Tuesday, June 23, 2009
Identify and compare the revenue model for Google, Amazon.com and eBay.
Posted by Felishia Tang at 2:18 PMGoogle offers targeted advertising solutions and global Internet search solutions. Google advertising revenue model includes Google AdWords, Google AdSense and Google Content Network.
Google AdWords
Google AdWords is a pay per click advertising program designed to allow the advertisers to present advertisements to people at the instant the people are looking for information related to what the advertiser has to offer.
Google AdSense
AdSense is an ad serving program which can let website publishers to earn money quick and easy by displaying relevant Google advertisement on their website’s content pages. Revenue is generated on a per-click or per-thousand-ads-displayed basis and the ads are administered by Google.
Google Content Network
The Google Network is a large group of websites and other products, such as email programs and blogs, who have partnered with Google to display AdWords ads. Advertisers have the option of running their ads on Google as well as the Google Network for no extra cost.
Amazon.com is an American-based multinational electronic commerce company. Headquartered in
Amazon Marketplace is a fixed price online market place that allows sellers to offer their goods alongside Amazon’s offerings. Buyers can purchase new and used items which sold directly by a third party via Amazon.com by using Amazon Marketplace. Amazon charges a commission rate based on the sale price, a transaction fee and a variable closing fee which is a very profitable sales strategy.
Amazon is pioneer affiliate partnership marketing. An Amazon partner website can display Amazon books directly on their website, and sends customers to the Amazon’s website when the visitor is ready to buy it. In return, Amazon pays a commission for the sale to the site owner.
eBay is an American Internet company that manages eBay.com. It is also an online auction and shopping website in which people and businesses buy and sell a broad variety of goods and services worldwide. In eBay, bids can be placed at any time. This convenience increases the number of bidders. Their main sources of revenue is from fees charged to list items up, picture service fees, listing upgrade fees, final value fees and reservation fees. They charge fees to list an item. For example, for listing of regular items, eBay charges a fee which serves as a starting price. Besides, eBay also obtains it's revenue by charging a picture service fee. The first picture uploaded in its site is free but te subsequent pictures incurs fees. Other than that, eBay obtains its revenue from listing and updating fees. It provides various services to help its users to enhance their advertising or promotion of products but for a fee of course. Moreover, they also charge final value fees when there is a closing bid. If the item listed is not sold reservation fees will be charge.
Labels: Week 3