Hammock University - a course on how to make money on the Internet
a division of J. Hammock & Associates, LLC

 


Statistics

Why consumers buy online
Reason Percent
Convenience 84%
Product depth 41
Better experience 36
Rich content 31
Value 26
Brand 20
Customer service 11
Interactive tools 7
Novelty 4

Source: Sep. 2000 Forrester Research Inc.


 

Likelihood to buy again from merchant (Numbers reflect correlation index)

Level and quality of customer support 58
On-time delivery 50
Product representation 45
Product shipping and handling 43
Posted privacy polidy 40
Product selection 21
Ease of ordering 21
Product prices 21
Site navigation, looks 20
Product information 19
Source: Bizrate.com

 


 

Types of online ads most likely to receive attention

Creative technique Percent 
 Ads that feature discounts or coupons   65% 
 Ads that are informative   42 
 Ads that feature sweepstakes/contests   29 
 Ads that are related to content/channel   17 
 Ads that are animated   16 
 Ads that have sound   13 
 Ads that feature a game   6 

 


Source: Feb. 2000 Jupiter Media Metrix Inc.

 Quarter   Average Customer Acquisition Cost 
 Q3 1999  $35 
 Q4 1999  $71 
 Q1 2000  $45 
 Q2 2000  $40 

Source: Aug. 2000 Boston Consulting Group/shop.org


Projected U.S. ad spending in 2005

 Medium   Spending 
   (billions) 
 Newspapers   $58.9 
 Broadcast TV   52.3 
 Radio   23.9 
 Online advertising   16.5 
 Yellow pages   16.0 
 Magazines   13.2 
 Cable TV   12.7 
 Outdoor   2.2 

Source: Jul. 2000 Jupiter Media Metrix

 


 

 Rnk   Technique   Effectiveness  Rating   % 
 1.   Customer/visitor e-mail   4.02   54% 
 2.   Online PR   3.59   30 
 3.   Referral partnerships   3.49   20 
 4.   Sponsorships   3.48   18 
 5.   Affiliate programs   3.44   27 
 6.   Search engine positioning   3.34   66 
 7.   Reciprocal ads/links   3.32   43 
 8.   Streaming video   3.21   4 
 9.   Static banner ads/links   3.05   38 
 10.   Unsolicited e-mail   2.67   11 

Source: May 2000 Association of National Advertisers (ANA)


Connection Type Spring 2000 % Fall 2000 %
Broadband (total) 5 11
Cable modem 4 7
DSL 1 3
Dial-up (total) 94 89
Shared line 75 68
Dedicated line 19 21
Source: Oct. 2000 Statistical Research Inc.
 

 

 

 


 

 


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