The Power of eMarketing

President and CEO

eMarketing Association

Robert Fleming

The Internet is Different

A rare example of a modern functional anarchy No official censors, no bosses, no board of

directors, no stockholders No one “owns” the Internet, there is no “Internet,

Incorporated” The “Internet” itself, doesn’t even officially exist

as an entity The “Internet” never charges for anything. Each

group accessing the internet is responsible for their own machine and access

Evolution Of The Internet

Phase One:Phase One: Portals Portals

EverywhereEverywhere

Phase Two:Phase Two: Simple Simple

TransactionsTransactions

Phase Three:Phase Three: The The

Digital DecadeDigital Decade

The Internet Grows

600 million people access the internet worldwide (2002 est.)

2002 e-commerce 1 trillion dollars (est.) 68% increase in e-commerce 2000 vs. 2001 Over 1 billion web pages, 40 million sites

Rapid Increase in Internet Use in the United States Across States –Over half the population

Greater than 50% of People Use The Internet (35) Approx. 50% of People Use the Internet (9) Less Than 50% of People Use the Internet (6)

August 2000 September 2001

Source: NTIA and ESA, U.S. Department of Commerce, using U.S. Census Bureau Current Population Survey Supplements

Internet Use at Any Location, 1998 and 2001

As a Percent of U.S. Population

4.1

16.8

39.2

51.2

63.2

29.9

14.3

38.9

65.4

75.6

85

51.5

0

10

20

30

40

50

60

70

80

90

100

3-4 yearsold

5-9 yearsold

10-13 yearsold

14-17 yearsold

18-24 yearsold in school

18-24 yearsold not inschool

1998

2001

Source: NTIA and ESA, U.S. Department of Commerce, using U.S. Census Bureau Current Population Survey Supplements

What are they doing online?

More time

More money

More services

Fewer sites

84.0

67.3

61.8

42.1

39.1

34.9

30.9

24.8

18.8

17.3

17.9

16.4

8.8

5.2

3.5

0 20 40 60 80 100

E-m ail

News, Weather, Sports

Product/Service Purchases

Governm ent Services Search*

View TV/Movies , Lis ten to Radio

On-Line Banking*

Trade Stocks , Bonds , Mutual Funds*

On-Line Education Course

Online Activities 2001 – Internet users Age 3+

Oct 1999Oct 1999

4.34.3

99

66

33

00

Time spent online

Oct 2001Oct 2001

8.2

Source: JupiterSource: Jupiter

75% of online customers say the Net makes their lives better

79% of Net users utilise it for information for offline purchases

AOL online average minutes per day:

19991999 20012001 4747 63 63

Impact of Internet onmedia consumption

Source: (USA) Scarborough National Internet StudySource: (USA) Scarborough National Internet Study

23% Watch TV less often

9% Listen to radio less often

15% Read newspaper less often

20% Read magazines less often

7.00am7.00am

9.00am9.00am

11.00am11.00am

1.00pm1.00pm

3.00pm3.00pm

5.00pm5.00pm

7.00pm7.00pm

9.00pm9.00pm

11.00pm11.00pm

TVTV

Breakfast Breakfast NewsNews

News, Ent,News, Ent,SportSport

PrintPrint

Morning Morning PaperPaper

Paper/MagsPaper/Mags

Leisure MagsLeisure Mags

OutdoorOutdoorJourneyJourneyTo WorkTo Work

Out forOut forLunchLunch

Journey Journey HomeHome

RadioRadio

Breakfast Breakfast ShowShow

Drive TimeDrive Time

Drive TimeDrive Time

OnlineOnline

Check News/Check News/MailMail

MessengerMessenger

News, Sport,News, Sport,FinanceFinance

MessengerMessenger

Web CastWeb Cast

Reaching consumersthroughout their media day

e-commerce only represents a minor fraction of total GDP...

e-commerce(3%)

2002 US GDP Projection

Traditional retail(97%)

The Internet has to supportBrick & Mortar

Initiate Initiate RelationshipRelationship

in Information in Information StageStage

Increase Increase Product Product

SelectionSelection

Develop Develop AftermarAftermar

ketketContactContact

Develop Develop Customer Customer

KnowledgeKnowledge

Reduce Reduce Inventory Inventory

NeedsNeeds

Reach Reach New New

CustomeCustomer Setsr Sets

Internet Contribution Internet Contribution to Bricks and Mortarto Bricks and Mortar

… and Bricks & Mortar mustsupport the Internet

Brand Brand ReinforcementReinforcement

and Trustand Trust

Capture Capture urgent and urgent and

impulse buysimpulse buys

FacilitateFacilitateDeliveryDelivery

Capture Capture Aftermarket Aftermarket

ProfitsProfits

Reach a Reach a larger larger

customer customer basebase

Place to Place to touch touch

and test-and test-drive drive

productproduct

Bricks & MortarBricks & MortarContribution to Contribution to

InternetInternet

Customers must be able to moveback and forth seamlessly ...

ShopShopResearchResearch BuyBuy OwnOwn Dispose/ Dispose/ RepurchaseRepurchaseAwarenessAwareness

InternetInternet

Bricks and MortarBricks and Mortar

Shared Customer Info

Shared Customer Info

Role

of

Bri

cks

and M

ort

ar

Transform Bricks and Mortar

Integrated Systems

Integrated Systems

Marketing Employment Is Growing

“Employment of advertising, marketing, promotions, public

relations, and sales managers is expected to

increase faster than the average for all occupations through 2010 ”

Source: United States Department of Labor

eMA Employment Survey

70% of all management level marketing positions require Internet

abilities and/or experience.

Internet Related Jobs Are NOT Just in I T

Source: Center for Research in eCommerce, graduate School of

Business, University of Texas at Austin 

The Change in Corporate Culture

1996 – most web sites are managed by IT /MIS 2001 – marketing and IT/MIS manage web sites

jointly (in some cases) Marketing needs to “own” web site IT/MIS are the mechanics – marketing the pilot Marketing becomes more collaborative and less

autonomous

Are the Following IT or Marcom Functions?

Corporate communications Advertising Corporate identity Product positioning Market Research

IT/MIS Continues to Dominate Web Management

Lack of technical understanding by marketers

Fast changing technology can create confusion

Corporate politics plays a role

Efficient Organization

Administration

Service

O perations

Support

M arketing/Sales

W ebm aster

M IS

Effective Organization

Administration O perations

Support

Service

W ebm aster

M arketing M IS

Outlook

Increasing shift of web site responsibility from MIS to marketing

Increased technical knowledge required from marketers

Internet marketing accounts for 15% of all advertising impressions and only 5% of marketing budgets

The gap will close between impressions and budget

Marketer must understand new tools

No Other Media Has All of the Advantages of eMarketing. Period.

Cost effectiveness Global reach Interactive response Measurability Personalization Real-time feedback

But E-marketing Suffers From

Lack of data – 5 years vs. decades for magazines, radio

Lack of understanding of technology by marketers

Fast moving and turbulent arena Changing technologies Lack of trained personal Senior management barriers Corporate culture

Online Marketing Tools Are Less Than 6 Years Old (That’s First Grade)

E-mail marketing Site design for e-commerce Viral marketing Affiliate marketing Banner advertising Search engines Online publicity Research CRM

Site Design for E-marketing

Merchant account checkout Visitor expectations Surveys Content Technical considerations Color Plug ins Product descriptions Company information

What Works on a Site ?Common Influences on Online Purchase

Shipping fees 92%

Prices 92%

Product availability 86%

Special promotions or incentives 76%

Selection 69%

Order tracking 66%

Clearly identified delivery time 65%

Return policy 63%

Ease of use 62%

Site performance/speed 51%Source: Vividence

Search Engines

Pay for position taking a strong lead Search engine optimization (SEO) critical Majority of users rely on search engines for

navigation Targeted audience Accounts for over 70% of new site visitors Turbulent arena

E-mail Marketing

E-mail is the number one app with over 90% of internet users

Issues such as browser differences, targeting, and privacy are critical

Spam, creates a major negative for e-mail marketing, laws passed in 19 states

Only 3 years of significant use

Viral Marketing

Hot Mail was one of the first examples of viral marketing

Another “e” term for “word-of-mouth” advertising Bulletin boards, e-mail, chat rooms are the

major conduits for viral campaigns What is “buzz”

Affiliate Marketing

Partnership and affiliate programs are booming Cooperation between online companies Commission programs and banner exchange

programs lead this channel

Banner Advertising

Volatile history with sharply declining click through rates

New forms such as java, active x, Pop-ups, pop-under and other new delivery

methods are gaining acceptance Branding is possible with banners

Research

Log files ASP log conversion Metrics for e-marketing analysis Surveys

Challenges

Integration of e-marketing and conventional marketing creates a “blurred channel”

Hybrid advertising Marketing mix Consumer expectations Technological limitations New innovations Legal issues

Conventional Media

Addition of web address creates hybrid advertising

Web site can degrade or enhance conventional efforts

Visitor experience becomes critical Diffused metrics

Technological Limitations

Different browsers Online software (plug ins java –flash etc.) Screen resolutions Bandwidth speed Operating systems Server technology

Legal Issues

Privacy policies Spam International commerce COPPA 19 states have anti Spam laws Dozens pending in congress Online disclosure

Emerging Technologies.

Wireless poised to triple over the next few years Smart chips could track BM purchases Higher bandwidth could allow for increased

streaming media on sites MPEG4 – good enough for video? ???

80% Still Dial-up

Dial-up80.0%

Cable Modem12.9%

Digital Subscriber Line

(DSL)6.6%

Other0.5%

Source: NTIA and ESA, U.S. Department of Commerce, using U.S. Census Bureau Current Population Survey Supplements

One Example

One More

Digital innovations become an integral Digital innovations become an integral part of lifepart of life

Breaks down logistical barriers Breaks down logistical barriers

Offers greater flexibility and power Offers greater flexibility and power

Shrinks time and business Shrinks time and business

Simplifies complex business processes Simplifies complex business processes

Enables effective communication and Enables effective communication and collaboration collaboration

Opens up new marketsOpens up new markets

The 21st Century

Explosive increase in innovation Extraordinary dynamism of technology Exceptional increases in productivity Myriad new forms of business activity Expanding opportunities Level playing field

The eMarketing Association

Accreditation body for CeMA and CeM Certifications

Certifications now offered in over 250 schools Largest association representing e-marketing

exclusively Recognized globally Extensive e-marketing resources

CeMA Certification

Certification—a sign of competence and achievement in this field—is particularly important in a competitive job market.

While relatively few advertising, marketing, and public relations managers currently

are certified, the number of managers who seek certification is expected to grow.

Source: United States Department of Labor

For a Copy of This PresentationGo To:

Http://www.eMarketingAssociation.Com/ppt.htm

Questions