-about $30 million is spent on motion picture but 20% of that amt is spent mostly on internet marketing.
business models:
ex: Amazon
-traffic aggregator
-allows diversity of products
-goal is to have their viewer’s eyes fixed on their site.
ex: Wall Street journal (online)
-provides content, news and info
-online subscription= less traditional hassle
other examples:
ASP – Corio
Fundraiser – Red Cross
Marketplace – Ebay
Multichannel – Staples
Open source – Linux, Apache
Peer to peer – Kazaa
Portal – Yahoo
Infomediary – Stockgroup Media
Machine to machine – Otis elevator
Revenue models:
-advertising
-e-commerce
-associates
ex: internet models, internet accessing
Direct response medium (internet): call to action, interactive, provides information, acquire, convert, and retain customers.
Critical strategy elements from direct-response perspective: offer, email list, media, service and support, and creative execution
Landing page- home page; people being abled to easily remember
Because they are not on anyone else’s site, they are able to explore your site, and they could possibly purchase something.
CLV (customer lifetime value): loyalty, brand recognition, cheaper to keep existing customers then to find new ones, need good customer service, have to determine which customers are most valuable (look at them over time).
Switching costs: the cost you pay by switching to something different. Changing email accounts (have to transfer your contacts), changing internet providers. This effects retention.
Testing: 2 products and 2 exposures.
Who are you targeting? Who are you giving exposure to? How random? Who is your control group?
Statistically compare the results.