Fundamental Change in Online Shopping

2

Fundamental Change in Online Shopping

3

Online social network users were three times more likely to trust their peers' opinions over advertising when making purchase decisions. (1)

Consumer recommendations, like those on social networking sites, are the most credible form of advertising. (2)

Word of mouth marketing, including social networking, is the number one influencer in consumers’ apparel and electronics purchases. (3)

1. JupiterResearch, March 20072. Nielsen, October 20073. Retail Advertising and Marketing Association/BIGresearch Study, November

2008

Consumers want to connect with you4

What’s Ahead?5

Who are your customers?6

What are they doing online?7

Sharon8

How Sharon Used to Shop9

How Sharon Shops Now10

Ron11

What Ron Does Online12

Build Communities & Go Where Your Customers Are

13

The 9 Main Internet Business Models14

More at http://digitalenterprise.org/models/models.html

Merchants15

Manufacturers16

Brokerages17

Affiliates18

Information Intermediaries19

Utilities20

Advertising21

Subscription22

Community23

Can Combine Multiple Business Models24

Advertising Affiliate Community Information Intermediary Subscription Utility

Advertising Affiliate Brokerage Manufacturer Merchant Subscription Utility

Using Community25

Discussion Forums26

http://www.threadless.com/blogs

Articles and Blogs27

http://www.drsfostersmith.com/pic/

Content Added by Customers28

http://braggingboard.gandermountain.com/

Tell a Friend29

http://www.wetseal.com/

Social Shopping30

http://www.fluid.com/products/fluid_social

An Entire Social Network31

http://www.mysears.com/

Create Your Own on Ning.com32

http://community.muttropolis.com/

StyleCaster Just Raised $4 Million33

http://www.techcrunch.com/2009/07/01/stylecaster-nets-4-million-for-personalized-fashion-community/

What would Sharon & Ron want?34

Capitalize on the Long Tail35

Offer Subscriptions for Specialized Content

36

Successful Subscription Models37

Successful Subscription Models38

Types of Content39

New Marketing Channels for Online Retailers

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Virtual Goods

In-Game Advertising

Group Selling

What are virtual goods?41

Revenues from Virtual Goods42

Est. $621 million in U.S. in 2009 Increase of 134% from 2008

Est. $2.5 billion in U.S. in 2013

Source: http://www.emarketer.com/Article.aspx?R=1007226

Who Buys Virtual Goods?43

Source: http://blog.viximo.com/corporate/2009/07/22/who-buys-virtual-goods-its-not-who-you-think/

Why Do People Buy Virtual Goods?44

Source: http://blog.viximo.com/corporate/2009/07/15/top-3-reasons-people-buy-virtual-goods/

1. Status – Virtual goods help you stand out from the crowd

2. Socializing – Virtual goods help you express yourself

3. Winning – Virtual Goods help you gain an advantage

Examples of Virtual Goods45

Examples of Virtual Goods46

Source: Free: The Future of a Radical Price, Chris Anderson

Examples of Virtual Goods47

http://www.playspan.com

How can you incorporate virtual goods?

48

What is In-Game Advertising?49

Pre-roll, mid-roll, or post-roll video ad

Rich media ad inside game

Brand overlay inside game

Est. $1 billion+ market for in-game advertising by 2010, according to Nielsen Media Research.

More than one-half of US adults play video games, and about one in five play every day or almost every day, according to the Pew Internet & American Life Project.

Examples of In-Game Advertising50

In-Game Advertising Opportunities51

http://www.spotxchange.com/

Ability to Target52

What is Group Selling/Group Buying?53

From WujWuj.com

Examples of Group Selling Sites54

Consider Your Margins55

Conclusion56

Thank You!57

Carol Morgan Cox

@CivicLink carolmorgancox.com