Post on 14-May-2015
The Power of eMarketing
President and CEO
eMarketing Association
Robert Fleming
The Internet is Different
A rare example of a modern functional anarchy No official censors, no bosses, no board of
directors, no stockholders No one “owns” the Internet, there is no “Internet,
Incorporated” The “Internet” itself, doesn’t even officially exist
as an entity The “Internet” never charges for anything. Each
group accessing the internet is responsible for their own machine and access
Evolution Of The Internet
Phase One:Phase One: Portals Portals
EverywhereEverywhere
Phase Two:Phase Two: Simple Simple
TransactionsTransactions
Phase Three:Phase Three: The The
Digital DecadeDigital Decade
The Internet Grows
600 million people access the internet worldwide (2002 est.)
2002 e-commerce 1 trillion dollars (est.) 68% increase in e-commerce 2000 vs. 2001 Over 1 billion web pages, 40 million sites
Rapid Increase in Internet Use in the United States Across States –Over half the population
Greater than 50% of People Use The Internet (35) Approx. 50% of People Use the Internet (9) Less Than 50% of People Use the Internet (6)
August 2000 September 2001
Source: NTIA and ESA, U.S. Department of Commerce, using U.S. Census Bureau Current Population Survey Supplements
Internet Use at Any Location, 1998 and 2001
As a Percent of U.S. Population
4.1
16.8
39.2
51.2
63.2
29.9
14.3
38.9
65.4
75.6
85
51.5
0
10
20
30
40
50
60
70
80
90
100
3-4 yearsold
5-9 yearsold
10-13 yearsold
14-17 yearsold
18-24 yearsold in school
18-24 yearsold not inschool
1998
2001
Source: NTIA and ESA, U.S. Department of Commerce, using U.S. Census Bureau Current Population Survey Supplements
What are they doing online?
More time
More money
More services
Fewer sites
84.0
67.3
61.8
42.1
39.1
34.9
30.9
24.8
18.8
17.3
17.9
16.4
8.8
5.2
3.5
0 20 40 60 80 100
E-m ail
News, Weather, Sports
Product/Service Purchases
Governm ent Services Search*
View TV/Movies , Lis ten to Radio
On-Line Banking*
Trade Stocks , Bonds , Mutual Funds*
On-Line Education Course
Online Activities 2001 – Internet users Age 3+
Oct 1999Oct 1999
4.34.3
99
66
33
00
Time spent online
Oct 2001Oct 2001
8.2
Source: JupiterSource: Jupiter
75% of online customers say the Net makes their lives better
79% of Net users utilise it for information for offline purchases
AOL online average minutes per day:
19991999 20012001 4747 63 63
Impact of Internet onmedia consumption
Source: (USA) Scarborough National Internet StudySource: (USA) Scarborough National Internet Study
23% Watch TV less often
9% Listen to radio less often
15% Read newspaper less often
20% Read magazines less often
7.00am7.00am
9.00am9.00am
11.00am11.00am
1.00pm1.00pm
3.00pm3.00pm
5.00pm5.00pm
7.00pm7.00pm
9.00pm9.00pm
11.00pm11.00pm
TVTV
Breakfast Breakfast NewsNews
News, Ent,News, Ent,SportSport
PrintPrint
Morning Morning PaperPaper
Paper/MagsPaper/Mags
Leisure MagsLeisure Mags
OutdoorOutdoorJourneyJourneyTo WorkTo Work
Out forOut forLunchLunch
Journey Journey HomeHome
RadioRadio
Breakfast Breakfast ShowShow
Drive TimeDrive Time
Drive TimeDrive Time
OnlineOnline
Check News/Check News/MailMail
MessengerMessenger
News, Sport,News, Sport,FinanceFinance
MessengerMessenger
Web CastWeb Cast
Reaching consumersthroughout their media day
e-commerce only represents a minor fraction of total GDP...
e-commerce(3%)
2002 US GDP Projection
Traditional retail(97%)
The Internet has to supportBrick & Mortar
Initiate Initiate RelationshipRelationship
in Information in Information StageStage
Increase Increase Product Product
SelectionSelection
Develop Develop AftermarAftermar
ketketContactContact
Develop Develop Customer Customer
KnowledgeKnowledge
Reduce Reduce Inventory Inventory
NeedsNeeds
Reach Reach New New
CustomeCustomer Setsr Sets
Internet Contribution Internet Contribution to Bricks and Mortarto Bricks and Mortar
… and Bricks & Mortar mustsupport the Internet
Brand Brand ReinforcementReinforcement
and Trustand Trust
Capture Capture urgent and urgent and
impulse buysimpulse buys
FacilitateFacilitateDeliveryDelivery
Capture Capture Aftermarket Aftermarket
ProfitsProfits
Reach a Reach a larger larger
customer customer basebase
Place to Place to touch touch
and test-and test-drive drive
productproduct
Bricks & MortarBricks & MortarContribution to Contribution to
InternetInternet
Customers must be able to moveback and forth seamlessly ...
ShopShopResearchResearch BuyBuy OwnOwn Dispose/ Dispose/ RepurchaseRepurchaseAwarenessAwareness
InternetInternet
Bricks and MortarBricks and Mortar
Shared Customer Info
Shared Customer Info
Role
of
Bri
cks
and M
ort
ar
Transform Bricks and Mortar
Integrated Systems
Integrated Systems
Marketing Employment Is Growing
“Employment of advertising, marketing, promotions, public
relations, and sales managers is expected to
increase faster than the average for all occupations through 2010 ”
Source: United States Department of Labor
eMA Employment Survey
70% of all management level marketing positions require Internet
abilities and/or experience.
Internet Related Jobs Are NOT Just in I T
Source: Center for Research in eCommerce, graduate School of
Business, University of Texas at Austin
The Change in Corporate Culture
1996 – most web sites are managed by IT /MIS 2001 – marketing and IT/MIS manage web sites
jointly (in some cases) Marketing needs to “own” web site IT/MIS are the mechanics – marketing the pilot Marketing becomes more collaborative and less
autonomous
Are the Following IT or Marcom Functions?
Corporate communications Advertising Corporate identity Product positioning Market Research
IT/MIS Continues to Dominate Web Management
Lack of technical understanding by marketers
Fast changing technology can create confusion
Corporate politics plays a role
Efficient Organization
Administration
Service
O perations
Support
M arketing/Sales
W ebm aster
M IS
Effective Organization
Administration O perations
Support
Service
W ebm aster
M arketing M IS
Outlook
Increasing shift of web site responsibility from MIS to marketing
Increased technical knowledge required from marketers
Internet marketing accounts for 15% of all advertising impressions and only 5% of marketing budgets
The gap will close between impressions and budget
Marketer must understand new tools
No Other Media Has All of the Advantages of eMarketing. Period.
Cost effectiveness Global reach Interactive response Measurability Personalization Real-time feedback
But E-marketing Suffers From
Lack of data – 5 years vs. decades for magazines, radio
Lack of understanding of technology by marketers
Fast moving and turbulent arena Changing technologies Lack of trained personal Senior management barriers Corporate culture
Online Marketing Tools Are Less Than 6 Years Old (That’s First Grade)
E-mail marketing Site design for e-commerce Viral marketing Affiliate marketing Banner advertising Search engines Online publicity Research CRM
Site Design for E-marketing
Merchant account checkout Visitor expectations Surveys Content Technical considerations Color Plug ins Product descriptions Company information
What Works on a Site ?Common Influences on Online Purchase
Shipping fees 92%
Prices 92%
Product availability 86%
Special promotions or incentives 76%
Selection 69%
Order tracking 66%
Clearly identified delivery time 65%
Return policy 63%
Ease of use 62%
Site performance/speed 51%Source: Vividence
Search Engines
Pay for position taking a strong lead Search engine optimization (SEO) critical Majority of users rely on search engines for
navigation Targeted audience Accounts for over 70% of new site visitors Turbulent arena
E-mail Marketing
E-mail is the number one app with over 90% of internet users
Issues such as browser differences, targeting, and privacy are critical
Spam, creates a major negative for e-mail marketing, laws passed in 19 states
Only 3 years of significant use
Viral Marketing
Hot Mail was one of the first examples of viral marketing
Another “e” term for “word-of-mouth” advertising Bulletin boards, e-mail, chat rooms are the
major conduits for viral campaigns What is “buzz”
Affiliate Marketing
Partnership and affiliate programs are booming Cooperation between online companies Commission programs and banner exchange
programs lead this channel
Banner Advertising
Volatile history with sharply declining click through rates
New forms such as java, active x, Pop-ups, pop-under and other new delivery
methods are gaining acceptance Branding is possible with banners
Research
Log files ASP log conversion Metrics for e-marketing analysis Surveys
Challenges
Integration of e-marketing and conventional marketing creates a “blurred channel”
Hybrid advertising Marketing mix Consumer expectations Technological limitations New innovations Legal issues
Conventional Media
Addition of web address creates hybrid advertising
Web site can degrade or enhance conventional efforts
Visitor experience becomes critical Diffused metrics
Technological Limitations
Different browsers Online software (plug ins java –flash etc.) Screen resolutions Bandwidth speed Operating systems Server technology
Legal Issues
Privacy policies Spam International commerce COPPA 19 states have anti Spam laws Dozens pending in congress Online disclosure
Emerging Technologies.
Wireless poised to triple over the next few years Smart chips could track BM purchases Higher bandwidth could allow for increased
streaming media on sites MPEG4 – good enough for video? ???
80% Still Dial-up
Dial-up80.0%
Cable Modem12.9%
Digital Subscriber Line
(DSL)6.6%
Other0.5%
Source: NTIA and ESA, U.S. Department of Commerce, using U.S. Census Bureau Current Population Survey Supplements
One Example
One More
Digital innovations become an integral Digital innovations become an integral part of lifepart of life
Breaks down logistical barriers Breaks down logistical barriers
Offers greater flexibility and power Offers greater flexibility and power
Shrinks time and business Shrinks time and business
Simplifies complex business processes Simplifies complex business processes
Enables effective communication and Enables effective communication and collaboration collaboration
Opens up new marketsOpens up new markets
The 21st Century
Explosive increase in innovation Extraordinary dynamism of technology Exceptional increases in productivity Myriad new forms of business activity Expanding opportunities Level playing field
The eMarketing Association
Accreditation body for CeMA and CeM Certifications
Certifications now offered in over 250 schools Largest association representing e-marketing
exclusively Recognized globally Extensive e-marketing resources
CeMA Certification
Certification—a sign of competence and achievement in this field—is particularly important in a competitive job market.
While relatively few advertising, marketing, and public relations managers currently
are certified, the number of managers who seek certification is expected to grow.
Source: United States Department of Labor
For a Copy of This PresentationGo To:
Http://www.eMarketingAssociation.Com/ppt.htm
Questions