Marketing Research on The Internet - cool.ntu.edu.tw

Chapter Seven

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Marketing Research on

The Internet

Marketing Research 11th Edition http://www.drvkumar.com/mr11/

Current Trends in Web Usage

• 69% of American households have access to internet at home (US

Census Bureau 2009 population survey)

• 68% of adults use the internet (Pew Internet and American Life

Project 2005)

• 32% of adult Internet users purchased products or services online

in 2005 (Census report)

• Online advertising revenue is $26 billion in 2010

• 33.2 million people between 50-64 years of age online in 2005

(eMarketer)

• Senior-specific sites for Pfizer Inc., Fidelity Investments and

Charles Schwab Corp.

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Current Trends in Web Usage

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Retail Sales (millions of E-Commercedollars)

E-Commercedollars) as a PercentTotal E-Commerce of Total

TotalE-

Commerce

2005 3,693,913 92,505 2.5%

2004 3,467,850 73,920 2.1%

2003 3,266,790 57,931 1.8%

20023,135,269 45,007 1.4%

20013,067,965 34,448 1.1%

20002,984,979 27,574 0.9%

E-Commerce Spending Summary, 2000 - 2011

SOURCE: Compiled from Annual Retail Trade Surveys, U.S. Census Bureau


Retail Sales (millions of E-Commercedollars)

E-Commercedollars) as a PercentTotal E-Commerce of Total

Total E-Commerce

2011 3,123,715 141,727 4.5%

2010 3,887,725 166,513 4.3%

2009 3,639,467 144,462 4.0%

2008 3,945,364 142,508 3.6%

2007 4,008,096 137,564 3.4%

2006 3,885,877 114,341 2.9%

Internet – Uses & Usage

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ActivityRural Internet Users

(%)Urban & Suburban

Internet Users (%)

Buy or make a reservation for

travel51 65

Online banking 34 43

Online classifieds 30 37

Read a blog 21 28

Download screensavers 28 22

Download computer games 25 20

Class for credit 15 11

Fantasy sports 9 7

Uses for Online ServicesTypical Uses of the Internet

SOURCE: Pew Internet & American Life Project.


Online Advertisements

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Top Companies by Sponsored Link Impressions as of May 2009

CompanyImpressions

(in millions)

InterActiveCorp 768.4

Research In Motion Ltd. 662.2

eBay Inc. 625.6

Yahoo Inc. 451.3

Amazon.com Inc. 363.9

Bank of America Corp 319.8

Infospace Inc. 281.7

e-Unity Corp. 249.0

Target Corp. 238.4

Search Engine Advertising

Local Media Advertising

Contextual Advertising


SOURCE: http://searchenginewatch.com/article/2048728/Advertising-Placements-by-Industry-and-Top-Sponsored-Links-March-2009

Online Tracking Measurements

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Online tracking is advantageous to researchers in many ways.

1. Internet tracking offers researchers a means to test viewers’ advertisement recognition by providing visual cues • Unlike telephone surveys that only provide verbal cues

2. Online tracking yields faster results.

3. It is possible for researchers to know the viewer awareness of advertisement campaigns and also determine the degree of awareness of a campaign by comparing segments of the audience.

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Internet Ad Revenues by Major Industry Category, 2009 vs 2010

SOURCE:

http://www.onlinemarketing-

trends.com/2011/08/worldwide-

internet-advertising-to-reach.html

Top Web advertisers of 2009 and 2010

Primary Research on the Internet

E-mail Surveys

Interactive Forms

Online Panels

Online Focus Groups

User Generated Reviews

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Email Surveys

• Advantages

↑ Greater speed of delivery of questionnaires

↑ Higher speed of delivering responses and feedback

↑ Cost-savings benefits over regular mail surveys

↑ No intermediaries

↑ Asynchronous communication

• Disadvantages

↓ Low security

↓ No guarantee for anonymity

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Comparison of Information Sources

Internet

(www, Usenet)

Professional

Databases

(e.g., Lexis/Nexis)

Commercial On-

line Services

(e.g, CompuServe)

Speeda Low to high High Low to high

Information

Structure

Structure not very

good

Very well structured Well structured

Information scope Very broad Depends on the

database, mostly

narrow

Medium to broad

Overall information

quality

Low to high High to very high Medium to high

Search tools Limited, not complete Extensive, accurate Mostly accurate

User support Limited Very good Good

Cost Low High to very high Medium

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a Depending on modem, server and database structure

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Secondary Research on the Internet

• Custom Search Service

• Agents

• Leveraging Web Analytics

for Marketing

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Leveraging Web Analytics for Marketing

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$32.0

$39.5

$46.5

$52.8$57.5

$62.0

0

10

20

30

40

50

60

70

2011 2012 2013 2014 2015 2016

US

Do

llars

(in

bill

ion

s)

U.S. Online Ad Spend 2011-2016

• For the first time in U.S. history,

marketers are projected to

spend more on online

advertising than on advertising

in print magazines and

newspapers.

• Online ad revenues are

expected to continue to grow

over the next half-decade with

total online ad investment

projected to hit $62 billion by

2016.

What is Google Analytics?

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• It is a free website statistics solution that gives rich insights into web traffic and marketing effectiveness.

• It is the most widely used website statistics service with 60% of the 10,000 most popular websites using the service

• It allows businesses to see;

a) How people find their site

b) How they navigate through that site

c) How they ultimately become customers

What is Google Analytics? (contd)

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Number of Visits to Page in specified time

Average amount of Time spent on Site by each user in a given session.

Percentage of visits that are New Visits

Distribution of

traffic to site by

source

How can it be used for marketing purposes?

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• Google Analytics makes it possible for advertisers, publishers, and website owners to improve their online results.

• Using such a tool helps marketers in;

▫ Targeting consumers

▫ Managing online advertising

▫ Understanding regional distribution of visitors

Eg: Campaign Tracking in Google Analytics

The Seven Deadly Sins of Online Searching

PrideAssuming one does not need to read the manual or other material for the

search process

Haste Rushing into a search before thinking through your search goals

AvariceTrying to perform an extensive search when only a few good pieces of

information are necessary

Apathy Not thinking creatively about what sources would best cover the subject

Sloth Using the same old sources for every search

Narrow

mindednessTrying only one formulation of the search

Ignorance Not knowing the on-line system’s tricks and tools

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16


The Internet & Marketing Research Developments

• Intranets

• Speed

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Internet Users in the World

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SOURCE: http://www.gandalf.it/data/data1.htmMarketing Research 11th Edition http://www.drvkumar.com/mr11/

Where The Users Are

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CountryNumber of hosts

in June 2011Per

1000 Inhabitants

United States 428,029,000 1156.8

Japan 63,199,811 495.6

Germany* 30,000,000 365.1

United Kingdom* 26,000,000 422.3

Italy 24,923,735 405.8

France* 24,900,000 385.0

Canada* 24,000,000 707.3

Brazil 22,212,190 116.0

China 17,446,117 13.0

Spain* 17,000,000 364.8

Australia 16,952,338 768.3

India* 16,000,000 13.8

Mexico 14,467,988 131.2

Netherlands 13,596,075 820.2

Russia 12,846,762 90.5


in June 2011Per

1000 Inhabitants

Poland 11,391,453 324.8

South Korea* 10,000,000 206.9

Argentina 8,628,736 215.0

Taiwan 6,405,566 277.1

Switzerland 5,232,713 672.3

Belgium 5,078,171 477.0

Sweden** 4,995,577 641.9

Finland 4,603,476 866.1

Denmark 4,242,576 766.5

South Africa 4,184,815 84.8

Turkey 4,034,284 55.6

Czech Republic 3,988,136 372.5

Portugal 3,558,417 332.3

Norway 3,542,038 729.1


Where The Users Are

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in June 2011Per

1000 Inhabitants

Austria 3,389,616 405.7

Colombia 3,343,134 74.3

Greece 2,995,124 266.0

Thailand 2,980,010 44.0

Hungary 2,890,146 288.1

New Zealand 2,856,312 661.8

Romania 2,715,415 126.3

Israel 2,185,740 294.0

Ukraine 1,778,966 38.8

Chile 1,778,327 105.1

Singapore 1,701,103 341.0

Ireland 1,373,941 304.3

Slovakia 1,363,103 251.3

Croatia 1,344,819 301.5



in June 2011Per

1000 Inhabitants

Indonesia 1,318,825 5.7

Lithuania 1,189,700 357.4

Bulgaria 909,615 120.0

Serbia 878,950 119.6

Hong Kong 845,018 120.7

Estonia 839,021 626.1

Uruguay 782,426 233.9

World total 849,869,781 65.6

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End of Chapter Seven

Marketing Research on The Internet - cool.ntu.edu.tw

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