Internet Marketing Plans
Transcript of Internet Marketing Plans
Internet Marketing
The Internet Marketing Plans
Topics
Online demographicsOnline commerce statisticsOnline marketing costsInternet marketing plan checklist
Online Demographics
Key usage drivers are income, education, computer ownership, residence, and age.
Most of the world is still not online!
– Internet usage rises sharply with household income
– The more educated someone is, the more likely they are to be online
– Internet usage varies dramatically by the region of the country and region of the world
– Middle-age heads of households are most likely to be online, followed by younger households and trailed by seniors
Online Demographics
Income is a strong positive driver of Net access in all regions of the country High income groups have influenced the success of
infant industries such as online trading There is a concern of a "digital divide" between
rich and poor Lower income individuals have a much lower rate of
online use They are unable to reap the benefits of the Internet
Income
Online DemographicsEducation
Quotable Quote:
Early adopters of the Net are the most educated members of society. As the Net diffuses to a wider audience, ease of use and simplicity become even more important. The Net needs to be more "appliance-like".
0%
10%
20%
30%
40%
50%
Elementary Some H.S. H.S. Diploma
or GED
Some
College
B.A. or more
U.S. Rural Urban Central City
Internet Usage Based on Education and Region
Online Demographics
Internet use varies greatly by region of the country
Alaska has the highest usage; the South has the lowest
Long, dark winters may lead to more usage – Finland is the most wired country in the world
Region
Online DemographicsGender
The gender gap that
characterized the early years
of the Net is rapidly closing
0%
10%
20%
30%
40%
50%
Male Female
At Home Outside Home Any Location
Internet usage based on gender and place of connection
Online DemographicsUsage Continues to Grow
Percentage of
Americans who… 1995 1998
Own a computer 36 43
Use the I nternet 14 41
Go online every day 3 12
Use e-mail 10 35
Bought online 1 13
Online DemographicsInternational Access Lags Behind
the US37% 36%
33%31%
15%
10% 10%8%
0%
5%
10%
15%
20%
25%
30%
35%
40%
U.S. Canada NordicsAustralia U.K. Germany J apan France
Percent of population with Internet access at home or at work (1998)
1479 2126
4109 3433 3146 3628 3841
1479
3605
7714
11147
14293
17921
21762
1998 1999 2000 2001 2002 2003 2004
Baru Total
Perkembangan Jumlah Domain Baru
134 256 400 581 667 865 1087 1500512 1000
1900
4200 4500
8080
11226
16000
1998 1999 2000 2001 2002 2003 2004 2005
Pelanggan Pengguna
Jumlah Pelanggan dan Pengguna Internet di Indonesia (dalam 000)
Sumber : AC Nielsen, dikutip dari Marketing, Agustus 2005
Indonesian Online Statistic
14,8 16,427,9 28,5 26,7 31,6
4515 16,3
19,6 19,1 20,120,5
19,5
27,2 26,6
26,7 26,4 26,627,8
22,7
19,5 17,7
12,6 12,6 13,510,6
7,416,8 17,1
10,1 11 9,9 7,5 4,36,7 5,9 3,2 2,5 3,2 2,1 1
TV Radio Newspaper Magazine Tabloid Cinema Intenet
E
D
C2
C1
B
A
49,1
17
8
6
4,9
7,6
2,9
2,2
2,2
0 10 20 30 40 50 60
Jabotabek
Surabaya
Bandung
Medan
Semarang
Yogyakarta
Makasar
Denpasar
Palembang
Internet Users by Cities
Internet is an upper class domain
Sumber : AC Nielsen, dikutip dari Marketing, Agustus 2005
45,9
37
28,9
22,4
22,5
21,7
20,7
17,1
15,7
13,1
10,6
5,3
49
21,2
25,7
26
23
16,9
17,7
15
13
13
12,9
3,5
Electronic Mail
Play Games
General Surving
Chating
Listen to Music
Access Local News
Product Info
Access Int'News
Read electro Npp
Read electro Mag
Job Hunting
Clasify Ads
Male
Female
E-mail is the most common feature used
Sumber : AC Nielsen, dikutip dari Marketing, Agustus 2005
GENDER
AGE
EDUCATION
40,4
59,6
Male
Female
6,5
16,2
16,3
27,7
23,3
10 40 + yr
30-39 yr
25-29 yr
20-24 yr
15-19 yr
10-14 yr
1,219,3
10,9
40,3
17,2
8,9
2,1
Post Graduate
University
Academy
SLA
SLP
SD
SD not finished
Sumber : AC Nielsen, dikutip dari Marketing, Agustus 2005
Online Commerce StatisticsTop 20 E-Tailers of June 1999
Rank Site
Projected No.
of Purchasers
(000) Reach (%)
Unique
Users
(000)
Purchase
Rate (%)
1 amazon.com 562 14.70 6,463 8.70
2 ticketmaster.com 280 2.90 1,258 22.30
3 buy.com 273 3.30 1,441 18.90
4 sony.com 226 5.60 2,473 9.20
5 mothernature.com 196 2.60 1,162 16.90
6 iprint.com 174 1.90 826 21.10
7 drugstore.com 154 1.90 814 18.90
8 hallmark.com 153 1.10 486 21.40
9 netmarket.com 138 1.50 672 20.50
10 cdnow.com 116 7.50 3,288 3.50
11 computers4sure.com 104 1.20 526 19.80
12 barnesandnoble.com 101 5.30 2,307 4.40
13 apple.com 99 4.50 1,983 5.00
14 etoys.com 83 3.40 1,485 5.60
15 enews.com 70 2.50 1,109 6.30
16 compaq.com 64 1.90 824 7.80
17 smarterkids.com 58 2.00 857 6.80
18 gateway.com 56 2.80 1,227 4.60
19 spree.com 56 3.10 1,364 4.10
20 egghead.com 41 2.90 1,269 3.30
Source: PC Data Online
Online Commerce Statistics
• Affiliate programs, such as Amazon Associates, combine the business model and network phenomena.
• They have a direct tie to e-commerce because you don't get a fee unless a sale is made.
Top 10 Affiliate Programs, April 1999
Source: refer-it
10. iSyndicate
9. Info-Links Network
8. All-Hotels.com
7. Reel.com
6. Lending Tree
5. One & Only Internet Personals
4. Amazon.com
3. Music Boulevard
2. Strange News Ticker
1. AutoFusion’s Car Prices.com
Online Commerce Statistics
Consumers told Greenfield Online the best features of online shopping are the abilities
to quickly and easily compare prices and shop at any time.
Product Online Catalog Local Store Mall
Sof tware 49% 22% 63% 41%
Books 49% 23% 68% 52%
Clothing 18% 22% 66% 68%
Outlet Customers are Most Likely to Use When Ready to Buy
Online Commerce Statistics
By the end of 2002, $2.8 billion will have been spent worldwide on e-commerce software.
78 percent of this total will derive from from investment in distribution channel management, online procurement, and supply chain management (business-to-business e-commerce solutions).
Business-to-consumer e-commerce, which in 1997 made up 41 percent of e-commerce software revenues, will in 2002 account for just 22 percent.
Online Commerce Statistics• Business-to-business e-commerce focuses not so
much on revenue generating as increasing efficiency of business processes. Now, smaller and medium-sized enterprises can benefit through increased efficiency and disintermediation of the supply chain.
• The true value of business-to-business e-commerce comes when other businesses adopt such solutions. When suppliers and buyers using e-commerce form relationships, both can reduce their costs.
• Relationships with business partners will be vital. Companies will only invest if there are enough other enterprises investing, otherwise the technology will be of no use.
Online Commerce Statistics
Source: Data Monitor
1997 2002
Global $168 million $2800 million
Europe 23% 34%
Supply 12% 30%
Distribution 36% 30%
Procurement 11% 18%
Business to Consumer 41% 22%
E- Commerce Software Market
Applications
Online Commerce Statistics
• Nearly one-third of Internet users who visit travel-related Web sites have made online reservations at those sites, according to a study by NPD Online Research.
BUT. . .
• A majority of Internet travelers still divert the confirmation of their travel reservations to traditional travel agents.
More Travelers Booking Online
Online Commerce Statistics
Total
Respondents Newbies I ntermediates Net Vets
Lowest Price 31% 28% 28% 33%
Credit Card Security 18% 33% 25% 13%
Human Contact 16% 8% 16% 16%
Accurate Reservations 14% 9% 13% 14%
Other 21% 22% 18% 24%
Why I nternet Users Book Travel Offl ine
Source: NPD Online Research
Online Marketing Cots
W eb S ite Costs
H ost ing I mproving M anaging
W eb S ite Costs
Online Marketing Costs• As software tools become powerful
and more available, simple web tasks are easy and cheap to perform
BUT. . .
• Increasing customer expectations lead to increasing costs
AND. . .
• The cost of web design talent is also increasing
Online Marketing Costs
• A web host has its own collection of servers, services, support staff and infrastructure for your company to use on a subscription basis.
• For a set up fee of $50-$100 and monthly charge of $20+, you receive your own domain name (www.mycompany.com) and your own IP address (123.456.78.90).
A Host For Your Site
Online Marketing Costs
Hosting services include: File storage Data transfer Tech support POP mailboxes Access to CGI and Java scripts Microsoft FrontPage extensions E-commerce tools such as shopping cart software
and secure credit card transfers Support for multimedia add-ons
A Host For Your Site
Online Marketing Costs
Benefits of Web Hosting Reliability for mission-critical Web activities Faster, better Web access Reduced costs Added functionality Extensive tech support and assistance Domain-name identity
A Host For Your Site
Online Marketing CostsDevelopment Costs Are On the
Rise
Source: NetMarketing
Simple Site Med Site Large Site
Feb- 99 $78,000 $150,000 $440,000
J un- 98 $44,500 $99,750 $302,975
Oct- 97 $25,000 $83,000 $275,000
Apr- 97 $18,750 $67,500 $330,000
Sep- 96 $26,100 $102,025 $596,073
Change from
J un- 98 75% 50% 45%
National High $167,500 $311,570 $1,066,870
National Low $750 $4,500 $1,000
Online Marketing Costs• The development of a serious e-commerce site
costs an average of $1 million according to The Gartner Group.
• Labor is the most important cost driver, and time to market can be considerable.
Respondents "On Budget"
5 months
1 year
2 or more on average
None
Average
High End
Number of External Firms Used
Cost to Develop an E- Commerce Site from Scratch
Cost to Develop
Time to Complete
Average $1 million
Less than $350,000
More than $2,000,000
Low End
High End
Distribution of Costs
Laobr
79%
Hardware
11%
Sof tware
10%
Internet Marketing Plan Overview
An Internet marketing plan Is a specific implementation of the opportunities, tradeoffs,
and strategies presented in the text Outlines a set of goals
Two options: Embedded plans include web-related decisions and
impacts and are a part of a general marketing plan Best for long-term analysis or when online activities are part of
an integrated marketing approach Stand-alone plans analyze and discuss Net activities
separately from the full range of marketing department activities
Best for analyzing specific campaigns, Web enhancements or “Dot coms”
Traffic Building
Traffic is an asset Traffic is getting more expensive and difficult to
generate as online competition increases Retaining traffic is very valuable
Stickiness, duration of visits & repeat visits are all important
Traffic building strategies should reinforce basic branding positions
Traffic building uses a wide variety of tools that should be synchronized
Traffic Building
• Banners are popular but effectiveness is questionable
• Big winners:– Affiliate
programs– E-mail– PR
• The winners all take advantage of network effects (Metcalfe’s Law)
Traffic-Driving Tools
Traffic Building
Brand building works best on TV and radio The total amount spent promoting sites is growing
and shifting toward off-line advertising and e-mail More mainstream Net use means more
mainstream promotion methods can be used E-mail is showing higher conversion rates than
online banners Bandwidth still prevents “TV-like” ads online
Advertising Media Selection
Traffic Building
Looking at the most popular online sites shed light on the range of traffic-driving results
The top sites are portals, but there are some unusual top-ranked sites that aren’t general purpose Web locations
Take a look at Media Metrix’s Top SitesNielsen’s Top Sites
Top Sites
Traffic BuildingNuts and Bolts: Banner Formats
The Internet Advertising Bureau/CASIE helps standardize the main banner
templates
Full Banner468x60 pixels
Full Banner with Vertical Navigation Bar392x72 pixels
Half Banner234x60 pixels
Traffic BuildingNuts and Bolts: Banner Formats
The Internet Advertising Bureau/CASIE helps standardize the main banner
templates
Half Banner234x60 pixels
Button 1120x90 pixels
Button 2120x60 pixels
Square Button125x125 pixels
Micro Button88x31 pixels
Traffic Building
Search engines provide free traffic without the need for ads, alliances, and sponsorships
Yet they’re a source of frustration and mystery How do they work? Is it really possible to buy your way up the list? What makes them tick?
Resources that can help: Search Engine Watch Northern Webs tutorial
Search Engines