Since its launch in October 1998, NetZero has grown to new heights. Despite the high failure risk that many ISP companies face, NetZero has done more than survive with more than 8 million registered users in more than 5,000 cities across the United States and Canada. NetZero is a free Internet Service Provider that is based out of Westlake Village, California. In the first few months of service, NetZero never appeared to stumble as it averaged a sign-on rate of 2,500 new customers daily.

Even though the success of ISP’s has been questionable to date, it is believed that the market will allow for one or two successes. NetZero is head and shoulders above the rest in that it not only provides 40 free hours of Internet service per month, it offers integrated e-mail and voicemail, a multilingual page design, 98 percent connection rate, and connection speeds between 48Kbps and 53Kbps.

The reasons behind NetZero’s success thus far are simple. The small banner that runs across the top of the Internet user’s screen contains flashing advertisements that change every thirty seconds. If the banner is clicked upon at any time, the user will be taken directly to that site. These advertisements are intended to benefit both the user and NetZero. In exchange for the free Internet service upon signing up, users are required to submit a NetZero Profile listing demographics, hobbies, interests, etc. Additionally, the zCast records the movement of the user about the Internet with special tracking devices. Both methods allow for sponsors to target exact markets using marquee ads. These are the first three advertisements that appear on the banner located at the top of the screen directed toward that specific audience.

NetZero President Bob Pack knew that users would eventually get tired of their screen being filled with annoying ads. As a result, NetZero Platinum is now being offered for $9.95 each month. It offers unlimited Internet access, faster loading times, free e-mail accounts, and most importantly, no advertisement banner along the toolbar. Given its growing success over the past three years, the outlook for NetZero remains optimistic as bigger and better plans are expected to be revealed in the near future.

NOTES:

(1) Brian Caulfield, "Still Seeking Feasible No-Fee Access Model," Internet World, 14 December 1998 v4 p.31. Also Available [Online]: Expanded Academic ASAP InfoTrac [Accessed: 25 July, 2001].
(2) Marisa Torrieri, "NetZero Snaps Up Floundering Free ISP, Prospects For New Subs Uncertain," ISP Business News, 16 October 2000, v6 i41 p.NA. Also Available [Online]: Expanded Academic ASAP InfoTrac [Accessed: 25 July, 2001].


THREE WEBSITES:

NetZero Platinum: The Ultimate Internet. Pricing and service information for NetZero Platinum.
Source of Web Site: NetZero e-mail and ad banner

NetZero: Superior Service for Customers and Marketers. About NetZero, what it offers and how it works.
Source of Web Site: NetZero ad banner

Targeting: How the ad banner works, why it is there and how it chooses particular ads for each user.
Source of Web Site: NetZero ad banner