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M02_CHAF9601_04_SE_C02.QXD:D01_CHAF7409_04_SE_C01.QXD 16/4/09 11:07 Page 85

Chapter 2 E-commerce fundamentals 85

Activity 2.4 Revenue models at e-business portals

Purpose
To illustrate the range of revenue-generating opportunities for an online publisher.
This site looks at three alternative approaches for publishing, referencing three
visit the
www different types of portal.

Question
Visit each of the sites in this category. You should:
1 Summarize the revenue models which are used for each site by looking at the
information for advertisers and affiliates.
2 What are the advantages and disadvantages of the different revenue models for the
site audience and the site owner?
3 Given an equivalent audience, which of these sites do you think would generate
the most revenue? You could develop a simple spreadsheet model based on the
following figures:
• Monthly site visitors: 100,000, 0.5% of these visitors click through to affiliate sites
where 2% go on to buy business reports or services at an average order value
of €100;
• Monthly page views: 1,000,000, average of three ads displayed for different
advertisers at €20 CPM (we are assuming all ad inventory is sold, which is rarely
true in reality);
• Subscribers to weekly newsletter: 50,000. Each newsletter broadcast four times
per month has four advertisers each paying at a rate of €10 CPM.
Note: These are not actual figures for any of these sites.
The sites are:
Econsultancy (www.econsultancy.com), Figure 2.16.
Marketing Sherpa (www.marketingsherpa.com).

Figure 2.16 Econsultancy (www.econsultancy.com)

Answers to activities can be found at www.pearsoned.co.uk/chaffey