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Online - Marketing Beratung
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Real Numbers Behind
‘Net Profits 1999
Table of Contents (http://www.activmediaresearch.com)
CHAPTER 1 Executive
Summary................................ 1
Broad View................................................................................... 1
Technology on
Edge of Recreation............................................... 1
Online Population Continues Expansion Globally................... 1
“World Wide”
An Increasingly Accurate “Web” Description 2
Commerce Online Continues Upward March............................. 3
Revenues Continue
to Soar in ’99................................................. 3
Web is Profitable Today........................................................... 3
Site Investments Grow Substantially....................................... 3
… As Do External Site Expenses............................................ 4
E-Commerce Automation Wakes Up...................................... 4
Online Business Growing More Mainstream.............................. 5
Internet
Increasingly Favors Real-World Competitors.................... 5
Business Niches Prosper in Different Ways................................ 5
Business-to-Consumer
Still Half the Web...................................... 5
Fraud Not Widespread Online................................................. 6
Security In-Place at Larger Sites............................................. 6
’Net Moves Fast / Real-World Delivery A Little
Slower........ 6
Business-to-Business Integrate Backstage Systems............. 7
B-to-B Niche Trading Markets Emerge................................. 8
Media, Portals Seek Repeat Traffic Flow................................ 8
Hosting Grows Sophisticated....................................................... 9
Websites &
Services Increasingly Capable................................... 9
Internet Service Providers...................................................... 9
Hosting Patterns Relatively Stable........................................ 10
Stepping into the Future............................................................. 10
CHAPTER 2 Global
Changes..................................... 11
Internet Revenues..................................................................... 11
B-to-C Dominates..................................................................... 11
Sales Outpace Advertising and Other Revenues.................. 12
Revenue Growth......................................................................... 13
Through 2000............................................................................ 13
Through 2005......................................................................... 13
Populations Online..................................................................... 15
Share of Global
Population Online............................................... 16
Worldwide E-Commerce Programs....................................... 19
Primary Web Business Segment by Geo-Regions................ 20
Revenues by Geo Region...................................................... 22
Growth in Online Business........................................................ 26
Websites Continue
to Expand..................................................... 26
Domains...................................................................................... 27
Yahoo! Is Lead
Organizer of Website Domains.......................... 27
Future E-Commerce Growth Opportunities.......................... 29
CHAPTER 3 Online
Businesses Today.................... 31
Why Companies Go Online........................................................ 31
News for Sales......................................................................... 32
Perseverance Pays Off........................................................... 32
Results in Profitability................................................................ 33
Site Revenue
Intentions............................................................. 35
Information Source......................................................... 35
Sales Offline and On...................................................... 35
Expectations Vary..................................................................... 37
Site Revenues............................................................................. 39
Site Managers’
Revenue Predictions and Actual Results.............. 40
Web Business Profiles............................................................... 42
Domains Are One
Indicator....................................................... 43
Employees Figure In.............................................................. 43
Web Pages per Website......................................................... 44
The Web’s Influence.................................................................. 45
New Business
Attributed to the Internet..................................... 45
Business Lost to Competitors due to Internet..................... 46
Growth in Business due to Internet...................................... 47
The Challenge for Business-to-Business Sites......................... 47
CHAPTER 4 Primary
Web Industry Sectors: -up
An Overview............................... 49
Consumer-Oriented Websites................................................... 49
Business-to-Business Websites................................................ 49
Information, Media & Portal Websites...................................... 50
Business of the Web: ISPs, Developers, and Designers.......... 50
CHAPTER 5 Consumer-Oriented
Websites.............. 53
Angles on the Trade................................................................... 53
The Global
Perspective.............................................................. 53
The Business Perspective..................................................... 54
Popular Business Types............................................................. 55
What Sells
Online?.................................................................... 55
Tourism and Travel......................................................... 55
Computers and Electronics............................................. 55
Books and Music............................................................ 55
Hobbies, Collectibles, Gifts............................................ 56
Health, Education, Clothing........................................... 56
Services, Outdoors, Consumables................................... 56
Premium Goods......................................................................... 56
Designer Preferences............................................................ 57
Business Profiles Vary............................................................... 58
Retail Business.......................................................................... 58
Online and Offline Synergy.................................................... 59
Pricing for the Customer Base................................................... 59
New Buyers Online................................................................... 60
Former Buyers Online........................................................... 61
One-Click Checkout.............................................................. 61
National / Global Reach.......................................................... 62
Characteristics of Retail to Consumer Sites.............................. 62
Years in Business...................................................................... 62
Employee Comparisons......................................................... 63
Counts Are Telling................................................................. 64
Other Businesses, Web Pages, Products Sold Online...... 64
Transaction
Comparisons........................................................... 66
Totals: Products, Pages, Sales, Domains............................... 68
Effects on E-Business............................................................ 68
CHAPTER 6 Business-to-Business
Websites.......... 69
Businesses and Their Websites................................................. 69
Global
Participation.................................................................... 70
Purposes Differ....................................................................... 71
Profile Information...................................................................... 71
PR & Image............................................................................. 71
Purposes for ‘Net Presence................................................... 72
Niche Sales............................................................................. 72
Online / Offline Strategies...................................................... 73
Transaction Numbers............................................................. 74
Sales Channels....................................................................... 74
Characteristics of Business Websites....................................... 75
Addressing the
‘Net’s Capabilities.............................................. 75
Years in Business................................................................... 76
Employees, Web Pages, & Products..................................... 77
Other Business...................................................................... 78
Other Domains....................................................................... 80
Revenue Expectations........................................................... 80
‘Net Impact on Business............................................................ 81
Loss in Business........................................................................ 81
Growth in Business................................................................ 82
Website Revenues..................................................................... 83
1999......................................................................................... 85
Projected Gains...................................................................... 85
Projections for the Year 2000................................................ 87
CHAPTER 7 Information,
Media & Portals................ 89
A Primary Source........................................................................ 89
A Global
Perspective................................................................. 90
Distinctions of Media / Portal Sites............................................ 91
Sources of Revenue.................................................................... 92
Sales........................................................................................ 92
Banners & Links.................................................................... 93
Advertising & Promotion....................................................... 94
Maintaining the Site................................................................... 95
Years in Business...................................................................... 96
Employees for Web Work...................................................... 98
Web-Page Count.................................................................. 101
Quantity Sold Online............................................................ 102
Number of Businesses & Domains...................................... 103
Impact of the Internet.............................................................. 103
Financial Projections................................................................ 104
CHAPTER 8 ISPs,
Developers & Designers........... 109
Global Perspective................................................................... 110
Sales: Products and Services................................................... 110
Extranet In-Pages................................................................... 110
Sources of Revenue.................................................................. 111
Client Base............................................................................. 113
Fees Range........................................................................... 114
Online Access............................................................... 114
Site Development, Marketing........................................ 115
Per Month, Maintenance, Consulting........................... 115
Security........................................................................ 116
Years in Business.................................................................... 116
Employees on Hand............................................................. 117
Site Only, Online and Off............................................. 117
Web Page Count..................................................................... 117
Other Business & Domains................................................. 118
Revenue Expectations............................................................. 118
CHAPTER 9 Website
Hosting Styles
and Transaction Security...... 121
Internal / External Site Hosting............................................... 121
Factors that
Influence Hosting Decisions.................................. 124
Financial...................................................................... 124
Reliability..................................................................... 124
Server Types.......................................................................... 125
Multimedia & Motion.......................................................... 126
Security Practices..................................................................... 127
Server Security
Functions........................................................ 131
Secure Socket Layer............................................................ 134
Transaction Processing............................................................ 136
CHAPTER 10 Site
Development: Budgets & Plans 139
Budgets for Total Website Investment................................... 141
New Research
Finding............................................................ 144
Total / In-house-External......................................................... 147
Distribution of
External Expenses............................................. 149
CHAPTER 11 Site
Promotion.................................... 153
1999 E-Commerce Promotional Budgets................................ 153
1999 Online Promotional Activities......................................... 155
CHAPTER 12 E-Commerce
Transaction Processing 159
E-Commerce Transaction Sizes and Frequencies................... 159
Transaction
Payment Methods................................................. 161
CHAPTER 13 Methodology....................................... 167
Background.............................................................................. 167
Survey Method,
The Study....................................................... 167
The Survey, Tabulations & Contents.................................. 168
Contributors to This Report.................................................... 173
About ActivMedia
Research.................................................... 174
ActivMedia Customers: A Sampling........................................ 175
List
of Figures
1. Executive Summary
2. Global Changes
Fig. 1. Web
Revenues: 1996 through 2000 11
Fig. 2. Share
of 1998 Webwide Revenues by Major Online Segment 12
Fig. 3. Sales
/ Ad / Other Revenues through 2000 13
Fig. 4. Web
Growth and Projections: 1996 through 2005 14
Fig. 5. Increase
in Worldwide Online Population: 1996 through 1999 15
Fig. 6. Percent
of Worldwide Population Online: 1996 through 1999 16
Fig. 7. Distribution
of Worldwide Online Population 17
Fig. 8. Sources’
Surveys of Worldwide Online Population 18
Fig. 9. Location
of Parent Company Home Office 20
Fig. 10. Location
of B-to-C Retail Websites 20
Fig. 11. Primary
Web Business Segment by Geo Regions 21
Fig. 12. Home
Country of E-Commerce Firm 23
Fig. 13. National
Global Reach - Projected Revenues from Each Country, ‘99 24
Fig. 14. National
/ Global Reach 25
Fig. 15. Netcraft
Server Study - *.COM Listings 26
Fig. 16. Number
of Registered Domains Owned by Your Company 27
Fig. 17. Yahoo!
Global Directory Listings 28
Fig. 18.
Five-Year Growth of Commercial Websites 29
3. Online Businesses
Today
Fig. 19. Purposes
for ‘Net Presence 31
Fig. 20. Website
Profitability by Years Online 33
Fig. 21. Website
Profitability by Full-time Employees 34
Fig. 22. Website
Profitability by Revenue in 1998 35
Fig. 23. Website
Revenue Streams for Total Sample 36
Fig. 24. Website
Revenue Streams by Major Business Segments 37
Fig. 25. Website
Profitability for Total Sample 38
Fig. 26. Percent
of All Online Revenues from This URL 39
Fig. 27. Website
Revenue Streams 40
Fig. 28. Comparison
of Projected and Reported E-Commerce Revenues: ‘97-’99 41
Fig. 29. Impact
of ‘Net: % Lost Business by Major Segments (excluding ISPs) 46
4. Primary Web
Industry Sectors: An Overview
5. Consumer-Oriented
Websites
Fig. 30. Primary
Web Business Segment 53
Fig. 31. Retail
Segment of Home Regions 54
Fig. 32. Purposes
for ‘Net Presence 55
Fig. 33. Primary
Products Sold on the Web 56
Fig. 34. Type
of Consumer Products Sold among Retail-to-Consumer 57
Fig. 35. Retail
Selling Channels Information Only 58
Fig. 36. Retail
Sales Channels 59
Fig. 37. Customer
Base: Percent “New” First-Time Buyers at Your Website 60
Fig. 38. Customer
Base: Percent Former Offline Customers Now Buying Online 61
Fig. 39. One-Click
Checkout 61
Fig. 40. Years
in Business; This Online Internet Business 62
Fig. 41. Full-time
Equivalent Employees, Dedicated Online & Both On- /Offline 63
Fig. 42. Number
of Separate Businesses Owned by Your Company 64
Fig. 43. Number
of Web Pages at This Website 65
Fig. 44. Number
of Products Sold Online at This Website 65
Fig. 45. Typical
Transaction Size on Business Generated by the Website 66
Fig. 46. Typical
Number of Monthly Transactions Generated by the Website 67
Fig. 47. Percent
of All Online Revenues from This URL Only 67
6.
Business-to-Business Websites
Fig. 48. Primary
Business Activity of This URL 69
Fig. 49. Primary
Product / Service at Site 70
Fig. 50. Purposes
for ‘Net Presence 72
Fig. 51. Type
of B-to-B Products or Services Sold 73
Fig. 52. Online
/ Offline Product Strategies 74
Fig. 53. Offline
Sales Channels 75
Fig. 54. Value
of ‘Net to B-to-B Marketers 76
Fig. 55. Years
in Business: This Online Internet Business 77
Fig. 56. Number
of Products Sold Online at This Website 78
Fig. 57. Number
of Separate Online Businesses Owned by Your Company 79
Fig. 58. Number
of Registered Domains Owned by Your Company 80
Fig. 59. Percent
of All Online Revenues from This URL Only 81
Fig. 60. Impact
of the Internet: Percent of Lost Business 82
Fig. 61. Impact
of the Internet: Percent of Change in Business 83
Fig. 62. Typical
Transaction Size on Business Generated by the Website 84
Fig. 63. Website
Revenues for 1999; All Company-owned Web Businesses 85
Fig. 64. Website
Revenue Growth: All Company-owned sites: 1998-2000 86
Fig. 65. Revenue
Growth Rates Projected: 1998-2000 87
7. Information, Media
& Portals
Fig. 66. Primary
Web Business Segment 89
Fig. 67. Home
Region among Media / Portals / Information /
Publishers 90
Fig. 68. Purposes
for ‘Net Presence 92
Fig. 69. Online
Media, Portals & Information Services of This Website 93
Fig. 70. Revenue
Models: Among Media / Portals / Information / Publishers 94
Fig. 71. Years
in Business - This Online Internet Business 96
Fig. 72. Years
in Business - Parent Company 97
Fig. 73. Full-time
Equivalent Employees Dedicated to All Online Businesses 98
Fig. 74. Full-time
Equivalent Employees - Whole Company 99
Fig. 75. Full-time
Equivalent Employees Dedicated to Online Marketing 100
Fig. 76. Number
of Web Pages at This Website 101
Fig. 77. Number
of Registered Domains Owned by Your Company 103
Fig. 78. Impact
of the Internet: Percent Change in Business 104
Fig. 79. Estimated
Website Revenues: 1998-2000 105
Fig. 80. Revenue
Growth Projected for 1999 over 1998 106
Fig. 81. Revenue
Growth Projected for 2000 over 1999 107
8. ISPs, Developers
& Designers
Fig. 82. Primary
Web Business Segment for Total Sample 109
Fig. 83. Purposes
for ‘Net Presence 111
Fig. 84. Website
Profitability among Internet Service & Support 112
Fig. 85. Primary
Product or Service Offered by Your Company 113
Fig. 86. Number
of Companies Served 114
Fig. 87. Client
Relationships: Total Decision 116
Fig. 88. Full-time
Equivalent Employees Dedicated to This Online Business 117
Fig. 89. Revenue
Growth Projected for 2000 over 1999 - This Website 119
Fig. 90. Revenue
Growth Projected for 2000 over 1998 -This Website 120
9. Website Hosting
Styles and Transaction Security
Fig. 91. Site
Hosting: Internal / External Tendencies 121
Fig. 92. Site
Hosting: Retail to Consumers 122
Fig. 93. Site
Hosting: Based on 1998 E-Commerce Revenues 122
Fig. 94. Site
Hosting: Based on Size of Company 123
Fig. 95. Site
Hosting: Based on Years Online 123
Fig. 96. Site
Hosting: Based on Functions in Website 124
Fig. 97. Site
Hosting: Based on Purpose of Website 125
Fig. 98. Servers
& Services that Support Website 125
Fig. 99. Servers
& Services that Support Website: Streaming Audio or Video 126
Fig. 100. Servers
& Services that Support Website: Sites w/ Streaming A/V 127
Fig. 101. Fraud
& Loss: By Country 128
Fig. 102. Fraud
& Loss: Percent of Online Order Chargebacks 128
Fig. 103. Fraud
& Loss: Concern about Online Order Chargebacks 129
Fig. 104. Fraud
& Loss: Level of Chargebacks 130
Fig. 105. Security
Measures: Based on Current E-Commerce Fraud Concerns 131
Fig. 106. Security
Measures: Based on Current E-Commerce Program Size 132
Fig. 107. Security
Measures: Based on Continued Website Development 133
Fig. 108. Security
Measures: Based on Continued Website Development 134
Fig. 109. Security
Measures: Based on Location of Website Owner 135
Fig. 110. Security
Measures: Based on E-Commerce Transaction Processes 136
Fig. 111. Servers
& Services That Support Website 137
Fig. 112. Servers
& Services that Support Website: Primary Purposes 137
10. Site Development:
Budgets & Plans
Fig. 113. 1999
Budget for Total Internal & External Website Investment 139
Fig. 114. 1999
Budget for Total Internal & External Site Investment by Region 140
Fig. 115. 1999
Budget for Total Website Investment by Projected Profitability 140
Fig. 116. 1999
Budget for Total Website Investment by 1999 Promotional Budget 141
Fig. 117. 1999
Budget for Total Website Investment by Revenues Last Year 142
Fig. 118. 1999
Budget for Total Website Investment by No. of Pages on Website 143
Fig. 119. 1999
Budget for Total Website Investment by No. of Registered Domains 143
Fig. 120. 1999
Budget for Total Website Investment per Company Size 144
Fig. 121. 1999
Budget for Total Internal / In-house Site Investment per Years Online 145
Fig. 122. Revenue
Growth Projected for 2000 Over 1998: All Company Websites 146
Fig. 123. %
External to Total Site Dev’t Budget: Employees & Online Only 147
Fig. 124. %
External to Total Site Dev’t Budget: Revenue, Purpose, & Years 148
Fig. 125. 1999
Distribution of External Website
Development by Total Budget Size 149
Fig. 126. Percent
of External Website Development Budget - 1999 150
Fig. 127. 1999
Distribution of External Website Dev’t
by Program Category 151
Fig. 128. Percent
External Website Development Budget: 1999 152
11. Site Promotion
Fig. 129. 1999
Promotional Budget Plans 153
Fig. 130. 1999
Promotional Budget Plans vs. E-Commerce Profitability Expectations 154
Fig. 131. 1999
Promotional Budget Plans by 1998 Revenues 154
Fig. 132. Website
Promotion Activities 156
Fig. 133. Website
Promotion Methods of E-Commerce Programs of Varying Success 157
Fig. 134. Promotion
Methods of E-Commerce Programs by Program Type 158
12. E-Commerce
Transaction Processing
Fig. 135. Typical
Transaction Size on Business Generated by the Website 160
Fig. 136. Typical
Number of Monthly Transactions Generated by the Website 161
Fig. 137. Online
Payment at Retail Vendors 162
Fig. 138. Online
Payment 1998 Revenue - Credit Card Submitted
w/ Order 163
Fig. 139. Payment
for ‘Net Generated Orders - Credit Card Submitted w/ Order 164
Fig. 140. Payment
for ‘Net Generated Orders - Smart Cards or Electronic Wallets 164
Fig. 141. Online
Order Processing - Manual vs. Automatic 165
Fig. 142. Online
Order Credit Card Payment Processing 166
13. Methodology
Fig. 143. Front
Page of ActivMedia’s 6th Annual Survey of Online Commerce 168
Fig. 144. 6th
Annual Survey of Online Commerce: Table of Contents 169