Posts Tagged ‘marketing’

The opportunity in B2B social media

Tuesday, February 9th, 2010

Coming off the recession, B2B marketing is poised to grow significantly in 2010. To get specific, according to a recent report from AMR International “B2B Online Marketing in the United States: assessment and forecast to 2013,” annual growth in U.S. B2B online marketing spend is forecast at 8% in 2010 and is set to reach 14% by 2012.

It’s good to see growth projected again, but more interesting is to take a look at exactly where that growth is going to be happening. The following are the three areas that are poised to grow the fastest, and their annualized growth rates:

- Social media: 21%

- Lead generation: 17%

- Online marketing services: 15%

B2B social media growth

Here’s why I think this is interesting. B2B marketers are planning on growing their social media spend dramatically, but the channels that they are going to have to use are seriously underdeveloped. Social media of all kinds is where to buy discounted viagra, lavitra & cialis definitely maturing, as are the ways that marketers can use it to reach consumer audiences. But in the business-to-business markets, there are not a ton of social media channels to reach viable audiences.

B2B audiences don’t currently have a home when it comes to social media. LinkedIn is a nice professional network, certainly a viable tool for people who are looking to network in B2B markets, but it’s not a place where B2B audiences live, not a spot for marketers to increase their spending 17%. The B2B publishers, who have served the B2B audiences well over the years, haven’t yet launched viable social networks or communities to support those audiences.

So other than experimenting with Facebook and Twitter and YouTube – which I suspect will prove to be a moderate success for some small percentage of marketers – where are marketers going to spend their B2B social media dollars? This is a huge opportunity.

You must make the move to measurable media today

Thursday, October 16th, 2008

With the economy in the tank, there are a lot of people who are understandably worried about their businesses and their jobs. Companies that rely on marketing for revenue are especially concerned; historically, marketing budgets are among the first to be cut when there is a downturn. In the dotcom bust early this century, the slicing of marketing budgets directly contributed to the demise of several publications, including one that I worked for at the time.

I have said this before, and I will say it again now – if you are a media company that relies on advertising for revenue, you need to start offering a performance-based, ROI-based media option today.

If you don’t believe me, let’s look to someone who knows something about online advertising – Google CEO Eric Schmidt. Google just announced their earnings for the third quarter of 2008, and in the press release, Schmidt said this:

“The measurability and ROI of search-based advertising remain key assets for Google.”

Measurablility and ROI-based marketing programs are what are going to be the key assets to get Google through the hard time. I say, why not follow the leader?

The markets are down (again) so let’s talk about marketing instead

Wednesday, October 8th, 2008

My latest article has just been posted on The Industry StandardFive ways media companies can take advantage of the shift to performance-based media.

New dollar billWith the markets down 30% year-to-date and nations around the world joining the U.S. in an economic downward spiral, it might feel like anything related to the economy or spending money is bad news. But there are bright sides to any situation if you look at it from a different perspective, and this situation is no exception.

When the economy dips, and companies take a hit, one of their first budgets to be cut is often the marketing budget. Marketing can feel like unnecessary spending for businesses, and it’s easy to cut one month and then quickly pick up the next month again when the company is doing better.

During the dotcom bust of the early 2000’s, I was working for Publish magazine, a trade magazine/Website focused on “Internet communication.” That magazine, like many others (including The industry Standard) folded due to the bad economy and the cut that IT companies were making to their marketing budgets.

But those were the days before performance-based media. Google, the leader (and pioneer) of PPC and performance-based advertising, launched its AdSense program in October 2000, but it didn’t gain traction until 2002. At that time, marketing budgets were easy to cut because marketing execs couldn’t prove ROI on the money they were spending. But today, when $1 out is easily measured to x dollars back, I believe that companies that provide performance-based advertising options will be insulated (a bit) from the downturn.

This isn’t to say that companies will be entirely shielded. But when some amount of revenue is easily tied back to a smaller amount of spending, companies will not be inclined to cut that spending.

Dollar bill by reubenaingber

An argument against The Long Tail

Monday, July 7th, 2008

The Long Tail is a concept that was set forth in 2004 by Chris Anderson, editor-in-chief of Wired, which was then turned into a 2006 book. In short, the idea is that because of the Internet and it’s infinitely wide and Long tail monkeyincredibly low-cost distribution capabilities, the big “hits” of popular culture (be they movies, music, books, etc.) are no longer the only things that will make money. Now, the “misses” will also be money-makers.

But a new article by Anita Elberse just published in the Harvard Business Review called “Should you Invest in The Long Tail” is taking a closer look at the theory and suggesting that businesses really shouldn’t shift their promotional dollars to the long tail – and instead should stick to promoting the winners. She comes to this conclusion after determining that the tail, although long, is very flat and accounting for very few sales, and typically less satisfied consumers.

Anderson replies here.

Elberse responds to Anderson here.

This is a very interesting debate, and one that should be followed by anyone who is involved in marketing or advertising online. Anderson and Elberse have taken a great deal of time looking at data and doing analysis on this concept, but here are some thoughts based on reading the articles.

– Anderson seems to be focusing on the fact that online retailers like Amazon.com will begin selling a lot of items in the long tail. Whether or not it’s true is practically irrelevant for the vast number of online businesses. Most businesses don’t have the reach of Amazon.com and are targeted at a much smaller audience. The people who run those businesses know that 80% of their business comes from the top 20% of their clients and customers – so they will continue to focus their attention – both time and money – on reaching those clients/customers. Now they have Elberse’s data to back them up.

– People buy stuff that other people like. This is why user recommendations (such as those on Yelp or TripAdvisor) are so popular, and why the head of the tail keeps growing in popularity. People like to have a choice, but when their time is limited, they typically will go with the easier choice. And it’s easy to choose something that has been recommended by someone they trust – or an online audience of their peers.

– The long tail does exist and consumers are benefiting from more choice – but the tail isn’t a place that any musician or artist or blog or business wants to be. And may not be a place where money can be made. According to the data collected by Elberse and cited by Anderson, “In music, of the 2.4 million digital tracks sold in 2007 in the US (most of them through iTunes) 24% sold only one copy and 91% sold fewer than 100 copies.” 100 copies sold through iTunes (at $.99 each) isn’t even enough money to buy a new guitar.

Photo by loufi

Deceptive marketing and lead generation

Thursday, March 27th, 2008

valueclick logoMy most recent article for The Industry Standard is up on the site now: What the ValueClick settlement means for the future of lead generation. Why don’t you go read it? And hey! Why don’t you leave a comment if you have something to say.

For those of you who don’t know the background to the story, ValueClick just recently agreed to pay $2.9 million to settle the FTC allegations that they were doing bad things with their business, including:

1) Lying to consumers, advertising free offers, but then requiring consumers to pay or purchase to qualify for those “free” offers.

2) Violating federal law, specifically, the CAN-SPAM act.

3) Not securing customers’ financial data, even though they promised to secure it.

The press release from the FTC with the complete list of charges is here.

ValueClick will admit to no wrong-doing. Here’s what ValueClick says about the charges:

“The FTC alleged that the Company utilized deceptive marketing practices that violated the CAN-SPAM Act and FTC Act. In an effort to resolve this matter, ValueClick agreed to a settlement payment of $2.9 million without an admission of liability or conceding that the Company violated any laws.”

Having worked in the lead generation industry for years, I know that this is not the norm in lead generation and that most lead gen companies follow solid business practices; but yet, these types of scams do happen fairly frequently. Lead generation is a big business in the U.S. (see images below) and gettng bigger as companies realize the value of generating data that can provide specific metrics and ROI. So companies will use many different tactics – not all of them aboveboard – to generate leads for their clients.

If you’re doing lead generation through a third-party provider, make sure that you get them to explain in detail the following things:

1) What the environment looks like in which they will be generating leads. If they are creating a registration form, make sure that they show you what it looks like.

2) How they are generating the traffic that drives the leads.

3) If they are doing “co-registration” to generate their leads. Co-registration is the practice of including a check box at the end of another registration form so as consumers register for one thing, they also can “opt-in” for your thing, too. If they are doing co-registration, find out if the box is pre-checked, and if it is, run the other way.

4) Ask for a client reference – they should be willing to let you talk to someone else who has used the service and found it reputable and helpful.

Here are those lead generation numbers that I promised. This image is taken from the BtoB Magazine’s Interactive Marketing Guide for 2008, which has a lot of great online advertising data.

Lead generation statistics

A summary of Internet advertising statistics

Friday, October 12th, 2007


statisticsThis week while writing about Internet advertising I came across quite a few statistics – it seems like many of the market research firms may have been timing the release of their data to coincide with the Association of National Advertisers (ANA) Annual Conference being held in Arizona. Here’s a roundup and links to the highlights:

IAB Internet Advertising Revenue Report: Internet advertising revenues in the U.S. totaled nearly $10 billion for the first six months of 2007, with Q1 accounting for approximately $4.9 billion and Q2 totaling approximately $5.1 billion; Internet advertising revenues for the first six months of 2007 increased 26.4% from the same period in 2006; Search revenue accounted for 40% of 2007 second-quarter revenues; 2007 revenues for Internet advertising estimated to hit $20-21 billion.

Marketing & Media Ecosystem 2010 study by ANA & Booz Allen Hamilton: 90% percent of marketers plan to increase their digital marketing spending by 2010; only 24% of the 250 survey respondents think their organizations are digitally savvy; barriers to making bigger digital investments are insufficient metrics (62%), lack of organization support (51%) and lack of experience in new media (59%).

Forrester Research’s U.S. Interactive Marketing Forecast 2007-2012: marketing spend will grow to $61 billion by 2012, an increase driven by marketers who will leverage a distribution of channels rather than pour new spends into a single place; Interactive marketing will top $61 billion By 2012; Search marketing will triple in five years; Social media will drive emerging channels to $10.6 billion by 2012.

eMarketer: Online advertising will hit $21.7 billion in 2007, surpassing radio for the first time ever; $44 billion for Internet advertising by 2011.

Data Centre of China Internet: China’s internet advertising sector is expected to increase by 53.07% in 2007.

And this isn’t a statistic, but Steve Ballmer, president of Microsoft had this to say at the ANA Conference, as reported by CNET: “In world search and advertising, Google is the leader; we’re an aspirant. We have a lot of work to do in search and advertising.”

~ Stairs & Railing ~