Move Over YouTube!

Yesterday MySpace re-launched its video sharing site, renaming it MySpaceTV.  The New York Times reports that this is a serious attempt by News Corp, the owner of MySpace, to challenge YouTube.  As with YouTube, users of the new service don’t have to be signed in as members of the MySpace community to share their videos.  The way it was set up before, one had to be a part of the MySpace network just to watch MySpace videos, a major annoyance to casual video-watchers re-directed from search engines.  This feature should in fact attract new users to MySpace and expand its reach for quality video content and viewers.

The new site will emphasize professionally done videos selected by the MySpace editors.  In a move toward showing more professional content, MySpace became the exclusive outlet for Sony’s “Minisodes” just last week.  Sponsored by Honda, these five-minute clips are from fifteen vintage sitcoms including “Diff’rent Strokes” and “Silver Spoons.”  This type of offering will surely expand as more deals are worked out for content from sources such as News Corp owned Fox.

These moves should put MySpace in a more competitive position vs. YouTube.  The stakes are high, particularly as YouTube is testing social networking features on its TestTube test platform and is expected to challenge MySpace in the social networking arena.

How to Effectively Manage A Pay-Per-Click Campaign

According to the Search Engine Marketing Professionals Organization (SEMPO), North American advertisers spent US $9.4 billion on search engine marketing in 2006, a 62% increase from the year before.  This was a whopping 750% increase from the year 2002.  This is exciting news for SEM professionals.  One of the most promising and lucrative methods seems to be that of pay-per-click (PPC).  So what the heck is pay-per-click?

 PPC is a paid form of advertising in which businesses bid to be placed at or near the top of the search results for particular keywords and/or phrases.  The bidding is done on a “per-click” basis so that a company pays a specific amount every time the engine sends them a visitor. 

PPC campaigns have several advantages over traditional search engine optimization (SEO) including the following:

•  They require no changes to a current website’s content or look to obtain top positions.  An advertiser must simply be willing to pay.
• Advertisers only pay when users actually click on their ads to visit their websites.
• The implementation of a PPC campaign is relatively quick and painless; it can take as little as a few short minutes to start getting targeted traffic whereas it can sometimes take months for standard SEO campaigns to see results.
• Unlike with traditional SEO, it is relatively easy to implement a PPC campaign and does not necessarily require any specialized knowledge.  (Of course, experience with SEM and keyword research couldn’t hurt).

However, as is the case with most things in life, advertising using the PPC method is not without its limitations.  For example, new bids can lower the positions of other firms.  Oftentimes those who have been outbid will react by raising their bid to regain their previous ranking.  As a result, monitoring of positions becomes key.  PPC campaigns can also become pricey, depending on the competitiveness of the keyword phrases and also on the aggressiveness of competitors.  Additionally, many search engine users have figured out how to recognize PPC results as paid advertising and will bypass them altogether.

It becomes very important to determine how much each visitor is actually worth in order for one to have a successful PPC campaign.  For example, if it costs $100 in click-throughs to make an $80 sale, the campaign has obviously failed.  According to some industry insiders, the formula is relatively simple.  In a nutshell, it is the profit from the website over a given period of time divided by the number of total visitors for the same period.  For instance, if a website netted $1000 in profits from goods or services in a given period, and there were 2,000 visitors during the same period, each would theoretically be worth 50 cents.  But this is company would have broken even.  Depending on the desired profit margin, the most optimal price to pay-per-click would probably be something much less than 50 cents.  Popular keyword phrases can often run more than this, so it then makes sense to bid less money on less popular terms to pay an acceptable amount per visitor.

As with typical SEO, keyword research is crucial to the success of any PPC campaign.  Unlike typical search engine optimization, there aren’t practical limits on the number of phrases to target and there is usually no extra cost in adding as many keyword phrases as possible.  This makes the keyword selection process easier.

With a typical search engine description, the object of the game is to entice as much traffic into a site as possible in the hopes of converting that traffic into customers whereas with PPC, a different approach is mandated.  Because it’s very undesirable to pay for unlikely prospects, the description is designed to eliminate the looky-loos while attracting highly targeted traffic.  For this reason, the description should describe exactly what the business offers; for example, a company wouldn’t want to pay for every visitor looking for “boards” if the only boards they sold were surf boards.  But at the same time, proven marketing copy techniques should be used to insure that the description is enticing enough to attract ideal prospects.

It is critical that the PPC campaign be monitored regularly since positions can and do change every day.  Since the top three results are what typically show up on most partner engines, the competition for these spots can be fierce.  Bidding wars are not uncommon, so if the price gets too high, it’s usually wise to withdraw and pursue a different keyphrase; you never want to pay too much for each visitor!  Aside from position monitoring, it’s also important to track and analyze the effectiveness of individual keyword phrases on a regular basis, perhaps once a month or so.  Viewing click-through rates and studying visitor habits can be invaluable in refining a PPC campaign.

In conclusion, PPC campaigns can bring large numbers of highly targeted visitors to your website.  However, these campaigns can become expensive if not done correctly.  The bottom line is it is crucial to the success of the campaign that you pay a reasonable price for each visitor, that each visitor is highly targeted, and that you regularly monitor your positions to maintain your exposure over time.

Using Surveys to Understand Shopping Cart Abandonment

Wholesalers and retailers need to understand the whys and wherefores of shopping cart abandonment to anticipate customer concerns while learning obstacles to order completion and site navigation. This can increase future conversion rates as well as reduce your costs.

Why Customers Leave

Customers leave for various reasons. Common factors include:

• High shipping costs
• Requests for registration
• Requests for personal information prior to checkout
• Complex and cumbersome ordering process
• Malfunctioning shopping carts

Using an Abandonment Survey

What can be done to reduce shopping cart abandonment and improve your online sales? You can use an abandonment survey administered as a Web site pop-up or sent to lost customers via email.
The design and implementation of Web-based point-of-abandonment surveys is less complicated and expensive than many merchants believe.

Possible Questions

You’ll want to create simple, straightforward questions. Below are some questions you might ask:

• Why did you choose not to complete this purchase? This question can be open-ended or include the following options: (1) no intent to purchase, (2) poor user experience, (3) security issues, (4) price, (5) shipping costs, etc.
• What can we do to facilitate the completion of an order on our Web site in the future? Again, this can be open-ended or provide choices such as: (1) improve user interface, (2) improve Web site security, (3) lower shipping costs, (4) provide in-store pickup, etc.
• What is your biggest concern about shopping online? This can be open-ended or provide choices such as: (1) security, (2) online price versus in-store price, etc.
• How frequently do you purchase merchandise online?
• How frequently do you comparison shop online?
• You might also want to inquire about the person’s demographic information, such as city and state, education level, or how he or she heard about your Web site.

Provide an Incentive

You can increase survey response rates by offering the customers who abandoned your shopping cart merchandise discounts to complete the survey. This might also increase the likelihood of a sale.

Review survey results on a regular basis, depending on your level of Web site traffic and the objective of your survey.

First, evaluate each question independently, and then filter results by demographic information to identify specific trends. This kind of feedback can help you understand the pain points and concerns customers have so you can address these issues, revising your Web site strategy and design accordingly. Carefully consider the objective of your surveys before designing the questions, collecting only information that will enable you to better serve your customers.

Going Green for Green

Unless you’ve been living under a rock somewhere, you’re probably aware of the public’s growing concern over environmental issues. It’s allover the media, from television commercials to news broadcasts and everywhere in between. Surely you’ve seen (or have at least heard of) Al Gore’s documentary “An Inconvenient Truth” in which he discusses the politics, economics, and scientific evidence of Global Warming. Since the film’s debut in May of 2006 we as consumers have been inundated with talk of Global Warming, carbon emissions, and the small things we can all do to make a big difference in the future of our fragile and ever-changing planet.

It seems like everywhere we look we are being asked to be more environmentally responsible, and it’s becoming easier and easier for the average Joe to do so. Eco-friendly advertisements are popping up allover the place for products such as hybrid cars, organically grown produce, and clothing made from organic materials. Even builders are thinking of ways to “go green”; on June 4^th The Solara, California’s first ever “green” apartment complex, opened its doors to new residents. The Poway complex boasts solar panels on every garage, carpets made from recycled clothing, tankless water heaters, double paned windows, and appliances which are both innovative and energy efficient. And the best part? The complex caters to low and moderate income families.

It has become the chic new thing to think green—and it’s not just for hippies and college kids anymore. Even some of the world’s largest corporations are hopping on the bandwagon. Companies like Honda, Continental Airlines, S.C. Johnson and Hewlett-Packard have figured out the enormous benefits to being more environmentally aware; not only can they save gobs of money by being more energy-efficient and using less material, they can also prevent further damage to the planet while simultaneously cleaning up their images for the general public. Also, these companies are discovering new ways to profit by solving some of the world’s biggest environmental problems, and increased profits are always a good thing. Additionally, with many of these big companies getting on board, going green has officially hit the mainstream.

So what does this mean for the economy? It means a whole new breed of consumers who are looking for ways to live cleaner, greener lifestyles. According to The LOHAS Journal, approximately thirty percent of American adults are now opting for products which are more eco-friendly—and the numbers appear to be rising. These new consumers seek products that are made from environmentally-friendly materials, are free from harmful chemicals and compounds, that don’t deplete the environment during the production and transportation processes, and that come from manufacturers where working conditions are humane and healthy. Any business in any industry is capable of catering to this growing group of consumers and the demand is only getting bigger. My advice to business owners is to get on board with this growing trend, and do it soon.

Does It Pay to Have a Brick n’ Mortar?

While ecommerce has been around since the late ‘90s, online sales have grown phenomenally since then with consumers buying big-ticket items like computers, cars and even diamonds online. Does it pay to have a retail location anymore? Yes and no.

U.S. ecommerce sales for 2006 were $108.7 billion, up 25 percent from 2005 (U.S. Census Bureau). The Internet as a retail sales medium is gaining momentum as consumers research online to buy offline, saving time and energy.

Depending on the product/service category, it’s important for retailers to maintain both online and offline locations as consumer MOs migrate from clicks to mortar. However, some product categories can be easily marketed with an online presence alone.

Changing Business Model

Online shopping has changed the traditional retail business model for many product and service categories. It’s important to know what drives consumer choices. For instance, a consumer could spend time on Lowe’s Web site to research a home improvement buy but will likely purchase at the local store. S/he saves time and energy by doing pre-shopping online.

On the other hand, if a consumer wants a book or DVD, s/he will likely go ahead and buy online from Amazon, WalMart or Target. Why waste the time and hassle to drive to a local store for merchandise of that type?

In the case of Lowe’s, the Internet presence sets up the sale, and you get branding with that. For Lowe’s, the Internet is just one more way to attract sales. When it comes to items like books and DVDs, however, the availability of these items online can challenge the necessity of a storefront business – too easy to buy online and too expensive to maintain a physical storefront. That was the ingenuity of Amazon – ship from a warehouse where the rent is cheaper.

Using the Internet Effectively

It’s important for online retailers to use the Internet advantageously, from both the company’s and the consumer’s POV. Make the buying experience cost effective by keeping your shipping charges realistic. I bought a turquoise necklace on eBay recently, and the shipping charge was $5.00, which I thought was high. The necklace was skimpily wrapped, shipped in a jiffy bag, and came damaged. The seller lost the sale, and the return cost me money. I don’t trust eBay now; it’s just not reliable.

Online retailers can deliver goods and services cost-effectively from an online presence by providing quality and superior customer service. Product categories that require physical stores for offline purchase can offer options like in-store pickup, a no-brainer to keep shipping costs down. Think outside the box because you need a competitive advantage. It’s not easy to succeed online, but the rewards are great for savvy marketers.

Making Customers Happy With a User-Friendly Site

A happy customer will buy and buy again, in addition to telling others about your site. So why is it that many retail and wholesale sites give customers short shrift when it comes to Web site usability?

There are still many unrealized opportunities in ecommerce, but you have to make it easy for customers to shop when they visit your site. Studies show that online shoppers prefer sites that are easy to navigate, have adequate product information, and a minimum of distractions from ads. Consumer preference data shows that customers look for the following characteristics in a user-friendly site.

Easy Ordering: Provide an efficient checkout process (5 clicks or less).

Prompt Shipping: Provide timely fulfillment, within three to five business days.

Security: Prominently display your security statement and privacy policy along with endorsements from the Better Business Bureau and/or TrustE.

Product Availability and Quantities: Provide clear descriptions of products with information on availability. Provide inventory status notification on product pages and in shopping carts.

Large Variety of Available Products: Customers like variety and prefer not to shop piecemeal at multiple sites for like products. Offer related products and upsells.

Customer Service: Good customer service is a must if you want repeat business. Provide a toll free number with a list of customer service hours and timely email support. Answer all service queries within no more than 48 hours.

Return Policy: Post a clear and concise return policy.

Shipping Charges: Provide shipping charges before the checkout process.

Site Download Times: The faster your download time, the better. Remember, some customers are still on dial up.

Personalized Recommendations: The site that offers personalized recommendations based on past purchases will entice more sales.

Search Function: Make this a top priority. If customers can’t find what they want, they will go elsewhere. You can also utilize this information to optimize your site for better rankings (SEO and PPC), not to mention making it user-friendlier.

Alternate Order Process: Besides your shopping cart, offer a toll-free number for ordering, as well as a printable order form for ordering by fax.

Attractive Home Page: The layout and attractiveness of your home page coupled with all the above can ensure success.

Usability Testing: Test your site on actual users by replicating the experience of the average Web user and correcting problems before your real customers arrive. Assign someone with good people skills and site knowledge to conduct the usability testing sessions. You need to hook up a video camera to record the session, and then ask friends, neighbors and relatives to do the testing. Select people who haven’t visited the site before and those similar to your site’s demographic. These people can give you valuable insights for tweaking. Usability testing will ensure that your site conforms to user expectations, making visitors more comfortable and more likely to become loyal customers.

New Age Marketing With Social Media

Because today’s audience is so fragmented, it’s always a good idea to look for new communication channels. With the advent of social media and consumer control in advertising, the Web now provides many different ways to reach consumers.

When search engines were first debuted, the Web changed marketing strategies from “push” to “pull.” This is a better way to advertise because people are seeking and finding information of their own choosing rather than being forced to view ads they have no interest in.

The New Marketing Channels

RSS (Really Simple Syndication) feeds are what made blogging popular. This further reinforced “pull” marketing, as consumers could choose topics of interest to read on their own time schedule. As blogs became part of mainstream news media, user-generated content proliferated on the Web.

Consumer-generated media has a powerful impact, and savvy marketers are capitalizing on this trend. Some of the ways to reach consumers through new marketing channels are with word of mouth (WOM), blog and podcast ads.

Word of Mouth

WOM is where consumers and/or subject-matter experts share their opinion about companies and products. It is also known as buzz and viral marketing.

WOM is effective because it breaks away from ad clutter. People are more willing to believe what their friends and co-workers have to say about a product than what the ad agency tells them.

Ads Must Be Genuine: One problem with WOM is that sometimes scheming marketers will manipulate the buzz by paying people to blog favorably about their products. To be effective, WOM must be genuine and based on the honest opinions of real people who have no incentive to spread the word other than their own satisfaction with the product or service.

Campaigns Are Tricky: WOM campaigns require discretion and expertise because advertisers can’t create the content. One option that works for B2B and B2C is to have a contest where you ask customers about their experience with specific products or services. The replies become your property, and you can select among the most positive entries to award prizes. Subsequently, you can use the consumer-generated media in appropriate ad channels.

Blogs, Podcasts and RSS

Advertising in blogs, podcasts and RSS is on the rise, as combined spending in the consumer generated media area increased 145 percent to $49.8 million in 2006.

Blog, podcast and RSS advertising has the ability to reach the youth demographic and the older influentials as well. This media appeals to brand marketers because audiences are highly engaged and can be targeted.

Tips for Creative: These ads must differ from traditional creative. They are more on the edgy side. Not every company or product is suitable for this type of advertising. Old-line brands might too stodgy. This is where to court the edge-thinkers and early adopters that traditional media can’t reach.

Forget about recycling ads from other campaigns. You really must understand the nature of blogs and podcasts to come up with good creative. Humor and sarcasm work, or try a topical news hook. Make these ads thought provoking and informal. They must have a human voice to connect with people who will propagate the buzz. The most successful campaigns are produced and run by individuals rather than agencies.

Improve SEO Visibility: Blogs can also improve your organic listings. Any company that regularly posts thoughtful, informative and interesting original content to its company blog has a good chance of improving search engine visibility. Fresh content can always improve rankings, especially when it includes the keywords for which you want to be found.