B2B mag sites cover 60% of web costs
January 16, 2003 B2B magazines cover 60% of the operating costs at their web sites from online revenues, including advertising, sponsorship and online subscriptions, according to an internet survey by the International Federation of the Periodical Press (FIPP). The rest of the bill is picked up by their parent institutions. More than half of respondents still expected online efforts to expand in 2003. None of those involved in the survey believed either online activities or investment will decline in 2003.
Other interesting findings:
1. More than two-thirds of successful publishers have gained advertisers on the web who do not advertise in the print products. The aspects which attracted the new advertisers were the wider, often international, audience; searchers for relevant information on the web are are good sales prospects; the interactivity, speed and flexibility of the web; the low cost of advertising; and the web’s accountability.
2. 40% of websites said that on the internet they were mainly facing competitors who were not their familiar print rivals. Often the websites’ competitors included sites from the companies who were advertising in the print publications. Sometimes websites operated from another country were significant competitors.
3. Most B2B publishers were not judging success in terms of profitability. Only about a quarter of sites are making a profit. A fifth of sites are breaking even. Almost half of the sites which are judged to be successful are making a loss.