Electronic Retailer Blog

5 Tips for Saving Money on Online Advertising

admin — Mon, 24 Nov 2008 21:56:30 +0000

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.

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What a Week in Government Affairs!

admin — Mon, 24 Nov 2008 21:45:53 +0000

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.

Tomi Turner is ERA’s legislative manager.

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’Tis the Season for Online Retailers to Optimize Resources

admin — Mon, 24 Nov 2008 21:37:43 +0000

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.

Dr. Rolf Elmér is CEO of Avail Intelligence.

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Attention Retailers: Bring Back Layaway Options!

admin — Mon, 24 Nov 2008 21:25:12 +0000

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.

Tony Gao, Ph.D., is a marketing professor at Northeastern University’s business school.

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R.I.P. Yellow-Pages?

admin — Thu, 20 Nov 2008 21:16:27 +0000

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.

What are your thoughts?

Pat Cauley is Electronic Retailer magazine’s eMedia editor.

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5 Easy-to-Implement Affiliate Marketing Tips for DRTV Marketers

admin — Tue, 18 Nov 2008 18:24:23 +0000

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.

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12 Tips To Ensure Customers’ Gifts Will Arrive On Time

admin — Fri, 14 Nov 2008 08:51:57 +0000

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.”

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.

Linda Bustos is an e-commerce analyst with Elastic Path and the author of the Get Elastic eCommerce Blog.

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ERA Takes Over Caesars Palace!

admin — Thu, 13 Nov 2008 23:06:52 +0000

The following photos were taken at ERA’s networking reception at Shadow Bar on October 13.

Save the dates!

January 27th: ERA Networking Reception, SANTA MONICA, Calif.

March 1-3: eRetailer Summit, MIAMI

March 22: ERA Networking Reception, CHICAGO

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