Managing Web sites for profitability: Balancing content and advertising

R. Dewan, M. Freimer, Jie Zhang

Research output: Contribution to journalArticlepeer-review

14 Scopus citations

Abstract

Balancing the amount of advertising and content on a Web page affects the profitability of the Web site and its attractiveness to potential visitors. This tradeoff is modelled as a control problem for a Web site manager who is maximizing the net present value of cash flows by controlling the amount of advertising and content displayed on the Web site over its life. The model is calibrated and justified using Web site advertisement and audience data. A new measure of Web site traffic is developed and it is statistically significant in explaining the market value of firms that own advertising supported Web sites.

Original languageEnglish (US)
Article number994170
Pages (from-to)2340-2347
Number of pages8
JournalProceedings of the Annual Hawaii International Conference on System Sciences
Volume2002-January
DOIs
StatePublished - 2002
Externally publishedYes

Keywords

  • Advertising
  • Animation
  • Business
  • Content management
  • Costs
  • Delay
  • Electronic commerce
  • Profitability
  • Traffic control
  • Web pages

ASJC Scopus subject areas

  • Engineering(all)

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