Chapter%2012(2)

Web economics and ecommerce ecommerce describes the

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Unformatted text preview: describes the online selling of goods, products, or services directly to consumers (B2C, or consumer e commerce), or directly to other businesses (B2B, or ebusiness) B2B online spending is about ten times the amount spent on B2C. Profit from websites Only three models, alone or in combination, have emerged for making money via consumer websites: content people will pay for (e.g., Wall Street Journal Interactive, Consumer Reports Online, ESPN The Magazine) emarketplace environments (e.g., sale of merchandise on eBay) advertising in the form of: search engine marketing (SEM) such as sponsored links that show up on the right side of a Google search display ads and classified ads Perspective: Some have questioned whether any advertising should be allowed on the Internet, because the Internet was created by using taxpayers' money. A generalization about profit from the Internet . . . "The rule is that when the Internet hits an industry, wherever you used to make dollars, you now make dimes. Or pennies." Daniel Lyons, Newsweek, 12/21/2009, p. 38. The Internet audience By 2005 the Internet was the "new normal" way of life, with Internet households resembling the general population. The growth rate of adults using the Internet has slowed significantly since 2002. The split between male and female Internet users was about even by 2003. About 66 percent of adults are online. About 80 percent of teenagers are online. Some digital divides Age and percentage of adults online 37% 72% 85% 92% 65+ 5064 3049 1829 Education and percentage of adults online 38% 67% 93% did not finish high school high school graduates college grads Internet audience highlights little timeofday variation for search engine usage news and information content sites are used most heavily during morning and daytime entertainment and sports content sites are used heavily evenings and weekends daytime has the largest overall audience evenings and weekends have the largest number of Inter...
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This note was uploaded on 01/19/2011 for the course COM 250 taught by Professor Staff during the Spring '08 term at Purdue University.

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