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NONE: Re: ONLINE-ADS>> Zapata is nuts...
Re: ONLINE-ADS>> Zapata is nuts...
Rutkowski, Michelle (rutkmi_at_consumer.org)
Fri, 17 Jul 1998 12:54:38 -0500 (CDT)
Richard Hoy writes:
<<In my experience is that the biggest expense is content
creation, not promotion.>>
It all depends on the business you're in before you hit the Web
(publisher, aggregator/portal, or transactions) and how you handle your
revenue stream. My organization (Consumer Reports) is a publisher and
creates original material which we then distribute in a variety of ways.
Our biggest expense going forward is promotion (but in the beginning for
us the biggest expense was technology -- we launched in 11/97). There
are some costs to us for content, but that creation cost is shared with
all our other outlets. If you want to be a portal or aggregator of
content ("system operator" in the old v-word parlance) and you don't
come to the table with content you must either buy it or pay someone to
create it. So that's then your biggest expense. Also don't forget
technology as a major expense. In the old days CompuServe did a
revenue-sharing thing with its SysOPs, who created content -- CIS didn't
want to create it, but they managed and split revenues with contractors
who would create it. They also spent a lot on their proprietary
network, which was a technology cost. And in the end they spent a lot
on promotion (but not initially). Transaction-based web entities spend
most of their money on technology. In my view all these costs are
really a triangle and the lengths of the sides depends on your core
business and what you bring to the Web from other sources.
--Michelle Rutkowski
rutkmi_at_consumer.org
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