Business owners know that engaging prospective customers with a blended marketing approach maintains a high frequency of touches and provides enough content to keep them engaged. Today, the Internet is where many customers choose to engage with you because they are increasingly reliant on the Internet.
Remember the slogan, ‘The Internet changes everything’? In the advertising world, the success of Google is providing evidence of that statement. Google's simple text-ad service, AdWords, enables marketers literally to count how many Internet surfers click from a Google text ad to the company's Web site. That ad model is increasingly preferred to traditional TV, print and radio ads that have difficulty quantifying how many people are actually paying attention.
eCommerce has survived 12 years on the Web, evolving considerably over that time. One of the biggest challenges and opportunities is the growing importance of search.
"The Role of Search in Consumer Buying," a study by comScore (sponsored by Google) found that 63 percent of search-related purchases occur in offline retail stores. The results also indicate that 25 percent of searchers purchased an item directly related to their search query--of those buyers, just 37 percent completed their purchase online. The study examined the search behavior of 83 million Americans, conducting over 552 million searches within 11 product categories using one or more of 24 search engines.
The comScore study analyzed the search behavior during the 2005 holiday season. The 8.6 million who subsequently purchased items online were found to be intense users of search engines across all product categories. They performed nearly ten times as many searches as non-buyers. Anecdotal evidence shows that sites using both search engine optimization of organic listings and paid search strategies increase conversion rates because traffic goes up dramatically with links in multiple positions. Users choose to click more frequently on an organic listing when they also see a sponsored Adwords listing.
Paid search spending has increased faster than any other online marketing channel. Search marketing revenues in North America totaled $5.75 billion in 2005 and are projected to reach $11 billion in 2010 (SEMPO). The Department of Commerce estimated total eCommerce sales for 2005 at 86.3 billion, an increase of 24.6 percent over 2004. Total retail sales in 2005 increased 7.2 percent over 2004, with eCommerce sales accounting for 2.3 percent of total sales.
Landing pages to the online Adwords advertisement provide a complete company message, but one that is slanted in favor of the topic most relevant to the arriving customer. The Internet has made it possible to reach out to an almost limitless market, at any time, and usually for little cost. Yet sometimes, reaching out to one very important customer becomes more important, more effective, and more manageable than trying to reach 1,000 average prospects.
For example, influencers are people whose opinions may cause important customers to stay loyal, and even spend additional dollars. Creating unique brand-related experiences that the influencer will then report on to peers communicates your competitive advantage. Engaging influencers ties closely with conventional concepts of market segmentation.
Using Adwords, mutual fund giant Vanguard in November 2005 spent less than $.50 per click, one-tenth that of some rivals, and 14% of Internet surfers exposed to the ad clicked through to its Web site. That performance beats the response rate from a typical direct-mail effort, for example, of about 2%. And it's why Vanguard upped its Internet ad spending by 33% since 2003, to $12 million of last year's $40 million total spent on ads, while it cut every other media category, according to TNS Media Intelligence.
For financial planners looking for Baby Boomers who need to plan for retirement, AdWords now offers a "site targeting" program in which its banner ads could appear on a handpicked network of blogs, like www.SoBabyBoomer.com, and news sites. Sean Haggerty, Vanguard's marketing chief, says, "As big as we are, we are a Web and 1-800-number company. We have no bricks and mortar, so our Web site and call centers tell us what works."