e-business Models  «Prev  Next»
Lesson 6The Advertising model
ObjectiveIdentify the various Advertising Models.

b2b Advertising Models

Like Brokerage models, Advertising models can be applied to both B2B and B2C businesses, although some are better suited to one or the other.
The Advertising model in eBusiness mirrors the advertising techniques and to some extent the mediums applied to traditional media, such as print, radio, and television. eBusiness uses internet technologies as the medium to link sellers and buyers.
Advertisements are placed in or around Web site content, and complimentary services such as email or free Web space are offered in order to attract an audience. This model relies on high volumes of visitors to both interest advertisers and to obtain revenue.
There are various derivatives of the Advertising model:


Portals are of increasing popularity in both B2B and B2C situations. They can be similar to directories but do not necessarily charge advertisers for listings or referrals. Portals have many different methods of attracting traffic, and can be grouped into the following types, as described in the MouseOver below:
Variations in B2C
Variations in B2C

  1. Buy/Sell Match model , 2) Buyer Aggregator Model, 3) Classified Advertiser Model, 4) Virtual Mall Model, 5) Virtual Mall Intermediary Model, 6) Auction and Reverse Auction broker, 7) Directory and Evalutor Model
  2. An example of a B2C Buyer Aggregator model broker might be a business that does bulk buying of electronic appliances and resells to the public
  3. B2C classified advertiser model broker might be a company that provides a service that lists classified ads for cars, furniture, housing, and jobs.
  4. Example might be a company that hosts other online retailers much like traditional shopping malls or shopping centers.
  5. Shipping agent or credit financing company may set-up and run a site that sells products from companies who use their services. The shipping agent takes orders, processes payments, and then organizes the logistics of supplying the product to the buyer
  6. The online auction process allows millions of users access to auctions worldwide. . The reverse auction might sell airline tickets or hotel accomodation to travelers, where the hotel or airline opts to accept or reject the price offered.
  7. For example, a B2C evaluator broker may be a company that rates household services based on customer feedback. The user could go to the site to get a recommendation for a reputable plumber in his or her area.

Advertising Model

The Personalized portal and privacy

Allowing visitors to customize the site based on their interests and requirements makes for a richer user experience, but building a company's eBusiness model on a technology that depends on turning personalized information into sales, is no small risk.
As you will see throughout this course, it is the architect's responsibility to consider the handling of sensitive information very seriously, and to safeguard sensitive personal data using secure firewalls, copyrights, and monitoring liability in cooperation with diligent legal counsel.
From the get-go, privacy and profit should go hand-in-hand.
How important are the privacy rights of individuals? Personalized information suggests a richer user experience, and yet the question of how to collect data and use it to boost the bottom line is often ahead of privacy concerns. The next lesson completes the module.

Advertising - Exercise

Click the Exercise link below to complete an exercise on the Advertising model.
Advertising - Exercise