Disintermediation Strategies
In class we discussed Disintermediation, the act of cutting out the middlemen in Internet based transactions while aggregating data. We covered Travel and Classifieds and metadata sites that aggregate the retail travel and job posting sites to provide even more Channel Features to the existing sites.
In class we discussed Disintermediation, the act of cutting out the middlemen in Internet based transactions while aggregating data. We covered Travel and Classifieds and metadata sites that aggregate the retail travel and job posting sites to provide even more Channel Features to the existing sites.
The largest disintermediated industry in terms of ad spending is the Financial Services Sector. The graph shows that Financial services accounted for 13% of the 23 Billion spent in advertising in 2008. The Hitwise reported that Yahoo Finance had more site views than Etrade, Shwab, Scottrade, and TD Ameritrade combined. The success of disintermediated sites is by providing all information needed to make an informed purchase without the middleman.
On a similar note, in light of the recent downturn in the Automobile market, car companies should start better methods of disintermediation and cut out the salesperson. Instead of costly and headache prone car dealerships, consumers can possess all information online and have an orbitz-like metadata site comparing prices. When all information is online customers can eliminate the hassle while car companies can circumvent dealerships and set up salesperson free test drive sites.
Usually when a customer decides on a car, he or she knows the exact make, model, color and options. Start comparison shopping online! Auto advertising is also one of the biggest online ad spenders at 12% of all ad spending in 2008. The industry should take this advertising the next step with ecommerce solutions. Especially after the recent forced closings of dealerships by GM and Chrysler.
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