MedNet.
com Confronts "Click-through" Competition (#2065) Student Spreadsheet Supplement
Courseware 920571
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Created 1/8/2020
heet Supplement
Exhibit 1 MedNet Income Statement, 2006
Revenue
Advertising income $ 12,000,000
$ 12,000,000
Expenses
Purchased content $ 3,700,000
Sales and marketing $ 3,000,000
Technology support $ 1,300,000
General administration $ 3,000,000
Total Expenses $ 11,000,000
Net income $ 1,000,000
Profit Margin $ 0.08
Exhibit 2 Windham Pharmaceuticals Advertising Campaign Results
Advertising VenueMonthly Visitors
Impressions Windham Received Cost
MedNet 4.3 mm/month 17,200,000 $100 CPM
Marvel Search 19 mm/month 57,000,000 $.54 per click-through
U.S. Newspaper 2.5 mm/month 5,000,000 $260,000/2-day ad
Click-throughs Click-through Rate Total Ad Costs Cost per Click-through
516,000 3% $1,720,000 $3.33
798,000 1.40% $430,920 $0.54
37,000 0.74% $260,000 $7.03
Sales Profit Margin Per Ad Campaign Percent who Buy rate Avg Sales Profit Margin
$2,924,000 6% $150
$287,280 2% $45
$472,600 12% $165
Number of click-throughs Income Contribution ROI
516,000 4644000 2.7
798000 718200 1.66667
37000 732600 2.81769
Exhibit 3 MedNet Visitor Survey Results
Did you click on a sponsor’s advertisement today?
3% Yes
For those who clicked on the sponsor’s advertisement, did you make a purchase?
6% Yes
Have you clicked on a health advertisement at a search engine website?
1.4% Yes
For those who clicked on a health advertisement at a search engine website, did you make a purchase?
2% Yes
If you saw an advertisement on television or in a newspaper, would you call the call center?
.74% Yes
If you called about an advertisement on television or in a newspaper and found the information credible,
would you make a purchase?
12% Yes
Advertisers at MedNet are more likely to provide me with useful remedies and information than advertisers
found on websites that don’t adhere to the same evidence-based standards
Strongly agree: 85%
Strongly disagree: 15%
How many health sites will you visit to research your condition?
85% = 3 or more
How did you decide to go online to find health information on MedNet?
25% search engine
10% advertisement (print)
25% online advertisement
20% bookmarked this site
10% trusted advisor recommendation
10% e-mail letter from friend recommending an article
Will you return to MedNet next time you need medical information?
93% Yes
7% No
Would you allow MedNet to store personal information about your condition, such as blood pressure,
weight, etc.?
40% Yes
60% No
Would you pay for content at the MedNet site?
75% No
Would you use MedNet if you had to register for some information?
50% No
make a purchase?
formation credible,
ation than advertisers
blood pressure,
Exhibit 4 Average Profit Margin per Pharmaceutical Prescription for Heart Medicationa
Advertisement placement Estimated contribution per sale
General interest website $48
Search engine $45
Health care website $150
Newspaper (via call center) $165
Television (via call center) $75
MedNet, most viewed pages, Nov. 2006
1. Search Page
2. Advanced medical search
3. Weight control center
4. Pharmaceutical news
5. Insurance news
6. Advanced pharmaceutical search
7. Health News Update
8. Controlling cholesterol
9. Depression center
10. Medical encyclopedia index page
11. Women’s content index page
12. Allergy center
13. Prevention screening guide
14. Medical conditions table of contents page
15. Today in women’s health
16. Today in children’s health
Audit of monthly usage and activity: 4.3 mm unique visitors
Unique visitors not included in prior month’s audit: 60%
edicationa
