retail - IAB UK

Transcription

retail - IAB UK

Ve r t i c a l S e r i e s
retail
contents
Introduction
to the sector and online advertising 1
No need to shop around
All your useful links 3
Money money money
the ecommerce boom continues 9
The online shopper and their
customer journey 14
What should retail marketers
be doing online? 25
CASHBACK! Which brands are
at the checkout with their
online activity 38
The reviews are in!
NMA site inspections 47
Online really works:
IAB brand engagement study 49
Introduction
to the sector and online advertising
Retail advertising online has been under the IAB
microscope for quite some time now and has - to
date – presented us with some quite contradictory
circumstances. Despite the billions of pounds that
consumers spend online each year (46.6 in fact!)
those internet marketing budgets have remained
pretty static since time began, normally increasing by
only a few percentage points every six months. So
why is it that according to the latest wave of the IAB/
PwC online advertising expenditure study, the retail
sector accounts for just 5% of total internet spend
in the second half of 2007? Encouragingly, this is
up from 3.3% for the same period the year before,
however there remains a stark discrepancy between
the money the general public are ploughing into their
ecommerce activity, and the money many retailers
are investing into the medium. We believe that this
is due, in part, to the fact that ecommerce remains a
consumer-driven market – shoppers are more active,
often searching for what they want rather than being
sent there by online advertising.
But hey, let’s not focus on the negatives, but rather concentrate on
the weird and wonderful world of the online customer journey. A
highly complex and unpredictable process at best, involving of the
exceptional tools that can be employed to help you do this.
1
Introduction
research, comparison, retention, raised awareness, simple nosiness
and of course that eventual purchase, marketers have numerous
opportunities to greet their consumers at every point with a friendly
‘hello’, some useful information or an offer that consumers were
otherwise unaware of. Display, search advertising, email, affiliate
marketing, interactive video and behavioral targeting are just some of
the exceptional tools that can be employed to help you do this.
This handy little guide provides all you need to know in a nutshell,
helping you become fully acquainted with the medium and how it can
not only drive sales but raise awareness and establish a secure online
presence – what to do, why to do it and most importantly, how.
With essential stats, a wealth of tips and guidelines from industry
experts and examples of great retail online campaigns, we’ve literally
crammed this book with all the relevant information we could get our
hands on.
2
No need to shop around.
All your useful
retail links
Brand Home Sites (some nice ones…)
Abel & Cole
www.abelandcole.co.uk
Food delivered to your door from free ranges to fresh fruit, meat,
cakes, dairy and so on. The recipe area lets you discover umpteen
different recipes per each food item.
Boden www.boden.co.uk
This clothes site was founded in 1991, initially launching with just 8
menswear products. They have withstood five burglaries, one office
dog, nine Christmas quizzes, twelve nights spent in the warehouse
and one consignment of refugees arriving with a clothes delivery and
now employ over 600 hard working staff and dispatch over 3,000
orders every day from their warehouse.
Ikea
www.ikea.com/gb/en/
The site has a room planner application for each room in the home
and the ‘IKEA Help Centre’ allows you to ask any question, which then
redirects you to the closest related page.
John Lewis
www.johnlewis.com
Voted the UK’s favorite retailer, the website allows you to browse via
brand name or product and pick through ‘buyer guides’ covering all
major consumer products.
Juno
www.juno.co.uk
The ‘world’s largest dance music store’ with a comprehensive source
of new and back catalogue dance music and they now offer over 700
new releases each week, with more than 62,000 titles in stock.
3
SimplyGames
www.simplygames.co.uk
Launched in 1998 and surviving the dotcom bust, Simplygames is
one of the longest-established online retailers of video games.
Wickes
www.wickes.co.uk
The site contains 3,500 products for DIYers and tradesmen
undertaking DIY projects, general repairs and maintenance. You can
make use of a comprehensive range of free ‘Good Idea’ and ‘Build
Your Skills’ leaflets on the site, which have been designed to inform
and advise customers on a number of key DIY topics.
Yoox
www.yoox.co.uk
Fashion aficionados should make use of this site as it holds clothes
from the past and the potential styles of the future as the No.1 virtual
boutique of multi-brand fashion & design. As the Y and X in the name
reveals, it caters for both men and women.
And super cool sites from around the world…
http://producten.hema.nl/ - The inclusion of a Dutch website may
initially seem strange, but you do not need to speak the language to
appreciate the creative approach to product display on this site. Land
on the homepage and watch it literally explode to life.
www.threadless.com/ - One of the best examples of an e-retail
site successfully tapping into the social media boom. Users can
submit T-Shirt designs and the community votes on their favourites
which then get made.
www.manufactum.com - A site based around the simple ethos
that “they don’t make ‘em like they used to”. Manufactum stock
somewhere in the region of 1,500 quality household goods, clothes,
tools and toys, some of which are true classics which have stood the
4
test of time. They are made from materials of the highest quality, they
function well and it’s promised they will outlive any trend or fashion.
www.ladybirdprints.com - A quirky new site that brings to life the
pictures from the Ladybird Books. Ladybird prints contains over 4000
images from the Ladybird Books, now available to browse and buy as
prints and canvases. Each one is available to buy in different sizes and
finishes to suit you.
Retail Forums
Consumer Action Group www.consumeractiongroup.co.uk/forum/
Concerned with all aspects of consumer rights, they also host the
ConsumerWiki and a Consumer Review Forum where you can share
thoughts about any product or service which you have bought - good
or bad.
Dell
www.dellcommunity.com/supportforums
This is a place where Dell customers can discuss topics about their
purchases and get expert support from Dell Staff.
Fashion Capital
www.fashioncapital.co.uk/Community
This site is the one-stop online support resource for all areas of the
clothing and fashion industry. Forum discussions include jobs, chat,
desperately seeking and business issues and much more.
Handbag
www.handbag.com/forums
The site includes expert insight, discussion forums, comment and email,
plus tips and articles on everything from fashion to sex and diet. The
typical handbag.com user or “handbagger’ visits handbag.com three
times a month, on average, for tips and advice about a future purchase
or for inspiration.
5
I n t e r n e t Ve r t i c a l S e r i e s
Retail
Local Food Forum
www.localfoodweb.co.uk/forum.asp
Questions from all across the UK are posted regarding organic
recipes, near by places to eat and topical questions about food.
Money Saving Expert
http://forums.moneysavingexpert.com/
Dedicated to saving you money on anything and everything by
finding the best deals and ‘beating the system’. It’s based on detailed
journalistic research, cutting edge tools and has one of the UK’s
largest forum communities.
Waitrose
www.waitrose.com/forum
Here Waitrose customers are encouraged to share new ideas, tips
and information about the website, cooking ideas, food issues
and such.
Blogs
Guardian www.guardian.co.uk/lifeandstyle/wordofmouth
The Guardian food blog encompasses all aspects of the food retail
from supermarkets to new foods and industry gossip on recipes,
events and competitions.
Kineda www.kineda.com
Part blog, part lookbook, Kineda isn’t your typical online style guide.
While the blog offers a comprehensive look at fashion along with
lifestyle features, music reviews, and celebrity interviews, the lookbook
offers a rare glimpse at what Kineda’s half a million monthly readers
are wearing right this moment.
6
Stylefinder www.stylefinder.com
Explain the trends and showcases favourite fashion items and beauty
products, handpicked from everything that’s available on the high
street and online. The site covers the whole spectrum of labels, from
Primark to Marc Jacobs with the ‘Reader Favourite’ function where
users share their new clothes, forums and ask the expert facility.
TreeHugger
www.treehugger.com
Tree Hugger is the leading media outlet dedicated to driving
sustainability into the mainstream. Partial to a modern aesthetic, they
strive to be a one-stop shop for green news, solutions, and product
information.
For us in the trade...
Ecommerce Blog www.ecommerce-blog.org
The Ecommerce Blog is an online resource to help you get
information relating to all aspects of ecommerce. It is geared to the
small business owner who probably doesn’t have the funding to hire a
firm or several other people to help run the website.
Getelastic
www.getelastic.com
Get Elastic is a way to start a conversation with all online retailers and
Internet marketing buffs, whether you’re using our platform or not. It
provides ideas on how to sell on the Internet by covering emerging
media and technology.
Interactive Media in Retail Group
www.imrg.org
Membership community for the e-retail industry, whose vision is to
maximise the commercial potential of online shopping.
7
Retail
Review and Comparison Sites
Kelkoo www.kelkoo.co.uk
Kelkoo is the third largest ecommerce website in Europe and the
largest e-commerce advertising platform both in the UK and Europe.
MSN shopping www.shopping.msn.co.uk
Allows you to compare millions of products from thousands of stores.
It provides you with all the latest products and deals in your favorite
shopping categories.
PriceRunner www.PriceRunner.co.uk
PriceRunner compares thousands of products and millions of prices
aided by video reviews. It also boasts guides and advice to buying,
and has a forum and competition area.
Reevoo
www.reevoo.com
Reevoo are an independent company that collect and publish genuine
reviews, to help you decide what to buy (and what not to buy).
Review Centre www.reviewcentre.com
Review Centre is the UK’s largest consumer review website and
covers a variety of popular channels such as Finance, Travel,
Entertainment, Fashion, Sports, Supermarkets, Lifestyle products and
Electrical goods.
TipaTipa www.tipatipa.com
TipaTipa is an online community that helps you get the sort of deals
that price comparison sites can never find. Deals you only get through
concerted effort, having a contact in the trade, a discount code or
because you’re a gifted haggler.
8
Money, money, money
… the ecommerce boom continues
Get ready for a lot of stats:
• The Verdict UK e-Retail 2008 Report puts the online shopping
population at 22.6m.
• The £46.6bn ecommerce spend in 2007 was up 54% on the
£30.3bn recorded for 2006 (Interactive Media in Retail Group – IMRG)
• The largest sub-categories are: Electricals (25.1%), Food and
Grocery (24.1%) and Clothing and Footwear (11.5%) (Verdict UK
e-Retail 2008 report)
• 15% of all retail spend was online in 2007 (IMRG Capgemini e-Retail
Sales Index 2008)
• The online boom is helping many other small retailers and suppliers
to flourish in the downturn. Online shopping grew 38% year on year
in the first six months of 2008, says IMRG. This is in stark contrast
to the trend of falling high-street sales, which declined 3.9% in June,
according to the latest figures from the Office for National Statistics.
• Capgemini and IMRG report that for the first half of 2008, 17p in
every pound was spent online. This is roughly equivalent to half of
all supermarket sales and larger than all retail sales for clothing
and footwear.
• UK Internet traffic to the online properties of high street retailers
increased by 18.7%, compared with a drop of 10.2% for online only
retailers. (Hitwise UK Online Retail Update, IMRG, 2008)
9
Money, money, money...
• The top 100 high street retailers online accounted for 1.85% of all
UK Internet visits in July 2008, equivalent to one in every 5 visits to
an online shopping website. (Hitwise UK Online Retail Update, IMRG)
• The top 5 online high street retailers in the UK during July 2008
were: 1. Argos.co.uk (1.69% share of UK Internet visit to Shopping
and Classifieds websites), 2. Tesco.com (1.27% share), 3. Next.
co.uk (0.90% share), 4. Marksandspencer.com (0.74%) and 5.
Johnlewis.com (0.58% share). (Hitwise UK Online Retail Update,
IMRG)
Tills ring…are you listening? Christmas shopping online:
• Online shopping reached an all time high in the run up to Christmas,
with £15.2 billion spent online in October to December bringing full
year UK e-retail sales to £46.6 billion, up 54% on the £30.2 billion
recorded for 2006, according to the ‘IMRG Capgemini e-Retail
Sales Index’. (IMRG Capgemini e-Retail Sales Index 2008)
• Following the lead of US traders in 2006, several leading retailers,
including Marks & Spencer, Dixons and Comet, ran online sales
promotions on Christmas Day itself, attracting significant levels of
business while the high street shops were shut. Four million people
shopped online on Christmas Day 2007, spending an estimated
£84 million, an average of approximately £21 each.
(IMRG Capgemini e-Retail Sales Index 2008)
• The largest sales growth can be seen in the specialist e-retail
sectors e.g. the electronics sector saw sales growth of 60% in
December 2007, indicating that online is increasingly taking the
lead. The clothing sector shows a 28% increase on the same point
last year and the beers, wines and spirits sector shows over a 20%
increase. (IMRG Capgemini e-Retail Sales Index 2008)
10
• IMRG Capgemini e-Retail Sales Index’ research shows that the
retailers who have both a high street and an online presence seem
to have done better than the ‘pure-plays’. (IMRG Capgemini e-Retail
Sales Index 2008)
• “Given the 2.6% year-on-year decline in actual physical visits to
retailers reported by Experian Footfall for July, it looks like high street
retailers will be more reliant than ever on their online operations this
Christmas.” (Robin Goad, Research Director for Hitwise UK)
UK Internet traffic to Shopping and Classifieds category
11
Retail
Money, money, money...
Online advertising spend in the retail sector:
• UK Internet advertising expenditure grew 38% year on year to reach
£2.8 billion in 2007, commanding a market share of 15.3%. (IAB/PwC
online adspend study H2-2007).
• Within the total online advertising spend for the latter half of 2007,
paid for search accounted for 57.6% of the total share, display 21.0%,
classifieds 20.8% and Solus email 0.6%. (IAB/PwC online adspend
study H2-2007).
•T
he retail category grew its share of online ad spend by 1.7 share
points to 5% in H2 2007 from 3.3% in H2 2006. (IAB/PwC online
adspend study H2-2007).
• Online ad spend is beginning to grow in the retail sector and this can
be attributed to a buoyant and competitive ecommerce market.
Despite booming ecommerce, the retail sector lags behind in
the online advertising game – FACT.
Category average online spend: 4% of total spend
Internet Display Spend
% of Total Media Spend
2,500
35
30
Thousands
2,000
25
1,500
20
1,000
15
10
500
5
0
s
o
er
en
ms
rys
ers
wis
ld’
sc
Te csav Npow Cur n Le ona werg enha
o
D
h
e
b
c
P
o
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e
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S
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(Nielsen Ad Dynamix; April 2007- March 2008)
12
u
K
xt
Ne nes4 ike U
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N
Ph
0
The performance of selected online categories
Category
Total U.K. Internet Audience
Corporate Presence
Services
Portals
Search/Navigation
Retail
Entertainment
Conversational Media
e-mail
Social Networking
Directories/Resources
Multimedia
Business/Finance
News/Information
Downloads
Total
Unique
Visitors
(000)*
% Reach of
total U.K.
Internet
Audience
34,860
33,851
33,574
32,421
32,257
29,580
29,115
27,660
27,109
26,953
26,804
24,088
23,243
22,945
21,894
100.0
97.1
96.3
93.0
92.5
84.9
83.5
79.3
77.8
77.3
76.9
69.1
66.7
65.8
62.8
Source: comScore Media Metrix – June 2008
Ranked by total U.K. Unique Visitors (000)*
* Unique Visitors aged 15+, excludes traffic from public
Computers such as internet cafes or access from mobile phones or PDAs
13
Retail
The online shopper and
their customer journey
“Retailers know that issues such as poor customer
service and out-of-stock products frustrate their
customers, but what is shocking is that only a small
number of successful retailers translate this customer
insight into meaningful operational customer service
improvements. The internet has become an extension
of the in-store shopping experience. UK customers are
making wide use of it not only to buy products, but to
check availability and find the best prices.”
- Richard Wildman, UK head of retail, Accenture
So, what’s the deal?
• 5% of the population shopped online in 1999 compared to 40% in
2007 (uSwitch 2007; The Retail Bulletin, Jan 2008)
• The average UK household spends £980 a year online, representing
10% of their annual retail bill. (uSwitch 2007; The Retail Bulletin,
Jan 2008)
• The most popular products are holidays, music and films. (uSwitch
2007; The Retail Bulletin, Jan 2008)
• Women 25-54 are 16% more likely than the average adult to use
the internet for information. Not only researching products online,
these women are also nearly twice as likely to make an online grocery
purchase than the general population. (TGI GB Q4 2007)
14
• Research by Accenture found that poor customer service and limited
product offerings in the high street are increasing online shopping in
the UK. (Accenture – from IMRG, 2008)
• 56% of men said they preferred shopping online to the high street,
with 44% of all shoppers agreeing with this statement.
(Accenture – from IMRG, 2008)
• Research also revealed that 71% of shoppers use the web to preview
and compare prices and 44% check stock availability online before
heading to the high street. (Accenture – from IMRG, 2008)
Key motivations for shopping online by AOL:
• 65% avoid the queues/people
• 64% convenience
• 63% cheaper than the high street
• 60% less stressful
• 53% purchase from stores further away
• 54% easier to find bargains
• 91% have purchased an item before trying it on
• 71% happy to purchase from a non high street store
• 55% have purchased from a store they have never heard of before
From all internet users that have purchased clothing/shoes online (3740)
(AOL E-commerce Jan 08)
Internet users are impulsive trend setters, who seek
convenience, for example:
• 45% Convenience plays a part in my purchase decisions
• 35% Shopping online makes my life easier
• 29% People come to me for advice before buying new things
• 25%I am usually the 1st among my friends to know what’s going on
• 28% I am tempted to buy products that I have seen advertised
• 24% If I like something, I just buy it without considering the price
(TGI GB Q4 2007)
15
Retail
customer journey
The benefits of shopping online?
Microsoft Advertising conducted some research in 2008 to gain an
insight into the lives of today’s mums. They wanted to explore specific
habits and attitudes towards media & technology. They found that:
•M
ums play a key role in decision making across a range of products
and services including holidays, cars and finance.
•T
he internet has enabled mums to become more informed and hence
more engaged in the purchase process e.g. buying a car.
•B
rands outside of beauty, baby and household should engage with this
audience online by selecting appropriate environments and creative.
Web Women With Kids - A study exploring Mums and their online behavior
Can do anytime
81%
76%
Easy
75%
Quick
73%
Don’t have to carry purchases
Don’t have to drag children around
61%
Easy to compare
58%
Often cheaper
53%
44%
No pushy sales people
36%
Can spend more quality time with the kids
28%
More choice
19%
Can use coupons
Other people can give advice
15%
(Microsoft Advertising
June 2008)
“Women in particular get the chance to shop online without kids in tow.
People used to talk about not being able to touch and feel goods but
touch has been replaced by a much richer experience, now with video,
striking photography and three-dimensional imaging. Superior returns
policies and huge choice also make a difference. We really do believe the
online boom is finally happening.” Michael Petevinos of Capgemini.
16
Demographic breakdown of the online retail category
Demographic
% Composition
Unique Visitors
Total Audience
100.0
Persons – Age
Persons: 15+
Persons: 15-24
Persons: 25-34
Persons: 35-44
Persons: 45-54
Persons: 55+
100.0
19.1
19.3
24.9
18.2
18.6
Males - Age
All Males (15+)
Male: 15-24
Males: 25-34
Males: 35-44
Male: 45-54
Male: 55+
52.5
9.8
10.1
13.0
9.6
10.0
Females - Age
All Females (15+)
Female: 15-24
Females: 25-34
Females: 35-44
Female: 45-54
Female: 55+
47.5
9.3
9.2
11.9
8.6
8.6
HH Income (UK)
HHI UK: Under £10K
HHI UK: Under £25K
HHI UK: Under £35K
HHI UK: Under £50K
HHI UK: £10K-£24,999
HHI UK: £25K-£34,999
HHI UK: £35K-£49,999
HHI UK: £50K or more
8.6
32.4
49.6
70.7
24.2
17.2
21.1
29.3
17
Source: comScore
Media Metrix
– June 2008
* Unique Visitors
aged 15+,
excludes traffic
from public
computers such
as internet cafes
or access from
mobile phones or
PDAs
Retail
customer journey
What about the luxury consumer?
In January 2008 the IAB and Wallpaper* - a global luxury offline
and online magazine - joined forces to research the online luxury
consumer, to prove that consumers in the UK market are using
the internet to research about luxury goods online, even if they are
purchased offline.
• There are approximately 5.9 million regular online luxury consumers
in the UK of which 17% (1 million) are “premium” luxury online
consumers.
• More than half of premium online luxury consumers have spent
£4k+ per person on leisure and travel and £3k+ on electronics in the
last 12 months.
• Premium luxury consumers spend over 4 times more online than
all luxury consumers on luxury goods. This is £32k per year for the
premium luxury consumer vs. £7k per year for all luxury consumers. Online and offline the premium group are spending almost £60k per
year on luxury goods compared to £13.5k of all luxury consumers.
•T
he online premium luxury consumer (17% of online luxury
consumers) account for 61% of the total spend on luxury items.
•O
ver half (56%) of premium luxury consumers are buying designer
clothes and accessories online, on a par with the percentage of this
group purchasing designer clothes and accessories offline.
•A
lmost a third of this premium group is spending £2.5k+ on
jewellery online and over a third is spending this on furniture online. Almost 2 thirds of the premium group (63%) and 40% of all luxury
consumers are spending £500+ on gadgets per year online – this
being 38% and 22% respectively offline.
18
Who is the recommendation generation, and what does it
mean for retail marketers? From Chris Tomlinson, former head
of digital at WAA:
• We now have ‘Web 2.0’, an online world of social networking
and user generated content, inhabited by a new generation of
consumers. Known as the ‘recommendation generation’, these net
natives have a healthy scepticism of conventional marketing and
don’t necessarily believe what brands say about their products.
• This generation wouldn’t dream of buying anything without checking
consumer product reviews on independent price comparison
websites or forums. Peer referral has always been the most
sought-after prize in brand marketing, but now it’s essential for a
brand to succeed.
• To tap into this, ‘tell a friend’ culture, brands need to spread their
messages via ‘word of mouse’. Online brand marketing will soon
solely be about stimulating online conversation in the hope that
satisfied customers will become brand advocates.
• Some try a technique known as ‘astroturfing’ and fake positive
conversations between bogus consumers in an attempt to mimic
grass-roots discussions. But these are as easy to spot as the fake
readers letters to tabloid agony aunts that are clearly written by the
editorial staff.
• The trick here is to reward contributors with special offers and status
even if their contributions aren’t necessarily favorable to your brand!
• Getting the thumbs up from the recommendation generation can be
as simple as adding links to social book marking sites such as
del.icio.us, Digg, Reddit and StumbleUpon to your own website to
allow visitors to vote for its content.
19
Retail
customer journey
UK Internet searches for ‘sale’ and ‘sales’
Downstream traffic from the three main webmail providers
to Shopping and Classifieds
20
What are shoppers searching for?
A quick UK sample from Google (June 2008):
• Dresses
• Wimbledon
• DVDs
• Laptops
• Sunglasses
• Lingerie
• Sandals
• Liverpool fc
• Fridge freezer
• Barbeque
3,203,800
2,082,799
1,189,493
1,728,746
1,395,347
1,069,904
912,036
519,348
409,007
157,906
Top keywords from Microsoft adCenter for retail (2008):
Games, Shoes, Flowers, Books, Laptops, Lingerie, Dress,
TV, Toys, Digital camera, Fashion, Bikini, Florists, Bra, Top,
Mobile phones, Rose, Toy, Boots.
21
Retail
customer journey
Top 50 most popular sites for heavy U.K. visitors to retail sites
Category
Total Internet Retail - Heavy
Wal-Mart
Littlewoods Shop Direct Group
NEXT Group
Shopzilla.com Sites
Marks&Spencer
John Lewis Partnership
Kingfisher
Arcadia Group Limited
Home Retail Group
Ciao Sites
MONEYSAVINGEXPERT.COM
Carphone Warehouse Group
Play.com Sites
Ticketmaster
Tesco Stores
Dixons Stores Group
Trader Media Group
Royal Mail Group
Reed Business Information
Time Warner - Excluding AOL
Gannett Sites
Camelot Group
DIRECT.GOV.UK
Groupe Lagardere
Arcandor AG
JOBCENTREPLUS.GOV.UK
Amazon Sites
UK.COM
Lastminute.com Sites
Total Unique
Visitors % Composition Composition
(000)* Unique Visitors
Index UV
5915
1298
1582
1435
1329
1107
1053
1656
1117
2983
1171
911
1000
1606
959
2728
1570
1677
1287
869
1456
895
1269
1342
837
1073
950
3618
1556
1070
22
17.0
49.7
48.9
48.3
46.3
45.6
43.6
43.4
43.3
43.2
43.1
40.5
40.0
38.7
38.6
38.0
37.2
37.0
36.4
35.8
35.7
35.4
34.6
34.5
34.1
33.6
33.4
33.4
33.3
33.1
100
293
288
284
273
269
257
256
255
255
254
239
236
228
227
224
219
218
214
211
211
208
204
203
201
198
197
197
196
195
Category
Total Unique
Visitors % Composition Composition
(000)* Unique Visitors
Index UV
Virgin Group
Bauer Consumer Media
Rightmove Sites
Trinity Mirror Group
TUI Group
Glam Media
The Royal Bank Of Scotland
Priceline.com Incorporated
HBOS
Demand Media
Guardian Media Group
British Telecommunications
Channel4
Tiscali Sites
Deutsche Telekom
News International
Lloyds TSB
Friends Reunited Group
Barclays Bank
First Choice Holidays PLC
NetShelter Technology Media
1529
1051
937
1438
1148
1638
1668
846
1244
955
1380
1605
1491
874
718
1898
1160
1145
1457
1324
824
32.9
32.8
32.7
32.7
32.6
32.6
32.6
32.5
32.4
32.1
32.1
32.0
32.0
31.9
31.8
31.4
31.4
31.3
31.3
31.2
31.1
Source: comScore Media Metrix – June 2008
Ranked by Composition Index UV
* Unique Visitors aged 15+, excludes traffic from public
computers such as internet cafes or access from mobile phones or PDAs
23
194
193
193
193
192
192
192
192
191
189
189
189
188
188
187
185
185
185
184
184
184
Retail
customer journey
Internet users can also be freaks… the ten weirdest things
put on eBay according to Ukpreneur:
1. A
serial killer’s fingernails – The fingernails of Roy Norris - killer
of 5 - were sold for $9.99.
2. A
person’s soul – An American man tried to sell his soul for $1
million in 2007 claiming; “I’m not really using it lately - and selling it
on the internet is better than letting the Devil have it”.
3. A
liver – America again, a man from Florida tried to sell part of his
liver for transplant purposes. It was eventually pulled from the site,
not before amassing a bid of $5.7million.
4. H
aunted rubber ducky – In 2004 this spooky bath toy was sold
for $107.50. Quite why anyone would want it, it apparently bites
children.
5. J
esus toast – This piece of toast that had the face of Jesus burnt
into it, never ended up selling.
6. J
ustin Timberlake’s French toast – A half eaten piece of toast
discarded by Justin Timberlake sold for $3,154 dollars in 2000.
You can’t shift JC toast, but JT toast goes for three grand?!
7. R
ights to name a woman’s baby – In 2005 a caring mother
allowed an online casino site to name her child. She received
$15,100 and the child received the name GoldenPalace.com.
8. Imaginary friend – A man decided to sell his imaginary friend
called Jon Malipieman, having grown out of him at the age of 27…
the imaginary friend sold for $3,000. I kid you not..
9. G
host cane – Another spooky one, a haunted walking stick sold
for $65,000. Guess who bought it? GoldenPalace.com.
10. G
iant cheetoh – ‘The worlds largest Cheetoh’ - as big as a kiwi
– received bids of $180 before being taken offline and becoming
a local tourist attraction.
24
be doing online?
“More than two thirds of people are now happily
shopping online. AOL’s ecommerce study
(Jan 2008) clearly shows that the old walls to
e-shopping have come down with more than half of
respondents happy to purchase from a store they’ve
never heard of and 91% purchasing online before
trying an item on. 9 out of 10 people mentioned the
following as major factors in their online shopping:
stock availability, ease of returning an item and
good quality images of the products. Don’t forget
the human touch too. 94% of respondents wanted
an easy way to contact the retailer just in case
something goes wrong. Consumers are clearly at
ease with this channel, it’s down to retailers to make
their buying journey as pleasurable as possible,
from ‘transaction’ to ‘leisure activity’”.
- Sarah Perry - Category Sales Director, Platform-A UK
5 tips for online retailers from Jeremy Garner, Creative
Director at LBi:
1. W
hen it comes to setting out your range, let the visuals do as
much of the talking as possible. Don’t get bogged down with
trying to over explain things, as too many words will just make
your pages appear cluttered.
25
be doing online?
2. Wherever possible, use interactive functionality such as flash to allow
customers to zoom in and examine product detail. Try to provide
enough viewpoints of the product to close the sale there and then i.e. include the front, back and any important details.
3. Keep it fresh and ‘new’. As with real high street shopping, customers
expect to walk into the store and see the very latest items. Don’t bury
new releases in sub-level pages - find a way of showcasing them on
the homepage or, better still, throughout the site at relevant points.
4. Ensure the check-out process is as streamlined as possible.
This is a great and opportune moment to recommend relevant
items to customers. Relevancy is the real key here - base your
recommendations on other customers’ shopping data. Furthermore,
don’t forget to allow customers to be able to add products to the
basket at every opportunity.
5. At all times keep in mind that the success of the site will be governed
on whether or not customers will tell their friends about it. The whole
experience not only has to be seamless, but actually enjoyable. Not
nearly as many people would be addicted to shopping in the real
world if the experience itself was frustrating or mundane - the same
goes for online retail. Make it the kind of experience where people
think they will be doing a favor by recommending it to friends.
5 Measurement and analytics tips from Google:
1. It’s important to use the accountability of the web.
2. Identify your goals, track them and improve the ROI of your
marketing investment. For example trial different messaging and
page formats.
3. P
erform small surveys to learn more about your customers. Constant
testing and refinement should be everyone’s mantra.
4. B
ounce rate is important as it tells you if you are sending traffic from
your PPC campaign to the right type of page (are you meeting the
user’s expectation)
5. G
ain more insights here; www.google.com/support/
conversionuniversity/?hl=en
26
Tips for good online/offline retail integration: a perspective
from Forward Ltd.
The following tips are based on learning’s from Tesco Baby & Toddler
Club, developed for Tesco by Forward. Tesco Baby & Toddler Club
includes a website, mailed magazine programme and newsletters.
• Build a recognizable presence. Adapt the offline brand guidelines
and color usage for the website and share imagery on and offline.
• Repurpose key offline content, e.g. magazines, for online use. This
provides customers with two ways to access information according
to their needs, but also reflects online requirements. For example,
60% of Tesco Baby and Toddler Club’s website content is adapted
from the offline magazine. The other 40% is interactive, communitybased content, which adds extra value to the Club online and
provides more incentives to visit.
• Deliver a consistent and simple shopping experience for the
customer by ensuring that the online promotions reflect the in-store
promotional periods and offers. Allowing shoppers to click through
to the online store from offers on the website or banner advertising
encourages immediate purchase.
• Cross-promotion, in which offline communications promote the
online service and vice versa, generates free advertising and
encourages broader customer participation.
• Ensure that both the offline and online teams work closely together,
so that changes to the website and offline mailings can be both proactive and reactive
• Enable customers to request offline magazines or communications
online, so they no longer have to wait for their mailing.
• Offering advertising to suppliers on and offline ensures that clubs are
heavily supported, and drives retail sales.
• Evidence that integration works: membership for the integrated off
and online Club has risen by 30% since www.tesco.com/babyclub
launched in September 2007, and has directly driven £1.5million in
Tesco.com sales.
27
Retail
be doing online?
The do’s and don’t’s of multi-channel shopping, by GT:
Multi-channel shopping presents customers with the ultimate in
shopping freedom. It gives them the ability to choose and move
seamlessly between each of the different available shopping channels,
irrespective of the type of products being purchased, while choosing
the most convenient process by which to receive their goods.
Dos:
Make sure data is available both on and offline so call centres
and stores can check all orders. Nothing is more frustrating to
customers than data not being available when checking with
staff or stores.
Make sure the brand experience and feel is the same online and
offline. All brand credit will be lost if the online experience does
not match the promise of offline and vice versa.
Make sure the call to action “buy now” is prominent and easily
findable on every page.
Make sure your customer service information is clearly
accessible so people know what the returns policy is.
Include ‘recently viewed’ navigation (e.g. www.johnlewis.com)
so customers can easily navigate back to and buy what they
have already looked at.
Don’t:
Add additional items to the basket as a lame attempt at crossselling. Think carefully about doing this judiciously, or in a way
that fits the brand and site (e.g. ASOS - get the look).
Dispatch things at different times or charge the customer until
you have sent the goods. Make it clear on the site that you
won’t do this.
Have an inconsistent shopping basket across site sections,
even if you source the products from third parties and your front
end is skinned.
28
How can online advertising drive offline sales by Sharon Jaffe,
Digital Marketing Consultant and blogger at blog.jaffeblend.com:
1. The messaging in online advertising is key, not just focusing on brand
awareness and favourability, but message association and purchase
intent. Banners should be clear about the product offering and entice,
through emotional branding or through an offer.
2. A call to action is a key driver of sales. This call to action can be to
drive people to an online “clicks and mortar” store or to a physical
“bricks and mortar” store. With the latter, clicks are less important as
the objective is to drive store traffic and sales.
3. Please substitute this text: “Display advertising does not have to be
clicked on to drive sales. In this way it functions the same way as
traditional advertising – driving awareness, interest, desire and action
(to go to and purchase!).
4. Digital media brings an added dimension to the media mix for the retail
sector. A banner can drive users to a microsite where its possible to a)
provide greater product information b) entice a visitor to participate in a
game or competition (thereby increasing engagement and allowing the
collection of CRM data) and c) offer some form of value added content
or engagement (showing the visitor how the brand genuinely brings
relevance to their lives and associating the brand with appropriate
values) e.g. a Heineken Music events guide, Visa Love EveryDay
shopping guide or Coke Happiness Factory game.
5. There needs to be a clear distinction between direct call-to-action
activities (often with online conversion) and brand activities influencing
purchase intent (often with offline in-store conversion).
Tips for those marketers that can and cannot undertake
ecommerce from our friends at foxkalomaski.co.uk:
1. If you cannot undertake ecommerce then you need a ‘traditional’
marketing programme to:
• Drive awareness of the stores.
• Offer promotions (including text line details) from point of advertising
consumption to drive e-mail sign up.
• Offer in-store promotions which drive email sign-up.
29
Retail
be doing online?
2. If you can undertake ecommerce then you need to:
• D
evelop your search campaign to integrate price and differential
elements (increases click-through-rates and relevant traffic).
• Build your database communicate and promote to them on a
regular basis.
• Keep adjusting your site flow to optimise conversions.
The 5 factors that might make the first time customer trust
their hard earned cash on your site, outlined by Jenni Lloyd,
Experience Designer at NixonMcInnes:
1. It helps if the customer’s product-related googling has landed them on
a page dedicated to the relevant product – with a clear price, delivery
cost, security notice and returns policy.
2. If you have a recognisable brand name - and the site is in keeping with
familiar branding - then so much the better.
3. Depending on the product in question, most customers will visit many
different sites and compare the prices on offer. So – unless you can
offer a price guarantee your site will have to work hard to capture
custom. Maybe you can offer in-store pick up of goods ordered online
(like Argos) or free delivery or free returns. This requires your on and
offline operations to be unified.
4. The user experience of your site will be the deciding factor. If you can
take away any possible barriers to purchase – such as questions over
delivery charges, transaction security etc as high up in the sales cycle
as possible, customers will find it easier to place an order with you.
Coupled with usability basics such as clear navigation and easy to
read layout this should be part of the recipe for success.
5. Social features can also improve conversion rates. Most shoppers are
used to reading online reviews of products before they buy them – and
sites which allow customers to add reviews are reporting improved
search optimization, improved conversion rates and improved
customer retention / loyalty. And the reviews don’t have to all be
positive – in fact shoppers are suspicious of overwhelmingly positive reviews, which can be detrimental to conversion.
30
Tips for what makes a good shopping basket experience
by Five by Five:
Shopping basket drop-off can be avoided by learning from the
benchmark leaders: Amazon, Carphone Warehouse and Figleaves.
What they do is simply make it easy for you to buy, change your mind,
save it for later and come back, and compile wish lists which others
can buy for you. What makes a good shopping basket experience?
1. Clear product descriptions and price information so users are
reassured that what they wanted to buy has magically found its
way to their basket.
2. Images to re-enforce the product description because people think
visually too, especially when it comes to color choices.
3. Easy removal, amendment or addition of items because they’re
allowed to change their minds.
4. Clear navigation to proceed to purchase or back to similar
products, back to home, or a new search as these are users’
typical next steps.
5. Clear labeling of the basket during the entire shopping experience
so the user can see what’s in it at any time.
6. Ability to save and return so the user doesn’t have to re-do it all
again later.
The empty basket… Why?
by Kieron Matthews, Marketing Director, IAB
• P
oor usability
• Hidden charges
• Simply changed your mind and have just enjoyed the online
shopping experience (the teasers!)
• Beaten on price
• Error
31
Retail
be doing online?
Top ten ecommerce recommendations, according to
Coast Digital:
1. Site map on all pages - Search engines index site more readily;
alternative user navigation; allows user to orient themselves quickly
without the need to understand the whole site.
2. Site/product search - Allows user to rapidly find products;
facilitates different types & levels of user, and delivers better search
experience.
3. Ability to shop by brand - Another method of attractive product
presentation, great for brand enthusiasts who make purchases
based on brand synergies & connotations.
4. Breadcrumb trails - Great for user orientation & moving back &
forth within a website. Search engine friendly.
5. Bestsellers list - Brilliant way to engage users by showing them
what’s hot now. Also useful for increasing sales volume.
6. Recently viewed items - Assists user navigation, helps users to
quickly return to products they are interested in. A key opportunity
to make sales.
7. Recommend other products - Increases potential for cross-selling
opportunities and promotions.
8. Display products by category - Helps the user to make quick
comparisons between products of a similar type.
9. FAQ and help pages - A clear opportunity to assist & support the
user on their journey through the website.
10. Store finder - Assists users browsing and researching, who may
choose to purchase offline. Supports multi-channel activity.
32
The importance of always-on optimization, from Benoit
Cacheux, Client Services Director, Publicis Modem:
Online conversion rates have reached a peak, they have even started
to decrease recently as your competitors have improved their online
presence, how do you turn this around? The answer is “always-on
optimisation”.
• W
hen looking at your campaigns, you need to think about how
to optimise the whole journey from the first contact to the actual
purchase. So, at this stage, it’s important to step back and start
formulating the process around your audience, the place where any
successful marketing usually starts.
• It’s time to set up an “online lab environment” where you can make
changes and test them in real time and on a scale which provides
this robust statistical evidence.
• T
hese “online lab environments” can be created through the
implementation of a number of software solutions provided by
companies such as Interwoven (Optimost) or Omniture (Test
and Target).
• T
heir solutions will allow you to test site variables (e.g. size of
buttons, length of copy, mention of customer support, etc.) in a
multivariate testing environment.
• V
ery quickly, you’ll be able to test a number of permutations of your
homepage (hundreds of versions in some cases) or key landing
pages and see in real time which journeys are helping consumers
fulfil their needs more effectively. After all, they’re interacting
with you so listen to them and learn from their behavior. These
solutions, in turn, will optimise their journey and increase overall
customer satisfaction.
• Is it time for you to move into this world of “always on
optimisation”? You won’t be the first, as Forrester reported back in
2006 that testing is becoming a growing piece of the marketing mix
and 76% of marketers researched expected a significant increase
in spending for testing.
33
Retail
be doing online?
Achieving the best results with a retail display advertising
campaign, by Kieron Matthews, Marketing Director, IAB
1. Stay focused and say what you need to say without being too
abstract.
2. Integrate the retail idea, not just the look and feel.
3. Adapt creative according to the response required (awareness vs
direct response).
4. Be consistent, not fickle in format choice.
5. Allow adequate time/budget for idea generation and high production
values.
Search precedes the majority of purchases:
• 88% of people regularly research products online…
• 6
1% of people regularly research products online and then
purchase these products offline…
(Forrester Research, European Consumer Technographics, Q2 2007)
Average number of searches to purchase decision based on start term
All Converters
13.5
Trademark Keywords
5.1
Specific Product Keywords
5.2
11.9
Header Product Keywords
14.1
General Product Keywords
(Comscore/Yahoo!, Search and the Consumer Buying Cycle)
34
Meeting the challenges facing retail paid search campaigns
from I Spy Search:
• U
nderstanding the consumer search path. Click path
analysis is now widely available across all major bid management
platforms and provides real insight into the consumer journey
and purchase decision process. This kind of data can be used to
reinforce the value of costly generic keywords that are typically
used at the beginning of the consumer journey and fail to get
credit for the conversion due to the traditional ‘last click wins’
model.
• C
alculating the lifetime value of a buyer is crucial to be able
to assign a realistic CPA so that share of voice can be maximised
across the search engines. With CPCs increasing, visibility on
the engines will be compromised if budgets are not increased
accordingly. Therefore, the lifetime value of the consumer
represents the most realistic cost of acquisition by looking at the
full picture of the consumer process – not just at one transaction.
• A
ctual profit generated per product also needs to be
calculated and reported correctly within the search results. Only a
small percentage of actual revenue generated may be profitable,
so this will impact how far a campaign can be grown. It may also
go some way to explain how the decision makers may not be as
pleased with the results as you are! Profit margins are tight in retail
and overall sales do not represent the whole picture.
• O
n the flip side, search marketing triggers conversions and
sales via other forms of media and it is important to recognise this
contribution and attribute revenue accordingly. For example, a long
consumer search path could result in a final sale over the phone.
Where search has played a major role in the consumer decision
process and accrued costs, it will not receive any credit for the
resulting sale and revenue. However if data is collected intelligently,
this no longer has to be the case.
35
Retail
be doing online?
• K
eeping up with inventory. Retail product lists and prices
are constantly changing and it is imperative that the search team
keep keyword lists up to date with new product additions, as well
as removing discontinued items. The challenge here is to also
structure the campaign smartly so that ad copy can be as relevant
as possible and include product names where permitted. This will
really strike a chord with the consumer and will increase conversion
rates.
5 ways in which PPC can work with your other marketing
communications from search engine marketing agency, Tug:
1. If you have a recognised brand, include this prominently in your PPC
ad copy. ‘Official Site’ is a strong consumer benefit.
2. Support good PR with ‘As seen IN’ and ‘As seen ON’ ad copy. This
traditionally drives higher sales for several days after the release.
3. Brand awareness banner campaigns can greatly increase your PPC
brand sales, which are traditionally the cheapest.
4. Support your PPC campaign with a robust SEO strategy for your
broader keywords that drive traffic but have a higher conversion cost
through PPC.
5. Ultimately PPC should be driving your regular sales, filling in the
troughs, made by the peaks from your other bursts of online and
offline communications.
36
Turning engagement into purchase, why instructional online
videos can work for your brand,
by Russell Goldsmith Marketiers4dc and www.howto.tv:
• V
iewers watch needs based videos because they are seeking
specific information about the given subject, making them highly
engaged and immersed in the experience.
• T
hey then need to know where to find this information or
purchase the product, so providing them the ability to click for
more information within the video is key – This is not ‘red-button’
technology but an on-demand environment, so when viewers
return to the movie, they haven’t missed a second, and can go
back to any part at any time.
• It is essential to support any initiative with a communication
strategy that aggregates the content to highly indexed third party
media owners and end user environments to maximise response.
• V
iewers must be able to access content when and where they
require it – it would be most useful to watch a video on to ‘How to
Pitch a Tent’ when actually arriving at a campsite! Videos therefore
need to be available on mobile devices so that your brand can
engage with your customer at that specific time of need.
37
Retail
CASHBACK! Which brands
are at the checkout with their
online activity?
“Online is now a mass communication tool and can
provide scale and accountability for retailers. Online
will complement every other media in terms of pure
reach, incremental reach and brand engagement, it is
the place where people interact and act. As a press or
TV campaign will drive store traffic so will online, it is
an integral part of the media mix.”
- Nicola Ibberson, retail category director, Yahoo!
How Guava increased traffic and online sales through a PPC
campaign:
Guava were approached by bagga Menswear to increase their online
traffic volumes and sales generated through their men’s designer
clothing site.
• To improve bagga Menswear’s organic listings, Guava’s dedicated
SEO team reviewed the site, providing recommendations with
regards to key phrases, site layout and structure, as well as meta
data policies and technology used.
• Through a strategically, targeted PPC campaign, Guava were able
to focus on core brands and clothing items to bring CPAs down
to a monthly average of less than £5, while month-on-month,
increasing the ROAS (Return on Advertising Spend).
• A comprehensive linking strategy was also implemented to ensure
good quality links were directed into the bagga Menswear site,
thus increasing its visibility online as a whole, as well as aiding it to
achieve better listings within the search engines.
38
• To achieve high sale volumes at low CPAs, PPC was used to
enable key marketing messages to be distributed very quickly.
Taking advantage of seasonal pushes and any online promotions
which can be reflected in ad copy and key phrases used in the
campaign. For bagga Menswear this resulted in a massive increase
in ROAS (over £25 return for every £1 spent) and halved the
average CPA.
• bagga Menswear now achieve over 1000% ROI on a monthly
basis from their website and have seen an 86% improvement in its
visibility across the search engines.
Top tips for driving ROI focused sales through PPC by Tug:
As an online retailer competing in a tight margin business, Truffle
Shuffle approached Tug to manage their PPC advertising campaign
with the aim of developing a more profitable and accountable
marketing plan.
• Tug developed an extensive PPC campaign on Google and Yahoo!
using only very specific, product related keywords in hundreds of
tight ad groups.
• Specific, relevant ad creative was developed for every available
t-shirt whilst PR efforts were coordinated weekly to test integrated
ad creative.
• Tug removed all broad keywords even if they could drive sales
volume and concentrated only on keywords that convert under
£5.25.
• Tug used DART bid management software to set strict Position and
ROI rules, capturing revenue and reporting weekly on profitability at
the keyword level.
• The campaign delivered a 3000% ROI, with the average PPC cost
per sale totaling £1.25. In December 2007, Tug drove 2,605 sales
– an average of 1.5 t-shirts per basket and the campaign continues
to run, delivering 60% of Truffle Shuffle’s sales.
39
Retail
CASHBACK! Which brands are at the
checkout with their online activity?
Affiliate marketing case study
from TradeDoubler and Jessops, 2008
• Jessops wanted 100% sales value growth year-on-year Jan – June 2007
– no mean feat considering overall market growth was closer to 40%.
• They employed a three-tiered tactical plan: to engage with the affiliates,
to introduce new revenue streams and to maximise the potential of
affiliate campaigns.
• Jessops offered bespoke discount codes based on the names of
affiliate sites, and key affiliates were also offered dedicated creative and
landing pages
• They introduced post impression sales and met with affiliates on a oneto-one basis to ensure they became dedicated drivers of their online
sales channel.
• Jessops also launched collect@store an online store where customers
can opt to collect products at a local store. Affiliates were at the top of
the priority list for communicating this launch.
• The results? For Jan – June 2007 they saw a 239% sales value
increase, and a 258% sales unit increase.
Consumer responses to the Dare campaign for Woolworths:
It looks to me as though they have actually got
people in a field with a giant catapult taking
instruction...was surprised to see how they are
doing this...
wicked entertaining
comp!
Hope you are all alright and enjoying the game
I still can’t get in but I will keep trying, if not
nevermind at least I had a go yesterday
Tried for ages just
frantically hitting return
and all I’ve got is The Big
Red Finger!
I’m glad this isn’t a daily
comp I wouldn’t get
anything done!
Awsome! - Just had my shot. Couldn’t
really see if I hit a target but they all put their
hands in the air as if it hit something. I hope
its real time footage.
everyones a critic It’s a bit of fun and a
change from the norm. I don’t get why
people are moaning about it no one is
forced into playing
Consumer responses online
(in forums, on blogs etc) to
the Dare-created game which
promoted the launch of the new
Woolworths Big Red Book –
you had to catapult the book
towards targets to win an
assortment of Prizes.
40
Retail
IAB/Microsoft Advertising Creative showcase
winning retail campaigns
Nike
Nike PhotoiD by AKQA
- June 08 winner
http://awards.akqa.com/
Awards2008/iab/Nike_Photo_iD/
default.html
www.nikeid.com/photo
Dave Bedwood, Lean Mean
Fighting Machine:
“When every brand is trying to do
something with mobile technology Nike
once again lead the way by creating
something which places relevance and
simplicity before technical wizardry.”
Adidas
Impossible Story by glue London
- June 07 winner
http://www.gluelondon.
com/awards/2007/
creativeshowcasejune.html
41
IKEA
Kitchens that are built for real life
by agency.com
- Feb 2007 Winner
http://portfolio.london.agency.
com/clients/ikea/kitchens_cs/
Mat Freer, Whatif Innovation:
“The collision of high tech with human
reality makes the Ikea campaign
truly distinctive, underpinning the
quality credentials of the kitchen and
provoking a wry smile from anyone
who’s witnessed the impact that real
life has on anything shiny and new.
I hope that robot’s hangover was as
bad as mine… “
Diesel
Diesel Heaven by Airlock
- September 2006 winner
http://www.fallenwings.org/
http://diesel.adshadow.com/
fw06/phase1/dhtml/invite/
Stefan Shaw, Greenroom Digital:
“I love the concept and campaign
ambition, its not flawless but it is
bold and daring, everything I’d
expect from Diesel.”
42
5 notable Facebook retail presences:
1. My Starbucks Application My Starbucks® lets you sport your
favorite drink, send drinks to your
friends, and caffeinate your Facebook
experience… with 115,731 monthly
active users. Interestingly the creators
of this application are in no way
affiliated to the Starbucks franchise.
2. The Primark Appreciation
Society - There’s no doubt that
this cheap and cheerful store is
popular, and this group started by a
regular old consumer boasts 95,027
members, many of whom appear to
enjoy wasting their time discussing its
merits if the 465 discussion topics are
anything to go by.
3. Topshop Fashion Fix An instant hit, providing you with key items from latest collections
displayed on your profile page. Befriend IAB Marketing Director, Kieron
Matthews, and you’ll see that even he is a fan. Around 10,867 monthly
active users and an average 4.6 out of 5 user rating.
4. o2 Orgy of Fun The much heralded case study that used Facebook for what it’s best at,
sweeping the nation both on and offline with the promise of a free party
for the most competitive universities in the country.
43
Retail
5. Adidas The Celebrate Originality
Application lets you see adidas
videos, create your own piece
of adidas art and see original
creations from people around the
globe. This is clearly a popular
Facebook presence with one fan
proclaiming ‘woooooooow adidas 4
ever’ on the application Wall.
“Community will soon become the entry point
to the Internet and will frame the entire internet
experience. Online communities as important as offline
communities. Online communities and the buying
process will be integrated and linked. People will want
to buy from the places they feel they can trust the
recommendations and merchants will want to be there.”
- Jeffrey Cole Director, Centre for the Digital Future at USC
Annenberg School
44
The marketing imperative - Especially if ads are targeted
by AOL:
Q: Thinking about the advertisement(s) that you clicked on, which of
these explain why you did so?
All who have clicked on an online ad in the last 6 months (494)
Relevant to the needs
at time
86%
Find a website or
product of interest
79%
Relevant to information
information reading at the time
78%
Offered a promotional
deal/price/special offer
68%
It was creative/funny
40%
(Brand New World II Cranfield School of Management/
HenleyCentre/AOL 2006)
45
Retail
Advice for retail affiliate marketers from TradeDoubler:
From years of experience working with many of the leading UK
retailers, TradeDoubler has compiled the top tips to a winning affiliate
marketing strategy:
• HMV – winners of the IMA Award for Best Use of Affiliate Marketing
(2007) and Revolution Awards Best Use of Affiliate Marketing (2008)
– has led the way in retail affiliate marketing. They, like many retail
clients, focus on seasonal strategies with Christmas being a peak
season planned many months ahead for a truly integrated approach.
In this case study the HMV programme showed poor earnings per
click (EPC) so new tiers and commission structures were introduced
to improve competitiveness and boost market share. Private
commissions were also offered to selected top publishers to cover
the costs of targeted search activity. This culminated in an increase
in average EPC from 13p to 34p when compared against the same
period the previous year.
• Using affiliate marketing as part of your overall strategy is equally
important to Avon, the world’s leading direct seller of beauty and
related products. eMarketing Planner, Lauren Moore, recommends
that, “Integration between on and offline is vital to maintain
consistency particularly for a brand as large as Avon. Ensuring
affiliate creative mirrors the messages in TV advertising maximises
the online reach of offline activity”.
46
The reviews are in!
NMA site inspections
oli.co.uk
www.oli.co.uk
Sam Matthews - 06.03.08
Rating *****
“An efficient enough service, but
Oli’s website doesn’t match up to
the hype around its launch and
humorous TV ad campaign. The
site could be better laid out, more
responsive and a lot quicker to
use.”
WHSmiths
www.whsmith.co.uk
Suzanne Bearne - 4.02.08
Rating ****
“A simple site, from browsing to
purchase, with an informative
customer service section. You
can choose to pick up items from
WHSmith stores, which could
give this site a much-needed
edge on Amazon, the dominant
brand in this sector.”
47
The reviews are in!
NMA site inspections
The White Company
www.thewhitecompany.com
Danielle Long - 10.04.08
Rating ****
“A good, well-organised
experience. The ordering service
was memorable for its ease and
efficiency.”
Game
www.game.co.uk
Will Cooper - 29.05.08
Rating *****
“A really good site with very
little, if anything to fault. The only
thing that comes to mind is that
you have to search hard for the
customer service numbers. A lot
of retailers could do well to learn
from this site.”
Office
www.office.co.uk
Luan Goldie - 24.01.08
rating ***
“It’s a good-looking site but not
allowing customers to enter their
own search terms is unhelpful,
especially with so many items
available.”
48
… IAB brand engagement study
This is the fourth study of its kind and was conducted by ævolve
(formerly Carat Insight). The research set out to quantify the impact
of display internet advertising on brand engagement relative to other
communication channels, such as press, radio and TV, in the retail
sector, as well as wider influences such as word of mouth or heritage.
What did we focus on?
• John Lewis
• Marks and Spencer
• Next
• Debenhams
• Woolworths
What were our objectives?
• To demonstrate the ability of internet
advertising to drive engagement.
• To measure the effects of internet
advertising on brand strength relative
to other media.
• To identify how internet advertising
works alongside other brand contacts
to increase brand consideration.
49
IAB brand engagement study
What was our sample?
• 1024 Women aged 30-50.
• All to have shopped in at least 3 of the stores included in the study in
the last 6 months.
• All to agree with the statement ‘I enjoy shopping in major stores on
the high street’.
• All to have broadband internet access either at home or a work.
• All to use the internet at least 2-3 times a week and at least 7 hours
a week.
What are the most important contributors to brand
engagement for this audience?
• Affinity 24.3%
• Quality 19.3%
• Fits my needs 16.3%
• Presence 14.7%
• Choice 12.1%
• Service 10.8%
• Sales 2.4%
The previous three brand engagement studies identified 2 or 3 clear
contributors to brand engagement however, in the retail sector, there
wasn’t a clear winner. Other than ‘sales’, all of the above were fairly
evenly split. It is therefore important for advertisers to hit all of these in
order to achieve the greatest brand engagement.
How many ads did we show them?
A total of 41 separate ads in the study, split across the 5 test brands,
and across 5 different media channels:
50
• 14 press ads
• 14 online ads
• 8 TV ads
• 3 radio ads
• And 2 outdoor ads
What did we find out?
• The brand’s own advertising contributed to 5% of driven brand
engagement
• Within this, the online display advertising has a greater effect on brand
engagement than any other medium, contributing an average of 40%
of the advertising effect.
• Press advertising has the second greatest influence, contributing 31%
of total consumer engagement.
• Next was TV with 19%, Radio with 8% and Outdoor 3%.
• Online advertising for department stores is 16 times as effective per
pound of spend as the all media average.
What drives consumer engagement with a department
store/major high street retailer?
• Brand shop experience and competitor experience were much bigger
factors in terms of driving brand engagement with consumers, which
is to be expected given the long-term relationships consumers have
with these stores.
• Unsurprisingly, a retail brand’s own website was also found to have a
significant effect. Website experiences have over twice the impact of
brands’ own communications.
• Overall website ease of use came out by far the highest in
investigating the impact of online experiences (over 50%).
51
Retail
Acknowledgements
Contributors
Ben Butler
Former Content Manager, IAB
Chloe Chadwick
Marketing Executive, IAB
Amy Kean
Senior PR and Marketing Manager, IAB
Adam Oldfield
Web Assistant, IAB
Sorcha Proctor
Research Manager, IAB
Harriet Clarke
Team Assistant, IAB
With thanks to…
Platform-A UK, LBi, NixonMcInnes, Coast Digital, Public Domain,
I Spy Search, Tug, marketiers4dc, www.howto.tv, Yahoo!, Guava,
Jessops, TradeDoubler, Accenture, AOL, Microsoft Advertising,
Hitwise, Media Metrix, Microsoft adCenter, Google, Forward Ltd,
GT, jaffeblend.com, foxkalomaski.co.uk, Five by Five, Nielsen Ad
Dynamix, comScore, USwitch, Publicis Modem, NMA, Dare, IMRG
52
Drawings by
Amelie Matthews (Aged 6)
retail
THE INTERNET. Immediate, vast, informative,
convenient… it’s hard to imagine life without it,
particularly in the retail sector. Online has
revolutionised the customer journey and with it
brought numerous challenges and opportunities for
the marketer. Join us, in this second instalment of the
IAB’s vertical box set series, to fully immerse yourself
in the world of online retail. We have toiled relentlessly
to bring you all the recent statistics, tips, case studies
and consumer insights to turn you into a walking,
talking ecommerce compendium.
14 Macklin Street, London WC2B 5NF
tel: +44 (0)20 7050 6969 • fax: +44 (0)20 7242 9928 • email: [email protected]

retail - IAB UK

Transcription

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