A Study on the Value-creating Model of Advertising-supported Sites on the Internet

Autor: Chien Hung Liu, 劉建宏
Rok vydání: 2000
Druh dokumentu: 學位論文 ; thesis
Popis: 88
The spreading populations on the Internet facilitate the development of e-commerce. Among them, Internet advertising markets are growing rapidly per year. Internet advertisement has been proved to be a successful business model in the Internet. Media site (also called Advertising-supported model) mainly benefits by ads can be divided into two categories: portal sites mainly by aggregating information and destination sites mainly by creating information. Many experts predict the perspective of global e-commerce will be better off, but most advertising-supported sites do not earn profits. Rumors about the bubbling of the Internet and continuous falls in Internet stocks show forth the problems of making profits company on Internet. Thus, increasing income form advertisements to promote the revenue and true value of the site has become a pressing issue many proprietors want to cope with. To increase profits, we need to develop successful business model: creating revenues and controlling costs. This research use “value chain” proposed by Porter in 1985 to study the business model of successful company cases. We analyze their value-creating model and investigate the causes of loss. The study shows that successful companies use the interaction on Internet to form the virtual community. Through four stages of self-reinforcing dynamic loop, they bring about the model of multi-product markets, dynamic traffic, and dynamic revenues. Due to economic scale and network externality, they produce the effect of increasing returns. The accumulation of flows and members in the beginning causes short-term pressure of revenue. Since the effect of the big ones will get bigger, proprietors need to keep investing. It causes short-term pressure of cost. The immaturity of market scales makes most companies on Internet loss. In order to make profits in the future, advertising-supported sites need to form successful value-creating model.
Databáze: Networked Digital Library of Theses & Dissertations