Mednet Case

C) How could Heather Yates justify to Windham Pharmaceuticals that charging for impressions is better than charging for click-through?

Advertisers can benefit from both general interest websites like Marvel and niche websites like MedNet.com; however both offer the advertiser different outcomes.

The niche website has customers who are often come when they are "in crisis" mode. They come to the website to fully research the health problem often spending a great deal of time on the site. The customers come with a real need and are more disposed to purchasing more products on the site. When the product is not available, niche customers urge their physicians to prescribe the medication.

Heather Yates can qualitative argue that visitors to the MedNet.com website are "in crisis" and therefore more disposed to purchase products immediately. Even though the total number of impressions may be low, those visitors coming to the website are ready and willing to purchase after researching the information they desire.

Even thought the total number of impression for MedNet is low which is at 516,000 click-through compare with 798,000 that Marvel has that does not mean that the total revenue on sales for Windham will be greater. One metric for measuring sales revenue generated by a specific banner, advertising campaign is by using coupons. After the customer clicks on the banner ad, they are taken to a printable coupon. The coupon is then printed and the customer uses it at the pharmacy. The pharmacy then reports this coupon usage and the advertiser can get an idea of the Return on Investment (ROI).

According to the article the estimated contribution per sale for a Heal care website (MedNet) is $150 compare to t search engine website (Marvel) which is $45. Thus if we multiple the total number of click-throught that actually made a purchase for MedNet we have a total estimated in sales of $4,644,000 compare with Marvel which has a total of estimated sale at $718,200. Thus Heather Yates can qualitative argue with Mahria Baker that visitors to the MedNet.com will generate more revenue for Windham Pharmaceuticals. The revenue that Windham could generate by staying with MedNet is $2,925,720 compare with $287,000 that they will generate if they decide to go with Marvel. Windham Pharmaceuticals will be losing $2,638,440. Thus it worth it to pay a premium to stay with MedNet ($3.33 compared to $.054 to Marvels) due to the fact that revenues in sales are 90% higher that if they shift to Marvel

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