Internet trends 2000

1
Internet trends 2000
Presentation for UC Davis GSM, 24 February 2000

• The decline of banner ads
• Commerce everywhere
• Broadband access on the rise
• Out Deficit-spending to IPO In Sustainable
  e-business models
• Beyond the catalog Content, community, and
  commerce

2
Online advertising market is growing
3
but online commerce is growing faster
Sources Jupiter/Forrester (ad sales), IDC
(consumer e-commerce), Forrester (B-to-B
e-commerce)
4
Commerce everywhere

• Distributed merchandising
• Contextual commerce
• Transactional banners
• Pay-per-view content
• Commerce via net appliances

5
Broadband on the rise
Source Dataquest, July 1999.
6
The real broadband revolution

• Quality of service (QoS) protocols
• Always-on Internet connectivity
• Truly distributed applications

7
Sustainable e-business models

• Revenues do matter
• The rise of new middlemen
• Portals
• Infomediaries
• Online resellers
• Marketplaces and trading communities
• Affiliate programs Elephants and fleas

8
Commerce challenges

• Cost of customer acquisition 42
• Rock-bottom conversion rates 2
• Low customer loyalty
• Commerce sites are expensive 1M
• Communities take a lot of work to build and
  maintain

9
Beyond the catalog

• Products dont sell themselves
• Need to offer something of value in the site
  itself
• CONTENT
• Personalization
• Integrated services

10
Utipia, Inc.

• Utipia delivers brand-name how-to and reference
  content to Web sites in a form that helps them
  sell more products and increase customer loyalty.
• Founded September 1999
• Announced February 2000
• Shipping Q2 2000