INTERACTIVE: THE INTERACTIVE QUESTIONNAIRE/IN ASSOCIATION WITH ELECTRONIC TELEGRAPH: Mairi Clark finds out who is set to benefit from the Net. Will it be advertisers, retail companies or ISPs?

Who is going to make money out of the Internet in 1997?

Who is going to make money out of the Internet in 1997?



ny company with a system for the delivery of goods already in place

should be able to make money from selling direct through the Internet,

providing the service is good and they let people know about it.



However, 1997 will be as much about saving money as making it. Online

transactions provide a significant opportunity for cost savings. Many

telephone services are currently handled by operators who key into a

database to get information for the customer on everything from the

number of loyalty points collected to airline ticket availability

Allowing the online consumers direct access to this basic information

means that more time can be used to handle the calls which require

personal assistance.



From an agency perspective, I think we will finally begin to see the

rise of new-media planning and buying activity as the Web arena

continues to expand here in the UK.



Mike Crossman



managing director, Bates Interactive mcrossma@ bates-dorland.co.uk



While their long-term business must be under threat from the giant

telcos, Internet Service Providers (ISPs)will continue to show profits,

especially those brands that will drive consumer awareness and interest,

and provide real added value (virgin.net and AOL).



Innovative creative agencies will reap dividends from the Net, while

unoriginal wagon-riders will hopefully fall off, now that hype is being

replaced by logical business-building. Retailers will start to benefit

from online trading, adding new targeted product lines to books, CDs and

pornography.



The security issue will finally be put in perspective, allowing

high-quality mail-order retailers to exploit this perfect one-to-one

marketing tool. The best software solutions for these transactions

should be hugely profitable. And, of course, Electronic Telegraph (and

other leading sites) will earn increased revenues through advertising,

sponsorship and online trading.



Hugo Drayton



marketing director, Telegraph Group, and the publisher of the Electronic

Telegraph



draytonh @telegraph. co.uk



Advertising agencies? Potentially, but I suspect not as new-media

operatives, rather in partnership with those who have the technical and

database credentials to make the most of the agency’s creative flow and

brand knowledge.



Retailers? Doubtful. Despite some advances by Tesco (see above) and

Sainsbury’s (plans announced), there remains an inclination to limit the

products on offer and this in turn discourages even the keenest Net

shoppers. However, don’t be surprised if Virgin’s usual initiative and

innovation shows others up.



UK publishers? Some will make money, but a profit? No.



Derek Jones



managing director, MediaTel



derekj@mediatel.co.uk



BT will continue to rake it in from calls generated by Web traffic and

from ISPs buying new bandwidth. Modem makers who change their line

speeds as regularly as Premier League teams release new strips will also

thrive.



On the subject of football, the FA could make a killing from selling

England shirts on the Web prior to the 1998 World Cup - a major

opportunity for the clubs, sports manufacturers and bookies to

demonstrate the Web’s transactional potential.



Other niche information transaction-based sites should be able to turn

in a profit. I sincerely hope that NMMS, the new-media advertising sales

house, will find significant new sources of ad revenue for Websites as

agencies and clients dedicate more budget to a growing and properly

audited Web audience.



Neil Morgan



managing director, Cityscreen on Reuters, and a founder of NMMS



lightwater@oeb.ftech.co.uk



There are only two certain money makers in the UK - successful ISPs and

Web developers. Companies that should be able to make money include

those providing goods and services quicker and cheaper on the Net than

on other distribution channels. An obvious candidate to date has been

’top-shelf’ material because of the easy access and anonymity that the

Net provides.



Of more legitimate interest is information - quick access to relevant

information that’s worth paying for. Electronic Share Information is

likely to be in operating profit if its subscription levels are

kosher.



And I’d expect to see FT.com experiment with subscription services

following the lead of the Wall Street Journal.



Peter Beech



head of interactive marketing, Leo Burnett Brandspace



peterbeech@leoburnett.co.uk.



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