E-commerce stocks continue to outpace the market in 2009

April 6, 2009 Leave a comment

As reported by InternetRetailer.com, e-commerce stocks outpaced the market yet again.  The Internet Retailer Online Retail Index was up 9.5% last week vs. 3.1% for the S&P 500.  For the year the index is up a whopping 22%.

The best-performing stocks last week were American Greetings, Drugstore.com, Blue Nile, Bidz.com, and 1-800-Flowers.com, all with growth between 17 and 25%.

For those who are curious, the 25 companies in the Internet Retailer Online Retail Index are:

1-800-Flowers.com Inc., Akamai Technologies, Amazon.com Inc., American Greetings Corp., Art Technology Group Inc., Bidz.com Inc., Blue Nile Inc., CyberSource Corp., DemandTec Inc., Digital River Inc., Drugstore.com Inc., eBay Inc., GSI Commerce Inc., Keynote Systems Inc., LivePerson Inc., Netflix Inc., NutriSystem Inc., Omniture Inc., Overstock.com Inc., PetMed Express Inc., RealNetworks Inc., Shutterfly Inc., Systemax Inc., United Online Inc. (owner of FTD.com) and VistaPrint Ltd.

For more information, click here.

Filed under eCommerce, Finance, Retailing Tagged with , , , , ,

SEM and SEO spending expected to continue increasing, while online sales continue to bolster retailers

March 25, 2009 Leave a comment

 

According to eMarketer, in spite of growing recessionary concerns U.S. marketers are likely to boost spending by as much as 16 percent in 2009 across the four basic forms of search engine marketing (paid search advertising, contextual advertising, paid inclusion, and search engine optimization.)  Investment is expected to grow to from $12.2 billion last year to $14.1 billion this year.  In addition, they suggest that by 2013 such spending could exceed $23 billion annually.  Another strong upward trend is in the area of search engine optimization, where eMarketer predicts that the size of the SEO industry could almost double in the next five years.

Anecdotal evidence from retailers selling online would appear to support the validity of making these investments.   In its annual report filing, Kohl’s just announced a 48% jump in Internet sales in 2008, joining Macy’s and Saks among retailers who have seen online success despite the recession.  This followed a strong ‘07 for Kohl’s, where online sales grew over 30%.  In the case of Macy’s and Saks, even as poor performing stores were being closed down their online sales were increasing.  What this means is that their brand was still resonating with Internet shoppers.

Online marketing for retailers is more than just SEM and SEO however.  In the case of Kohl’s, they struck timely deals with AOL, MSN and Yahoo during the holidays with eight home page takeovers, plus they offered regular “deal of the day” internet-only discounts on their web site.

The argument for investing in online brand development and selling via SEM, SEO and web site activities remains compelling, especially in these hard economic times.

Filed under eCommerce, Retailing, Sales, Search Engines Tagged with , , , , , , , , ,

Is online advertising failing or is it just the recession?

March 23, 2009 Leave a comment

Eric Clemons has just written a very thoughtful article on “Why Advertising Is Failing On The Internet” on TechCrunch. His high level argument is that the Internet shatters all forms of advertising because it allows consumers to bypass them. He provides evidence for why people don’t trust ads, why they don’t want them, and why they don’t need them. He then goes on to illustrate how the Internet provides ways for people to meaningfully get the information they need without them.

He then moves quickly from advertising to the ecommerce space where he talks about new monetization models around selling real things, selling virtual things, selling virtual experiences, and selling misdirection (a subject where he expresses a lack of faith in Google’s revenue model and sustainability.)

Unfortunately, he falls short in the end of providing a list of concrete replacements for advertising. Can you really imagine a world without ads? Surely they will exist, perhaps in different forms, but they will be omnipresent.  In addition, he sites declining online ad revenues to support his thesis at a time when the culprit may be nothing more than the current recession. Whatever the outcome, his sweeping approach to the landscape of online advertising bears reading.

Filed under advertising, eCommerce, Marketing, Retailing Tagged with , , , , , ,

Local ad spending expected to decline through 2013, interactive segment the only bright spot

March 17, 2009 Leave a comment

According to the BIA and The Kelsey Group, economic conditions over the next few years will reduce overall local advertising spending through 2013.  Local advertising revenues in the United States are expected to decline from $155 billion in 2008 to $144 billion in 2013, representing a negative 1.4 percent compound annual growth rate.

Only one segment is expected to show growth over that time, which is interactive advertising.  The others should see marginal or rapid declines over the next 1.5 to 3 years. 

Tom Buono, president and CEO, BIA Advisory Services, sees an accelerating shift to online and an increasing demand for “accountability metrics”.   According to the survey, interactive share of local ad spending will grow from 9 percent ($14 billion) in 2008 to 22.2 percent ($32 billion) in 2013.   For purposes of the survey, “interactive” includes mobile, Internet Yellow Pages, local search, online verticals and classifieds, voice search, and email marketing.

In contrast, the “traditional segment” is expected to decrease from $141.3 billion in 2008 to $112.4 billion in 2013 (CAGR of -4.5%).  This area includes newspapers, direct mail, television, radio, print Yellow Pages, cable television and magazines.  Neal Polachek, CEO of The Kelsey Group, indicates that the share shift “could actually be more pronounced if the major traditional media are not able to integrate new interactive products into their bundle.”

With yet another major print newspaper (the Seattle Post Intelligencer) closing its doors, the transition already feels very real.  If traditional media companies are to thrive over the next 10 years they will need to continue to embrace interactive strategies far more aggressively.

For more information about the survey and its methodology, click here.

Filed under advertising, Business, Economy, Marketing Tagged with , , , , , , , , , ,

Survey: Allow Your Customers to Interact via Internet and Mobile

January 20, 2009 Leave a comment

The results are clear.  Even if you don’t sell your products online (and you should), information about what you sell, how much it costs, and special offers need to extend to your customer’s mobile devices and computers.

As reported by SmallBusinessNews.com, a recent survey from NCR Corporation indicated that 72% of U.S. consumers are more likely to shop with businesses that give them flexibility to interact easily via online, mobile, and kiosk self service channels.   “Consumers in these uncertain times are clearly showing a preference for retailers that can meet their expectations through self-service options on the web, mobile and in store. These technologies are playing a growing role in helping retailers deliver competitive advantage,” said Mike Webster , chief strategy and communications officer for NCR Corporation.

Two other datapoints of interest include:  1) 53% of consumers using the Internet more frequently to research products and prices, and 2) 46% wanting to receive price comparisons, product reviews, coupons, promotions and store sales information online or via email. 

And speaking of mobiles, according to Informa Telecoms & Media’s Global Mobile Forecasts, annual revenues from the global mobile market will top (US) $1.03 trillion by 2013, when the number of subscriptions worldwide will have risen to more than 5.3 billion.  Considering that it took over 20 years to reach 3 billion subscriptions, businesses should take note of this accelerating growth rate.

 

 

Filed under Marketing Tagged with , , , , , , , , ,

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