Model張子揚

88731312 莊介博88731347

王者師88731326

薛俊平88731348

施孟秀890731408

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WEB Business ModelsWEB Business Models5Chapter FiveChapter Five

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competitors, readers, supplierscompetitors, readers, suppliersPartners………..Partners………..

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Do You Yahoo? For 50% of US Web users: YES!!! A phenomenal Silicon Valley success

story Yahoo! brand extensions provide value

add for users Games clubs chat auctions Stores

Yahoo! leverages its brand and ability to

draw traffic to generate multiple revenue streams

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Media Metrix, Inc. Top 50 Digital Media/Web Properties At Home & At Work Combined in the United States

August 2000 Measurement Period (08/01/00 through 08/31/00)Rank Top Web & Digital Media Properties Unique Visitors (000)

Total Digital Media Universe 79,638

1 AOL Network* - Proprietary & WWW 62,659

2 Yahoo!* 52,012

3 Microsoft Sites* 51,963

4 Lycos* 32,907

5 Excite Network* 28,167

6 Go Network* 23,126

7 About The Human Internet* 19,783

8 AltaVista Network* 17,795

9 Time Warner Online* 15,825

10 Amazon* 15,688

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市場策略矩陣

Standardization(Standardization( 標準化標準化 ,, 規格化規格化 ))

低低高高

1.1. 供需尚無交集的市場供需尚無交集的市場2.2. 或是單價利潤極高的特或是單價利潤極高的特殊個案殊個案

1.1. 信任度較低信任度較低2.2. 仲介或第三者易於介入仲介或第三者易於介入 ,,協調協調 ,, 創造雙贏創造雙贏低低

1.1. 特殊性高特殊性高 ,, 透過仲介或透過仲介或第三者溝通較不易第三者溝通較不易2.2. 不宜委外不宜委外 ,, 應自行處理應自行處理

1.1. 安全性高安全性高2.2. 信任度高信任度高3.3. 可自動化服務或販賣商品可自動化服務或販賣商品高高

FrequencyFrequency

頻頻繁繁度度

Specialization(Specialization( 特殊性特殊性 ))低低 高高

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Major TOPICSWEB benefits to firmsWEB benefits to firms

Closed loop marketingClosed loop marketing

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End of Chapter

回目錄頁http://www.swcollege.com/marketing/hanson/hanson.html

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WEB benefits to firmsA.Improvement-based benefits

( Product or Service)( Product or Service)

B.Revenue-based Business Models Provider PaysProvider Pays User Pays User Pays (User-based revenue (User-based revenue Models)Models)

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Improvement-based benefits

EnhancementEnhancement Online Brand Building( 線上品牌建立 ) Category Building( 領域品牌建立 ) Online Quality Enhancement( 品質提昇 )

EfficiencyEfficiency Cost Reduction(Cost Reduction( 成本節省成本節省 )) Low Cost SamplesLow Cost Samples

EffectivenessEffectiveness

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Sponsorship Alliances Banner advertising Prospect fees Sales commissions

Product sales Pay-per-use Subscriptions Bundle sales

Revenue-Based Biz Models

Provider Pays(提 出者付費模式 )

Customer Pays(消費者付費模式 )

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Provider-Based revenue Models

Content Sponsorship(Content Sponsorship(內容提供)內容提供) Retail AlliancesRetail Alliances Banner Advertising(Banner Advertising( 橫幅廣告橫幅廣告 )) Prospect Fees(Prospect Fees( 點選點選 )) Sales CommissionsSales Commissions Choosing a payment structureChoosing a payment structure

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User-based revenue Models

Business vs. consumer salesBusiness vs. consumer sales

Online sales & accountabilityOnline sales & accountability

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Closed loop marketing

Marketing actions and responsesMarketing actions and responses

WEB chainsWEB chains

Evaluate WEB chainsEvaluate WEB chains

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Marketing & Web Chain

1.1. Marketing actions and responsesMarketing actions and responses AIDA: attention / interesting / desire / AIDA: attention / interesting / desire /

actionaction Awareness, preference, loyaltyAwareness, preference, loyalty

2.2. WEB chainsWEB chains Not aware and ad impressionNot aware and ad impression Prospects that don’t buy onlineProspects that don’t buy online Online buyers and offline buyersOnline buyers and offline buyers

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Marketing actions & responses

The market’s response probability is The market’s response probability is not fixednot fixed

Produce the desired response by Produce the desired response by creating and offering values to the creating and offering values to the market market

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Marketing actions and responses

Both Both choicechoice and and learninglearning are important are important Closed loop marketing leads to Closed loop marketing leads to rapid rapid

learninglearning Marketers can experiment with prices, Marketers can experiment with prices, ad copy, and product features ad copy, and product features on selected samples of consumerson selected samples of consumers

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Web Chains1). A Web chain is a click sequence1). A Web chain is a click sequence

Can be as short as Can be as short as a single click Can be as long as all possible choices on a Web siteCan be as long as all possible choices on a Web site

Decision points = event nodesDecision points = event nodes Ending point = result nodeEnding point = result node

2). Common Web chain 2). Common Web chain starting pointsstarting points Company homepageCompany homepage Search engine or portalSearch engine or portal Banner adsBanner ads

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WEB chains to Closed loop marketing

1.1. The chain extends from the markeThe chain extends from the marketing offer to desired marketing resting offer to desired marketing responseponse

2.2. Each step in the chain is trackableEach step in the chain is trackable Increase effective & efficiency

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Evaluate WEB chains1.1. Goals of the Evaluation: Ad impact or purchase?Goals of the Evaluation: Ad impact or purchase?2.2. WEB chain benefits and probabilitiesWEB chain benefits and probabilities3.3. Calculating valuesCalculating values

Online buyersOnline buyersNew customer: ad impact + brand impact + New customer: ad impact + brand impact +

online profit + lifetime value = ?online profit + lifetime value = ? Cost of new customer acquisitionCost of new customer acquisition

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Evaluating Web Chains

Enables marketers to evaluate a wide range Enables marketers to evaluate a wide range of Web of Web strategiesstrategies and and tacticstactics

CalculateCalculate expected value of an expected value of an impressionimpression expected value of a expected value of a prospectprospect expected value of a expected value of a new customernew customer expected value of a expected value of a repeat buyerrepeat buyer

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A WEB chains of EventsE1: Views page with paid linkNo Notice rate

(NNR)

R1: doesn’t notice Ad=$0 benefit R2:notices Ad but doesn’t click=Ad brand impact

No Notice rate(NNR) (1-CTR-NNR)

Click-through rate(CTR)

(1-OIB)

R3: offline purchase =(Ad brand+Web site brand+ offline profit)

R4: No immediate purchase= (Ad brand+Web site brand impact)

Offline Induced Buyer(OIB) E3: views Web site but doesn’t buy E4: Visit Web site and buys

Repeat Buyer Rate(RR) R5:new customer =

(Ad brand + Web site brand+ online profit+ future lifetime value)

New customer(1-RR)

E5: Loyal customer

Offline buy rate(OBR)

Online only(1-OBR)

R6:would have bought offline anyway = (Ad brand + Web site brand +Online profit – offline profit)

R7:would only buy online=( Ad brand + Web site brand + online profit )

E2: clicks through to companyWeb site = prospects

(1-PCR) Proposed conversion rate(PCR)

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Example Activity AExample Activity A

版位 : 黃金文字鏈結規格 :12 字內 ( 上下各6)

方式 : 五輪替曝光數：約 90 萬次 / 日

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AD ImpressionAD Impression

版位：星座浮水印規格： 60*70/5K

方式：獨家廣告曝光數：約 25 萬次 / 日

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EvaluationEvaluation Ad Impact: do consumer aware the ad? Brand impact: 3 times of ad exposure? & bran

d preference Action: online profit, offline profit or others? EvaluationEvaluation ：：

曝光數 曝光數 (Impression)× (Impression)× 點選率點選率 (CTR) (CTR) 10,440,000 *0.5% 10,440,000 *0.5% ＝＝ 52,20052,200

52,20052,200 點選數點選數 ×30%×30% 填問卷率＝填問卷率＝ 15,66015,660

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會員信件接收

會員主動訂閱

依族群切割精準目標群

提供誘因促發網友行動

接活動頁頁面

會員直效行銷廣告商品會員直效行銷廣告商品 -- 奇摩好康報奇摩好康報

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以標準商品之定價以標準商品之定價 (0.6(0.6 元元 )) 為為基礎，每增加一進階條件多加基礎，每增加一進階條件多加 0.0.55 元元 (總價不得少於 20 萬元 )

依選定條件依選定條件後之實際人後之實際人數而定數而定興趣興趣學歷學歷職稱職稱

職業職業 (( 職業別細分職業別細分 ))

婚姻狀況婚姻狀況 (( 已婚已婚 ,, 未婚未婚 ))

居住地居住地有有 18 18 歲以下子女歲以下子女職業 職業 (( 學生學生 , , 上班上班 ))

年齡年齡

3636 萬萬5050 萬萬6060 萬萬7878 萬萬6060 萬萬8181 萬萬

個人月收入個人月收入進階進階條件條件

性別性別 (( 男，女男，女 ))女性上班族女性上班族女性學生族女性學生族男性上班族男性上班族

基本基本條件條件

男性學生族男性學生族

以標準商品之定價以標準商品之定價 (0.6(0.6 元元 )) 為為基礎，每增加一基本條件多加基礎，每增加一基本條件多加 0.0.22 元元依 選 定 條 件依 選 定 條 件後 之 實 際 人後 之 實 際 人數而定數而定

精確性商品精確性商品

6060 萬萬8585 萬萬主力商品主力商品0.60.6 元元 // 人人305305 萬萬標準商品標準商品定價定價 // 銷售單位銷售單位數量數量類別類別

會員直效行銷廣告商品會員直效行銷廣告商品 -- 奇摩好康報奇摩好康報

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Example Activity BExample Activity B Objective Target consumer: Mail to reach 150,000

target consumers Scheme Creativity Timing concern Budget concern

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Evaluation - benefit How many people feedback?150,000× 6% feedback ratio ＝ 9,000 People not interest?9,000 * 50% = 4,500 People purchase4,500 * 80%=3,600 Profit 3,600*200 = 720,000 People not buy on line but take actions off line4,500 * 20% = 900 Profit 900 * 200 = 180,000 Life time value4,500 * 400 = 1,800,000

Sub total: 2,700,000

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Profit Analysis

SalesSales Incremental Net sales Incremental Net sales

CostCostCOGSCOGSA&P expenseA&P expense

Incremental OPIncremental OP

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Business vs. consumer sales

1). 1). B to BB to B online sales online sales

2). better access to computers,2). better access to computers, fasterfaster connection speeds, connection speeds, a support staff that make sure thea support staff that make sure the network and software are network and software are functioningfunctioning

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Online sales & accountability1). Initial contract complete sale1). Initial contract complete sale Track effortsTrack efforts

evaluated for evaluated for effectiveness and and profitability

Effective approaches can be expanded andEffective approaches can be expanded and unprofitable efforts spotted and eliminated.unprofitable efforts spotted and eliminated.

2). reliable return on investment2). reliable return on investment can be calculated: can be calculated: sponsorships, banner ads, prospect fees.

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WEB chains = Closed loop marketing The chain extends from the marketing The chain extends from the marketing offeoffe

rr to desired marketing to desired marketing responseresponse Each step in the chain is Each step in the chain is trackabletrackable The Internet can be used to close the loop The Internet can be used to close the loop

on traditional media advertising on traditional media advertising if unique iif unique identifiers are included with the addentifiers are included with the ad Dell newspaper ads contain a unique coDell newspaper ads contain a unique co

dede

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Enhancement Online Brand Building

DisneyDisneyAmazonAmazoneBayeBayAOLAOL

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Enhancement Category Building

IntelIntel

YahooYahoo

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Enhancement Online Quality Enhancement

NPRNPR

Moore’s LawMoore’s Law

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Efficiency Cost reduction

Cisco Cisco

MicrosoftMicrosoft

Banking online serviceBanking online service (ATM)(ATM)

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Efficiency Free Trial

Introducing many online services Introducing many online services and software packages.and software packages.

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Effectiveness Support dealersSupport dealers Support suppliersSupport suppliers Collect informationCollect information

GEGEGMGMDouble Click(dart) Double Click(dart) 台塑台塑

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Provider-Based revenue Models 1.Content Sponsorship

1).Publishing Sites---1).Publishing Sites--- Expand offeringsExpand offerings Reduce RiskReduce Risk

2). Sponsor ---2). Sponsor --- Attract target customersAttract target customers Prevent competitorsPrevent competitors

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Provider-Based revenue Models 2.Retail Alliances

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1)1).Desirable location in the physical world.Desirable location in the physical world Prominent link on Web pageProminent link on Web page

2). 2). Two incentive shape these prominent deals Two incentive shape these prominent deals between main portal sites and online retailbetween main portal sites and online retailersers Volume of trafficVolume of traffic Competitive exclusionCompetitive exclusion

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Provider-Based revenue Models 3.Banner Advertising

1). 1). Most visible of provider-based moMost visible of provider-based modelsdels

2). Inherent measurability2). Inherent measurability Closed Loop MarketingClosed Loop Marketing

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Provider-Based revenue Models 4.Prospect Fees

1). Click-through1). Click-through

2). Complete some action2). Complete some action

Customer leadsCustomer leadsVisits to a WEB sitesVisits to a WEB sitesDownload softwareDownload software

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Provider-Based revenue Models 5.Sales Commissions

1). Affiliates program1). Affiliates program

Involve logos on Web sitesInvolve logos on Web sites Base payment on actual revenue from saleBase payment on actual revenue from sale

ss

2). Quick and low cost2). Quick and low cost

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Provider-Based revenue Models 6.Choosing a payment structure

1). Multiple Revenue Model 1). Multiple Revenue Model

USA Today OnlineUSA Today Online

2). Bargaining power2). Bargaining power

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Payment MechanismsWhich Company Bears the Risk?Sponsorship

Fixed Payment

Banner AdsImpressions

Prospect FeesClick

Through

Sales Commissions

Purchase

Risk Increases for the Web Site Being Paid

fixed payment

impressions success of site & advertiser

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The Many Ways to Pay Online

Figure 5.8

PaidTraffi c

Impressions

Visits

Buyers

Leads

Sponsorship Co- Brand

Downloads

Users

L1 - Time

L2 - Impressions

L3 - Results

L4 - Expenditure

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Evaluating Web ChainsBehavior Rates Impact Values

Variable Level Variable Level

Click- through rate 2.7% Ad- brand impact $0.00

No- notice rate 70% Web site brandimpact

$.0.30

Prospect conversionrate

15% Offline profit $15.00

Repeat buying rate 90% Offline profit $23.00Offline- induced buyrate

0.05 New customer LTV $125.00

Offline buy rate 0.30

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Cost and Performance

Table 5.5

One of the best uses of Web chain analysis is to compare alternative methods of acquiring

customers

Site Impressions CostCost per

Impression CTRCost per Prospect

Time to Reach 4000

ProspectsAd

Network 75,772 $2,075 $0.03 2.70% $1.01 About 2 weeks

Search Engine 16,670 $1,133 $0.07 5.50% $1.24

About 4.5 weeks

Special Type 1,887 $52 $0.03 9.50% $0.28

About 23 weeks