The Power of eMarketing

Robert Fleming
President and CEO eMarketing Association

The Internet is Different
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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: Portals Everywhere

Phase Two: Simple Transactions Phase Three: The Digital Decade

The Internet Grows

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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

Less Than 50% of People Use the Internet (35) (9) (6) Source: NTIA and ESA. U. using U.Rapid Increase in Internet Use in the United States Across States – Over half the population August 2000 September 2001 Greater than 50% of People Use The Internet 50% of People Use the Internet Approx. Department of Commerce.S. Census Bureau Current Population Survey Supplements .S.

2 29. Census Bureau Current Population Survey Supplements .S.2 51. Population 100 90 80 70 60 50 40 30 20 10 0 3-4 years old 5-9 years 10-13 years 14-17 years 18-24 years 18-24 years old old old old in school old not in school 4.9 16. U.Internet Use at Any Location. using U. 1998 and 2001 As a Percent of U.5 1998 2001 85 Source: NTIA and ESA. Department of Commerce.6 63.S.9 39.1 14.8 65.3 38.4 51.2 75.S.

What are they doing online?     More time More money More services Fewer sites .

9 39.3 84.2 8.4 17.9 17.1 42. Lis ten to Radio Governm ent Services Search* Product/Service Purchas es News .3 18.1 61.8 24. Mutual Funds * On-Line Banking* View TV/Movies .5 5.0 . Bonds .8 30. Sports E-m ail 3.8 67. Weather.9 34.8 16.Online Activities 2001 – Internet users Age 3+ On-Line Education Cours e Trade Stocks .

2 3 4.3 Oct 1999 Oct 2001 Source: Jupiter 0 .Time spent online 9 6 8.

 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:   1999 47 2001 63 .

Impact of Internet on media consumption  23% 20% 15% Watch TV less often Read magazines less often Read newspaper less often    9% Listen to radio less often Source: (USA) Scarborough National Internet Study .

Finance Messenger Web Cast .00pm 9.00am 9.00pm News.00pm 7.00am 1.00pm 11.00pm 3.00am 11. Sport.00pm 5.Reaching consumers throughout their media day TV 7. Sport Leisure Mags Journey Home Drive Time Paper/Mags Out for Lunch Drive Time Breakfast News Print Morning Paper Outdoor Journey To Work Radio Breakfast Show Online Check News/ Mail Messenger News. Ent.

. 2002 US GDP Projection e-commerce (3%) Traditional retail (97%) ..e-commerce only represents a minor fraction of total GDP.

The Internet has to support Brick & Mortar Initiate Relationship in Information Stage Reach New Custome r Sets Reduce Inventory Needs Develop Aftermar ket Contact Internet Contribution to Bricks and Mortar Develop Customer Knowledge Increase Product Selection .

… and Bricks & Mortar must support the Internet Brand Reinforcement and Trust Place to touch and testdrive product Reach a larger customer base Bricks & Mortar Contribution to Internet Facilitate Delivery Capture Aftermarket Profits Capture urgent and impulse buys .

Customers must be able to move back and forth seamlessly .. Role of Bricks and Mortar Internet nfo rI me s to ms Cu ste ed r Sy ha d S te a gr e nt I Bricks and Mortar Buy Own Dispose/ Repurchase Awareness Research Shop Transform Bricks and Mortar ..

Marketing Employment Is Growing “Employment of advertising. and sales managers is expected to increase faster than the average for all occupations through 2010 ” Source: United States Department of Labor . marketing. promotions. public relations.

.eMA Employment Survey 70% of all management level marketing positions require Internet abilities and/or experience.

University of Texas at Austin .Internet Related Jobs Are NOT Just in I T Source: Center for Research in eCommerce. graduate School of Business.

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 A d m i n O i sp t e r raM a t tia oi ro nk n e s t i Mn S e r v i Sc eu p p Wo gI S / S re t b m .

Effective Organization A d m iO n pi s e t rr M a ta i ro k n eM s t i I nS W S S e b m a s e r v i c e u p p o r t .

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 .

radio Lack of understanding of technology by marketers Fast moving and turbulent arena Changing technologies Lack of trained personal Senior management barriers Corporate culture .But E-marketing Suffers From        Lack of data – 5 years vs. decades for magazines.

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 Emarketing          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 Prices Product availability Special promotions or incentives Selection Order tracking Clearly identified delivery time Return policy Ease of use Site performance/speed Source: Vividence 92% 92% 86% 76% 69% 66% 65% 63% 62% 51% .

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 .

laws passed in 19 states Only 3 years of significant use . creates a major negative for e-mail marketing.E-mail Marketing     E-mail is the number one app with over 90% of internet users Issues such as browser differences. and privacy are critical Spam. targeting.

e-mail. chat rooms are the major conduits for viral campaigns What is “buzz” .Viral Marketing     Hot Mail was one of the first examples of viral marketing Another “e” term for “word-of-mouth” advertising Bulletin boards.

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. Pop-ups. active x. 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? ??? .

9% Dial-up Source: NTIA and ESA.6% Other 0. using U. U.S.5% Cable Modem 12. Census Bureau Current Population Survey Supplements 80. Department of Commerce.0% .80% Still Dial-up Digital Subs c riber Line (DSL) 6.S.

One Example .

One More .

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Digital innovations become an integral part of life Breaks Offers down logistical barriers time and business complex business processes greater flexibility and power Shrinks Simplifies Enables Opens effective communication and collaboration up new markets .

The 21 Century s t       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 .

and public relations managers currently are certified. While relatively few advertising. marketing. the number of managers who seek certification is expected to grow. Source: United States Department of Labor .CeMA Certification Certification—a sign of competence and achievement in this field—is particularly important in a competitive job market.

htm .Com/ppt.For a Copy of This Presentation Go To: Http://www.eMarketingAssociatio n.

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