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MedNet Case Study
Presented by:
Yan Ortiz
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
U.S. National
Library of
Medicine
World Health
Organization
Cholesterol
.com
ClinicalTrials
.com
Alternative
health.com
Marvel
Search
Engine
MedNet’s Competitors
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
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
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
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
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
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
Example
Example
The opinions expressed here are solely those of the user
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
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
Example
Example
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
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
Example
MedNet
MedNet
MedNet
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
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  • 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
  • 11. Example The opinions expressed here are solely those of the user
  • 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