iVillage: Innovation among Women's Website

1. iVillage: Innovation among Women's Website Business Model L.Ghafoorian

2. Outline • Introduction • The Changing face of the media industry • Women as a market • History • Target market • The competition • WWW.iVILLAGE.COM • Financial issues • iVillage’s Business Model • iVillage‘s Business strategy

3. Introduction • Name value iVillage.com has an implication of women society. iVillage comes from my village. • Candice Carpenter is confounder and CEO of iVillage • iVillage is extremely successful in market • iVillage is the ultimate women’s online resource • Competition in media (OXYGEN,…) • In meeting with stockholders, innovation is most important to remain in competition

4. The Changing face of the media industry(1) • Internet is the most popular in the world • Internet redefined the role of media • Increasing number of internet users • Low cost infrastructure • Nature of its interactivity • Anyone can access to computer and internet • Commerce revenue on the internet increasingly rise • With going internet, traditional media were going to shake down

5. The Changing face of the media industry(2) • with internet and e-commerce , traditional media can distribute and interactive and retain audiences • Internet has not managed to replace other media • Internet was blurring the lines between different form of media • Forcing traditional radio station,magazine,newspapers to build a presence in other channel • Media focus on the strength and elasticity the suitability to different end user device • iVillage created a strong brand on a specific market Women aged 25 to 49

6. Women as a market • Women control 85% of all personal and household goods spending • Women consume media per day 8.2 hours to 8.8 hours • Women comprise 57% of new internet service provider subscribers • 77% of women went online to explore, but 86%stayed because they found information that helped them get through their daily lives Why women’s websites Have grown

7. WWW.iVILLAGE.COMHistory • Established in 1995 by CEO Candice Carpenter and editor-in-chief Nancy Evans • Carpenter as a mother of two childrens: • Women today are so pragmatic and they use to internet to find out how to get things done • iVillage was for women looking for information on topics such as children,health,family • Online community where members develop relationships • The consumers drive to the site's innovation • The company has to respond by further developing the offering to fit the needs and wants of its users

8. WWW.iVILLAGE.COMTarget Market • One of the most demographically targeted online communities on the web • Developed to the interests and needs of women aged 25 through 49 • iVillage was an attractive market segment for advertisers and sponsors • iVillage was recognized as a leader in developing innovative sponsorships and commerce relationship

9. iVillalge Demographic Profile

10. The competition Lifetime Oxygen Media,Inc. We must stay focused as opportunities are ours to keep Martha Stewart Living women.com women.com Oxygen Media,Inc.

11. Women. COM • Owned by Hearst New media and technology • Originally founded as a content site • Exploit Hearst's rich database on women customers • Include of some community features and started a small commerce venture

12. Oxygen media ,Inc. • Backed by strong media and heavy investors • Was founded by Geraldine Lay Bourne (most powerful women executives in TV industry) • Interested for innovative approach to satisfying women’ s need • Combined (entertainment power of TV & power of internet) interactive television and site • Oxygen’s model was innovative , more comprehensive , and hard to imitate • To raise revenue • Attracted a board range of advertisers • Attracted E-Commerce partners • Charging fees per subscribers

13. Oxygen media ,Inc. • to raise money use by attracting advertisers • Oxygen's business model is unique and innovative • "The combination of Oxygen online and Oxygen cable is a futuristic and visionary approach that will shape the future of the new media industry.“ • iVillage and Oxygen are competitors in terms of same target market and on-line service. • The more value they provide to the customer, the more attractive their websites are. Thus, the company who owns a large number of customers would have greater competitive advantage • According to the intuition of women iVillage is quiet, safe and peaceful, while oxygen if full of adventure and exciting..

14. WWW.iVILLAGE.COMProduct • Network’s communities ,find solutions ,handle challenges • Community • Friends with similar interest • Devoted to discussion, debate, and sharing ideas • Goals of iVillage: • Help women navigate through increasingly busy lives • Maximize their potential in their various roles as parents, friends ,spouses ,partners ,career women, bread winner, employees ,individuals • The first company that offer this type of online product to women • content-only based community – based • Information on finance or world news • Provide group of experts for consultation • Discussion boards of like-mind women to help and share experience • Women can get all kinds of information they wanted on iVillage.com without buying newspaper or magazine. On this point iVillage offers their customer the lower cost products.

15. Products Pets Travel Better health Career Relationships Bulletin boards Fitness & Beauty Software: library, book keeping, Billing ,legal, payroll,.. Support groups Foods Shopping Work for home Book club

16. Traffic • Ivillage was the most successful women’s web sites • Traffic flow is vital success and future potential in internet business model • Statistic in June 19982 million different visitors of ivillage • Twice the traffic of competitor such women.com • In April 1998  6 million pages view

17. Financial Issue • iVillage (like companies based on WWW) had accumulated a substantial deficit • Profitability was not a near goal • Due to restructuring iVillage’s business model

18. iVillage’s business model • iVillage (Based on content and community ) revenues: • Selling banners, text-link , sponsorship from other business • Traffic attracting advertising client • Business model volume-based model (volume is vital factor to attracting advertising client) • Successfully of advertising-based model • Reaching the broadest possible audience/viewers/readers/visitors/so-called eyeballs • Advertising might be successful is to have a highly targeted and specialized audience • The number of viewers is also called the volume of viewers; hence this model is: volume-based approach. • But internet advertising :1% of the total revenue • More web sites were competing for the advertisement

19. Revenue Source • Banneradvertising • Sponsorship • Production • e-commerce • Contentlicensing • Satellitetelevision through the Newborn Channel • Printmedia • Directmail • Videoproduction

20. Sponsorship • Charles Schwab & Co • Financial or investing related sites. • Ford Motor Media • Promotion of the sale of Ford automotive products across our Web sites. • Fuji Photo Film USA • Exclusive sponsorship for the photographic film, disposable camera and digital camera categories throughout our network. • General Electric • Exclusive sponsorship for GE Appliances of the speed cooking ovens category throughout our network. • Glaxo Wellcome • Exclusive sponsorship for certain disease categories throughout our network. • Ralston Purina • creation of a pet channel and provider of content, experts, customer service and distribution for the pet channel. • Warner Lambert • promoting and marketing a range of products.

21. iVillage’s business model • iVillage (Based on content and community ) revenues: • Selling banners, text-link , sponsorship from other business • Traffic attracting advertising client • Business model volume-based model (volume is vital factor to attracting advertising client) • Successfully of advertising-based model • Reaching the broadest possible audience/viewers/readers/visitors/so-called eyeballs • Advertising might be successful is to have a highly targeted and specialized audience • The number of viewers is also called the volume of viewers; hence this model is: volume-based approach. • But internet advertising :1% of the total revenue • More web sites were competing for the advertisement

22. Advertising models • Generalized portal (also called a horizontal/general portal )Yahoo,msn. • Personalized portal (which is a generalized portal that is customized to the user’s preference) my.yahoo.com • Specialized portal (also called a vertical portal) • Free model • some service or product is given free • Recommender system • Community provider: • experts provide information in response to queries from community members.

23. General vs.. Vertical Portal General Portal • Attempt to attract avery large generalaudience and then retain it on-site by providing in-depthvertical content channels Vertical Portal • Attempt to attract highly focused, loyal audiences with a deepinterest in either community or specialized content

24. iVillage – Vertical Portal • Focus on women aged 25 and above. • Topics of high importance to women • Health & Well-Being • Beauty & Style • Diet & Fitness • Pregnancy & Parenting • Home & Food • Entertainment • Magazine • General Features: • Astrology, Message Boards, Blogs, Newsletters, Free Stuff, Quizzes, Games, Shopping, Multimedia, Search

25. iVillage’s business model(2) • In stead of congested banner and link and advertisement new business • Customer profile (different message board) • iVillage develops its e-commerce especially for information service • When search brief information pay money whole information • customer can be benefited from two aspects: • the information is updated because the communication is ongoing every day. • the information is much valuable and the customer can use it to solve the problem in real life. • Customer loyalty :more value to customer. • It is an important differentiate strategy for iVillage. • This cause e commerce business model generate profit Register any conversation separated by location ,interest ,hobbies • ّFirst Mover

26. The shift to e-commerce • For instance: • Amazon.com:2.5 million books,1998:124.5$ million loose • Spend vast amount money marketing its product and services • But iVillage have distinct advantage • iVillage launch iBaby to its existing customer base and online community • Content site community site e – commerce • new commerce revenues by selling products or services that have a high degree of relevance to our members • iBaby: • delivered baby products and gift service in world wide • Quick and convenient shopping experience for it’s customer • Offer more than 14000 baby related products • Access to over 800 vendor • The combination of volume-based and e-commerce business model provides more value to the customer • iBaby Ware housing Inventory control Customer service Shipment flow precisely Efficiency effectiveness

27. Business strategy • BUILD STRONG BRAND RECOGNITION • branding expenditures toward offline branding on television and radio, through direct media spending and through strategic alliances with traditional media partners. • AGGRESSIVELY GROW MEMBERSHIP • Once the user has visited iVillage.com, our mission is to convert that user to a member • ENHANCE AND EXPAND THE NETWORK • PURSUE STRATEGIC ACQUISITIONS AND ALLIANCES • Promote iVillage name • Drive traffic to iVillage website • Online Psych, one of the largest online health communities focused on mental health; • Lamaze Publishing, a multimedia provider of education information to expectant and new mothers • Family Point, a leading online meeting place for families, friends and groups with similar interests. • INCREASE SPONSOR AND ADVERTISING REVENUES • GENERATE E-COMMERCE REVENUES • Differentiation • Strong competitors: Oxygen • Focus on the core business area

28. Reference • iVillage website statistic: www.corporate-ir.net/ireye/ir_site.zhtml?tickerIVIL&script2100. • Lisa Allen, Bill Bass, Chris Charron, and Jill Aldort, “Old Media’s New Role,” The Forrester Report, no. 5 (January 1999), p. 6. • Allison Abraham, “Internet Communities,” Presentation in Electronic Commerceclass, New York University, Stern School of Business, April 12, 1999. • Heather Green, “For Women, iVillage is a Site of Their Own,” Business Week, businessweek.com/1998/29/b3587126.htm, July 20, 1998. • Susan Karlin, “It Takes an iVillage,” Upside Magazine, www.upside.com/texis/mvm/story?id=3665bcf40, December 2, 1998.

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