Which of the following statements illustrates the network effects that portals are subject to?
A)Specialized vertical market portals attract only 2-10% of the audience, while a few large megaportals garner most of the market.
B)The value of the portal to advertisers and consumers increases geometrically as reach increases.
C)The greater the amount of content provided by a portal, the greater its value to the community.
D)The greater number of portals available, the greater the potential audience for each.

Question

Quizplus · Accepted Answer

The statement "The value of the portal to advertisers and consumers increases geometrically as reach increases" illustrates the network effects of portals. As more users join the portal, the value of the portal to advertisers and consumers increases exponentially. This is because there are more users to generate data, provide feedback, and engage with advertisements, making the portal more valuable to advertisers and consumers alike.

Which of the Following Statements Illustrates the Network Effects That