MedNet.

com confronts “Click-Through”

Competition
TEAM NUMBER 5 MEMBERS:-
NISHANT YADAV PGP/22/90
ANKITA GANDHI PGP/22/233
HSHUBHAM RAJ PGP/22/259
T SIBI KRISHNA PGP/22/264
AMBRISH CHAUDHARY PGP/22/272
JASMEET SINGH PGP/22/282
About MedNet

 Mednet.com is an internet based

healthcare website founded in 2002. Goals
 Accessibly written, easy to navigate and
vividly presented
 Developed by 24 trained journalists,
doctors, designers and administrators
 Sources-medical schools, news
agencies, a photography service and Scientifically
Free Ads
community of visitors proven

 Considered as the best healthcare

website, trusted and evidence based
Health information
 4.3 million monthly visitors
 Strength:-
1)Strong brand equity of MedNet for providing rich
content which is easy to navigate.
2)Perceived as authentic content leading to low
bounce rate and high revisit rate.
3)Supported by active community of blogger and
content creators.
SWOT analysis
Opportunities:-
1)MedNet can start charging for content
2)It can start advertising alternative medicines
3)Flatten advertisement revenue from pharma
company
4)Start advertising for doctors, pharma companies
and medical centre
Weakness:-
1)Board member lay high emphasis on
independence hence it cannot become a corporate
health website
2)Much of it’s traffic comes from search engine like
Marvel
3)Many of it’s customer visit the website ‘in-crisis’
Threats:-
1)Search engine like Marvel
2)Non profit and government websites like US national
library of Medicine, WHO websites etc.
3)Alternativehealth.com is among websites offering
alternative medicines and therapeutic remedies
4)Condition specific websites like cholesterol.com
 Marvel Challenge

 Successful large search engine

 19 million visitors per month
 Follows click through rate (CTR) method
from 4th quarter 2006
 Charges $0.54 for each click through

Advertising venue Cost Cost per click through

MedNet $100 CPM $3.33
Marvel $0.54 per click through $0.54

Windham CMO: Why should we pay 6 times more to Mednet as compared to marvel?
 MedNet Response

MedNet Marvel Research

Monthly visitors 4.3 mn/month 19 mn/month
Impression Windham received 17.2 mn 57 mn
Cost Structure $ 100 per 1000 impressions $0.54 per click through
Click through rate 3% 1.40%
Total add cost $1.72 mn $430,920
Cost per click through $3.33 $0.54
Estimated contribution per sale $150 $45

• MedNet’s click through rate is twice as high as Marvel

• MedNet Provides a platform which displays trusted medical information, adding to bottom line of Windham
• Click throughs by marvel only opportunities to display information, not actual sales
• MedNet presents a more compelling case in front of audience who are psychologically disposed .
Cholestrol.com Challenge

 Recently launched with $47million “Category killer” site

 Focused on one particular chronic condition
 Provided interactive tools and stored data such as height, weight etc.
 Cholestrol.com at risk of violating govt regulations because of prescriptive and
diagnostic approach and the tailored information

How to prevent Windham CMO from advertising on niche sites like

cholesterol.com, and avoid any loss in revenue ?
Recommendations
 1] Start charging for content
Pros
• Less dependent on advertisement
revenue.
• Business model like subscription can
provide stable revenue
Cons
• 75% people are unwilling to pay for
content.
• This might tarnish trustworthy image of
MedNet.
• 50% of customer just visit the general
health sites and are not ‘in crisis’
customer. They won’t pay for just
browsing
 2] Manage corporate health websites
Pros
• Can manage websites of companies
like Windham and therefore freeze a
contract giving stable revenue stream
Cons
• They will loose their independence
• Their image of being a trustworthy site
will be in jeopardy
• The board will not agree to this idea
• Possibility of getting dragged into
debate about decreasing health cost
 3] Promote alternative medicine content and
advertise for doctors and hospitals (diversify)

Pros Cons

• This will diversify the customer
base a lot.
• Low dependence on any
single pharma company which
will help to continue itself as a
trustworthy health website
• This will not resolve the loss of
revenue from Windham
• Liberal approach may attract
customer retaliation.
Conclusions

 The best solution available to MedNet is :-Promote alternative medicine

content and advertise for doctors and hospitals
 This will not only keep off pressure from client due to different streams of
revenue but will also cement MedNet position as a trustworthy website
providing unbiased health content
 Implementation:-They should begin in phase wise manner. It can work as a
reference encyclopaedia for alternative medicines that doesn’t discuss it’s
claim just generally accepted practices like acupuncture
Thanks