Landmark Outsell, Inc. Research Shows E-Commerce to Be Important and Still Untapped Channel for Publishers and Content Providers; Report Debunks Myth that E-Commerce Cannibalizes Higher-End Sales

Business Wire, Nov 21, 2005

BURLINGAME, Calif. -- Outsell, Inc.:

WHAT:

Who is going online to buy B2B content, and how much are they willing to pay for it?

Outsell, Inc., the leading research and advisory firm for the information industry, answers these questions in a new market research report for news and trade publishers, company information providers, database producers, market and IT research firms, and others wanting to sell more B2B information over the Web. The great news is that the Web platform allows companies to engage a new and important group of customers who weren't cost-effective to reach using a print-based publishing, marketing and sales model. Companies that can serve the needs of many, rather than just a few, with price points below $100 per transaction, are well-positioned to drive volume transactions from a new group of buyers, while still retaining their higher-end customers.

In partnership with ECNext, Outsell analyzed 24,970 online content purchases from December 2004 to June 2005. They supplemented the data with phone interviews and insights from Outsell analysts covering different information industry segments. The Outsell HotTopics report, Web E-Commerce for B2B Publishers and Information Providers -- New Channel Demands New Ways of Thinking, provides norms and offers recommendations for leveraging e-commerce opportunities.

RESULTS AND RECOMMENDATIONS:

Who's buying? The CEO.

Professionals and executives across industries, across all job titles and no matter what their company size are buying content via the Web. However, those at the highest levels of an organization are the predominant customers. Titles such as general manager, director and vice president rank first, and CEO, president, and COO rank second. Manufacturing and building and construction are the most popular content-buying industries.

What customers pay:

B2B content buyers on the Web spend an average of $152 per transaction, with a median sales price of $30. The price band for volume sales is $1 to $49 per transaction, with the next real price band from $50 to $499. Most publishers indicate that the "magic" number is at or below $499, though selected publishers enjoy purchases as high as $7,500. The type of content provided within a relative price range is what drives Web commerce sales, rather than particular industries buying more or less content based on price.

Cannibalism is a myth

All publishers Outsell contacted believe that no matter what the sales performance of the Web channel, it doesn't cause cannibalism of higher-end sales. The common fear of cannibalism in the information industry is, in fact, unfounded.

Transaction-based sales are the rule

The medium of the Web is more of a "transactional" play where potential buyers have a question they want answered. What these buyers offer the seller is leverage. Once content is created, its costs are fixed and incurred. Reaching new markets for that same content adds healthy margins to the bottom line.

Longer Shelf Life

An unexpected benefit of being Web-commerce enabled is the ability to sell content that is older than 12 to 18 months. In fact, Web sales indicate a strong four-year cycle for content purchases. Thirty-two percent of sales Outsell analyzed from December 2004 through June 2005 are of content created before 2004.

The Outsell report also provides Essential Actions for developing a content and marketing strategy to attract new buyers and maximize sales results. Outsell analysts are available to explain the trends in the report to journalists. To arrange an interview, please contact Dawn Ringel, Warner Communications, 781-449-8456 or dawn@warnerpr.com. To purchase this 22-page report and learn more about Outsell, go to www.outsellinc.com/ecommerce or contact Outsell directly at 650-342-6060 or info@outsellinc.com

ABOUT OUTSELL, INC.:

Outsell, Inc. of Burlingame, CA is the leading research and advisory firm providing actionable market analytics for the information industry. Founded in 1994, Outsell helps publishers, commercial information providers, and content software technology vendors identify, maintain, and grow markets and revenue streams. Outsell also works with information management executives in top corporations, government agencies, and educational institutions to benchmark spending, optimize performance, and demonstrate best practices. Outsell invests heavily in unique information industry data assets that form the core of its high-quality, fact-based research, analysis, and recommendations for clients worldwide.