MedNet AM Case Solution

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Introduction About MedNet.com • • •

Founded in 2002 4.3 million monthly visitors and $1 million in profits Content generated trainedmedical journalists, doctors, designers administrators, facultybyof 24 prominent schools, news agencies andand an active community of visitors using social media tools

Goals of MedNet.com Providing scientifically based medical information to a nonprofessional consumer audience Providing this information for free Generating profits from advertising sales

•

• •

USPs of MedNet.com • • •

Award winning website Trusted for health related issues Provides evidence based consumer health information

Competitors For Visitors U.S. National Library of Medicine World Health Organization Customized Health Portals on Company Intranets • • •

For Advertisers • • • •

Marvel (providing large reach) Cholesterol.com (condition specific site focused on particular problem) ClinicalTrials.com (experimental procedures) AlternativeHealth.com (Providing unproven therapies)

Issues faced by MedNet.com Marvel’s Challenge Marvel

Large search engine following contextual or pay- per-click, banner advertising

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MedNet.com

A website delivering free health related information to visitors

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Follows CTR (CPC) based advertising model, charging advertisers only when an ad is clicked and providing free ad impressions

Follows CPM based advertising model, charging advertisers a specified amount per thousand ad impressions

19 million visitors per month

4.3 million visitors per month

CPC is $0.54/click

CPC is $3.33/click

Points of Concern Selling ads at CTR comparable to that of Marvel’s rate would lead to a drop of 80% in MedNet’s revenue Windham feels that it is paying 6x more on MedNet.com For advertisers, CTR matters more than CPM Windham is one of the biggest advertisers for MedNet and if MedNet loses •

• • •

Windham other advertisers might follow suit ;#& $"Q/:=:".

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