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Lab Week 2 Topic:

Selling on the Web: Revenue Models and Building a Web Presence

1 Lab Questions

Write a paragraph in which you describe the conditions under which a Web site could become profitable by relying exclusively on advertising revenue. In a second paragraph, provide an example of a company not mentioned in the chapter that is using the advertising-supported model and that is likely to be successful in the long run. Explain why you think it will succeed. ANS:

Make sure you place the ad correctly - Ads that people can’t see won’t be clicked on, so make sure the ads are located in a prime spot that will generate interest. Consider linking text - This helps to make the ad stand out more and gives a better chance for the viewer to actually read the ads. Secondly, since the ads are embedded within the text, it’s harder for the viewer to miss. Put small, relevant images next to your ads - This has been show to increase ad revenue because this attracts attention to the ads, and people are tricked into thinking that the picture is content related to the ad. Make the ads relevant - The best part of contextual advertising is that the ads are relevant to your site. Google and Yahoo both target their ads decently well, but Google Adsense definitely has the best ads that are relevant to your site. Keep to one theme - This kind of ties in with making your ads relevant, but make sure your website concentrates one one certain type of category. For example, GameSpot.com is a site that focuses on games, while IGN.com has sections over games, movies, comics, cars, etc. Do your research - Each publisher allows you to create separate channels for your ads so you can track how each individual ad unit is doing. Look over your ads and see which ones are performing the best, and then make a judgement as to which ads you should keep and which ones you should alter or get rid of.

In two paragraphs, explain why a customer-centric Web site design is so important,...
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