Survey: Web site development a $US10b business

The growth of electronic commerce is in turn fuelling rapid expansion in the Web site development industry, which has reached $US10 billion this year, a research firm reported on Monday.

Revenue generated online, which will reach $US95 billion this year and is expected to total $226 billion next year, is inspiring e-commerce sites to budget more money for site building, according to the report issued by ActivMedia LLC.

Average investment for e-commerce Web site development this year for sites excluding those run by ISPs (Internet service providers) is about $37,000, the report said.

Titled "Real Numbers Behind 'Net Profits," the report found that media/portal houses made the highest investments, averaging about $78,000 per site; business-to-consumer sites selling exclusively online invested an average of $68,000; and retail and business sites spent an average of $25,000.

Developers of European Web sites spent $77,000 per Web site, twice as much as their North American counterparts.

Spending by Web site companies who anticipated achieving profitability within two to five years ($59,000) was greater than that reported by firms that were already profitable or were expecting to report profits very soon ($26,000), the report said.

The report costs $2,995.

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