Business models for monetizing internet applications and web sites: Experience, theory, and predictions

Journal of Management Information Systems

Volumn 26, Issue 2, 2009, Pages 15-41

  Clemons, Eric ^a  

^a UNIVERSITY OF PENNSYLVANIA   (United States)

Author keywords

Business models for the Internet; Future of online advertising; Monetizing the Internet; Strategic information systems

Indexed keywords

BUSINESS MODELS; BUSINESS MODELS FOR THE INTERNET; COMPETITIVE STRATEGY; E-COMMERCE; FUTURE OF ONLINE ADVERTISING; INTERNET APPLICATION; MONETIZING THE INTERNET; NATURAL EXTENSION; ONLINE BUSINESS; STRATEGIC INFORMATION SYSTEMS;

ELECTRONIC COMMERCE; FORECASTING; INFORMATION SYSTEMS; ONLINE SYSTEMS;

INTERNET;

EID: 70449358948     PISSN: 07421222     EISSN: None     Source Type: Journal    
DOI: 10.2753/MIS0742-1222260202     Document Type: Article

References (57)

1. Allen, c.; Kania, D.; and Yaeckel, B. One-to-One Web Marketing: Build a Relationship Marketing Strategy One Customer at a Time, 2d ed. New York: John Wiley & Sons, 2001.
2. Anderson, c. The Long Tail: Why the Future of Business Is Selling Less of More. New York: Hyperion, 2006.
3. Ariely, D. Predictably Irrational: The Hidden Forces That Shape Our Decisions. New York: Harpercollins, 2008.
4. Barnes, S. Virtual worlds as a medium for advertising. ACM SIGMIS Database, 38, 4 (November 2007), 45-55.
5. Bathurst, B. The Wreckers: A Story of Killing Seas, False Lights, and Plundered Shipwrecks. New York: Houghton Mifflin, 2005.
6. Baumol, W.J. contestable markets: An uprising in the theory of industry structure. American Economic Review, 72, 1 (March 1982), 1-15.
7. Baumol, W.J.; Panzar, and Willig, D. On the theory of perfectly contestable markets. In J.E. Stiglitz and G.F. Mathewson (eds.), New Developments in the Analysis of Market Structure. cambridge, MA: MIT Press, 1986, pp. 339-365.
8. Baumol, W.J.; Panzar, J.c.; and Willig, r.D. Contestable Markets and the Theory of Industry Structure. San Diego: Harcourt Brace Jovanovich, 1988.
9. Blodget, H. Facebook's "Beacon" infuriate users, MoveOn. Silicon Valley Insider (November 21, 2007 (available at www.businessinsider.com/ 2007/11/facebooks-beaco).
10. Brunger, B.; clemons, E.K.; and Young, D.J. Fighting back with the long tail: linking product and distribution strategies in the travel industry. Cutter IT Journal, 20, 4 (April 2007), 24-29.
11. clemons, E.K. How information changes consumer behavior and how consumer behavior determines corporate strategy. Journal of Management Information Systems, 25, 2 (Fall 2008), 13-40.
12. clemons, E.K. The complex problem of monetizing virtual electronic social networks. Decision Support Systems, 48, 1 (2009), 46-56.
13. clemons, E.K. Monetizing the Internet: Surely there must be something other than advertising. In r.H. Sprague (ed.), Proceedings of the Forty-Second Hawaii International Conference on System Sciences. los Alamitos, cA: IEEE computing Society Press, 2009 (available at www2.computer.org/plugins/dl/pdf/ proceedings/hicss/2009/3450/00/09-02-10.pdf?template =1&loginState= 1&userData=anonymous-IP%253A%253A127.0.0.1).
14. clemons, E.K. What an anti-trust case against Google might look like. TechCrunch (March 1, 2009) (available at www.techcrunch.com/2009/03/01/what-an- antitrust-case-againstgoogle-might-look-like/).
15. clemons, E.K. Why advertising is failing on the Internet. TechCrunch (March 22, 2009) (available at www.techcrunch.com/2009/03/22/why-advertising-is- failing-on-the-Internet/).
16. clemons, E.K., and Gao, G. consumer informedness and diverse consumer purchasing behaviors: Traditional mass market, trading down, and trading out into the long tail. Electronic Commerce Research and Applications, 7, 1 (Spring 2008), 3-17.
17. clemons, E.K.; Gao, G.: And Hitt, l. When online reviews meet hyperdifferentiation: A study of the craft beer industry. Journal of Management Information Systems, 23, 2 (Fall 2006), 149-171. (Pubitemid 44613924)
18. clemons, E.K.; Barnett, S.; Magdoff, J.; and clemons, J.c. Managing the "instant messaging" generation in the work force. In P.r. Kleindorfer and Y. Wind (eds.), The Network Challenge: Strategy, Profit, and Risk in an Interlinked World. Philadelphia: Wharton School, 2009, pp. 317-334.
19. clemons, E.K.; Ben-zaken, I.; clemons, J.c.; Magdoff, J.; Shulman, G.; and Wais, J. Touch me often but not deeply: Understanding the interpersonal style of the petites digerati. In r.H. Sprague (ed.), Proceedings of the Forty-Second Annual Hawaii International Conference on System Sciences. los Alamitos, cA: IEEE computing Society Press, 2009 (available at www2.computer.org/plugins/dl/pdf/proceedings/hicss/2009/3450/00/09-11-02.pdf? template= 1&loginState=1&userData=anonymous-IP%253A%253A127.0.0.1).
20. click fraud growing on the Web. CNET News (September 24, 2006) (available at http:// news.cnet.com/click-fraud-growing-on-the-Web/2100-1024-3-6118902. html).
21. Dellarocas, c. The digitization of word-of-mouth: Promise and challenges of online repu tation systems. Management Science, 49, 10 (October 2003), 1407-1424.
22. Dellarocas, c.; Awad, N.; and zhang, X. Exploring the value of online reviews in forecasting sales: The case of motion pictures. Working paper, r.H. Smith School of Business, University of Maryland, 2004.
23. Eisenmann, T.r.; Parker, G.; and Van Alstyne, M.W. Strategies for two-sided markets. Harvard Business Review, 83, 10 (October 2006), 6-10.
24. The end of the free lunch-Again. Economist.com (March 19, 2009) (available at www. economist.com/opinion/displayStory.cfm?story-id=13326158).
25. Guo, Y., and Barnes, S. Why people buy virtual items in virtual worlds with real money. ACM SIGMIS Database, 38, 4 (November 2007), 69-76.
26. Hardin, G. The tragedy of the commons. Science, 162 (December 1968), 1243-1248.
27. Hughes, M. Buzzmarketing: Get People to Talk About Your Stuff. New York: Portfolio, 2005.
28. Keller, E., and Berry, J. The Influentials. New York: Free Press, 2003.
29. Klaassen, A. Behind Nike's lawsuit lies a branding story. Advertising Age (August 4, 2008) (available at http://theadmedia.blogspot.com/2008/08/behind- nikes-lawsuit-lies-branding. html).
30. lacy, S. Online ads: Even the evangelists turning bearish. TechCrunch (February 25, 2009) (available at www.techcrunch.com/2009/02/25/online-ads-even- the-evangelists-turningbearish/).
31. lanier, J. Pay me for my content. New York Times (November 20, 2007) (available at www.nytimes.com/2007/11/20/opinion/20lanier.html).
32. li, c., and Bernoff, J. Groundswell: Winning in a World Transformed by Social Technologies. Boston: Harvard Business School Press, 2008.
33. Murti, B.P.S., and Sarkar, S. The role of the management sciences in research on personalization. Management Science, 49, 10 (October 2003), 1344-1362.
34. Naone, E. Social search. Technology Review (February 1, 2008) (available at www. technologyreview.com/web/20138/).
35. MacMillan, D. Facebook connect: Your 8,000 hidden friends-Do Facebook connect users understand how extensively their profiles and activities are used by third parties? BusinessWeek (April 2, 2009) (available at www.businessweek.com/technology/content/apr2009/ tc2009041-649562.htm?chan= technology-technology+index+page-top+stories).
36. Mann, c.c. How click fraud could swallow the Internet. Wired (January 2006) (available at www.wired.com/wired/archive/14.01/fraud.html).
37. McPherson, M.; Smith-lovin, l.; and cook, J.M. Birds of a feather: Homophily in social networks. Annual Review of Sociology, 27 (August 2001), 415-444.
38. Panzar, J.c., and Willig, r.D. Free entry and the sustainability of natural monopoly. Bell Journal of Economics, 8, 1 (1977), 1-22.
39. Penenberg, A.l. click fraud threatens Web. Wired (October 13, 2004) (available at www. wired.com/culture/lifestyle/news/2004/10/65324).
40. Pérez-Peña, r. As cities go from two papers to one, talk of zero. New York Times (March 11, 2009) (available at www.nytimes.com/2009/03/12/ business/media/12papers.html).
41. riedl, J.; Konstan, J.; and Vrooman, E. Word of Mouse: The Marketing Power of Collaborative Filtering. New York: Warner Business Books, 2002.
42. rosencrance, l. E-commerce leaders move to fight deceptive online ads: The Alliance Against Bait & click is focused on keyword advertising. Computerworld (August 5, 2008) (available at www.computerworld.com/action/ article.do?command=viewArticleBasic&article Id=9111682).
43. rowley, J. Antitrust pick Varney saw Google as next Microsoft. Bloomberg.com (February 17, 2009) (available at www.bloomberg.com/apps/news?pid= newsarchive&sid=aG9B5. J3Bl1w).
44. Schonfeld, E. More Facebook advertisers bail from Beacon: Plus, new concerns. Tech- Crunch (December 3, 2007) (available at www.techcrunch.com/2007/ 12/03/more-facebookadvertisers- bail-from-beacon-plus-new-concerns/).
45. Schonfeld, E. Google book settlement site is up; paying authors $60 per scanned book. TechCrunch (February 11, 2009) (available at www.techcrunch.com/2009/02/11/google-booksettlement- site-is-up-paying-authors- 60-per-scanned-book).
46. Scott, A.O. Duplicity: Effervescent espionage with two irresistible forces. New York Times (March 20, 2009) (available at http://movies.nytimes.com/ 2009/03/20/movies/20dupl.html).
47. Senecal, S., and Nantel, J. The influence of online product recommendations on consumers' online choices. Journal of Retailing, 80, 2 (2004), 159-169.
48. Silverstein, M., and Fiske, N. Trading Up: The New American Luxury. New York: Penguin, 2003.
49. Steel cage debate on the future of online advertising: Danny Sullivan vs. Eric clemons. TechCrunch (March 28, 2009) (available at www.techcrunch.com/ 2009/03/28/steel-cage-debateon- the-future-of-online-advertising-danny-sullivan- vs-eric-clemons/).
50. Steel, E. Google search ads rile its big customers. Wall Street Journal (June 3, 2008), B1.
51. Stross, r. Everyone loves Google, until it's too big. New York Times (February 21, 2009) (available at www.nytimes.com/2009/02/22/business/22digi. html).
52. Teece, D.J. Profiting from technological innovation: Implications for integration, collaboration, licensing, and public policy. In D.J. Teece (ed.), The Competitive Challenge, cambridge, MA: Ballinger, 1987, pp. 185-219.
53. Virtual worlds, virtual economies. BusinessWeek (May 1, 2006) (available at www. businessweek.com/magazine/content/06-18/b3982010.htm).
54. von lohmann, F. Google book search settlement: Two articles to read. Electronic Frontier Foundation, Deep links Blog (February 2, 2009) (available at www.eff.org/deeplinks/2009/02/ google-book-search-settlement-two-articles-read) .
55. Watts, D., and Peretti, J. Viral marketing for the real world. Harvard Business Review, 12, 5 (May 2007), 104-112.
56. Weitzman, H. Sun-Times joins ranks of chapter 11 publishers. Financial Times (April 1, 2009), 17.
57. Wind, J., and Mahajan, V. Digital Marketing: Global Strategies from the World's Leading Experts. New York: John Wiley & Sons, 2000.