1. Test your creative. Even great online media placement can produce poor results if your messaging is off. So before you go big, run split tests of different creative units to find the winner.
2. Leverage ad network pricing and tools. If you go direct to sites, you’ll get offered their premium display inventory at their premium CPM rates. Many ad networks, however, offer the inventory sites that can’t sell on their own at way better rates. Many also offer behavioral and/or contextual targeting to eliminate ad waste by limiting ad delivery to your best prospects.
3. Put CPA in the mix. Are you trying to drive sales or acquire leads? If so, cost-per-action ad networks charge only for results, so there is zero ad waste. They’re a great way to drive incremental sales or leads without risk.
4. Drive traffic to an optimized landing page. If you’re sending the people who click on your ad to your regular website, it’s an invitation to surf around and get lost. Keep this from happening by creating a landing page specifically tied to your ad campaign, and specifically designed to motivate ad clickers to take the desired action.
5. Track your results. One of the greatest advantages of the Internet medium is that it’s measurable. Use this fact to your advantage. Keep close tabs on the results each placement in your campaign generates so you can see what works and what doesn’t. Be sure to consider not just clicks, but also lead/traffic quality.
Mason Wiley is the senior vice president of hydra network.
So, there have been some changes in Washington since my last post. In addition to all the post-election excitement—and believe me, the buzz is palpable—there is a good deal of speculation about what will happen in the next administration. There is no doubt the next administration will assign a higher priority to technology and consumer protection issues than the last, but what will that mean for your business?
For those interested in expanding Internet access, the FCC has approved the unlicensed use of “white spaces†for new technologies, including those that are aimed at expanding broadband access. The two current FCC commissioners speculated to be contenders for chairmanship voted for the measure. Expansion of Internet access in various forms will definitely be a part of an Obama administration. On the other hand, there are many other pressing issues the new Democratic majority will be interested in pressing forward, and this could mean comprehensive legislation might be difficult to pass. Legislation would not be necessary to enforce net neutrality, unless Comcast wins its appeal, claiming that the FCC did not have the authority enforce net-neutrality regulations.
Consumer protection laws might also become a major issue in the next administration. The Consumer Product Safety Commission has been criticized as being too close to the industry; so some changes may occur there. Even though this issue was visited in recent legislation, there might be pressure from the White House to step up enforcement. During his time in the Senate, President-Elect Obama voted for the Consumer Product Saftey Commission overhaul, and even introduced an amendment that would require a somewhat burdensome reporting system for items manufactured overseas. In the Senate, he encouraged the FTC to enforce rules against telemarketing scams directed toward seniors.
Hard economic times might lead to a strong push for federal legislation that would help states collect sales and use taxes from companies that sell to states where they have no physical presence, or nexus. This might be attractive on its own or as part of a package that would mandate states to engage in spending on any number of programs. This would definitely increase the costs of many products marketed directly to consumers.
Before the transition even begins, there will also be more changes in Internet technology. In a few weeks, the FCC will consider broad changes to the Universal Service reform policies that will affect prices for telephone and broadband service prices. We’ll be sure to keep you posted. As always, please send your legislative concerns our way to ensure your voice is heard on Capitol Hill.
It is clear that for online retailers to remain competitive during this holiday season, their sites must offer personalized recommendation engines, product reviews, live chat and a host of other features supported by social behavioral platforms. Consumers are driving this demand, and to ensure they continue to return to a site, they must have access to the technologies they have come to rely on.
Marketing professionals need to know the benefits they can expect from deploying social behavioral platforms, as well as why it is critical they integrate this type of system before the 2008 holiday shopping season ends. Following is a list of benefits online merchants can anticipate in terms of ROI, as well as short- and long-term effects.
• Immediate and measureable results are the “brass ring†every business is looking for. Satisfied customers may not contact retailers directly to share their thoughts regarding positive experiences, but increased average order sales and repeat visits exemplify their contentment.
• Online marketing systems decrease the need to manage on-site merchandizing and in turn reduce the need for seasonal retail staff. Using a multichannel approach empowers retailers with the ability to reach consumers of every demographic. Additionally, a ubiquitous presence engenders a perception of strength and longevity.
• Low cost of ownership is paramount to internal teams, and can be easily achieved through the deployment of fully automated software. A system that collects data, like click patterns, searches conducted and products purchased—all provided through the simple act of shopping—creates a self-sustaining system that essentially runs on its own, requiring no maintenance.
Once the IT department and business team deem the site ready to include e-commerce optimization software, key functionalities the project manager should look for are:
• Intelligent mining of large data sets – This offers real-time, automated, intelligent predictive suggestions.
• Performance-based models – Empower retailers to invest in the future by developing their online presence now, while keeping costs low and building their brand.
• Landing page optimization – Directs consumers to the specific page of the product being searched, presenting the merchandise most likely to appeal to shoppers.
It is crucial in today’s economic climate that online retailers employ strategies expressly designed to mitigate costs and optimize resources at hand. Instituting a social behavioral system that can be deployed in days rather than weeks ensures shoppers are greeted with personalized treatment and individualized care in time for the holiday shopping season, which will also begin laying the foundation for future retailing success.
Amid the current economic crisis, some retail experts believe that retailers aiming at wooing more consumers into the store during the upcoming holiday season may want to provide the layaway payment plan to needy consumers. This plan will allow shoppers to reserve craved merchandise while unable to pay right away. The layaway plan may have several benefits to retailers offering them:
First, with its help, certain customers would be able to buy the merchandise that they would otherwise not be able to, and that would translate into more sales. Furthermore, the customer may evermore appreciate the additional service, as this purchase might be one of major emotional and psychological import, such as a wedding ring. When good times come, the appreciative shopper may pay back to the store by becoming a more loyal customer.
Second, the customer would need to pay at least one more trip to the retailer to pick up the merchandise once all payments are made. This means more traffic into the store and chances are that the shopper will purchase some additional products, while there on the second trip. Increased store traffic will also have psychological impacts on other shoppers and even on store employees. In this holiday season, store traffic is a hot commodity for retails large and small.
Third, the layaway plan offers a less risky financing alternative to the retailer than does store credit card issuance, because the retailer sets the rules and the regulations are not as stringent as in the case of credit card issuance and compliance is easier. In the case of approving credit cards, the borrower could default on payments and declare bankruptcy, causing major losses to issuers. Whereas in layaway, the retailer can simply forfeit the deposit and return the laid-away merchandise back to the store shelf.
Fourth, this plan is all about providing delayed gratification to the consumers (and their beloved ones for gift purchases) and will encourage the customers to do more responsible budgeting. In this way, I consider the layaway plan a socially responsible response to the economic crisis, given that reckless spending among consumers and homebuyers is widely regarded as one of root causes for the crisis.
For the downside, instituting the plan might involve personnel, legal and administrative expenses for the retailer—and unless demand for the service is sizable, the expenses may be hard to justify. Also, a successful and well-utilized layaway plan may necessarily cause strain on the inventory space and make some merchandise unavailable to those shoppers who are able to pay on the spot. Finally, this plan may make most sense in geographic areas where the impacts of the economic crisis have taken a bigger toll.
On the heels of a Wall Street Journal article that basically paints a funeral for Yellow-Pages publishers, Google has announced a new initiative that shakes up the game for when people aren’t at their computers searching for phone numbers. Now in direct competition with other varying 411-type resources, Google has launched 1-800-GOOG-411.
Only time will tell if Google’s new, free, mobile utility will be the final nail in the coffin for other phone listing services in a down economy.
Tired of the same old tips and tricks about web affiliate marketing programs? “Communicate with them, treat them with respect†yada-yada. What about what really works? I pulled together a group of my most experienced, thought-leading colleagues to find out what’s moving the needle in affiliate marketing today. The below innovations are what I discovered. I’m happy to share these best practices. Yes, they can be quickly and easily applied—helping you manage your affiliates and extract maximum sales efficiency. Stay tuned to Electronic Retailer’s blog for candid interviews with these experts where they’ll “go deep†to reveal their secrets to success.
1. Allow affiliates to access a knowledge-driven feedback loop to improve their ROI and, as a result, increase yours.
a. Let affiliates “connect the ROI dots†between their investments (media spending) and your ultimate success (sales or new customers).
b. Provide select, trusted affiliates with limited, yet unfettered, access to your internal metrics and customer behavior data.
2. Strengthen relationships with superstar affiliates and open doors for potential superstars by actively, yet cautiously, investing hard and soft dollars in them.
a. Invest in affiliates: Underwrite affordable, educational opportunities and conferences for them. Sponsoring affiliates is very popular in the European realm.
b. Sponsor low-cost, virtual innovation forums and webinars that offer training opportunities for top affiliates.
c. Provide limited access to web metrics (i.e., Google Analytics, Omniture) and optimization tools that are already at your disposal, yet possess a high perceived (and applied!) value among affiliates.
d. Invest in affiliates: Subsidize the media buying of select, high-value affiliates by providing matching contributions to their expenditures or allowing access to your media buying prowess.
3. Develop and communicate a clear, well-reasoned search marketing policy to affiliates.
a. Audit your affiliate program for confluence with paid (PPC) search advertising efforts.
b. Understand value driven by affiliates across various categories based on audit results that demonstrate “triggers†of sales transactions.
c. Create business rules that negate and approve affiliate commissions based on logical rules that are shared openly and pro-actively with affiliates.
d. Understand where your search engine optimization “sweet spot†is by identifying where you want to spend time, energy (money). Assign “long tail†search terms/keywords (those able to generate less referral volume) to affiliates for their monetization efforts.
4. Experiment with social media affiliates.
a. Scale your most precious resource, time: Use new tools, such as Syntryx, to rapidly prospect for qualified affiliates.
b. Provide affiliates with access to helpful, innovative Web 2.0 linking technologies like Linkshare’s FlexLinks or Amazon’s various tools ranging from “SiteStripe†to widgets.
c. Give affiliates access to product data, coupons and other content via flexible, RSS-enabled technologies.
5. Consider creative, new approaches to paying and bonusing affiliates based on performance.
a. Throttle up payouts among performers who drive volume at a reasonable cost, considering channel confluence issues, etc.
b. Throttle down payouts among under-performers who’ve been given a fair chance, but are not performing on a quarterly basis.
Stay tuned for more actionable tips and interviews with experts in a variety of performance-focused web marketing strategies.
Jeff Molander is a leading Web marketing expert, author and speaker. He is CEO of Molander & Associates Inc.
In every online holiday gifting purchase decision, the customer wonders “will this gift get here/there on time?” It’s important to communicate clearly shipping cutoff dates to ease the fear, uncertainty and doubt—or risk losing your sale to a competitor.
1. Use clear wording like “Shipping Deadlines,†“Shipping Cutoff†or “Order By December ___†rather than just “Shipping Details†or “Shipping Info.â€
2. Make sure the information is easy to find on every page of your online store (You never know how a customer “lands” on your site. Examples: a deep link to a product page through a search engine, a forwarded-from-friend e-mail that links to a special offer or a direct type in visit.)
3. Include all shipping options: standard, expedited and express.
4. Include where you ship to on your shipping information detail page. Be clear if different states or countries have different cutoff dates.
5. Explain any restrictions clearly.
6. If different products/categories have different estimated shipping times, you must be clear about them on product pages and your information page.
7. Remember that Christmas is not the only holiday of the season. Consider Kwanzaa, Diwali and Hanukkah.
8. Consider offering a guarantee for on-time delivery. Best Buy offers an e-coupon and pays for shipping should the order arrive late.
9. Remind last-minute shoppers about electronic gift card options, e-gift cards are “always on time.”
10. Don’t forget to remind your e-mail subscribers about cut-off dates in subject lines and e-mail creative.
11. Provide the option to gift-wrap and include a gift message for direct delivery to the recipient. This is especially handy when the recipient lives in a different city.
12. If for any reason the item is not available or otherwise does not leave the warehouse on time, call the customer to notify them or at least send an e-mail notification. Offer to overnight an alternative item if need be.
Over 9 million Americans have their identity stolen each year. The Federal Trade Commission (FTC) reports that in 2007, the highest category of complaints was identity theft, attributing 32 percent of total complaints received to the category. Consumers reported fraud losses totaling more than $1.2 billion, almost double that of 2005.
Shopping online safely helps you prevent your own identity theft. Parents teach us to look both ways before crossing the street, but most of us didn’t grow up hearing “make sure your password contains a number†or, “look for an SSL connection when shopping.†All retailers should help inform consumers about safe practices.
Do’s and Don’ts Security Tips to Prevent E-commerce Identity Theft This Holiday Season:
1. Download Updates. Do click “Update Now†when you receive security updates from Microsoft, Apple, and Adobe. Don’t avoid these updates that arm you with the latest fixes before starting to shop. Web application exploits are very common now and can harm you if you simply go to a bad website.
2. Create Complex Passwords. Do mix letter cases and use at least seven characters when placing an order online. Don’t choose a word from a dictionary as hacker programs guess passwords very quickly.
3. Thwart Hackers. Do use your wireless router’s security features when surfing the web. Don’t let hackers join your network where they can try to listen in on your shopping experience. Hackers can use network sniffers to eavesdrop on you.
4. Use Onetime Credit Cards. Do shop online using a virtual credit card that expires after one use. Don’t use your actual credit card numbers on less familiar websites.
Some websites masquerade as shops but really just steal your credit card numbers.
5. Verify Secure Connections. Do make sure the padlock symbol in your browser’s status bar shows that you have a secure connection when conducting online financial transactions. Don’t press submit if there is no padlock at a store. Padlocks represent an SSL connection, which protects any information you send.
6. Check Your Credit. Do visit annualcreditreport.com before and after the holidays. Don’t wait until you receive a bill for a credit card that isn’t really yours. Your credit report shows all your accounts and overdue balances.
7. Lock Up Your Passwords. Do use a password manager to save all your passwords. Don’t save passwords in your web browser without a master password to protect them. Password managers encrypt all of your passwords with a master password so you only have to remember the one.
8. Enter Web Addresses Manually. Do go directly to a store’s website by typing its address into your web browser manually if you plan to buy something. Don’t click on links from an email message. These are known as phishing attacks and are very common.
9. Shop From Your Terminal. Do shop online using your own computer. Don’t shop online using a public computer at a hotel or airport. Public computers can have spyware that records your information as you type it.
10. Communicate Securely. Do call a business and read them your credit card information if you trust them and want to buy a present for someone. Don’t e-mail or instant message personal information. E-mail and instant messenger are insecure.
Direct response professionals are taking the mainstream media by storm, informing consumers about the cost saving benefits provided by DR and e-commerce in a shaky economy.
A.J. Khubani, president of CEO of Telebrands Corporation, visits “The View.†And no- there’s no politically charged conversations here!
Click here to watch as Michael Rubin, CEO of GSI Commerce, is interviewed on CNBC regarding the strength of e-commerce during the economic downturn.
As software selection advisors, my team has talked to thousands of retailers considering a major new software purchase. The vast majority of them are replacing an existing system—one that they’ve used for years. Why? Why replace what’s familiar? Why pay up for something entirely new when an upgrade is—on paper—less expensive? Why move away from a long-term vendor relationship? There are plenty of reasons. Here are the top five responses we hear when we ask, “What’s driving you to replace your existing system?â€
1. Improve usability and adoption. For many businesses, the system that best matched their functional requirements turned out to be too difficult to use. In an environment where employee turnover is high, poor usability can make it very difficult to get new employees up-to-speed. By far the biggest challenge we hear from buyers is that their existing POS software system is non-intuitive; they are looking for a new system and their primary requirement is ease-of-use.
2. New store growth. It’s a big leap to go from managing one store to managing two, five, 10, 100 or more. This challenge is especially difficult if a retailer plans to manage their inventory and accounting for multiple stores in one single POS or inventory management software system. Often the simple, single-store system that was easy to get going is grossly insufficient for rapid new store growth.
3. Poor tech support. Frequently, buyers come to us when they’ve gotten too frustrated with the poor support they are getting from their existing vendor. Either the vendor was a “one-man shop†that couldn’t keep up, or the vendor “lost its personal touch†as it grew too big, too fast. This impetus for change is even more powerful when poor service is combined with increases in support fees.
4. Integrating multiple channels. Many retailers are moving to support multiple channels —retail stores, e-commerce websites, mail-order catalogs, etc. As they roll out new channels, they often implement separate, redundant software systems—one for each channel. We talk to a lot of buyers that are now looking for a new, all-in-one system for multichannel retailing.
5. Hardware failure. Many retailers have been on the same system for a decade or more. They may have remained patient with an old, DOS-based system, but their hardware eventually gave out. An upgrade to new hardware presents a logical opportunity to bring their software up to current standards, as well. Much of the time, they can’t even install a dated system on new hardware and are forced to move to new-generation software.
We’ve heard many other reasons for replacing existing systems, but these are the most common. They also present a good lesson for new retail organizations that want to invest ahead of rapid growth. Consider these challenges and invest in a retail management system that will support your expansion plans.
In 2003, Congress passed several amendments to the Fair Credit Reporting Act. These amendments were put in place to address problems with identity theft and require some companies to develop a written program for identifying suspicious activity. These changes apply to credit reporting agencies and all other businesses that extend credit and have “covered accounts.†Extending credit can include any transaction where a good or service is paid for after it is received. Covered accounts can include accounts with multiple payments or transactions, as well as some types of accounts that are particularly vulnerable to identity theft. These new rules are in effect as of November 1st, although enforcement by the FTC will be delayed until May of 2009.
If you’re not sure your business is in full compliance with these rules, it is important to review your red-flag policies now. If you think your business might be included but you have not yet developed guidelines, you can review the FTC’s recommendations here. If you are unsure of how to comply with the rules, I recommend you seek the advice of counsel, but you can also utilize free resources at ftc.gov, or e-mail questions to redflags@fcc.gov. If you haven’t yet complied, you may still have time to amend your policies before enforcement actions begin. Of course, complying fully as soon as possible will help protect the customers you serve!
Tomi Turner works in ERA’s government affairs department.
While many Americans across the country spent Friday night dressed up as Sarah Palin for Halloween, it was Tina Fey who once again stole the show. Fey reprised her role as Palin for “Saturday Night Live” in a joint appearance with John McCain focused entirely on home shopping channel QVC.
“On the heels of the Obamamercial that dominated the airwaves this past week, comes this skit that opened ‘Saturday Night Live’ featuring John and Cindy McCain who, unable to afford Obama’s paid programming blitz, go on QVC to ply wares along with McCain running mate Sarah Palin in the guise of dead ringer Tina Fey. Do we need any further proof of the ubiquity of electronic retailing as a thread in the fabric of American life?” - Rick Petry
1. Test your creative. Even great online media placement can produce poor results if your messaging is off. So before you go big, run split tests of different creative units to find the winner.
So, there have been some changes in Washington since my last post. In addition to all the post-election excitement—and believe me, the buzz is palpable—there is a good deal of speculation about what will happen in the next administration. There is no doubt the next administration will assign a higher priority to technology and consumer protection issues than the last, but what will that mean for your business?
It is clear that for online retailers to remain competitive during this holiday season, their sites must offer personalized recommendation engines, product reviews, live chat and a host of other features supported by social behavioral platforms. Consumers are driving this demand, and to ensure they continue to return to a site, they must have access to the technologies they have come to rely on.
Amid the current economic crisis, some retail experts believe that retailers aiming at wooing more consumers into the store during the upcoming holiday season may want to provide the layaway payment plan to needy consumers. This plan will allow shoppers to reserve craved merchandise while unable to pay right away. The layaway plan may have several benefits to retailers offering them:
On the heels of a 
Tired of the same old tips and tricks about web affiliate marketing programs? “Communicate with them, treat them with respect†yada-yada. What about what really works? I pulled together a group of my most experienced, thought-leading colleagues to find out what’s moving the needle in affiliate marketing today. The below innovations are what I discovered. I’m happy to share these best practices. Yes, they can be quickly and easily applied—helping you manage your affiliates and extract maximum sales efficiency. Stay tuned to Electronic Retailer’s blog for candid interviews with these experts where they’ll “go deep†to reveal their secrets to success.
In every online holiday gifting purchase decision, the customer wonders “will this gift get here/there on time?” It’s important to communicate clearly shipping cutoff dates to ease the fear, uncertainty and doubt—or risk losing your sale to a competitor.
Over 9 million Americans have their identity stolen each year. The Federal Trade Commission (FTC) reports that in 2007, the highest category of complaints was identity theft, attributing 32 percent of total complaints received to the category. Consumers reported fraud losses totaling more than $1.2 billion, almost double that of 2005.
As software selection advisors, my team has talked to thousands of retailers considering a major new software purchase. The vast majority of them are replacing an existing system—one that they’ve used for years. Why? Why replace what’s familiar? Why pay up for something entirely new when an upgrade is—on paper—less expensive? Why move away from a long-term vendor relationship? There are plenty of reasons. Here are the top five responses we hear when we ask, “What’s driving you to replace your existing system?â€
In 2003, Congress passed several amendments to the Fair Credit Reporting Act. These amendments were put in place to address problems with identity theft and require some companies to develop a written program for identifying suspicious activity. These changes apply to credit reporting agencies and all other businesses that extend credit and have “covered accounts.†Extending credit can include any transaction where a good or service is paid for after it is received. Covered accounts can include accounts with multiple payments or transactions, as well as some types of accounts that are particularly vulnerable to identity theft. These new rules are in effect as of November 1st, although enforcement by the FTC will be delayed until May of 2009.
