How prime is portal real estate?
Published:
26 May 1999 y., Wednesday
At first glance, the arrangement seems to make perfect sense: Online merchants seeking wide exposure pay premium prices to lease space on portal sites boasting the highest traffic. But what happens when the rent goes through the roof and everyone keeps paying anyway, knowing that a steady stream of rival tenants are right behind them? That_s the question facing virtually all businesses selling their products through electronic commerce today. And no easy answers are emerging, even though the payoff of this expensive real-estate practice is decidedly unclear. "It_s still very much an open question whether they are getting a return on their investment," said James Vogtle, research director for the Boston Consulting Group. In fact, according to a study last month by research firm Jupiter Communications, more than two-thirds of e-commerce merchants surveyed failed to generate more than 30 percent of their sales from these portal deals. Fewer than 5 percent of executives polled at the time were "highly likely to renew" their portal agreements. And primary portals are expected to see only a minor rise in online buying in the next three years, from an 18 percent increase in 1999 to a 20 percent gain in 2002.
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.
The most popular articles
Software company announced new structure_ of it_s business.
more »
According to the council's report, ATM-skimming fraud, which involves illicitly copying ATM card information stored on magnetic stripes, is increasing in Europe.
more »
Building on the success of the recent HP TouchSmart PC for the home, HP today introduced the market’s first all-in-one, touch-enabled desktop PC for businesses.
more »
Microsoft Corp. Chief Executive Officer Steve Ballmer announced the beta availability of the Windows 7 operating system as well as the availability of the latest version of the Windows Live, a suite of personal communications services and applications.
more »
Cash-cycle management, branch optimization, sales/marketing consultation and automation, automated checkout and managed services are expected highlights for January's Wincor World 2009.
more »
We all need to better understand the media we are touched by daily, especially the young, says Austrian Socialist Christa Prets. MEPs backed her report on “media literacy in a digital world” on Tuesday.
more »
Since October, readers of the European Parliament's web pages have had access to RSS, which allows them to keep up-to-date with what is going on via a free subscription.
more »
Fox and Motorola collaboration results in first all-HD programming distribution strategy.
more »
Wincor Nixdorf has won a contract to integrate its cash management solution, consisting of staff-assisted self-service terminals, software and comprehensive services, in the checkout zones and IT operations of Shell Deutschland’s 1,300 service stations.
more »
The role that the internet can play in parliamentary democracy was explored this week when 400 people gathered in Brussels for the annual “e-Parliament conference”.
more »
The EU’s new digital library brings vast treasure trove of historical documents, rare and valuable manuscripts and exquisite cultural artefacts to your desk.
more »