STRATEGY

Having incubated multiple companies including formula1.com and 3B, Purple started helping new and existing web businesses with strategy. This has tended to be a mix of marketing and business strategy.

Segmentation

On the marketing side, many web sites have a tendency to treat their audience as a homogenous group which can be a big mistake. In the case of motorsport Purple identified a number of segments and the sticky content that each group needs. This is a proven model as formula1.com became the leading site covering the racing series. From its launch in 1998 the racing site grew to an audience of 1.4m monthly unique visitors over four years with only nominal marketing spend.

An motorsport segmentation example:

Betting

When it comes to sports, betting is often a key source of revenue. While other companies signed exclusive betting deals, the sports sites where Purple consulted were advised to segment the market. So you have odds betting, pools betting, lotteries, spread betting, poker and other casino games. Many of these don't see each other as direct competition so by signing a global betting deal with one party a web site is leaving money on the table.

Watch this space for some innovative business models which will be launched in the near future for Virtual Worlds, shopping and classifieds.