Study: $23.6 Billion Planned for E-Commerce Upgrades by 2002

ActivMedia Inc. said its fifth update of
the “Real Numbers Behind ‘Net Profits 1998” study shows that companies will
invest up to $23.6 billion by 2002 to upgrade their e-commerce automation.

Retooling for an online world will ensure a steady stream of business for
those who integrate the “front-stage” Web site experience with increasingly
automated back-end business systems.

Research results point to a growing proportion of marketers who consider the
Web as a strategic investment, not just an advertising or promotional
communications vehicle, the company said.

According to ActivMedia’s vice president of market research Harold Wolhandler, “1998 will be an active year for Web site automation. Nearly a third of all online merchants in this year’s ‘Net Profits study are going to implement or upgrade their E-Commerce systems.”

“Reflecting the tremendous gains in profitability and revenue growth, online executives have realistic expectations for both costs and benefits of automation–one in twelve (8%) will spend over $50,000, and another one in four (26%) from $10,000 to $50,000, on automated systems in the coming year.”

“While the popular impression is that most Web sites are already automated,
it turns out not to be so–fewer than one in ten (9%) of sites today are in
position to process incoming orders and payments automatically. The rest all
have manual intervention at some level.”

The “Real Numbers Behind ‘Net Profits 1998” is the fifth wave of ActivMedia’s
global tracking study conducted among over 2,000 Web site executives
responsible for e-commerce.

Readers can review the Executive Summary online.

The annual “Real Numbers behind ‘Net Profits” study is available for purchase
as a single report copy for $2,995. It includes detailed budgets and
projections for enhancements through 2002, and identifies markets for
hardware, software, access & ISP services, and other outside services among 17 specific industries.

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