JUPITERRESEARCH REPORTS THAT CORPORATE WEB SITE SPENDING IS ON THE RISE, BUT COMPANIES FACE GOVERNMENT OBSTACLES(New York, NY - May 20, 2004) -- JupiterResearch, a division of Jupitermedia Corporation (Nasdaq: JUPM), today announced that, according to its recently released report, "Web Site Spending and Governance Trends," Web site operations budgets are on the rise, compared with 2003. Drawing on an extensive survey of executives responsible for their company's Web site operations, the report found that 24% of the companies surveyed are planning to spend $1million or more on site operations in 2004, compared with 20% who spent in that range in 2003. Forty-nine percent of companies JupiterResearch surveyed said they planned from two to four major development initiatives in 2004, such as new home pages, new navigation, new design, new search technology, content management or other major functionality.
While the spending increases will give greater flexibility to companies pursuing growth opportunities online, obstacles remain. In JupiterResearch's interviews with hundreds of Web executives over the past year, a picture has emerged of multiple stakeholders with conflicting objectives, pulling companies' Web sites in different directions. At most large companies, marketing, customer service and IT departments all play a role in Web decision-making. While marketing is concerned with brand building and growth, customer service focuses on satisfaction and call deflection. IT is generally motivated by cost reduction and technical objectives like infrastructure simplification. While attempting to use their Web sites to serve the interests of the numerous corporate constituents who control the purse strings, many Web businesses fail to maximize the value of the site to the business overall.
"Web site governance is a tangled, often highly political affair," commented JupiterResearch Senior Vice President David Schatsky, author of the study and head of research at JupiterResearch. "As a result, even very sophisticated companies are challenged to extract the most value from their online presence."
The report recommends that a single executive be charged with responsibility for maximizing the overall business value of a company's site, beyond supporting the goals of individual departments or business units that have a stake in the site.
The report also revealed that 49% of Web site operators indicate that improving Web site usability is a key challenge for 2004. In responding to the survey, more executives cited the usability challenge than any other operations challenge. JupiterResearch believes that site usability is equivalent to site effectiveness. "That's why much of our Site Technologies and Operations research agenda is dedicated to helping companies maximize the effectiveness of their site," said Schatsky, "through proper technology selection, staffing and data-driven management."
The complete findings of this report are immediately available to JupiterResearch clients online. For more information on the report or JupiterResearch's Site Technologies and Operations research service, please contact Kieran Kelly, Vice President of Global Sales and Client Service at 1-800-481-1212 or [email protected].
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