trends in digital marketing and e-commerce
Post on 19-Sep-2014
20 views
DESCRIPTION
Presentation given by Linus Gregoriadis of e-Consultancy to members of the Specialised Information Providers Association (SIPA)TRANSCRIPT
Trends in Digital Marketing and E-commerce
Linus Gregoriadis, Head of ResearchE-consultancy.comEmail: [email protected] Website: www.e-consultancy.com
2
Presentation overview
1. Online advertising2. Search engine marketing3. Vertical search4. E-commerce and affiliate marketing5. Social media and social commerce6. ‘Atomisation’7. User experience and Customer
Engagement
Online advertising landscape
4
Three big deals in 2007
• Google’s proposed acquisition of DoubleClick for $3.1 billion.
• Microsoft buys aQuantive (owner of Atlas) for $6 billion.
• Microsoft pays $240 million for a 1.6% stake in Facebook.
5
Online marketing landscape
• Online now accounts for 15% of the total UK advertising market and is likely to hit £2.75 billion this year (IAB).
6
Trends in display advertising …
Increased importance of behavioural targeting for boosting conversion rates and providing a better online experience. Yahoo! bought online ad network BlueLithium for $300 million;
AOL acquired Tacoda; Microsoft now owns DRIVEpm.
Leading publishers including The Guardian, News International, FT and Emap agree alliance to share information on reader behaviour. Talks with Revenue Science.
7
Rise and rise of search
Source: E-consultancy Search Engine Marketing Buyer’s Guide 2007
8
Search Engine Marketing - trends
• Search has become more strategic, and part of integrated marketing plans.
• SEO gains ground - PPC less cost effective than before.
• Introduction of Universal Search creates new challenges and opportunities.
• PPC is becoming more like SEO.
9
Google dominates …
• Google is used for 70-80% of UK searches.
• 60% of companies surveyed by E-consultancy believe that Google’s dominance represents some sort of risk … though the vast majority (80%) rate it as the best search engine for ROI.
10
Vertical Search
• Could vertical search erode Google’s dominance?– More than half of E-consultancy users (54%) said they
would be ‘very likely’ to use a search engine that focused specifically on serving their specific business / work needs.*
• A further 40% said they would be ‘quite likely’.
* E-consultancy / Convera Vertical Search Survey 2007 (Preliminary results)
11
Vertical Search – Benefits
• Keep users on-site 62%*• Improve brand (by becoming
authority website) 62%• Potential to monetise through
advertising 52%• Reclaims online community
from Google 42%
* Percentage of publishers citing as ‘major benefit’
12
Vertical Search – Disadvantages
• Point users to competitors 37%*• Hassle (support/maintenance) 29%• Resource issues 21%• No clear business opportunity 15%
* Percentage of publishers citing as ‘major downside’
Survey closes tomorrow night: http://tinyurl.com/25fqct
E-commerce and affiliate marketing
14
E-commerce landscape
• Online sales in the UK will amount to an estimated £42bn in 2007, up from £30.2bn last year, according to the IMRG.– The average UK online shopper will spend £1,600 in
2007.– Online sales will reach an estimated £78bn a year by
2010.
1515
% of internet sales by source of referral
(Channel Advisor)
Online buying behaviour is changing ...
16
Affiliate Marketing …
• Affiliate Marketing is seen as ‘most cost effective channel’.
• It will drive in the region of £3 billion worth of sales in 2007.
• Move to ‘Affiliate 2.0’
* E-consultancy / buy.at Affiliate Marketing Merchants Survey
Social Media and Social Commerce
18
Ratings and Reviews
Wikis Social Networks
Tagging
User-generated Content
Blogs
Peer-2-peer
19
Social Networks = “sticky”, high page views / session, high repeat visits, youth audiences, reachBlogs = PR, niches, search rankings“UGC” = cheap content, increased conversion rates, user loyalty / trustTags = improved navigation, categorisation, conversion rate optimisation, SEO
20
Social Media
The profile of social media has risen dramatically in recent months because of sites such as Facebook and Twitter which are used by millions of people.
The challenge for companies is to find a natural way to start conversations about their products and services online.
21
What is Social Commerce?
• Put simply, social commerce is about customers having the means to interact with one another in order to make better buying decisions.
22
Importance of ratings and reviews, and user-generated content
• Customer ratings & reviews are being used by 28% of online sellers, with more than half (52%) saying that they were considering the use of this feature.*
More than half of all online sellers (51%) consider UGC as either ‘extremely important’ or ‘very important’ to company strategy over the next year.
*E-consultancy / Bazaarvoice Social Commerce Report 2007
23
Benefits of ratings and reviews
Benefits of Ratings and Reviews
0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00%
Higher conversion rates
Improved retention and loyalty
SEO benefit Ideas for product/services
development Differentiation from
competitors Lower costs to serve customer
Reduced returns rate
Percentage of respondents rating as ‘major benefit’ (Social Commerce Report 2007)
‘Atomisation’
25
SyndicationFeeds
Widgets
Aggregation
Mash-ups“Web as platform”
Open APIs
26
iRobot
27
Fragmentation of content
• Publishers should no longer think about their content just as something which appears on their destination website.
Growth in personalised home pages.
Widgets, feeds and open APIs are an opportunity.
User experience and customer engagement
29
User Experience is key
• More grasp of commercial benefits of user experience investment.
• Tiny increase in conversions = £££.
• Specialist agencies (user-centred design services, eye-tracking etc).
30
What is Customer Engagement?
• ‘Repeated interactions that strengthen the emotional, psychological or physical investment a customer has in a brand.’*
Recency of visits, frequency of visits; propensity to give feedback, recommend and create user-generated content.
Digital environment offers unprecedented scope for interaction and measurement of that interaction.
* Richard Sedley of cScape, adapted from Ron Shevlin.
31
Top strategies for online engagement
E-consultancy / cScape Customer Engagement Report 2008
32
Top tactics for online engagement
E-consultancy / cScape Customer Engagement Report 2008
33
Conclusions
• Important to think of online publication as more than just a destination website. – In a world of ‘atomisation’, what is the most effective and
appropriate way of getting the brand out there?
• Engagement with audience is vital.– How is that engagement being defined and measured, and
how is it being deepened?
Questions?Linus Gregoriadis, Head of ResearchE-consultancy.comEmail: [email protected] Website: www.e-consultancy.com