Transcript Marketing Your Web Site Successfully

Marketing Your Web Site
Successfully
– By Small Business Resource
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Marketing Your Web Site
Successfully
Online Advertising Overview
Online Advertising Projections
Changing Formats and Pricing
Emergence of E-mail
Guerilla Marketing
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Source: Jupiter/NFO; N=2,312
Online Advertising
Overview
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Internet - Fast Becoming Mass Medium
100%
99%
98%
74%
Expected by
2005
81%
80%
62%
60%
59%
23%
40%
20%
0%
51%
Radio
TV
Magazine
Cable
Press
Online
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Source: Jupiter/NFO; N=2,312
Average Hours Per Week
Media Consumption is Strong
18
16
14
12
10
8
6
4
2
0
15.6
12.6
10.5
8.0
4.0
TV
Radio
Newspapers
3.4
Magazines
Online 2000 Online 2005
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Source: Jupiter/NFO; N=2,312
Internet Usage is High
60%
56%
“How often do
you use the
Internet?”
50%
40%
30%
24%
20%
8%
10%
8%
4%
0%
Almost At least
every day once a
week
At least
Once
Only a
once a every few few times
month months in his/her
life
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Source: Jupiter/NFO; N=2,312
Cannibalization of Traditional
Media Continues
40.0%
TV
22.0%
Magazines
21.0%
Newspapers
12.0%
Radio
0%
10%
20%
30%
40%
50%
60%
Percentage of respondents who report that time
with media decreasing due to Internet
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Source: Jupiter/NFO; N=2,312
Consumers are Buying Online
Percentage of Online Users
100%
22%
21%
18%
17%
16%
15%
25%
31%
27%
35%
29%
54%
57%
60%
46%
51%
2002
2003
2004
2005
19%
80%
60%
47%
40%
40%
20%
31%
40%
0%
1999
2000
Buyers
2001
Browsers
Non-Shoppers
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Source: Jupiter/NFO; N=2,312
Commerce Opportunities
Books
45%
CDs, tapes, albums
33%
Computer peripherals
29%
Flowers or gifts
“Which of the
following
products or
services have you
purchased
online?”
24%
Hotel reservations
20%
Clothing
16%
Airplane tickets
14%
Entertainment tickets
12%
Electronics
12%
PCs
10%
None of these
14%
0%
10%
20%
30%
40%
50%
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Source: Jupiter/NFO; N=2,312
The Internet as an Advertising
Medium
Now a Mass Medium
Fundamentally Changing Consumers’ Media
Consumption Habits
Opportunity to Get in Front of Consumers When They
are in a “Buy” Mindset
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Source: Jupiter/NFO; N=2,312
Online Advertising
Projections
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Online Ad Growth Questioned by
Press and Wall Street
“The growth of online advertising has been impressive to
date, however that growth has been fueled by dotcoms…The tides have changed and we expect the
online ad landscape to do so as well.”
• Equity Research Analyst
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Source: Jupiter/NFO; N=2,312
Despite Skepticism, Advertisers Will
Increase Online Spending
Internet
73%
Magazines
43%
Cable-TV
37%
Network TV
33%
Radio
30%
Outdoor
Newspapers
0%
For Which of the
Following Media Do
You Plan on Increasing
Your Budget for the
Next 12 Months?
(Please Check All That
Apply)
23%
17%
20%
40%
60%
80%
100%
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Source: Jupiter/NFO; N=2,312
Online Advertising Projected to
Reach $16.5 Billion by 2005
($ in billions)
$18
$16.5
$16
$14.3
$14
20%
$11.9
$12
15%
$9.5
$10
$7.3
$8
$5.3
$6
$4
25%
$3.5
2%
$2
3%
4%
5%
6%
7%
8%
10%
5%
$0
0%
1999
2000
2001
2002
Total Online Ad Spending
Percentage of Overall Ad Market
Source: Jupiter/NFO; N=2,312
2003
2004
2005
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Marketing Impressions per
User per Usage Day
The Downside: Increase in Clutter
Dilutes Connection to Consumers
1,000
900
800
700
600
500
400
300
200
100
0
950
880
800
705
610
520
440
1999
2000
2001
2002
2003
2004
2005
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Source: Jupiter/NFO; N=2,312
Online Advertising Most Effective Advertising Vehicle for Driving Traffic
57%
Word-of-Mouth
Site Mentioned in
Magazine/Newspaper Article
42%
24%
Online Ad for the Site
20%
Magazine/Newspaper Ad
18%
Site Mentioned in a TV
News Segment
12%
TV Ad for the Site
7%
Radio Ad for the Site
0%
Source: Jupiter/NFO; n=1,671
Source: Jupiter/NFO; N=2,312
20%
What compels
you to visit a
Web site?
(choose two)
40%
60%
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Changing Ad Formats
and Pricing
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Expect Diversification Away from Banner
Ads
Banner ads increasingly called into question
More options for advertisers – streaming audio, video,
pop-ups, e-mail.
Banner will continue to be the backbone of ad buys but
advertisers are looking to experiment.
Work with publishers to craft unique solutions
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Source: Jupiter/NFO; N=2,312
Spectrum of Risk Underscores Conflict
Between Advertisers and Publishers
Advertiser Risk
CPM
Cost
per
Click
Cost
per
Lead
Cost per
Member
Cost
per
Customer
HIGH
Revenue
Share
LOW
Cost
per
Customer
Cost per
Member
Cost
per
Lead
Cost
per
Click
Publisher Risk
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Source: Jupiter/NFO; N=2,312
Revenue
Share
CPM
Opportunity for Integrated Marketing
Advertisers beginning to recognize value of integrated
advertising
Media consolidation creates further opportunities for
cross channel packaging – Times/AOL, Viacom/CBS
Agency structure presents a hurdle
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Source: Jupiter/NFO; N=2,312
E-mail Creates
Continuous Customer
Relationships
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E-mail Marketing Emerging as a
Powerful Force
E-mails from Commerce/Content Ventures Focused
Driving Repeat Visits
Acquiring New Customers
Cross-Selling; Up-Selling
Efficiencies of E-mail:
• Driving Loyalty
• Promoting Products
• Reinforcing the Brand
It’s Cheap – no postage, or per piece production costs
It’s Fast – quick time to market and response time
It Works – higher response rates than direct mail
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Source: Jupiter/NFO; N=2,312
Marketers Are Not Blind to the Power of
E-Mail
9%
10+
13%
13%
0
Percent of
Marketing
Budget Spent on
E-Mail Marketing
6-10
1-2
3-5
34%
Source: Jupiter/NFO; N=2,312
31%
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Focus on Deepening Customer Relationships and Acquiring New
Customers
61%
Deepen Relationships
46%
Acquire New Cust
28%
Cross Sell
28%
Up Sell
18%
Shorten Purchase Cycle
What is the
Goal of Your
E-mail Marketing
Efforts
11%
Other
0%
10% 20% 30% 40% 50% 60% 70%
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Source: Jupiter/NFO; N=2,312
E-mail Is Growing in Leaps in Volume
268
billion
250
E-mail
200
150
100
50
3
billion
0
1999 2000 2001 2002 2003 2004 2005
Retention-based
Sponsored
Acquisition-based
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Source: Jupiter/NFO; N=2,312
Spending on E-mail
E-mail Spending Grows Concurrently
$7.3
$5.0
$4.5
$4.0
$3.5
$3.0
$2.5
$2.0
$1.5
$1.0
$0.5
$0.0
billion
($ in billions)
$164
million
1999
2000
2001
Retention-based
2002
Sponsored
2003
2004
Acquisition-based
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Source: Jupiter/NFO; N=2,312
2005
The Fight For Consumers’ Attention
in Their Inbox is on
1999
2000
2001
2002
2003
2004
2005
Email/user/year
1,746
2,059
2,420
2,758
3,094
3,511
3,990
40
131
276
482
761
113
1,612
Non-work personal
Commercial
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Source: Jupiter/NFO; N=2,312
40 Fold
Increase
Initial Sign Up Data Provide Valuable
Targeting Information
How Often: Daily, Weekly
When: Morning, Evening
What: Subject/Offer Interests
Who: Gender, Age
Source: Jupiter/NFO; N=2,312
Profile
Database
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Difficulty in Obtaining Info
Begin the Data Loop by Using
All Available Targeting Information
Explicit User
Provided Data
• Interests
• Demographics
Observable
User Data
• Purchase Info
• Surfing Info
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Source: Jupiter/NFO; N=2,312
Close the Loop by Tracking Results and
Growing Targeting Data
E-Mail Outputs
• Open Rate*
• Unsubscribes
• Click Through
• Level of Interest
Rate
• Fatigue
• Clicked Links
• Conversion Rate • Effectiveness of
• Pass Along
Targeting
Rate*
• Subject/Promo
Interests
* Available only for html
messages
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Source: Jupiter/NFO; N=2,312
Guerrilla Marketing
Becomes Another
Cost-effective
Alternative
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Guerrilla Marketing - What Are We
Talking About?
Utilizing alternative marketing tactics to
1) Drive traffic online
2) Build awareness of online destination
Man-on-the-Street Promotions
Off-line Sampling
Alternative Outdoor
Viral Marketing
Online Buzz - Seeding Chat Sites,
Fan Sites, and News Groups
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Source: Jupiter/NFO; N=2,312
Guerrilla Marketing Has the Power
to Generate Word-of-Mouth
Unique
Clutter
Intrusive
Clutter
Resonates
with
Consumers
Breaks
Through
Clutter
Unexpected
Clutter
Source: Jupiter/NFO; N=2,312
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Pass-Along Increases Importance of Word-of-Mouth Tactics
When a friend tells you about a site how many other people are you
likely to pass the information on to?
No one:
10+ People: 8%
7%
7-9 People:
4%
4-6 People:
20%
1 Person:
12%
69% of Consumers
Tell Between 2 and 6
People
2-3 People:
49%
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Source: Jupiter/NFO; N=2,312
As Guerrilla Marketing Tactics Become More Prevalent,
Breakthrough Decreases
What types of guerrilla marketing tactics are you utilizing?
80%
Viral Marketing
46%
Alternative Outdoor
40%
31%
23%
23%
Off-line Sampling
Man-on-the-Street
Seeding Chat Sites
Seeding News Sites
Seeding Fan Sites
Other 0%
Source: Jupiter/NFO; N=2,312
6%
14%
25%
50%
75%
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100%
Optimize Targeting Along Multiple Dimensions
Demographics
Interests
Opinions
Activities
• Age
• Media
• Culture
• Work
• Geography
• Education
• Fashion
• Politics
• Home
• Themselves
• Hobbies
• Social Events
• Income
• Jobs
• Social Issues
• Occupation
• Community
• Business
• Family Size
• Recreation
• Economics
• Dwelling
• Family
• Education
• City size
• Food
• Products
• Achievements
• Future
• Vacation
• Entertainment
• Clubs
• Community
• Shopping
• Sports
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Source: Jupiter/NFO; N=2,312
Guerrilla Marketing Allocation Based on Targeting and
Product/Service Category
Highly
Targeted
Non-Targeted
Non-Youth
Targeted
Youth
Targeted
EntertainmentFocused
NonEntertainmentFocused
No Time
Sensitivity
Time
Sensitivity
Low
Allocation
Level
Source: Jupiter/NFO; N=2,312
Mid
Allocation
Level
High
Allocation
Level
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Summary
Online is integral part of the media mix
Shift in formats and pricing continues
E-mail emerges as a powerful marketing tool to create
continuous dialogue with consumers
Guerilla marketing allows advertisers to break through
commercial clutter
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Source: Jupiter/NFO; N=2,312
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in the members area
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Source: Jupiter/NFO; N=2,312