Advertising Age - 11 April 2011 by Abbey Klaassen (Editor)

By Abbey Klaassen (Editor)

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After the B2B fad became part of the landscape, new terms began emerging that carried the increasingly fragmenting e-commerce market into new territories. X2X became a hybrid, hyped evolution of B2B and exchanges. The idea behind X2X was that it would connect seemingly disparate market segments with each other. For example, if you were in grocery supply exchanges as a B2B business, and decided to enter the home appliance marketplace, you became an X2X business.

This is an expensive ballgame. It requires great management in addition to a solid business plan. And because it is so expensive, now is when people are at the greatest risk of losing it all if they make the wrong moves. PUBLIC RELATIONS: YOU’VE COME A LONG WAY, BABY 17 Essentially, public relations has been impacted by five important business communications trends catalyzed by the growth of the Internet: speed, access, new rules of interaction, brand redefinition, and business partners as currency.

The online trading companies claim their cost can exceed $250 per customer. That has nothing to do with revenue. Most of these companies are in the red or just teetering over the black. They’re not measuring their return in any rational way, but playing as though the Internet were a land grab. A report from Banc of America Securities sums up the dotcom debacle: The game many dot coms were pursuing was a fairly simple one. Spend the majority of your ad budgets on offline media and portal deals to drive brand awareness while simultaneously driving site traffic by acquiring click-through rates as cheaply as possible by buying “low end” commodity online media on the cheap.

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