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Entries categorized "Marketing - Multi-Channel"

June 13, 2008

Visits to Coupon Websites Up 56% from 2007, Classifieds Site Visits Up 113%

marketingvox.com


Coupon clipping hits the 'net

Weekly share of US visits to a custom category of coupon websites increased 56 percent for the week ending June 6, 2008, compared with the same week last year, as consumers turn to the web to cope with increases in the cost of living, according to Hitwise (via MarketingCharts).

Coupons.com received the largest market share of visits within the category at 29 percent, with its market share increasing 190 percent from the same week last year; Coupon Mountain and Eversave followed with 14 percent and 6 percent share, respectively, Hitwise said.

Below, additional findings issued by Hitwise.

Search engines accounted for 20 percent of the traffic referred to coupon sites. Among the top 250 search terms driving traffic to the coupon websites, 60 percent of the search queries include a specific retailer brand or branded product:

May 24, 2008

Best Buy and B&H Multichannel Marketing

At ACCM, I heard a half dozen speakers drill the multichannel marketing script into the permeable heads of honorable conference attendees.

So today I am looking to purchase a camcorder. B&H sends me a catalog, a nice multichannel piece. So nice that it drives me to Best Buy to physically look at the camcorder. There, I find another camcorder I like. I notice that the price of this item appears expensive.

I go home, look at the Best Buy website, and see that the price is consistent between stores and online. Multichannel advocates rejoice! But the camcorder is still expensive. A price comparison reveals that the item is 20% cheaper at B&H, and 25% cheaper at Amazon.com.

The item will be purchased at Amazon.com.

Industry leadership continues to harp on the fact that multichannel marketing works. And today, it did work. A catalog from one brand led to a store visit at another brand, which led to an online search for the cheapest price, leading me to buy the camcorder from an online pureplay. Demand siphons out of the multichannel value chain, into an online pureplay. The multichannel marketers pay the freight for retail square footage and paper-based marketing, but lose the sale to a low-cost online pureplay that does not execute traditional advertising strategies.

An entire industry is missing the point of multichannel marketing. Pretty catalogs, integrated e-mail campaigns, and cross-channel inventory alignment is nice.

But multichannel marketing is pure pap, feckless when confronted by convenience, fast shipping, and cheap prices.

And worst of all, the multichannel industry fuels this trend by advertising the items that ultimately are purchased at pureplays that don't employ traditional advertising.

May 03, 2008

The Overbrook Foundation vs. Direct Mail and Catalogs

http://thecatalogchroniclesblog.com/2008/05/03/the-overbrook-foundation-vs-direct-mail-and-catalogs/

So, for two days now my ears perked up when “brought to you by The Overbrook Foundation, sponsors of Catalog Choice …” was in the trailer on two different NPR programs. So I thought, well sir, let’s check this out. 

The Overbrook Foundation, located in New York City, is a family foundation established in 1948 by Frank and Helen Altschul. The Foundation took its name from Overbrook Farm, the Altschul family home in Stamford, Connecticut. Its mission is to improve the lives of people by supporting projects that protect human and civil rights, advance the self-sufficiency and well being of individuals and their communities, and conserve the natural environment.

Cool, I thought, that’s green and cozy, very politically correct, but let’s follow the money. So what’s the specific connection with Catalog Choice? I learned that Overbrook has provided $285,000 in grants directly or indirectly to “correct” the catalog and direct mail industry’s ways as follows.

ForestEthics http://www.forestethics.org/

Founded in 1994, ForestEthics is a nonprofit environmental organization with staff in Canada, the United States and Chile. The mission is to protect Endangered Forests, and to achieve that goal they have created a revolutionary new approach.

Contributions from the Overbrook Foundation in 2007 were $105,000 for Catalog Campaign and Corporate Action Program ($65,000) and the Do Not Mail Campaign ($40,000)

To learn more about these programs designed to inform and educate the catalog industry how to be environmentally friendly, visit http://forestethics.org//article.php?list=type&type=15

Overbrook also provided indirectly to Catalog Choice a $20,000 grant to Ecology Center http://www.ecologycenter.org/ for the Catalog Choice Website Development and Operations along with a grant of $160,000 in 2007 to the National Wildlife Federation. (Catalog Choice: Improving the Environmental Performance and Reducing the Carbon Footprint of the North American Direct-Mail Catalog Industry).

April 27, 2008

Mobile Social Networks To See Sky High Ad Revenues By 2012?

mashable.com

facebookmobile

If you were to believe mobile social networks about their advertising predictions, they will by 2012 be raking in between $28 to $52 billion dollars in ad revenue. Given that normal online ad revenue only broke $27 billion for the first time in 2007, and with predicted drops in ad budgets due to the economic recession, the mobile predictions seem a bit hard to swallow.

Colin Gibbs of RCRWirelessNews brings us these predictions from Informa Telecoms & Media, and they may seem outrageous. They do to me, anyhow. Traditional online topped $27 billion globally with devices (PCs) people are more accustomed. But mobile is something that is still in a state of relative infancy in a large portion of the world. Yes, mobile handsets are everywhere, but how many places use them beyond their phone features on a regular basis? Japan is well known for their tendency to do everything from their handsets, but in countries such as the United States, you might see us doing simple checks for sports scores or the weather; intensive, fully- interactive browsing is not quite the norm. Yet.

The iPhone has changed this somewhat, and with the 3G model expected to launch soon, people may spend a bit more time doing things from their mobiles. But I have to posit a question: Will it be checking their pre-existing accounts on sites like Facebook? Or will it be going to mobile-only sites such as Buzzd? While Informa says the whole lot will boom, I think the picture is a little more complex.

Mobile networks are going to have some successes, but my feeling is that there will be fewer in operation than the current litany of traditional social networks housed in full-sized browsers. That isn’t to say some crossover will not occur. A social network that is on both the computer and the phone will of course be significantly more successful due to their ability to connect people to their one source of social information. If I’m sitting at the computer already, why should I pick up my phone to converse with friends or track their activities? Naturally, the computer, whether it be a desktop or laptop, is where I will offer my focus. However, if I’m on the go, it certainly is nice convenience to be able to check in with a site I routinely use when at my main Internet terminal.

So, for the next few years, networks with primarily desktop-based sites will logically receive a good amount of additional revenue as they release and regularly enhance feature-rich mobile applications to complement main operations. Mobile-only services may have a harder go at success. Yes, Twitter and a number of other services have grown largely due to mobile usage. But they’re still very much rooted in the traditional full-fledged browser environment. Only if they bridge that gap will the torrent of users (and, subsequently, billions of dollars) pour in.

(Image source: Mobilevenue.co.uk)

April 10, 2008

Can m-Commerce Kill the Retail Industry?

http://disruptivewireless.blogspot.com/2008/04/is-m-commerce-about-to-kill-retail.html

Dean Bubley

Interesting post here, about the possibility for shoppers to arbitrage pricing while in-store, by texting a numerical product code to Amazon (AMZN) and seeing if they can get a discount.

Funnily enough, I actually registered a bunch of URLs in 2001 such as mobilecomparisons.com, in the expectation that this type of technology would emerge. I got bored waiting in about 2005, and let them lapse.

I can see some big advantages in this particular case - notably that it's Amazon, with whom many people already have an account via the PC (I can't imagine wanting to set up a new account on the phone), and who are also the masters of the logistical side. It's also good that it bypasses the operator (who would otherwise want to add their own margin to the price, probably negating the benefit). And it's certainly good that it charges to your credit card rather than your mobile bill.

On the other hand, even without any knowledge of the retail industry, I can think of numerous ways that this can be circumvented from the retailer's point of view:

  • Work out an explicit value for "instant gratification" and make sure the Amazon discount doesn't cover it.
  • Negotiate with your suppliers for slightly customised versions of products that aren't available through other channels, and which therefore have a unique UPC code or barcode that Amazon doesn't have access to.
  • Put a sticker over the UPC code with a proprietary product tag only recognisable by the checkout system.
  • Offer different "Get it now!" and "Free delivery tomorrow" prices for goods.
  • Offering complex product bundles described on shelves & assessed at checkout ("Price of camera + memory card = $200", or even just "Buy one get one free").

I also think that some of the notions about always-on ubiquitous mobile broadband are over-optimistic, even though the US is now a bit of a special case because of 700MHz' reach. Verizon's (VZ) C-Block is 2 x 11MHz - and I'll leave it to a more techy-minded reader to work out the likely "Mb/s per square mile" based on density of cell sites, sectors/cell, frequency use & a bunch of other technical innovations like beamforming. But I'm pretty sure it's going to struggle to get to (let's say) an aggregate 1GB/s per square mile, which will then have to service all simultaneous users. Femtocells could help, but probably not in a retail environment.

Sure, the mobile web user experience will get a lot better with improved devices/browsers, and 3G/4G/WiMAX/white-space/band-sharing technologies. I can see evolutions of this technology with barcode (or even just product) photos being interpreted.

However, I can't see m-commerce killing retail, even though it may shake it up a bit, in the same fashion that PC-based Amazon already has.

December 28, 2007

Looking Ahead to 2008 a Direct Marketers Point of View

If you had told me two years ago that 1,020 folks would spend the day after Christmas reading an article I self-published about the catalog industry, I wouldn't have believed you.

click here for more from minethedata.com

That's how fast the craft known as cataloging is changing.

2008 will be a year that demands change in the multichannel cataloging and retail industry.


A Conversation Is Happening All Around Us. Are We Listening?

When I wrote about Catalog Choice, an eco-friendly organization encouraging consumers to reduce catalog mailings, leadership from Catalog Choice left comments for our community to read. The DMA and ACMA did not participate in the discussion.

In 2008, multichannel catalog and retail organizations will be forced to monitor what is being said about them, and might even begin participating in the discussion.

November 13, 2007

Interaction

Kevin Hillstrom, President, MineThatData

If you are an E-Trade customer with more than a hundred thousand dollars in your account, how brand loyal are you these days?

If I told you on January 1 of this year that E-Trade would be fighting for its life later in the year, would you have believed me?

Our digital society operates on a complex series of "interactions". Interactions are hard to predict ahead of time, but appear easy to see after the fact.

Assume that you purchase inventory at American Eagle Outfitters. Last October, your brand posted a +12% comp. In January of this year, as you made your commitments for this October, could you have predicted the series of economic factors that would conspire to cause customers to actually decrease spend with your brand this October by 3%?

Because if you had predicted this and acted upon it, you wouldn't be sitting on a boatload of inventory that has to be marked down, putting pressure on your profit and loss statement.

The future of multichannel retail belongs to leaders who can see how five or six different factors could combine to yield superior results.

And few of us in multichannel retail have been trained to operate in a world where success is based on combinations of factors that interact favorably with each other. Instead, we want to know the next 'big idea'. And we want it to be an easy big idea ... like re-arranging words in the subject line of an e-mail campaign, or a paid search campaign that works really well and is really inexpensive.

Those who are good at forecasting the interaction of separate factors are believed to have 'gut instinct'.

In our multichannel businesses, you'll know many people have acquired this 'gut instinct' when you start reading about how combinations of factors interacted to cause sales increases.

E-Mail Marketers will start talking about how modules of merchandise interact with creative templates to yield increases in response. When do e-mail marketers ever talk about this?

Database Marketers will stop telling you what happened in the past, and will start telling you what is going to happen ... and will give you a menu of options to avoid trouble.

Catalog Circulation Marketers will clearly explain the merchandising and creative strategies that cause customers to thumb through a catalog and then buy something on the internet or in a store. When is the last time a catalog circulation expert clearly explained this interaction to you in an actionable way, actually telling you how to paginate a catalog in a way that profitably increased sales across channels?

Online Marketers and Web Analytics experts will actually tell us how to assort a website, similar to how good catalogers paginate a catalog. We'll move from landing pages to merchandise themes, themes that replicate customer interests, themes that go beyond the severe limitations imposed upon e-commerce by information technology.

Who do you think is great at seeing how five or six separate factors fit together? Who acts upon these concepts, and drives sales in a profitable way today? Who will do well in the future? Do you have the tools to manage your business differently?

Copyright (c) 2007 Kevin Hillstrom, President, MineThatData

November 10, 2007

Google's New Cell Phone Software: Big Brother is Watching You

Seekingalpha.com

by Mark Hines

So Google (GOOG) finally squashed the rumors of a "g-phone," and instead announced their intentions to create open source software for cell phones. At first, this seems to be a significant departure from their business model. Traditionally, Google makes money selling Internet advertisements, so why would they move into cell phone software? The answer: TO SPY ON YOU!!

Google's proposed cell phone software is completely consistent with their business strategy to gather as much personal information about you as they possibly can, so they can sell it to behavioral based advertisers. For example, the new cell phone software will allow Google to always know where you are, who you are talking to, and what your regular routine is. They will then sell this information to behavioral based advertisers. For example, if you call Florida regularly, behavioral based advertising will allow airline companies to target you with cheap flights to Florida. A recent Economist article poses the question: "Who's afraid of Google?" Well. I am. I don't want Google capturing all kinds of personal information about me.

There is a famous book by George Orwell titled "1984," where the concept of "Big Brother" is first introduced. Orwell describes Big Brother as the eye in the sky that is always watching you. Well guess what? Google is Big Brother. They already hit you up with Internet advertisements based on all kinds of personal information they've gathered about you from your web surfing habits. And now they're going to take it one step further. They're going to use cell phone software to watch your every move.

As an investor, the question is whether or not you think Google can successfully implement this new cell phone strategy. Due to "key word inflation", traditional advertising growth will eventually slow, and Google will need to look elsewhere to maintain its impressive growth rate and valuation. Can they use cell phones to gather personal information about you, and then sell it to behavioral based advertisers to make a lot of money?

Personally, I own Google shares. But more importantly, always remember: Big Brother Google is watching you!

October 28, 2007

Google Print Program


Hoy!

The Chicago and Los Angeles editions of the free Spanish-language daily Hoy have signed up to participate in Google Print.

The AdWords extension allows advertisers to use an online interface to buy ads in more than 600 newspapers, including the Chicago Tribune, the Los Angeles Times and the Baltimore Sun, reports MediaBuyerPlanner.

Most of the Google Print inventory so far has, like Google Audio, been limited to remaindered or leftover ad space that the publishers are eager to offload, at any price.

Google hopes to use Google Print and Google Audio to tap into small and local advertisers that have not chosen to do much radio or print advertising. In the case of Hoy, which is distributed by the Tribune Company, the company hopes to lure smaller Hispanic businesses that cater to concentrated local markets.

Hoy is expanding more deeply into Chicago’s suburbs, where the Hispanic population is booming. Early this year, Hoy sold its New York edition to ImpreMedia LLC, publisher of El Diario, Vista and other Spanish-language papers.

October 23, 2007

Privacy Lost: These Phones Can Find You

From NYTimes.com click here for entire article

 
 

Two new questions arise, courtesy of the latest advancement in cellphone technology: Do you want your friends, family, or colleagues to know where you are at any given time? And do you want to know where they are?


A phone with Buddy Beacon, a tracking service offered by Helio, a mobile phone service provider.

Share Your Thoughts

What do you think of a cellphone service that lets your friends and family know where you are all the time?

Obvious benefits come to mind. Parents can take advantage of the Global Positioning System chips embedded in many cellphones to track the whereabouts of their phone-toting children.

And for teenagers and 20-somethings, who are fond of sharing their comings and goings on the Internet, youth-oriented services like Loopt and Buddy Beacon are a natural next step.

Sam Altman, the 22-year-old co-founder of Loopt, said he came up with the idea in early 2005 when he walked out of a lecture hall at Stanford.

“Two hundred students all pulled out their cellphones, called someone and said, ‘Where are you?’ ” he said. “People want to connect.”

But such services point to a new truth of modern life: If G.P.S. made it harder to get lost, new cellphone services are now making it harder to hide.

“There are massive changes going on in society, particularly among young people who feel comfortable sharing information in a digital society,” said Kevin Bankston, a staff lawyer at the Electronic Frontier Foundation based in San Francisco.

“We seem to be getting into a period where people are closely watching each other,” he said. “There are privacy risks we haven’t begun to grapple with.”

But the practical applications outweigh the worries for some converts.

Kyna Fong, a 24-year-old Stanford graduate student, uses Loopt, offered by Sprint Nextel. For $2.99 a month, she can see the location of friends who also have the service, represented by dots on a map on her phone, with labels identifying their names. They can also see where she is.

One night last summer she noticed on Loopt that friends she was meeting for dinner were 40 miles away, and would be late. Instead of waiting, Ms. Fong arranged her schedule to arrive when they did. “People don’t have to ask ‘Where are you?’” she said.

Ms. Fong can control whom she shares the service with, and if at any point she wants privacy, Ms. Fong can block access. Some people are not invited to join — like her mother.

“I don’t know if I’d want my mom knowing where I was all the time,” she said.

Some situations are not so clear-cut. What if a spouse wants some time alone and turns off the service? Why on earth, their better half may ask, are they doing that?

What if a boss asks an employee to use the service?

So far, the market for social-mapping is nascent — users number in the hundreds of thousands, industry experts estimate.

But almost 55 percent of all mobile phones sold today in the United States have the technology that makes such friend-and- family-tracking services possible, according to Current Analysis, which follows trends in technology.

So far, it is most popular, industry executives say, among the college set.

But others have found different uses. Mr. Altman said one customer bought it to keep track of a parent with Alzheimer’s. Helio, a mobile phone service provider that offers Buddy Beacon, said some small-business owners use it to track employees.

Consumers can turn off their service, making them invisible to people in their social-mapping network. Still, the G.P.S. service embedded in the phone means that your whereabouts are not a complete mystery.

“There is a Big Brother component,” said Charles S. Golvin, a wireless analyst at Forrester Research. “The thinking goes that if my friends can find me, the telephone company knows my location all the time, too.”

Phone companies say they are aware of the potential problems such services could cause.

If a friend-finding service is viewed as too intrusive, said Mark Collins, vice president for consumer data at AT&T’s wireless unit, “that is a negative for us.” Loopt and similar services say they do not keep electronic records of people’s whereabouts.

Mr. Altman of Loopt said that to protect better against unwelcome prying by, say, a former friend, Loopt users are sent text messages at random times, asking if they recognize a certain friend. If not, that person’s viewing ability is disabled.

Clay Harris, a 25-year-old freelance marketing executive in Memphis, says he uses Helio’s Buddy Beacon mostly to keep in touch with his friend Gregory Lotz. One night when Mr. Lotz was returning from a trip, Mr. Harris was happy to see his friend show up unannounced at a bar where he and some other friends had gathered.

“He had tried to reach me, but I didn’t hear my phone ring,” Mr. Harris said. “He just showed up and I thought, ‘Wow, this is great.’”

He would never think to block Mr. Lotz. But he would think twice before inviting a girlfriend into his social-mapping network. “Most definitely a girl would ask and wonder why I was blocking her,” he said.