Barack Obama changed the political rule book: his 2008 presidential campaign leveraged the Internet's strength to engage disenchanted voters and register new voters. Future political campaigns won't be able to utilize these strategies with the same impact since they won't be as novel and the identified constituencies will now be an established part of the electoral process.
Going forward, online marketers will face challenges similar to those of their political counterparts. The online market's accelerated maturation due to recent economic turmoil means that growth will no longer come as easily. Growth now will have to come at the expense of other channels or competitors, rather than from new users.
Three Online Marketing Goals for 2009 and Related Metrics
Because both marketers and consumers will have limited budgets, we'll see longer sales cycles, lengthier prepurchase dialogues with consumers, and less brand advertising. As a result, companies will focus on the following three goals and the related analytic indicators to track them:
• Increased ROI (define) from better resource utilization. Firms will also explore the potential for new revenue streams. In addition to tracking sales and expenses, companies will spend more time assessing tradeoffs.
• Improved targeting based on a better understanding of the behaviors that drive profitable revenues. This translates into better data mining across functions to find areas of opportunity as well as the use of third-party behavioral targeting functionality.
• Enhanced customer focus to determine what's being said about your organization and to respond quickly to resolve customer issues. This includes assessing your contact strategy, monitoring ratings and reviews, and participating in relevant online communities.
Online Marketing Trends 2009 – Top 7
In 2009, the following seven trends will dominate online marketing. While most are similar to the trends I outlined for 2008, they show an evolution to a more competitive, multichannel marketplace. Also, these trends consider the impact of working within an expense-constrained environment.
• Increase customer retention efforts, because market share often will be at the cost of other channels and/or competitors. Additionally, marketing to your existing customer base is cheaper and more effective because you know who they are and understand their behavior.
• Create more attractive content because it cost-effectively engages consumers at many touch points during the purchase cycle, leverages internal resources, and aids search optimization. While attractive content will take on a variety of formats, a growing proportion of it will be video.
• Develop more targeted and relevant communications to be disseminated across a variety of devices, including advertising, e-mail, smartphones, text messages, and instant messages. While consumers may opt in to text message for time-delayed communications and cost reasons, businesses may limit text messages in enterprise-owned phones to reduce costs. Good database functionality is required to track and analyze customer activity to drive effective communications. For some marketers, this may mean the use of third-party behavioral targeting. Further, in the current economic environment, creating pertinent messages is critical.
• Better leverage communities. While social communities expanded and new niche sites evolved in 2008, companies must think more broadly about their prospects, customers, and other influencers this year. This means evolving beyond the engagement phase of dealing with customers to show them the love. As a result, the community organizer role in companies will be become more prevalent.
• Increase analytic sophistication to drive business decisions in a resource-constrained environment. Contribution to return will determine resource allocation, including money and people. Since this will have an impact on every phase of the business, not just transactions and financials, companies will improve their database utilization. As a result, firms may be forced to reassess their database functionality and create workarounds to compete effectively. On a related note, privacy issues may gather strength under the new Democratic administration.
• Enhance search marketing advertising despite increased cost, because search engines are still the first place online users turn to find information. This translates into more expensive keyword buys due to the growing demand for the limited supply of high-yielding keywords. Additionally, it means an expanded approach to search optimization to include social media, mobile, and local search.
• Continue to integrate distribution channels despite the internal corporate challenges and higher costs. Multichannel merchants will face increased complexity and thinner margins unless they become more efficient.
For online marketers, 2009 will be an exciting and challenging year. They'll need to build the basis for future expansion, including enhancing their brand with limited resources. The reality is that companies can't just stop marketing when times are tough because they risk hurting their long-term market share and bottom line. For many firms this will translate into clever workarounds to leverage existing resources to achieve short-term goals.
Online Marketing Trends For 2009 - Top Seven
TOP TEN TRENDS IN MARKETING
I have put together the 10 key trends I see for 2007 in Marketing Innovation. None of these are new, except for Net Promoter Scores which have only been around for a few years.
And, OK, I have to admit that some of these might end up being more wishful thinking then actual trends, but I get the distinctive feeling many marketers are actually starting to wake up.
Authenticity
Authenticity, honesty, ‘realness’ should have been at the top of this list for the past 10 years – but it seems as if it is actually breaking through now. Too many great examples of how companies enhanced their image and standing with either the general public or a relevant group of advocates have emanated recently – Scobleizer has probably generated billions worth of goodwill for Microsoft, Direct2Dell executives ‘fessing up to making mistakes has taken the air out of the whole DellHell movement, and many a politician has recently saved himself by coming out straight away with the ‘oh man, I’m just human, please forgive me’ or ‘yup, I’m gay, so what’ approach.
Also the negative examples still abound, and this time around they are starting to hurt. We wont mention names *coughEdelmancough* *coughwalmartcough*
Net Promoter Scores
Sell your shares in market research agencies – their extensive research methods will go the way of the dinosaurs. Turns out, it all comes down to one question: "On a scale of 0 to 10, how likely are you to recommend brand/product X to someone else?" As the results of this research can be directly tied to revenue growth, instead of intangible (and not-boardroom safe) fuzzies like brand recognition, watch the corporate world being taken by storm by NPS, following the likes of GE and Philips.
And isn’t it great that the interruption during dinner time will only last 10 seconds instead of 10 minutes?
Buzztracking
What’s being said about me? Why is nobody talking about me? These are becoming core issues for every company. With the advent of ever better tracking tools for online conversations, it’s becoming indispensable to listen into those conversations, be it to monitor bad things happening out there so you can jump in and call corporate 911, or to find out that nobody really cares about you (which is actually even worse).
Time to go look at those Net Promoter Scores...
From segmentation to insights
‘Hey Cathy, I know you have a long distance relationship and are working only part-time to care for your newborn baby (which by the way has done it for your disposable income, for good), but I will still treat you the same as two years ago, when you were a job-starting, free-spending party animal. After all, you are still a 25-29 year old highly educated urban single female, aren’t you?’
Green
It may be a cynical choice by many companies, but green awareness is the trend-du-jour. If even WalMart is starting to promote eco-friendliness, where will it stop? As there is a lot of revenue waiting in this market – be it from selling eco-friendly goods at marked-up margins, or actually providing eco-technology, this one won't go away.
Personally I don’t care if they move into this market for cynical reasons, it’s the end result that counts.
Grey
Marketers the world over are waking up to the fact that the older demographic is a major opportunity – and needs to be addressed in a different way then the 18-34 year olds. Mind you, different doesn’t mean being patronizing and playing on old age. We’re talking people who went to Woodstock and did all kinds of naughty things in their youth – don’t talk to them as if they are senile.
Maybe the fact that many advertising and marketing executives are Boomers themselves will help here
Co-creation
The lazy developers dream – let your customers come up with your products for you. The power of harnessing your customers’ insights is amazing. Once again you are connecting directly to the insights, wishes and beliefs of your customers, ensuring that you will hit a home-run with the rest of the world too.
And the funny thing is – they will do it for free, and even shout it out at the world for you, ‘hey, I helped develop the next Lego Robots, and man, they are cool’.
Experimentational budgets
Following the leaders like Unilever, P&G and Heineken, marketers realize that they will have to set a portion of their marketing budgets aside for well structured experiments. Developments in the digital domain are so fast and furious it’s not always possible to wait for full understanding. By experimenting in a controlled way companies can get insights at very attractive cost – and sometimes even strike gold.
You may not get 24 million viewing minutes for your Ronaldinho fake video on Youtube, but 10.000 views with your target of influencers might be worth just as much, especially if it only costs you 5.000 to do something for them.
The Return of the Soap
As the consumers aversion to traditional 30” spots is starting to hurt, TV channels and advertisers alike have to look for different models. Product placement and branded entertainment are starting to take up a serious position in their portfolios. A major advantage is that the convergence of TV and online is almost built into this model, as there are far less objections to the re-distribution of branded content throughout the internet then with traditional advertising-funded models.
Whether through podcasts, on-demand TV, the fact that the good guys always use Macs or by putting your music up on MySpace, you can be a star outside the networks, or together with them.
More CGA
Not only developers have their lazy-dream, marketers too: Consumer Generated Advertising. Let your customers not only be your Promoters, but actually make your advertising for you. As this advertising will always be based on what they REALLY love about you, it’s sure to strike home with other consumers.
Giving your advocates the tools to tell your story for you is one of the most effective and cost-efficient ways to enhance your position in the market. It’s also scary as hell, but don’t worry – the simple fact that you show the guts to even let your detractors pipe up like Chevy Tahoe did, will create a lot of goodwill.
Oh, and don’t be silly like FedEx or Apple and try to sue your evangelists.
Trend 11:
No more top ten lists :)
So, let me know, what do you think? Did I miss out on something? What won't fly in 2007? Which ones will still be on the list for 2008? And most importantly - I'm hesitant to put a ranking on. I'd rather hear from you what you think will be the Nrs 1 to 10. Let’s discuss.
Top Ten Marketing Trends to Watch in 2007
An inside look at the latest marketing trends that’ll help you boost your business in the coming years
Throughout 2006, I've been watching and interpreting the marketing stats and studies that impact small businesses to give you tips on staying one step ahead. Now, with 2007 fast approaching, let's look at a roundup of the hottest trends, from changes taking place among consumer audiences through what to watch for in traditional and online marketing. Here's the info you need on the most important trends and how to make the most of them to increase sales and grow your business in the New Year.
Consumer Trends
1. College Grads
If you're searching for the most effective way to reach this desirable prospect group, move your marketing dollars into online media. The internet is now the primary source of media and entertainment among college grads, whose top planned purchases upon graduation are professional clothing, travel/airline tickets, health insurance and furniture according to the “Y2M: eGrad College Graduate Survey”. Nearly 80 percent of respondents are online purchasers, making them ideal candidates for your online campaign.
2. Affluent Working Women
The big news is that this group is increasing in size, and the best way to reach them may be online. According to The Media Audit, affluent working women with family incomes of $75,000 or more are growing in number, and 94.3 percent access the internet during an average month. About half are now considered heavy users of the internet, while heavy use of radio, television, newspapers and direct mail has all declined within this group. To increase sales from this expanding audience, alter your media spending to place greater emphasis online.
3. Asian Population Growth
The southern region of the U.S. boasts the fastest Asian population growth rate (31 percent), followed by the Midwest (24 percent), the Northeast (23 percent) and the West (19 percent), according to an analysis of Census Bureau data in the “American Community Survey” by Kang & Lee Advertising. Asians represent a prospect group with higher than average household incomes and education levels. Can you offer a product or service that will appeal to this growing market?
4. Word-Of-Mouth
Want to build buzz? Lucid Marketing's study, "U.S. Adults: Word of Mouth Communications," found that women were more likely than men to share a positive experience with a business or recommend an enjoyable product; full-time employees made substantially more daily contacts than those not in the workforce; and people with household earnings of more than $100,000 were more likely to make recommendations than those earning less. So buzz marketers should direct efforts to these three "chatty" groups.
Trends in Traditional Media
5. Yellow Pages
According to a study from the Kelsey group, marketers targeting younger demographics should transition away from print. Only 28 percent of teens said they would turn to print Yellow Pages first to find a local business, product, or service, while 47 percent said their first choice would be search engines. And just 44 percent of respondents between the ages and 18 and 34 favored print Yellow Pages.
6. Simultaneous Media Usage
There's no longer such a thing as a captive media audience--consumers are frequently participating in more than one form of media at any one time. Seventy percent of web users, for instance, watch TV occasionally to regularly while online, according to BIGresearch’s “Simultaneous Media Survey.” It also found that nearly 65 percent watch TV while they read, and 51 percent of radio listeners read the newspaper while listening. The rise in multitasking among consumers mandates an integrated media approach and an increased emphasis on advertising within the most relevant and engaging content.
7. Newspapers
This past year, many of the websites of major newspapers have become the number-one portals in their geographic markets and are drawing a larger, younger and more affluent readership. The audience that reads a newspaper’s website but not its print version accounts for 2 to 15 percent of the Integrated Newspaper Audience, according to Scarborough Research, and that represents hundreds of thousands of readers for many newspapers in larger markets. They’re successfully attracting 18-to-34-year-olds to their sites, and the online readers are more upscale, which can make them a more desirable audience. If you're an advertiser in the "print" newspaper, you can negotiate for a combo rate to run online as well to reach these additional readers. And if advertising in the print newspaper is too expensive for your business, you may find more affordable rates online by drilling down past the main pages to place ads on content-rich, but less frequently visited web pages.
Hot Online Trends
8. Web Conferencing
As business travel becomes increasingly challenging due to increased security, advance check-in times and transportation delays, online workshops and meetings that require no travel are coming to the forefront. It’s more desirable than ever to demo your new product to a group or make a sales presentation without anyone ever leaving home. Participants can watch your presentation on their computer monitors and hear you live on their computer speakers or by phone. In fact, I'm now transitioning to this technology to deliver webinars, and you can, too.
9. Online Research
Whether you sell exclusively online or primarily through a brick-and-mortar site, online search will have a profound impact on your sales in 2007. When asked how often they researched products online before buying them in person or in a store, 87 percent of nearly 7,500 respondents to a BIGresearch “Consumer Intentions and Actions Survey” said they did so occasionally to regularly. And a comScore research study showed that 63 percent of searchers completed a purchase in offline retail stores following their search activity. So no matter whether you sell online, off-line or both, you need a great website with deep, persuasive content that keeps your prospects and customers shopping on your site or sends them to your store.
10. Local Search
Want to know where to invest your online marketing dollars in 2007? Aim for higher rankings in the top search engines. Sixty-two percent of searchers click on a link within the first page of results, according to a report from iProspect and Jupiter Research. To win higher rankings in natural search results, you can optimize your site by sprinkling the keyword phrases your best prospects will be searching for throughout all the pages of your site, in your page descriptions and in metatags. You should also secure links to your site from other high-ranking websites. But to guarantee you'll turn up in the top search results, invest in a paid search campaign. Local search campaigns are often the most affordable and will bring traffic from your immediate market area in the New Year
