MedNet is a health information website that provides free, evidence-based medical content and generates revenue through advertising. It faces two challenges: increasing traffic and click-through rates to improve profits. The document discusses MedNet's competitors and business model, and potential approaches to address its challenges, including creating discussion forums, targeted keyword ads, and improving search engine optimization.
2. About MetNet.com
• MedNet was founded in 2002
• It launched its website with three main goals:
1. Provide scientifically based medical informational
to a non-professional consumer audience
2. Provide this information for free
3. Generate profits from advertising sales
• Content was developed and reviewed by trained journalists,
doctors, designers, and administrators
• Rated as the best health website for trusted, evidence-
based, and consumer health information
3. U.S. National
Library of
Medicine
World Health
Organization
Cholesterol
.com
ClinicalTrials
.com
Alternative
health.com
Marvel
Search
Engine
MedNet’s Competitors
4. MedNet’s First Challenge
• Pay-per-click (PPC)
• $ 0.54 per click
• Search engine
• Large but non-
targeted audience
• Award winning health
website
• Visitors stayed longer
and explored avidly
• Smaller but Targeted
Audience
• Large volume through
purchases
• Cost per thousand
impressions (CPM)
• $ 3.33 per click
MedNet Marvel
Windham believes click-through is
more important than impressions
and they are over-paying MedNet
for the same service they can get
in Marvel
5. PPC Approach
• Unlike Marvel, MedNet focuses on specific target audiences which mainly attract
pharmaceutical advertisers to generate revenue
• Revenue will drop at least 80%
Alternative
Healing
Approach
• The board disapprove of alternative healing approach to increase traffic
• Alternative health audiences do not trust pharmaceutical companies
Corporate
Health Site
Approach
• It can help reduce reliance on advertisers
• Possibility of being involved in a debate about driving health care costs down
• Change in business model from an information content business to a human
resources service provider-for-hire
Possible Approaches
6. MedNet Marvel
Advertiser Payment Methods Cost-per-thousand impressions (CPM) Pay-per-click (PPC)
Average Monthly Visitors 4.3 million 19 million
Impressions Received 17.2 million 57 million
Cost $ 100 CPM $ 0.54 per click
Click-throughs 516,000 798,000
Click-through rate 3% 1.40%
Total Ad Costs $ 1.72 million $430,920
Cost per click-through $3.33 $0.54
Potential Conversion Rate
Potential Conversion
Potential Average Profit Margin
MedNet vs. Marvel
57 million
1.71 million
6% 2%
( 1.71 mm * 0.06) 102,600 ( 798,000 * 0.02) 15,960
5.7 million
( 102,600* 150) $ 15.39 million (15,900* 45) $ 715,500
1
2
Data is based on Windham’s advertisement on each site
Data is based on Exhibit 3 – MedNet Visitor Survey Results
Data is based on Exhibit 4 – Average Profit Margin per Pharmaceutical Prescription for Heart Medication
1
2
1
7. Second Challenge
• Wide range of medical
conditions delivered real
value to its readers
• Visitors valued both
condition-specific pages
and general health
information
• Non condition-specific
visitors
• Unable to focus on one
category’s traffic
improvement
• Do not provide tailored
recommendations for
medical treatment
• Focused on one chronic
condition and sought to
disseminate the latest
information from medical
sources
• Provide interactive tools
for visitors to store and
track data
• Provide tailored
recommendations about
medical treatment
• Unable to attract visitors
who are looking for
general medical
information
• Possibility of violating
both state and federal
government regulations
MedNet Cholesterol.com
Ultimately, Windham is asking MedNet
to come up with a solution to
increase traffic and click-throughs
in its website
8. Possible Approaches
Prescriptive and
Diagnostic
Approach
• Provide treatment and tailored recommendation for visitors
• Charge for content and reduce advertising cost
• Increase risk of violating both state and federal government regulation
Alternative
Healing
Approach
• The board disapprove of alternative healing approach to increase traffic
• Alternative health audiences do not trust pharmaceutical companies
Corporate
Health Site
Approach
• It can help reduce reliance on advertisers
• Possibility of being involved in a debate about driving health care costs down
• Change in business model from an information content business to a human
resources service provider-for-hire
9. Create forum or community for
visitors to ask questions to experts or
discuss issues amongst themselves
Place and increase suggested ad on
related pages
Use PPC or improve MedNet.com‘s
relevancy and quality for ranking on
search engines
Suggested Solutions
12. Avoid providing medical and alternative health treatment on site
Visitors can now discuss their medical issues with others who are
experiencing similar problems
On-site licensed doctors can provide medical advices
Interaction between visitors and doctors can potentially increase
traffic to MedNet.com
Benefits
13. Create forum or community for
visitors to ask questions to experts or
discuss issues amongst themselves
Place and increase suggested ad on
related pages
Use PPC or improve MedNet.com‘s
relevancy and quality for ranking on
search engines
Suggested Solutions
16. Suggested ads generated by keywords may increase click-throughs
For visitors’ forum, both questioner and answerer can be exposed to
new product’s ad through related health topics
Allow MedNet to generate target impressions within a specific audience
group rather than generating random impressions within its site
Keywords targeted ads may also reduce competition against the
“category-killer” sites
Benefits
17. Create forum or community for
visitors to ask questions to experts or
discuss issues amongst themselves
Place and increase suggested ad on
related pages
Use PPC or improve MedNet.com‘s
relevancy and quality for ranking on
search engines
Suggested Solutions
19. Search engine and online advertisement takes up 50% of MedNet’s
traffic*
By using PPC and improving MedNet’s organic ranking in search engines
may drives up traffic tremendously
If MedNet’s organic listing is placed above most “category-killers” site, it
could increase traffic by stealing or re-gaining the target visitors
Although MedNet has to pay for PPC, but since it’s site charges CPM.
Every PPC visitor can be counted as revenue for MedNet.
Benefits
*Based on Exhibit 3 – MedNet Visitor Survey Results