100 sites profiled in Education Portal Market Analysis

Internet Strategies for Education Markets: The Heller Report, Dec, 1999

Education Portal Market Analysis, a report co-published by the Peak Group, LLC and The Heller Reports, offers snapshots of 100 sites that have a primary or secondary mission of serving as an education portal. The report's data includes the sites' revenue models, services, major sponsors or advertisers, commerce partners and traffic figures. To stay on top of the burgeoning market area, John Politoski, the reports' author, says that the Peak Group will update the report twice a year and make a subscription-based database available on the web. The report will next be updated in March of 2000.

The majority of sites pursue advertising or e-commerce for revenue, and subscription models are struggling, especially in K-12. Politoski believes there will eventually be a more viable market for paid services in the schools. The market, he says, is in transition. While sites are currently targeting supplemental content funding, they will one day be able to reach into the larger pot of money currently reserved for textbooks.

Politoski found that nobody in the K-12 market has yet developed a clear model of delivering content and services via the web that appears replicable. Even so, competition remains fierce. What advice would Politoski give to a new company offering school/home communications? "Seek to differentiate yourself with a strong vertical focus," says Politoski. He would recommend seeking a market segment, product or service where your company can be one of the top two rather than mildly successful in broader offerings.

The trend toward being all things to all users, theorizes Politoski, stems from responding to diverse visitors. One of his most surprising finds with the report was the exceptionally high number of visitors to these sites. Politoski believes the sites are drawing a wider than intended audience as well as international audiences. "Web properties need to better understand where they are really drawing their visitors from," says Politoski.

Of the 100 education portal sites featured in Education Portal Market Analysis, 45% have a primary focus on K-12 educators, 19% on K-12 students, 12% on K-12 schools, and 10% on K-12 parents. Even so, 77% have an aggregate focus which includes parents, and anticipation of e-commerce and advertising with this audience is a primary driver of activity.

Only 14% of the sites have a primary focus on postsecondary institutions, faculty or students. That figure, says Politoski, needs to be understood in relation to the smaller number of higher education institutions compared to the number of K-12 organization. "The postsecondary system," says the report," is evolving more quickly in its development of information age education models."

The report sells for $595 to Heller Reports subscribers and SIIA or CoSN members; it is otherwise $695.