Deniz's MedNet Case study

Hi guys!! These are my answers about the questions related to MedNet case.. I answered point by point to make it clearer:
1.) If Internet media is so measurable, how can Heather Yates and Bill Bishop be in such a predicament?
· First of all , yes internet media is measurable but there are still some parts (like reliability of the site , the perception of the web site visitors… and so on )which are not measurable
· ‘human psychology’ related issues are not easy to be quantified(forex: if a visitor has a specific health problem at the moment without thinking so deeply it is easier for him to purchase something through the advertisement on the site , and it is even more easier if the website-‘MedNet’ is a reliable one)
· Med Net is a highly focused “destination” content web site based on health however there are some other popular web sites like Marvel(general interest web site) which has more potential visitors (if the matter is quantity of the visitors; obviously such kind of sites will be a great deal of threat to MedNet click ratios )
· MedNet s revenue model is mainly depending on the revenues from the ads. So for the company the number of both advertisers and visitors are so important... and although in the early 2002, when the company founded, MedNet was leading the free information/advertisement revenue model, after 5 years there were so many challenging competitors which are offering unaffordable discounts for the advertisers. Moreover than that. There appeared some non profitable web sites which may decrease the number of visitors.
· In the beginning MedNet was ready to compete with its quality measures to rather than quantity... (like reliability of the articles, scientifically based medical information for free of charge, presented content was developed by 24 trained journalists, doctors, designers, adds come from the faculty of a prominent medical school .. and so on … ‘the award-winning web site was considered the best health web site for trusted, evidence-based, consumer health information’) however right after there appeared some other web sites which were providing the same quality and even much better.. (more specific areas / focused on particular problems or some new areas related to health: cholesterol.com clinicaltrials.com alternativehealth.com )
· For the internet media even it is easy to measure the number of visitors or number of clicks doesn’t really means the advertiser or the mentioned company really gets its target... (Target can be both sales and brand awareness…)

2.) What does an advertiser want? Sales-leads, brand awareness? What are the best metrics for measuring these?
· When we compare the advertising model of MedNet and Marvel which mainly effected Windham s decision to choose between them it can be helpful to understand that questions answer. MedNet was depending on cost-per thousand impressions-CPM basis. (‘one advertisement impression meant that one visitor requested from a web server a page that had a specific advertisement on it’) which was basically measuring the number of people who saw the advertisement or brand name..
· However Marvel s alternative model was click-through rate. –CTR. So the advertisers paid to the web site when visitors click on the advertisement to get more information about the product or company. Which means for the advertisers that visitors are more likely to buy a product from the web site . And it was offering free charge of impressions and charging the advertisers on the click-troughs which brought huge revenue to Marvel.
· After awhile some other advertisers started to ask other sites to charge only click troughs, Marvel s model. As we know from the case , Windham wanted the same thing from Mednet . It really proves us that advertiser mainly wants “sales-leads” which means they want the potential visitors who are ready to make an order. (at least has more probability to purchase something through the web site. For Windham(advertiser for that case )what really matters is click-troughs and so ; sales-leads as Baker said: “ They separate accidental observers of our ads from the serious prospects who proactively seek more product information and may buy our product” (Pg.4)
· Referring the problems above Mednet decided to check its value proposition for the advertisers. Yates: “ one worrisome fact is that Baker underestimates the genuine value that our impressions deliver to an advertiser. Visitor to Mednet see those ads in the context of a trusted and helpful site- and even if they do not buy right away, they are left with a positive impression of the advertiser and its products”(Pg:6) and as we know after the phone call with Baker , they made her mind and how importance a positive impression for the visitors .. (and they proved by evidence of redeemed coupons) so the importance of brand awareness is should not be underestimated for the advertisers too. (!!!at the end of the case cholesterol.com was an alternative by Windham just because of the above reasons.!!!)

FOR the second part of the question:

· Degree of actual sales and how the ads turn into a profit for the company is important for the advertisers too (that is the best metrics to measure )the company did it as below:
· Windham s bar code system established printable coupons can be a good metrics to recognize what way of advertisement is the best among the others. (by which channel the visitor reached these coupons can be identified by the Windham computer system : MedNet, Marvel, Online calls)

3.) What specific consumer behaviors determine whether or not a business model produces the results an advertiser wants?
· ‘If the consumers actually buy something by using the ads channel’ may show the value of the chosen business model for the advertiser(to get profit)
· How the consumer feel about the web site : for that case the trusted medical information so trusted web site and the number of qualified visitors of the site (for a content destinations web site like MedNet)
· The visitors of MedNet web site are the ones who are looking for solution for a real health problem. (So the ones who are stimulated psychologically and ready to buy the products.)
· As Yates said: “ our audience is attracted to your products , and we have reason to believe that our advertising partnership adds to your bottom line” (pg;6)
4.) What steps can MedNet take to address emerging competitive threats?
· They have to follow the new trends of advertising
· Try to catch up the competitors and hot pursuit of them
· Value proposition
· Increase the content of the site (again health related) so that by enlarging the subjects they may get more advertiser opportunity
· Enlarge their network