MedNet.com Case – Analysis and Strategic alternatives
We are presented with a case where Heather Yates, vice president for business development at MedNet.com, a website delivering health information free to consumers, was losing one of their biggest advertiser ‘Windham Pharmaceuticals’. She along with the leadership team were on the task of convincing Mahria Baker, Windham’s CMO to continue advertising with them instead of investing their advertisement dollars on ‘Marvel’ which was essentially a large search engine with a huge audience. Mednet is also facing tough competition from several other websites providing expert information on therapeutic treatments and condition specific diseases like cholesterol. About MedNet:
MedNet is an American corporation which provides health information services. The website was created with a mission of providing reliable and trustworthy medical information to consumer audience for free and to make profits through advertising from pharmaceutical companies. Two important aspects to be always monitored by MedNet to be on top of the things are it’s Visitors and Advertisers. What does an advertiser want? Sales, leads, brand awareness? What are the best metrics for measuring these? The advertisers here are pharmaceutical companies who buy onscreen advertising space from websites. Though branding in the form of promoting company’s logo, slogan, and their product’s name along with its features is paramount to any company, it is the ‘numbers’ in terms of Sales revenue that matters the most. The possible measuring metrics is the Banner advertising charging advertisers on a cost per thousand impressions (CPM) basis where an impression means that one visitor actually saw an online advertisement. The second is Click through rate (CTR) method which counts each time a potential buyer clicks the advertisement seeking more product information. CPM accounts more for the brand awareness whereas the click through accounts more for the...
References: About WebMD. Retrieved from http://en.wikipedia.org/wiki/WebMD.
The official WebMD site to understand the look and feel of a health information service website. Retrieved from http://symptoms.webmd.com/default.htm#conditionView.
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