2. Measuring Success What works online, and how you can tell Dylan Tweney InfoWorld www.infoworld.com

3. ASSUMPTION #1 Your site serves a business purpose

4. ASSUMPTION #2 Y2K is not the end of the world

5. 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 $

6. U.S. online ad market Source: Forrester Research

7. Online ad market vs U.S. online retail sales Source: Forrester Research

8. … vs. overall worldwide I-commerce Source: Forrester Research

9. Web business models with a chance of success Commercial sales customer management / customer service marketing Corporate Intranets, extranets Communitarian Group / community facilitation

10. Implications: Successful Web pages will be...

11. 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

12. 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)

13. Usable Good application design Easy to navigate Easy to find information Easy to make a purchase

14. Useful Must offer potential customers something they want, need, or find entertaining

15. CASE STUDIES

16. A quick look at the Web after 2001

17. Bandwidth boom More households will be wired Internet will be everywhere: airports, restaurants, bus stations, cars … Pipes will be fatter

18. 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

19. Dylan Tweney dylan@infoworld.com www.infoworld.com