Best Internet Trends Presentation - Web 2.0 Summit

KPCB Internet Trends 2011

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As usual, Mary Meeker delivered this presentation during Web 2.0 summit and summarizes important trends in our industry with a lot of meaningful data.

Internet Trends 

1. Globality – We Aren’t In Kansas Anymore… 
2. Mobile – Early Innings Growth, Still… 
3. User Interface – Text -> Graphical -> Touch / Sound / Move 
4. Commerce – Fast / Easy / Fun / Savings = More Important Than Ever… 
5. Advertising – Lookin’ Good… 
6. Content Creation – Changed Forever 
7. Technology / Mobile Leadership – Americans Should Be Proud 
8. Mega-Trend of 21st Century = Empowerment of People via Connected Mobile Devices 
9. Authentic Identity – The Good / Bad / Ugly. But Mostly Good? 
10. Economy – Lots of Uncertainty 
11. USA Inc. – Pay Attention!

Emmanuel Obadia in a podcast (French)

BFM : L'innovation en Europe et le secteur des logiciels

09 juillet 2011

Actualité : baromètre BVA/Syntec pour 01Business&Technologies. 

• GAEL SLIMAN, Directeur Général adjoint de BVA opinion, 
• BRUNO VANRYB, PDG d'Avanquest Software et président du Collège des « éditeurs de logiciels » du Syntec Numérique, 
• EMMANUEL OBADIA, Senior Vice President Enterprise Products chez Sage. 

Coup de pouce à une start up : Jérôme Valette, directeur général de aEnergis, une start up qui optimise la collecte des déchets grâce à un système de capteurs radio.

Ecoutez le podcast du 9 Juillet 

Online leads: do you act timely to respond?

Reading an interesting research summary in HBR that I wanted to share.

Whether you are a B2B or B2C company, the time taken to respond to prospects stimulus online can significantly change the ROI of your web presence. As this research shows, many firms are too slow to follow up on these leads. As HBR states:
- 37% responded within an hour
- 16% within one to 24 hours
- 24% took more than 24 hours
- and 23% never responded at all!

As companies are investing significantly to get prospects out of the web, they should have a much better turnaround, don't you think?

Reasons not to do so include retrieving leads from CRM daily rather than on the fly, sales forces focusing on their own generated leads and rules for leads dispatching not effective enough ("fairness" can be damageable).

Where are you with this? Better know where your marketing ROI is headed sooner than later.

Happy Easter.



- Posted using BlogPress from my iPhone

Unhappy Customers Can Be Won Back via Social Media

According to a report (pdf) sponsored by RightNow, Social Media is an effective way to bring back unhappy customers. Marketing Charts reports about it as well here. The research present a number of facts to support this: 

- 68% of consumers who posted a complaint or negative review on a social networking after a negative holiday shopping experience got a response from a retailer.
- 18% of those turned into loyal customers, 33% turned around and posted a positive review and 34% deleted their original negative review

On top of it 50% of consumers say great customer service/experience influences their decision to buy from a specific online retailer and after a positive shopping experience 31% purchased more from this retailer.

Finally, 28% of consumers looking for information or support with online shopping researched what other customers said on social networking and reviews websites.
In many cases, the 32% of US consumers who posted a negative review of a holiday shopping experience in 2010 and were ignored by the retailer simply had a bad impression reinforced. Six in 10 (61%) of these consumers said they would have been shocked had the retailer contacted them.

So YES social media has a growing influence on your customers loyalty and you should be paying attention to it. Actually we all know that a happy customer is the most effective sales influencer when turned into an advocate.

According to the same research, for consumers who had a positive exeprience this holiday season online, 21% recommended the retailer to friends and13% posted a positive online review about the retailer.

2010: Resurgence for Digital Media in the Wake of the Recession

I mentioned previously this interesting research from Comscore, and I wanted to highlight more general trends about digital media coming out of it.

Comscore outlines that the digital media industry responded with significant growth across various media platforms to the wake of the recession. As they say: 

"Industry innovations brought an unprecedented number of options to consumers as digital media continued to weave itself even tighter into the fabric of Americans’ daily lives." -- comScore

Key findings about consumer trends, highlighted in the report, include:

• Following 2 years of depressed consumer discretionary spending, the economy showed signs of improvement, leading to positive growth for the e-commerce market. Total U.S. e-commerce spending reached $227.6 billion in 2010, up 9 percent versus the previous year. Travel e-commerce spending grew 6 percent to $85.2 billion, while retail (non-travel) e-commerce spending jumped 10 percent to $142.5 billion for the year.
• Social networking continued to gain momentum throughout 2010, with 9 out of every 10 U.S. Internet users now visiting a social networking site in a month, and the average Internet user spending more than 4 hours on these sites each month. Nearly 1 out of every 8 minutes online is spent on Facebook.
• The U.S. core search market grew 12 percent overall in 2010, driven by a 4-percent increase in unique searchers and an 8-percent increase in the number of search queries per searcher.
• U.S. Internet users received a total of 4.9 trillion display ads in 2010 with display ad impressions growing 23 percent in December 2010 versus December 2009. Social networking sites, which now account for more than one-third of all display ad impressions, were a significant driver of growth in the display ad market in 2010.
• In December 2010, the average American spent more than 14 hours watching online video, a 12-percent increase from the prior year, and streamed a record 201 videos, an 8-percent increase.
• Major milestones in mobile were crossed during the year as smartphones reached 1 in 4 mobile subscribers and 3G penetration crossed the 50 percent threshold. Approximately 47 percent of mobile subscribers are now connected Internet media users (via browsers, applications or downloaded content), up 8 percentage points from the previous year.

In short, businesses should consider these aspects of Digital Media in their strategies to be successful in the coming years:

1. e-commerce
2. Social Media Presence
3. Search
4. Advertising 
5. Video on line as convergence with traditional TV continues to blur
6. Mobile media for both consumption and as an alternative e-commerce platform

Ecommerce spending jumped 9% to $227.9B in the US

As I track the evolution of e-commerce, I found these results coming from Comscore pretty interesting.

e-commerce revenue reached $227.6B for the entire year, growing 9% compared to 2009, and varies per industry:

• travel e-commerce up 6% to $85.2B
• Retail (non travel) up 10% to $142.5B
• Top growing category: Consumer Electronics +19% (flat panel TV and mobile devices are first)

This signals a recovery since the end of 2008, after a two years depressed situation due to the economic downturn. The 2010 holiday season was at a peak with a 12% growth, reinforced by some promotional activity - most notably free shipping. The Cyber Monday (Nov 29th) did peak at $1.028B surpassing for the first time the $1B mark. Groupon.com attracted 10.7M unique visitors in December, up 712% vs 2009.

Interesting evolution since my post e-commerce revenue over $100B back in January 2007 i.e. it more than doubled since 2006 even with a major downturn in between.

So, how is your e-commerce strategy going? Maybe a good time to revisit if you have one and definitely start one if you haven't.

If you want to know more, you can download the comScore 2010 US digital year in review report.

Social media marketing: build a lasting methodology

Here is an interesting post about optimizing your social media marketing from David Kirkpatrick, Marketing Experiment.

Justin Bridegan, Marketing Manager MECLABS Primary Research said, “One of the most difficult parts of social media marketing is creating a lasting methodology that works.  Time and resources continue to be two of the most difficult challenges social marketers face.”

Justin’s key takeaways:

1. Start small and test – “You don’t know what you don’t know”
2. Having a solid social marketing methodology in place will allow you to focus on real obtainable goals.
3. Determine the most effective offers for your campaigns including: Contests, incentives and promotions
4. Weigh Quality vs. Quantity with your offers, and remember the need for balance in your engagement
5. Successful campaigns don’t always equate to revenue, but can be one of many contributing components

Related resources on Marketing Sherpa

Free Inbound Marketing Newsletter – Case Studies and How To articles about social media, SEO, and content marketing

New Chart: Social Marketing Maturity and the Social Marketing ROAD Map

Social Media Marketing Research: Rolling up my sleeves and getting social

Maximizing Email List Growth: How the New York Public Library drove a 52.8% lift in newsletter subscriptions

Most-Tweeted Blog Posts of 2010: Facebook case study, social media marketing human factor, antisocial media, and more

How does your marketing compare to best in class?

A recent research from Aberdeen about Marketing Asset Management gives an opportunity to compare to the best in class.
Aberdeen uses 3 key performance criteria to compare:

1. 44% of the sales forecasted pipeline generated by marketing, as compared to 2% contribution for laggards organizations,
2. An average 9% reduction Year-over-year cost of market asset creation, as compared to a 6% increase among laggards,
3. 15% average decrease in year-over-year time-to-market of content of all types and formats, as compared to an increase among laggards.

To achieve best in class performance, you need to

• Allow all geographies and business units to customize marketing content with proper control
• Centralize asset approval and distribution to expedite time to market and improve content

In 2010 people get the news online on par with newspapers: first time ever

According to eMarketer research, 2010 sees US consumers get the news, all demographics combined, online as much as on the radio or even more than through newspapers. This is a confirmed trend that I highlighted already some time ago, but it was at that time only for one demographic.

"As a news delivery vehicle, the internet is second only to television, according to the Pew Research Center. More than 90% of Americans use one or more sources to get their daily news, and the number of digital channels is growing. Pew found that, on a typical day, 44% of US adults got news through a digital channel, either online or via mobile internet, email, social networks or podcasts." -- eMarketer

Should you rethink your PR activity? Yes you can!

Here is now some more details about the behavior of the US population sliced by demographics:

 To publishers, digital publications taking advantage of our proliferating mobile devices are to be taken into account to survive or thrive.

“While the number of digital newspaper readers will continue to grow as digital devices proliferate, the number of print newspaper readers will remain flat or continue to drop.” eMarketer senior analyst and author of the new report “The Digital News Audience: 24/7 Participation.”

And finally, let me share with you what role Twitter plays in this:

e-commerce in the US is up 13.6% at $38.8B in Q3 2010 vs. Q3 2009, more than 2x of traditional sales

e-commerce is continuing its progression despite a poor economic environment. As this latest report from the US Department of Commerce shows:

"The third quarter 2010 e-commerce estimate increased 13.6 percent (±2.5%) from the third quarter of 2009 while total retail sales increased 6.0 percent (±0.5%) in the same period. E-commerce sales in the third quarter of 2010 accounted for 4.2 percent of total sales."

 e-commerce sales totaled $38.8B for Q3 2010, accounting for 4% of total US Sales. In 10 years, this proportion did quadruple (1.2% in 2001).

According to another research from DataMonitor, the global online retail sector grew 14.5% in 2009 to reach $348.6B! When considering North America accounts for 45.7% of this total, that's nearly $160B in NA alone, up 60% from my last inquiry in Jan 2007.

At the same time, for H1 2010 we're still growing on the internet at a pace of more than 2M+ new web users per week according to Internet World Stats, where Asia is leading the curve to over 825M users vs. NA 266M, but their penetration rate is still low 21,5% in Asia vs. 77% in NA.

e-commerce is going to just explode in Asia over the next few years and my prediction is it's going to be mobile first!

Social Media Increases Small-Business Exposure

Interesting research by American Express OPEN highlighted by emarketer this week showing that SMB in the US actually consider Social Media activity increases their business exposure. The Social Media usage is making progress as well:

"While just one in 10 business owners reported using social networking for marketing last year, 39% indicated they did in September 2010" -- eMarketer

Facebook seems to lead their with 27% using it, LinkedIn 9%, Twitter 8% and Blogging 5% are far behind. But resistance is still very present for SMBs, more than three in five reported not using social media at all, and the biggest reason they gave was that it did not apply to their industry.

We'll get there.

Enterprise 2.0 is going mobile fast

Celebrating more than 4 Billion mobile devices in the world cannot let us stay still in our views of the mobile Internet. It has dramatically changed the consumer behavior but is also making its way in the enterprise. It has many consequences for us marketers, application developers and executives in charge or impacting enterprise information system.

According to a very interesting Morgan Stanley research - The Mobile Internet Report - issued in December 2009, some early signs are attesting of a massive disruption ahead:

• Material wealth creation / destruction should surpass earlier computing cycles. The mobile Internet cycle, the 5th cycle in 50 years, is just starting.

• The mobile Internet is ramping faster than desktop Internet did, and we believe more users may connect to the Internet via mobile devices than desktop PCs within 5 years.

• Five IP-based products / services are growing /converging and providing the underpinnings for dramatic growth in mobile Internet usage – 3G adoption + social networking + video + VoIP + impressive mobile devices

Enterprises in the U.S. are already taking advantage of this revolution to solve business problems and meet goals in reducing time and cost, improving customer experience or including consumers directly in business processes. Information Week states:

"General Motors is looking to a new iPhone application to change how and even where people sell cars. A national chain of rehabilitation facilities sees smartphones combining with cloud computing to improve patient care and employee productivity. A heart hospital is using BlackBerrys for nothing less than real-time alerts of patient distress, including images of bedside monitors. And around Los Angeles County, law enforcement officers are using BlackBerrys for such tasks as taking and searching fingerprints." in a very interesting recent article.

In the complete research, you'll find interesting figures about more than 500 businesses such as this one



Get Ready, include mobility in your plans.

Online Ads more effective than TV for offline CPG Sales growth and brand building: +9%

A recent study published by ComScore and its research partner dunnhumbyUSA, shows that consistent online advertising can actually lift retail sales in the CPG industry by 9% over a 3 months period and contribute more to brand building than TV ads (+8% over a 12 months period according to an Information Resources, Inc. report.).

"These early results confirm the ability of online advertising to successfully build retail sales of [consumer packaged goods] brands on par with the impact of television advertising. It is likely that the more precise targeting ability of the Internet – especially in terms of accurately reaching the desired demographic segment – is a key reason for its effectiveness. That is meaningful in and of itself, but when you take into account the fact that online advertising is generally less costly than television, these results take on even greater significance," said Gian Fulgoni, Executive Chairman of comScore

Let me know how does your marketing-mix looks for the remaining part of 2009, you may bend it to more of the web?

Social Networking Users Demand for a Single Place for their Digital Identity

Power To The People: Wave 4 Social Media Study by Universal McCann

View more documents from IN2marcom .com.

Good Material to support our Marketing Plans. This Universal McCann research is conducted every year and this is the 4th Wave. Social Media is taking the web planet by storm but now is the time where it seems active internet users - those accessing at least every other day - are looking for the "one place" for their digital identity rather than spreading around various specialized social sites.

Just a few numbers to give you a clue:

1. 62.5% of active internet users (16-54 years old) have created a social profile in 2009,
2. 71,1% have visited a friend's home page.
3. 81.5% of Social Networking Users did message friends,
4. 76.3% uploaded photos,
5. 74.3% found old friends
6. 56.4% found new friends
7. 47.9% joined a group

We should provide these influencing people ways to populate their unique digital profile with ways to engage and maintain dialog with our brands in different form factors. Video is still the #1 form factor, but "instant UGM news" is ramping up as twitter's success attests and Facebook acquiring FriendFeed - that I started to use recently - reinforces as well.

B2B Marketers’ Priorities and Pain Points for 2009

According to Marketing Sherpa new research, the previous one was conducted in Feb 2008, B2B marketers will focus on:

1. Dealing with lengthening sales cycles
2. Doing more with less
3. Web 2.0 and social media marketing
4. Focusing on lower-cost, high-impact lead gen tactics

I will obviously only highlight the point 2. which wouldn't have been on the list a few month ago. I remember being looked at as a strange animal when pitching about Marketing 2.0 back in 2007. I heard many things as "this is just a fad", "you're always trying to bring up something new", "Our customers are not 15 years old", etc.

In the marketing area, social media and Web 2.0 importance is raising under this economic downturn period we're in, more rapidly I anticipate than if the business was going to grow. I'm expecting Cloud Computing and new software subscription business models to come up more rapidly in the IT space for the exact same reason. The economic downturn is an incredible opportunity to reconsider what we've been doing so far, to challenge deeply our fundamentals, to stress decisions that were not that urgent otherwise. A good thing in my views though of course I suffer just as everyone out there of this downturn (mood downturn as well by the way).

The research points out that many marketers still find Web 2.0 usage within their marketing campaigns arsenal a challenge. First and foremost because Web 2.0 is still new for a lot of them. They're not digital natives and tend to relate to the activities they're comfortable with (Webinars, White papers, etc.). Their top challenges, according to the research are:

1. Social media development/integration
2. Developing emerging Web 2.0 content, such as videos, blogs and podcasts

My take would be for you, already a blog reader ;-), to start your day in the office tomorrow by deciding to integrate in one of your planned campaigns a Marketing 2.0 technique. Try to pick the one that is intuitively the most relevant to your audience (start a blog or a podcast, foster a community or integrate an existing one, turn a major topic of interest into a wiki for and by your customers, start a twitter micro-blog for one of your offer) and do not forget about including video material as we discussed earlier this month.

I would also support this recommendation from Marketing Sherpa:

“Mapping content to the sales funnel “ is an immensely important aspect of success in lead nurturing for the complex sale. It deserves to be among the top priorities because some of the others – Web 2.0, social media and traditional content – are at their most effective when mapped to the sales cycle.

Marketing 2.0 will make it big in 2009.

Video is even more Web 2.0 mainstream in 2009

According to Comscore, 77% of the US Internet audience viewed video online in November 2008 for a total of 12.7B videos viewed, growing 34% compared to 2007. Do you really consider your 2009 campaigns without it?
So, some numbers for you:

• YouTube is is still on Top, representing 98% of all videos viewed on Google's sites.
• The average online video viewer watched 273 minutes of video.
• 97 million viewers watched 5.1 billion videos on YouTube.com (52.3 videos per viewer).
• 52.5 million viewers watched 371 million videos on MySpace.com (7.1 videos per viewer).
• The duration of the average online video was 3.1 minutes.
• The duration of the average online video viewed at Hulu was 11.9 minutes, higher than any other video property in the top ten.

Web 2.0 is video intensive.

For the first time: the Web, 2nd to TV, surpasses all other media as News Source

I know most of you could perceive it naturally or because you're very much web centric (is this a sign of youth ;-), but I found it interesting to see it confirmed by research: the web is now the preferred source of information - whether national or international - for 40% of the researched compared to 24% in September 2007. Wow! That's a big wave in my opinion, a tipping point I should say. The noticeable progress is against Newspapers as you can see in the above diagram.

And for young people, 30 years old or less, the web rivals TV with a serious jump in 2008 - see the diagram below - indicating that TV is next to be surpassed in the coming years.

This is only good news for the Web 2.0 movement, it reinforces the importance of our web presence as individuals and as members of multiple communities.

Holiday season sales online down just 1% despite 5 days shopping missing vs 2007

According to ComScore, this online holiday season is impacted by 5 fewer shopping days this year compared to last year. The impact seems to be contained to 1% decrease. The increased average online spending per day between Thanksgiving and Christmas ($643M, up 5% from last year) does not compensated for 16% decreased number of shopping days for this period.
The e-commerce spending for the first 49 days - Nov through December 19 is totaling $24.03 billion. The top categories are Sport & Fitness (+31%), Books & Magazines (+18%), Video Games, Consoles & Accessories (+17%), Apparel & Accessories (15%), Flowers, Greetings & Gifts (+13%) while Music, Movies & Videos are down (-24%).

What are the key forces driving to Enterprise 2.0 transformation?

Tectonic forces displacing enterprise applications boundaries are very diverse, I don’t pretend to be exhaustive here, but I’d like to highlight the ones having in my opinion a significant impact:

• Ubiquitous good quality (bandwidth) web access – check broadband stats – encouraging employees mobility
• Web crazy expansion (5.5M new users per week, 1.3B Internet users in Dec 2007) and more specifically mobile web expansion (3.2B mobile devices and among them 1.2B with a modern web browsing user experience) and explosive e-commerce growth - check IDC stats : 50% internet users will buy on line this year – favouring extended enterprise process development
• Users are educated at home on web based applications, noticeably on web 2.0 applications (Social Networking, Blogs, Wikis, …) and are increasingly accepting the Cloud Computing model relevance by using it (personal e-mail, Instant messaging, social bookmarking, photo & video sharing, e-banking, ….) – preparing for webtop and web 2.0 introduction in the enterprise (check "moving from deskltop to webtop" post)
• SOA and Mashup emergence as a distributed application architecture
• Transactional processes automation maturity – very typical of the ERP supported ones – will privilege productivity gains and transaction costs reduction (referring to  Ronald Coase « The law of the firm ») in automating collaborative processes and exception management, paving the way to ERP/Web 2.0 integration

This nice cocktail augmented with a solid number of “ Y Generation ” employees -- born between 1982 and 1994 - having grown with the natural use of SMS, instant messaging and social networking on the Web and which will be enterprise leaders in the next ten years - prepares the company with its change towards Enterprise 2.0 (first defined by Andy McAfee) characterized by the use of the Web 2.0 collaborative applications within the enterprise to harness collective intelligence. 

Music, Video and Software business models paradigm shift underway

When did you last buy a CD? I didn't buy one for a pretty long time and the last one I bought was from an artist I like nearly every single piece of work he creates, Pat Metheny. Is then the music business going away for a free show? Of course not, because one buys legally music on-line. Do we really?

NPD Group, a market research firm, gave us some clues recently in publishing a new report about the music industry. Here are in shorts the finding for 2007:

1. 48% of all teenagers never bought a CD (38% in 2006)
   
2. CD sold in the U.S. fell 19% from 2006
3. Apple iTunes (selling only digital downloads) is now the #2 music shop in the U.S. jumping ahead Best Buy and trailing Wal-Mart
4. 29 Million people bought music legally from online music stores, up from 24 Million in 2006 i.e. + 21%

I'm convinced buying singles or albums on-line is not the ultimate business model. What about subscribing for a monthly fee of about $20 to listen to all the music you can get legally? Store it on your MP3 device when you're not connected for as long as you pay for your subscription?

You like this idea? All the music you can get for a flat fee? What about Video
And what about for FREE?

Well checkout hulu.com, all the video you can get on-line for free, because you get advertising with it. Unfortunately only in the U.S. for now.

... and what about software? What about a flat monthly fee to access a dedicated application portfolio coming out from several vendors, a bouquet of SaaS focusing on a business or personal matter (Sales, Marketing, ...).

Let's watch this e-commerce space carefully as music and videos are paving the way when it gets down to digital goods business models tsunamis.