Internet Marketing

1
Internet Marketing

• Where are we now?
• and
• Where are we going????

2
Explosive Growth

• How long did it take each medium to reach 60
  million people?
• Radio
• 30 years
• Television
• 15 years
• The Internet
• less than 3 years.

3
Web Presence

• More than 400,000 companies have web sites.
• Goods and services sold in US and Europe will top
  5.1 billion (Forrester Research Inc.) more than
  double 1997.
• Business to Business will account for 78 of all
  cyber transactions
• Amazon.com sales increased 170 to 400 million
• However, they will not show a profit until when?
• 2007

4
Online Sales

• Industry
• Financial services
• Apparel/Footwear
• PC HardSoftware
• Ticket Event Sales
• Entertainment
• Travel
• Books/Music
• Business-Business

1997 1.2 Billion 92 Million 863 M 79 M 298
M 654 M 156 M 8 B
2001 5 Billion 514 Million 3.8 B 2 B 2.7
B 7.4 B 1.1 B 183 B
5
Making Money???

• Expectations
• Profitable Now
• Expecting to be profitable (1-2 years)
• Expecting to be profitable (3-5 years)
• Expecting to be profitable (gt5 years)
• Not Revenue Generating

46 29 6 1 19
6
Reality Check

• 1997 internet commerce accounted for more than
  8 billion in sales.
• By the year 2002, projections have internet
  commerce at more than 202 billion.
• Which is NOTHING compared to
• Goods (in 1997) 3 Trillion
• Services (in 1997) 4.5 Trillion
• source Forrester Research

7
There is Great Promise

• Nearly 1/3 of online households made an internet
  purchase in the last 6 months. An increase of 50
  from 1997.
• 19 of purchasers say they are shopping less in
  stores and 14 use fewer catalogues because of
  the internet.

8
Worries

• 84 of insurance companies worry that the
  Internet could steal their business.
• 59 say that it will spur price competition
• Royal Motor Sales in San Francisco reports a 25
  decrease in profits because of internet informed
  customers.
• South Pacific Travels also in S.F. reports a
  10-15 decrease in business because of the
  internet

9
The Future?

• This is fundamentally a new economy that will
  displace and rebuild the existing economy.
• - Clay Ryder, analyst Zona Research, Inc.