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Trends in Internet Financial Services

By Jim Bruene on May 3, 2000 8:18 PM | Comments (0)

Last month  we looked at trends in Internet use across all sectors. This month we focus on retail financial services, with a look at who’s selling what online. A couple caveats on the data. We don’t conduct primary research ourselves. Instead we compare and contrast data from many sources to develop a consensus estimate of what’s actually going on.

Second, there is no such thing as a “pure” online product sale. Buyers are influenced by information and brand images obtained on- and offline. Whether the actual purchase is transacted on the Web, over the phone, or in a store/branch, what really matters is whether the seller’s online presence helped make the sale. Even internally, this is difficult to measure. For outsiders it’s virtually impossible.

Luckily, increasingly sophisticated third-party measurements of Web traffic and activity provide important insights. So we’re working with PC Data Online www.pcdataonline.com  to bring OBR readers the latest traffic numbers for major financial Web sites. You can expect Web traffic trends to be an integral part of our analyses going forward.

Table 1
Web Traffic Information Vendors

Vendor

Web

Base Price/Yr.*

Media Metrix mediametrix.com

$50,000

Nielsen/NetRatings netratings.com

$45,000

PC Data Online pcdataonline.com

$9,500

Source: companies, 5/00

*Costs are not directly comparable. Media Metrix and Nielsen provide a broader array of software tools and demographic data allowing ad agencies and their clients to fine-tune online marketing campaigns. They also include an allotment of ad hoc consulting and research services. We selected PC Data because it provides basic Web traffic reports at the lowest price. Readers are advised to look at all three companies when considering a subscription.

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