Raw info tipped to dominate e-commerce

Dotcoms dealing in raw information are tipped to be the success stories of 2002.

Dotcoms dealing in raw information are tipped to be the success stories of 2002.

A Nielsen/NetRatings analyst has suggested sites will thrive by paying attention to the core value of the web as an information source.

The past year has been a testing ground for many dotcoms, with high-profile casualties such as Napster, Excite, Breathe, Beenz and BT.com.

It also saw an end to the dotcom frenzy, when companies founded on a hot idea and funded to the hilt, burnt their way through working capital to insolvency.

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Winners throughout the past year have included Google, Friends Reunited, AOL and Expedia.

These websites have survived because they trade in information, says Tom Ewing, of Nielsen//NetRatings.

"The sites that are doing badly tend to be second-tier portal sites. Napster enjoyed incredible success and then collapsed after it was forced to change its offering from an everything-available site to a filtered-content site," he said.

"The sites that are thriving as the Internet struggles through economic instability seem to be those that appreciate its original potential as a vehicle for information, rather than treating it as a souped-up television or shopping mall."

Meanwhile, Forrester Research estimates European online retail spending over the holiday season will grow 160 per cent on the same time last year with £2.5 billion sterling pouring into purchases.

Gartner, a research company, predicts online holiday shopping will exceed £17 billion sterling, a 39 per cent increase on the same period last year.

PA