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The e-commerce opportunity

iStock_000000159185XSmallIn this digital age, entering the domain of e-commerce is unavoidable. Not only that, but any business which is not looking to capitalise on the extensive opportunities on offer in the electronic domain may as well be steering their Titanic operations straight for the nearest iceberg. In this day and age - it's not just a matter of keeping up - it's a case of staying in business.

In a nutshell, e-commerce or 'electronic commerce' is the method of doing business using the internet. Many would instantly think about buying and selling goods online, but the e-commerce opportunity goes much deeper than that. Selling services, receiving electronic payments and online marketing are all examples of e-commerce at work. Play the game right and you could be enjoying increased profits, boosted sales and a worldwide reputation.

As well as the ability to reach the world's biggest market base 24/7, e-commerce offers businesses a range of other benefits, most notably in the reduced costs associated with marketing in this way. As an online retailer you are instantly cutting the cost of employing in-store staff, running a building and keeping the store's image up to date. Indeed, while professionally producing an e-commerce website and keeping it maintained may cost a few thousand pounds each year, these costs pale into insignificance when compared to the cost of running and maintaining a customer facing store.

Now 2011 has drawn to a close, e-commerce marketers are beginning to look towards what the next 12 months will bring in terms of opportunities. Looking back over the last decade, online retailing has changed the face of the retail market and has seen companies like Amazon, eBay and Play.com appear from nowhere to become retail giants and household names in a very short space of time. However, even these internet monsters are beginning to feel the pinch, with Amazon reporting sales down in the second quarter of 2011 and other operators such as Overstock.com reporting drops in profits in the same period.

There may be a number of reasons for these reported drops in sales. With the current economic climate leading to pretty much stagnant incomes in most of the Western world, it is hardly surprising that this is starting to have an impact on online growth. In addition to this, with so many new businesses moving into e-commerce every day, online retailers are constantly battling with their peers for the lion's share of the market. In order to stay afloat you not only need to miss that iceberg, you also need to do it at -50% RRP.

New business models As well as the constant price wars squeezing the profits of online retailers, there are also new business models evolving which are changing the way consumers buy. Group buying sites like Groupon and Wowcher are offering consumers the chance to secure unbeatable deals through the power of mass purchase.

Private buying clubs for expensive items are seeing direct deals being brokered with manufacturers, which retailers cannot be expected to compete with. As well as this, the online consumer is smarter than ever before. With people looking to work with cash-back sites, trawling for online voucher codes and making the most of price comparison tools, there is much more to be considered than just how much you price your product at. Online consumers are also prepared to pay for more products that are delivered to them by a reputable retailer, so getting those good reviews from existing clients is invaluable.

With all this in mind, it is becoming clear that an attractive website with a good range of products and a useful search function is not enough. Consumers no longer just want to browse and inspire their own purchase decisions, they want to be inspired by you, be led by you and wowed by you. For most online retailers, the cost of a new customer will be set in the amount it needs to discount its products to achieve the original traffic flow to its site. In order to compensate for this squeeze to their profits, they need to maximise the opportunity that new customer presents, both now and in the future. Intelligent cross selling, attractive visual display and sophisticated personalisation are key to ensuring the customer feels inspired - not forced - to buy more than they came for and that they will come back again.

M-commerce just as important As well as reinventing an online presence, e-commerce businesses should be looking at their m-commerce facilities too. For smartphone and tablet users, the interaction and mobile experience should be just as impressive on a smaller screen as it is on a PC. The improved search functionality needs to translate well to the mobile app and the checkout process should be as simple as possible to let those impulse purchases go ahead.

Retail experts recommend avoiding the 'app' market, as you present yourself with all manner of challenges by doing so, not least to develop three or four platform specific apps to work with consumers' various devices. The advent of HTML5 has given businesses the ability to develop mobile sites with video and flash capabilities, so why restrict yourself to the functionality of Android or OSX?

Alongside HTML5, there are a number of other new web technologies set to come into their own over the forthcoming year; many are already referring to these technologies as the 'Web 2.0'. They include tools for video and photo sharing, improved social media utilities, tools for podcasts and blogs as well as an exciting new range of user generated marketing content, letting your customers market your business for you. Keeping up to date with these changes is going to be a key challenge for any business next year, as a misunderstood technology could mean a missed opportunity.

One final word on 2012 - don't forget the basics. It's no good having the latest video marketing software and the trendiest marketing team at your back if your checkout process is archaic. Make sure you have the foundations well cemented before you attempt to put the bells and whistles on the roof and you'll be sailing off into the sunset in no time.

The future of the internet

4659650269_aa06d38068Today, in 2011, we know the Internet as a digital juggernaut that has revolutionised how we approach communications, media, marketing and even shopping. But whilst the Internet phenomenon has its earliest roots in the 19th century and has developed gradually since then, it was only as recently as 1977 when it first truly appeared in the form we know now and only 1989 when it first became commercial. The Internet's expansion and transformation since then has been dramatic.

By 2008 for example, 1.4 billion users had logged on the Internet and the network had spread not only right around the world but also on to an array of platforms, such as mobile phones, for example. Connectivity has reached huge proportions too, as broadband speeds have increased and Wi-Fi has allowed the public expanded access. With so many users on the Internet, marketers have seen the potential to engage with consumers and have used everything from e-mail advertising to campaigns across social media websites to target their desired markets.

The Internet is still changing, however and when the Internet progresses, it does so pretty rapidly. It's not possible to say exactly where the Internet will be in a few years’ time, but looking back on this year alone; a few current trends indicate some of the changes that are likely to be with us soon.

New media formats continue to proliferate across the Internet and some of these will be of use to marketers. For example, podcasts continue to grow in popularity and are easily accessible and not difficult to create. As a result, podcasts are produced by both individuals and companies for a whole bunch of subjects. Marketers can tap into this popularity by creating podcasts as well as targeting podcast listeners in campaigns.

The amount of people using mobile devices for Internet purposes means those mobile phones and other handheld devices are surely another format that the Internet will continue to grow on in the future. Marketers can tap into this and design campaigns that can operate on mobile platforms, or create websites that run well on a mobile device screen.

Another trend that links in to an extent with the rise in net usage on handheld devices is the way in which the Internet is becoming more and more concerned with the concept of real time, that is to say, data and media, from news reports to YouTube videos of incidents that have only recently occurred, that are presented extremely quickly to Internet users. This desire for real time content is likely to increase as people crave ever more up-to-date and thus useful information across every sector, from the latest marketing deals and appointments to train times and delay information. Brands may be able to tap into this through the services they offer.

How people search and how these results are displayed will also change as the Internet gets older. Search tools are becoming available all the time to help net users find what they want quickly and also to aid them in discovering more relevant search results without much hassle. More precise search tools are likely to continue to appear in the future. These may include tools that enable search engine users to view more of results before they click through and programs that enable net users to run complex reports to find what they're looking for. Marketers aiming to appeal to consumers through Internet-based marketing need to find ways to become attuned to what's happening in searches and adjust their websites so that customers find them.

Perhaps the largest progression in the evolution of the Internet in the near future will be the way in which social media continues to be used by many people with integration into marketing campaigns. Social media is already expanded across the net, with Facebook, LinkedIn, Twitter and YouTube, for example, used by marketers. As more and more people use these sites on a daily basis and these channels replace more traditional media formats, marketers will need to further integrate social media activity into campaigns.

Photo by Keith Ramsey

Top social media tips for business

5858249526_2298a25375Social media is unavoidable these days. Whether it is celebrities tweeting on Twitter, your friends posting pictures on Facebook or professionals networking on LinkedIn, social media has made a massive impact on how we use the internet. Crucially though, it's also becoming a major factor in how businesses operate and when it comes to marketing, you're ill advised to forget that social media is now a large part of the marketing mix.

Plenty of companies, both small and large, now reach out to consumers and engage across the likes of Flickr, Facebook and YouTube. Many brands maintain Facebook profiles and chat to consumers via this page, whilst others develop their own YouTube channel and fill it with unique, appealing content. Other brands still use lesser-known sites like Foursquare to launch innovative marketing campaigns.

Why are marketers engaging with social media? It is because it creates a real buzz, when done well of course, and offers a bunch of other potential benefits too. For a start, social media is extremely popular. Millions of people have Facebook accounts, for instance. So when marketers set out to reach audiences, they have difficulty ignoring the potential audience spread across social media platforms. These are audiences that in some cases aren't watching TV as much and are perhaps turning against print alongside other forms of traditional advertising platforms.

Beyond simple exposure for the business, social media marketing can help garner more specific advantages. For example, a company on Twitter may make contact with a new business lead, or executives can form new partnerships via LinkedIn. More generally, operating across social media, whether it's through blogs or a YouTube channel, can drive up search engine results and offer further business exposure.

Succeeding across social media is often a case of remembering the little things. Marketers should establish a social media plan to implement. Going in without considering what you want to achieve on social media can create a muddled experience. Instead, choose platforms that are right for your business and goals and become familiar with these before you really begin. Once you establish your plan, remember two things that are especially important for successful social media usage - community and content.

You need to engage with the community in the social media space you pick. Just setting up shop and broadcasting content won't necessarily cut it on many platforms. On Twitter, for example, a brand can post links, but if they ignore replies and don't engage with consumers who want to interact with the company, they risk isolating themselves and failing to get the most from the community. Likewise, not replying to comments on your Facebook page can have similar consequences.

Content is equally important. If your brand is putting out content that's engaging, original and relevant to the audience you're targeting, you stand a much better chance of reaching consumers and producing a buzz around your social media activity. Brands that create unique trailers and videos and place them on YouTube can attract consumers who are interested in what they're producing and will then tell their friends. Just re-tweeting what other people are saying on Twitter, however, isn't offering content that consumers can't get elsewhere and so it's less likely to generate buzz.

Furthermore, the content you offer should reflect what your brand is about. If you're involved in car manufacturing, presenting a demonstration video of a new model or providing maintenance tips to customers are two ways to give consumers something relevant and useful, that also ties in to what you as a brand do. Use your expertise to create content that other companies can't and thus edge ahead of others in the social media stakes.

Blogs are a big part of the social media sphere and your own business blog is one way to reach a new audience and make contact with both consumers and industry insiders in a not-too-formal manner. But you can go beyond this by engaging with other blog writers. Join discussions, follow blogs that are relevant to your company and gradually build up your status in the community. In time, you may be able to take advantage of the work you've done. For example, another blog, which is independent, might give you an opportunity to write as a guest blogger one week, opening up the door to reach a new audience.

The result of all this activity will be that inevitably, people will talk about your company across social media. This isn't usually a bad thing. You can track what people are saying using tools such as TweetDeck and Bing searches to discover when you're being mentioned on Twitter, for example, or check via Facebook's real-time search engine. Take on board what's being said, even the negatives. If you do find complaints about your content or your business operation in general, calmly take time to respond to these politely. It's possible you'll be able to rectify the situation through this contact.

Photo by Andreas Eldh

Facebook to go public next year

facebook_logoAccording to U-Talk Marketing, Reid Hoffman, co-founder of LinkedIn and a key investor in Facebook, has told the Telegraph that Mark Zuckerberg is likely to choose to float the social networking site next year.

Hoffman has made a name for himself as a major investor in other successful web companies such as Groupon, social gaming company Zynga and location service Gowalla.

For more information visit the U-Talk Marketing website.

Stock Photo

Redefining public relations in the age of social media

5986220278_9635614fc2According to NY Times, the public relations industry has decided that it may be a good time for, well, a public relations initiative.

The industry’s largest organization, the Public Relations Society of America, is embarking on an effort to develop a better definition of “public relations,” one more appropriate for the 21st century.

For more information visit the NY Times website.

Photo by Thos Ballantyne

Facebook is as big as the internet of 2004

Facebook is as big as the Internet of 2004

Facebook currently has 800m users, which is slightly more users than those on the internet in early 2004, according to data from Internet World Stats.

For marketeers, the importance of the Facebook as a tool to engage those already online is highlighted in an article by Read Write Web.

According to Read Write Web, active Facebook users make up about 38% of the entire internet population - with the number of internet users in Europe comprising 727m and and Asia 922m.

Visit the Read Write Web.com website for the full story.

Levi’s ad pulled due to riot association concerns

Levi’s Jeans have postponed the premiere of their “Go Forth” ad because it features a young man confronting riot police. Click on this link to see the Levi's ad.

The jeans manufacturer said that it has made this decision out of "sensitivity" and that they intended the scenes in the ad "in the spirit of positive action and optimism".

The rioting in England has shown to have hit some brands harder than others, with looters targeting JD Sports stores to get hold of their favourite sporting brands. Car Phone Warehouse has also suffered from the opportunist looting.

Brands need to be careful not to promote the kind of violent crime that has been witnessed in England over the last few days and it is probably with this in mind that the Levi’s ad has been stopped.

The ad was released on Facebook, but the television premier has been postponed. The ad campaign will continue in other countries.

Google+ to unroll service for brands

Google is to launch a business version of Google+ later this year, and in the mean time is asking businesses not to use the consumer version for commercial purposes. Online marketing agencies will keenly await news on this matter. Christian Oestlien, Google+ project manager, said, "We are focused on optimising for the consumer experience, but we have a great team of engineers building a similar optimised business experience for Google+." Google is currently testing the incorporation of businesses and brands by inviting a small number of them to take part in tests which will allow feedback from users interacting with brands via the stream, Circles and Hangouts features on Google+. Google+ is still on an invitation only basis. The success of the new service will depend largely on their ability to convert Facebook users.

Google’s Eric Schmidt says they “Screwed up” when failing to challenge Facebook’s networking ability

The All Things Digital Conference in California saw Eric Schmidt, Google’s executive chairman, said they had failed to take Facebook seriously four years ago. At that stage the social network had about 20 million active users.

Facebook has come a long way and now over 500 million people make use of the network. Online marketing has come to depend heavily on the social media power of Facebook.

Google is now trying to find better ways of connecting people under the leadership of Larry Page. Mr Schmidt believes that the online industry would be better off with a competitor to Facebook.

Google looses out considerably to Facebook in the social networking market, as Facebook attracts a very substantial amount of advertising.

Facebook has repeatedly turned down Google’s attempts to partner with them, according to Mr Schmidt. He said that they prefer to partner with Microsoft, who own 1.6% of the company.

[caption id="" align="alignleft" width="300" oldwidth="500" caption="Google vs Facebook"]Google vs Facebook[/caption]

TweetDeck bid by Twitter

TwitterThe Telegraph has reported that advanced talks between Twitter and TweetDeck value the application at around $50million.

Twitter is reportedly close to agreeing on a price for TweetDeck, the add-on application that allows heavy users of the site to track multiple conversations.

The Wall Street Journal says that people familiar with the matter believed advanced talks had settled on a figure of around £31 million.

TweetDeck allows users to arrange themes in different columns, rather than having to search for them on Twitter.com. Twitter lets other sites to interact with it directly via an open application programming interface (API), and it is thought that TweetDeck users account for at least one in five of all Tweets.

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