Web Revenue and Growth Expectations

Just when some people are giving up on the net to produce sales as a result of the consolidation of dot.com companies, it appears that more of the traditional as well as web-pure-play companies are planning on expanding their sales activities on the net over the next few years.

In contrast to traditional business models of annual growth, many Web Vendors, still small and growing, anticipate target growth rates of 100 percent to 150 percent annually. The growth rate is not expected to be sustainable over more than the coming two or three years before online businesses reach a more moderate and steady expansion.

ActiveMedias "Real Numbers Behind E-Transactions, Fraud & Security" study noted that in five years, penetration is only at 1 percent of the potential market and based on the supply-side estimates gathered, year 2000 sales revenues account for the vast majority of total Web revenues (87 percent).

Increases in the number of online businesses combine with annual projections of smaller web-play only companies who suggest that their total Web revenues will continue doubling and redoubling over the next few years.

Total Web-generated revenue worldwide is projected to rise from $131.9 billion in 2000 to $283 billion in 2001, and rise to $533 billion in 2002. Of this total, products and services from more established companies will command the largest percentage of revenue (from $115 billion in 2000 to $463 billion in 2002) and advertising and sponsorship will account for most of the remaining amounts.

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