That's revenue that may finally drive some e-commerce sites into the black. Internet companies such as CDNow Inc., Onsale Inc. and Travelocity are among the first retailers to effectively sell ads on their Web storefronts. But as more traditional companies ramp up their e-commerce efforts, they too will have to factor advertising into their online business plans. It's clear even from the limited experience of these Web pioneers that there are some issues to resolve when trolling for advertising dollars. Skilled ad sales experts who know how to sell on the Web are hard to find.
Marketers often demand major changes to a Web site in return for their money.
And, businesses have to guard against ads that might slow down page performance or lead potential shoppers into a competitor's arms. These potential pitfalls haven't kept CDNow from moving forward. Like many Web merchants, CDNow uses discount prices to help build a big customer base. That means there's often little or no profit on an individual sale. Ads offer a chance to fatten the bottom line because marketers are willing to pay top dollar to reach proven online shoppers, and posting ads on a Web site is inexpensive for CDNow when compared to managing and delivering physical products.