Showing posts with label e-commerce. Show all posts
Showing posts with label e-commerce. Show all posts

Monday, November 28, 2011

Best Internet Trends Presentation - Web 2.0 Summit

KPCB Internet Trends 2011
View more presentations from Kleiner Perkins Caufield & Byers

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!

Sunday, April 24, 2011

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

Sunday, March 20, 2011

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.



Thursday, February 24, 2011

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



Sunday, February 20, 2011

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.

Tuesday, November 23, 2010

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!

Wednesday, July 14, 2010

Combining Email, Search, Social and PR for a Content Marketing Campaign: 6 Tactics to Generate Surge in Visitor Traffic


You know I'm a big believer in integrated marketing. Now that Social Media is making a surge in our marketing plans, I found this article on Marketing Sherpa interesting as it summarizes what we should do better:

"
Marketing teams often focus tactics and goals in a particular channel, overlooking how these channels can complement one another. With a bit of planning, a campaign can harness the strategic value of email, search, social media and other outlets for a single purpose. See how an online luggage retailer created a premium report based on a survey of e-newsletter subscribers and captured 5x more blog traffic.
"

Their blog traffic increased 518% Y/Y and additionnally the report’s landing page had a 16% lower bounce rate than the site’s average, 29% of report downloads came from referring websites, 22% of downloads were referred by search engines.

The tactics used:
  • Tactic #1. Use search metrics to research potential report topics
  • Tactic #2. Build an online survey
  • Tactic #3. Send survey request to email database
  • Tactic #4. Host report download on a dedicated landing page
  • Tactic #5. Pitch report to media outlets
  • Tactic #6. Use social channels, even if you don’t have them
Feel free to post back your own experiences here, I'd be happy to hear about it.


Tuesday, August 25, 2009

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?










Wednesday, December 24, 2008

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%).

Friday, October 03, 2008

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. 


Saturday, March 15, 2008

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.

Saturday, March 01, 2008

Where is Internet headed?





















It's been a long time since I published a post. Very busy working in my new company to revamp the product portfolio and its marketing. It's a B2B software company and the question of course was: "what to have on our radar to think about the future releases of our applications".

My nickname in this new company is Emmanuel 2.0, you wonder why? That's because you're a newcomer to this blog. So here we are, trying to figure out the major Internet trends. I've always been fond of supporting my hunches with data. So let's deal with the claims first and the figures to follow.
Claim#1: The Internet is growing still very fast (5M new users per week) thus making e-commerce king
Claim#2: The Internet is growing mobile (2.8B mobile phones in 2007 growing to 3.8B in 2011 to be compared with 980M PCs in 2007 growing to 1.5B according to Gartner). "Worldwide sales of mobile phones to end-users surpassed 1,15bn units in 2007, a 16% increase from 2006 sales", Computing SA citing Gartner. And if you're wondering what is the major customer benefit iPhones brings (4M units sold in 2 quarters), here is my take: real and easy web browsing. I can at least speak for myself, I do not fire up my PC at home to navigate on the web and checkout my facebook page, I use my iPhone.
Claim#3: Web 2.0 is driving the webtop metaphor vs the desktop metaphor (check my post "from desktop to webtop" about it)

Now with the additional figure about e-commerce: "eMarketer predicts that online retailers in the US will ring up over $100 billion more in sales in 2012 than they did in 2007. Sales growth will come mainly from consumers who are shifting their spending from traditional retail stores to the Internet.", eMarketer. Take a look at the table for more details, but you can easily figure out that buying behavior and for that matter marketing web behavior are shifting big time. I would strongly advise to revise your marketing mix to accommodate at least 20-25% to web marketing including viral marketing techniques.

Finally, and I'm sure we'll agree easily, web content has also shifted to video and pictures. For this one, I'll let you find the figures. Let's rock marketing on the web for 2008 fellow marketeers.

Sunday, September 23, 2007

2007 major Marketing 2.0 trends


We're entering our last quarter of the year and we should be stepping back, before the final rush for '07 revenue, to analyze this amazing year and its trends. Marketing, Business and the Web -- Web 2.0 flavored of course -- have never been more inter-weaved. This is why I called this Marketing 2.0 trends.
Let me give you my list, you'll be able to hammer me in a few month when reading back all of this:

1. Eco-responsible: we've been talking about it for months if not years, but I guess '07 is the milestone year for eco-responsible attitude in business as much as in our day-to-day life

2. Rise of e-commerce: we've discussed the numbers earlier this year here on Marketing 2.0, and there's no doubt e-commerce is no longer a fantasy but accounts for a significant part of the business either B2B or B2C. You cannot ignore it or consider it secondary.

3. Transparency: consumers demand relationships with brands mirroring the relationships they have in the real world and above all they demand transparency. Whether they'll get this transparency from the brand directly or relying on user generated content to elaborate it, they'll get it. If it's the latter, your brand is in trouble. Remember: you don't want to get Dell'd.

4. Community consumption: no longer do consumers rely on the press and vendors to choose. They increasingly rely on community advices for guidance. It is your job to influence communities, transparently please, as well as build your own communities.

5. Intangible real value: on top of it, we do buy virtual products and services for real money. Did you notice how many e-economy firms got the highest market caps? This goes generally with a positive buzz vortex on the web. You can no longer ignore your brand e-attributes and pay attention to e-competition.

6. Meconomy: as the Time magazine cover once highlighted in designating the man of the year as "YOU", consumers are focused on 'me, myself and I'. Personalization, customization, customer centric are a must to succeed. And they'll be asking this question: "what makes me happy?". Yes, happiness has become a valued because increasingly out of sight.

7. Open for global business: there are no boundaries to memory anymore. You act local? We take it global. No one can anymore think its business strategy in isolation. The fast growing emerging economies (China, India, Brazil to name a few) unleashing new buying patterns and new global brands (Lenovo, Mittal, ...) are already changing your plans. You'll be selling there or be sold.

My fellow marketers, what a thrilling world! Feel free to comment and contribute, we'll be looking at this for the next few months.

Saturday, April 28, 2007

Would you have Google as your middle man?


First of all thanks to those of you asking me to write more often, much appreciated. One of the reason I didn't write too much recently lies in the fact that I started to work in a new company and I'm overwhelmed with new information to absorb and categorize. I wish I had a Wiki built in my brain, so everyone could contribute. But that would be brain 2.0 isn't it?

So fellow marketers, I'll be getting back to a better post frequency as soon as possible and of course I'll let you know rapidly what company decided to have me on board. The one thing I can tell you at this point is that I'm back to the Enterprise Application Software gang. It's going to rock there and I'll be writing about it in the near future.

I just wanted to drive your attention to this interesting joint Intel and Google announcement I read in Advertising Age: Intel, Google Join Forces for 'Virtual Marketing Storefront'. Let's get rid of the bells and whistles, Intel is agreeing to have Google as the middle man to manage partners co-marketing on-line (at least for on-line advertising for now). Strange move isn't it, and I don't buy it. If one vendor is serious about his ecosystem, one needs to manage it and not leave this to third parties having a biased interest that might hurt the vendor's strategy.
I don't have anything against Google, and I should say I praise them to have vigorously made Web 2.0 strong, but I would not let Google be my middle-man, instead I'd have Google be my ecosystem provider. Not to mention that Intel's partners would probably benefit from an integrated approach to their co-marketing experience with Intel. On-line advertising is far from being enough.

Apart from this, if you didn't notice Google's accelerated pace to expand their business footprint, here is a quote that says it all:
"This month alone, the company has announced its intent to acquire ad-placement giant DoubleClick; struck a deal with Clear Channel Radio to sell ads on its radio stations; added support from several major radio-station systems for its Google AdSense for Audio program; and partnered with EchoStar to sell TV commercials over the satellite broadcaster's Dish Network. " -- Beth Snyder Bulik, Advertising Age
Hey fellows at Microsoft, it's about time for you to react to try to grab some of the $125 billion advertising market Steve Ballmer claimed he was after.

Friday, March 16, 2007

Market segmentation to increase attitudinal loyalty


I mentioned behavioral targeting recently on Marketing 2.0 as a way to increase marketing effectiveness. I wanted to come back on this topic in light of a datasheet that you can download from Omniture, to share with you a tip about successful segmentation as described in Wikipedia.

"The requirements for successful segmentation are: homogeneity within the segment, heterogeneity between segments, segments are measurable and identifiable, segments are accessible and actionable, segment is large enough to be profitable.
These criteria can be summarized by the word ADAMS:
  • A Actionable: you must have a product for this segment
  • D Differential: it must respond differently to a different marketing mix
  • A Accessible: it must be possible to reach it efficiently
  • M Measurable: size and purchasing power can be measured
  • S Substantial: the segment has to be large and profitable enough" -- Wikipedia
I won't come back on all segmentation variables (Geographic, Demographic, Psychographic and Behavioral), you can follow the links for more, but I wanted to highlight the behavioral ones: benefit sought, product usage rate, brand loyalty, product end use, readiness-to-buy stage, decision making unit as Wikipedia refers to it in the Marketing 1.0 world. This is still valid of course, but new dimensions do appear with Marketing 2.0 especially around behavioral analysis. Thanks to web techniques you can easily track, using cookies for instance, what a prospect did before landing on your web site and what retained their attention.

More interesting, in our web 2.0 world, is the way a prospect, or for that matter, a customer expresses his relationship to your brand. This has changed significantly with the web 2.0 advent. As a matter of fact, behavioral targeting and market segmentation offers a powerful way to dialog differently with each segment. Defining your segments along the lines of attitudinal loyalty -- more on customer loyalty on wikipedia -- and remembering ADAMS rules will guide you to the appropriate solution to improve it.

Thursday, March 08, 2007

Mobile Marketing: use it carefully, but use it


I was attending Ad Tech Paris yesterday, a good way to capture on-line advertising trends. Among other interesting sessions, I was appealed by the mobile advertising one called "Mobile advertising – the long and winding road" coordinated by the Mobile Entertainment Forum (MEF). Speakers, see picture from left to right, were Marc-Henri Magdelenat -- Screentonic, Minh Tran -- Nokia Mobile Advertising, Patrick Parodi -- Amobee & MEF, Richard Saggers -- Vodafone and our moderator Gilles Babinet -- Eyeka.

They covered a lot of ground to explain how important was mobile advertising among our marketing tactics and how unique was its approach. Not to forget for instance that permission marketing in this space is mandatory, nothing is more personal than your phone, right? Mobile Phones are the only new device that people carry all the time since watches were introduced. Some do even sleep with these! Keep in mind as well that consumers are actually paying to receive adverts so we should keep ads short and relevant. And finally, coupons on mobile phones -- yes, bar codes on your phone to present to the store you're in or close to -- are far easier to use for consumers than traditional ones or even web ones, especially when coupled with your location.

Having experienced the mobile industry at Sun Microsystems myself, when marketing the Java platform, I could not agree more to the effectiveness of mobile marketing. Europe and Asia are for sure ahead of the curve about it, as mobile devices connected to the Internet are spreading fast there. The UK even have a dedicated web-zine about it called Mobile Marketing Magazine. Amazing!

But I think some key aspects were eluded during the conference. Mobile phones do have key attributes that can nurture marketing ROI:
  • Authentication: we know who you are for sure,
  • Payment: your Telco provider can charge you for what you buy or consume with it, opening an opportunity for Telcos to become trusted party for e-commerce,
  • Impulse and web 2.0: as you carry your phone with you all the time, nothing would be more natural than to use it for an impulsive buying decision and to channel back your opinion to the brand right away.
Not to mention that within the next 3 to 5 years, mobile devices will become the primary Internet access for consumers, as Japan experienced already. The user experience will significantly improve as well, check the iPhone introduction by Steve jobs here in Marketing 2.0 to get a feel for it.

Marketing 2.0 minded marketers cannot ignore mobile marketing when planning for the next campaign. Consider it for sure in your mix, but very carefully as this could be a double edge sword.

Tuesday, February 13, 2007

More than 1Billion Internet users WW




This is the kind of data you often need but do not have at hand. Internet users, defined here as someone who uses the Internet at least once per month, reached 1 Billion individuals in 2006 according to the ITU i.e. 17% of the world population.

The US is still the leading market but China will probably take the lead before the end of the decade says eMarketer. South Korea has the most important penetration ratio with 70.5% of its population already Internet users. In Europe Germany is the widest market with 39.4M Internet users. Take a look at the chart above for more details.

Morgan Stanley in The State of the Internet, Part III forecasts interesting demographics and behaviors that we should integrate in our Marketing 2.0 plans:
  • "The Internet continues to go global
  • Online video is gaining momentum
  • User-generated content properties have moved to the top of the pack, owing to their focus on community and personalization
  • Longer term, monetization should grow faster than usage, which should grow faster than users. Global Internet thesis calls for 10-15% user growth, 20-30% usage growth, and 30%+ monetization growth." -- Morgan Stanley
Don't worry fellow e-marketers, our business can only grow!

Monday, January 15, 2007

e-commerce revenue over $100 Billion!


Wow! This is a confirmation that e-commerce is now for real and significantly impacts the retail industry. The overall traditional retail business in the US just grew between 2.5% and 3.5% during the 2006 holiday season according to analysts. To be compared with the 26% growth for the retail e-commerce in Nov/Dec 2006 according to comScore Networks (see emarketer.com chart and E-Commerce Hits All-Time High in 2006 ). Daily scores averaged $600M A DAY, with a peak at $667M on December 13 according to comScore, to be compared with the $556M peak in 2005.

For the full year, 2006 online retail spending reached $102 billion, a 25% increase on 2005. Don't ask if Marketing 2.0 needs to deal with e-commerce returns, just make sure your e-commerce web site and entire back office organization is up and running.

Read more about e-commerce in Marketing 2.0.

Wednesday, November 22, 2006

Online spending trends in B2B Marketing

Just a quick one to be shared for those of you mostly in B2B marketing, as I do, and wonder how online media investments are evolving more specifically in this environment.

Here are some projection from www.eMarketer.com in a report they've just released Marketing Online: Trends and Tactics. To be noted that according to this report, spending on B2B marketing and advertising regained the momentum lost during the bubble burst in 2000, reaching $2.4 billion in 2006 to be compared with deceleration in traditional media.

Interestingly in the US, 98% of 220 manufacturers interviewed do have a web site, and 87% for more than 3 years. Even better, 52% consider their site as the most powerful marketing tool, knowing that increasing pressure on Marketing accountability and return on investment (ROI) makes this "most powerful" judgment a relevant one.

As you'll discover in the table above, the share of online spending compared to total B2B Media spending seems to evolve rapidly towards 10% average on its way to 13% in 2010. In our industry, I mean IT, we've gone beyond that point since long. But we're naturally incline to do so as our customers are 100% on the web, and use it as the primary information source after peers recommendation. That would open an entire topic of interest, very dear to me in B2B, which is marketing via the influencers, to be totally revisited in light of Web 2.0 i.e. another Marketing 2.0 facet.

Tuesday, November 07, 2006

Do you master Marketing 2.0 metrics?

Dear fellow marketers, this is the time to check if you're on top of all the trendy acronyms that one must master to deal with the new media. Here is an interesting list I submit to your expertise:
  • CTR: Click-thru rate
  • CPM: Cost per thousand
  • CPC: Cost per click
  • Conversion Rate
  • ROAS: Return on ad spend
  • Value/Cost
  • Value/Click
  • CPL: Cost per lead
  • CPS: Cost per sale
  • CPA: Cost per acquisition
  • Advertising revenue per visitor
  • Visitor to browser ratio
  • Shopping cart abandonment
  • AVO: Average order

Who's saying marketing is not about measuring the outcome of the investment we're making? I increasingly meet Marketing Executives that are working around the clock to produce meaningful dashboards to their management. Search Marketing is no different and probably paves the way for other kind of marketing activities, especially advertising investments.

The trend though is to focus more on CPA than CPM as after all we're measured on the incremental business we can bring back to our brands. ROAS is a tricky one, I'm leaving you with the formula -- the ROAS provides the amount of revenue responsible from the campaign per dollar invested. For example, an ROAS of $1 means that you are generating $1 for every $1 in ad spend:

ROAS = ((Impressions * CTR * Conv rate * Avg sale) – Campaign Cost)/Campaign Cost

Work your spreadsheet for an interesting Marketing 2.0 journey.