Report Supplies Blueprint for Media E-Commerce Sites
Posted on August 17, 1998
edia organizations are jumping into the fast-growing world of electronic commerce, selling everything from pecans to peanuts, sunglasses to subscriptions and classified ads to cruises. A research report issued by The Editor & Publisher Co. shows online sales by media are in their infancy, but are growing fast.
"Dozens of media Web sites are developing e-commerce, for their own merchandise and for advertisers" said Peter M. Zollman, lead author of the 71-page study. "Some of it is obvious -- radio stations selling music CDs, for example. But there's a lot of creativity, and lots of unusual and interesting products are being sold.
"Several newspapers sell laminated front pages. One radio station advertiser is selling Harley Davidson sunglasses. A TV Web site offers Minnesota Twins merchandise. Experimentation is rampant -- and a lot of the experiments are working."
Some key findings:
- Linking commerce to content is crucial to success. One media Web site reports clickthrough rates of better than 50 percent when the context tie-in is effective.
- Text archive sales online are generating substantial revenue at some newspapers; TV stations are likely to cash in soon on archive sales of news video and programs.
- A wide range of business models has developed, from straight advertising to straight commission, with no clear winner for media and advertiser preference.
The $295 report is available through the E&P website. It is the first in a new series of E&P Research Reports about interactive media. The next, "Online Directories: Pathways to Profits?" will be released in October.