It’s been a long time since I published a post. Very busy working in my new company to revamp the product portfolio and its marketing. It’s a B2B software company and the question of course was: “what to have on our radar to think about the future releases of our applications”.
My nickname in this new company is Emmanuel 2.0, you wonder why? That’s because you’re a newcomer to this blog. So here we are, trying to figure out the major Internet trends. I’ve always been fond of supporting my hunches with data. So let’s deal with the claims first and the figures to follow.
Claim#1: The Internet is growing still very fast (5M new users per week) thus making e-commerce king
Claim#2: The Internet is growing mobile (2.8B mobile phones in 2007 growing to 3.8B in 2011 to be compared with 980M PCs in 2007 growing to 1.5B according to Gartner). “Worldwide sales of mobile phones to end-users surpassed 1,15bn units in 2007, a 16% increase from 2006 sales”, Computing SA citing Gartner. And if you’re wondering what is the major customer benefit iPhones brings (4M units sold in 2 quarters), here is my take: real and easy web browsing. I can at least speak for myself, I do not fire up my PC at home to navigate on the web and checkout my facebook page, I use my iPhone.
Claim#3: Web 2.0 is driving the webtop metaphor vs the desktop metaphor (check my post “from desktop to webtop” about it)
Now with the additional figure about e-commerce: “eMarketer predicts that online retailers in the US will ring up over $100 billion more in sales in 2012 than they did in 2007. Sales growth will come mainly from consumers who are shifting their spending from traditional retail stores to the Internet.”, eMarketer. Take a look at the table for more details, but you can easily figure out that buying behavior and for that matter marketing web behavior are shifting big time. I would strongly advise to revise your marketing mix to accommodate at least 20-25% to web marketing including viral marketing techniques.
Finally, and I’m sure we’ll agree easily, web content has also shifted to video and pictures. For this one, I’ll let you find the figures. Let’s rock marketing on the web for 2008 fellow marketeers.
Several years ago I discovered Sergio Zyman in Paris when he was conferencing for his new book “The end of marketing as we know it“. He’s not bringing some rocket science to marketing but effectively highlights and helps us focus on the do’s and don’t of an effective marketing. As a matter of fact, he left me with this quote that I keep in mind at all times:
“The sole purpose of Marketing is to sell more to more people, more often and for more money.” — Sergio Zyman
In light of this quote, I’m always focused on filling the gap between sales and marketing, making sure sales reps are perceiving added value from marketing activities. If you do not enjoy good business relationship with your sales counterpart, start asking yourself what is to be changed in your deliverables. Marketing success is about increasing revenue and lowering cost of sales. Whether in Marketing 1.0 or Marketing 2.0 it makes no difference.
I’m bringing this up as I recently read some interesting numbers about Sales performance Benchmarks, and I wanted to share with you the striking ones out of this survey from 1,300 companies across all industries:
- Only 60% of sales reps are making or exceeding quotas.
- Only 37% of firms report they have implemented a formal sales process.
- 63% of revenue comes from existing business, while 37% comes from new business
- Only 38% of companies have what they would call “forecasting accuracy.”
- Most have close rates of under 50% of proposals written (average=48%).
This Lewis Green post says it all:
“For at the end of the day, our bottom lines and the value of what we do are measured in sales, not direct mail campaigns, sell sheets or packaging….I also believe that sales and marketing staffs should be in one department and should work closely together on every step of the process, from understanding the customers, to strategic marketing and sales planning, to closing sales” — Lewis Green
Fellow Marketers, we’re in charge on this. Let’s make it happen.
It’s now effective, last Thursday Google began limited test of radio advertising. The system resulting from Google’s earlier acquisition of dMarc Broadcasting (Jan 2006), extends the AdWord platform with the ability for advertisers to create and manage radio advertising campaigns as an additional channel to their web campaigns. Sounds like integrated marketing made easy.
Google covers 800+ radio stations in the US targeting 5,000+, 87% US territory coverage, 19 of the top 25 markets and reports 300 Million impressions weekly.
It operates in 4 steps – read more in Donna Bogatin’s blog from ZDNet:
“Step 1) Station inventory management system and studio log.
Step 2) Google links electronically with stations to search for inventory that fits advertiser criteria.
Step 3) Inventory is paired with advertiser requests.
Step 4) Google delivers automated order to radio station and reserves inventory.”
Check out AdWords Help Center for some more.
My immediate reaction is to relate to integrated marketing of course, thinking that over time we’ll have a choice of web based platform to pilot our integrated marketing campaign in real-time.
When you combine this idea with local search marketing, GPS rapid growth and mobile phone as marketing devices, we’re getting closer to 1:1 marketing for the masses – remember Minority Report’s changing billboards ads?
And finally, it looks like real-time advertising campaign measurement and adaptation is making its way beyond web advertising to encompass radio and I’m pretty sure TV in a short while.
Marketing 2.0 is all about integrated and measured marketing with the ability for a brand to react real-time to its audience behaviors. No longer can we have weekly or monthly meetings with our media planning agencies to figure out what to do next. Marketing 2.0 is real-time.
Studying your competition surely is an important part of your marketing activity. Now that a lot is happening on-line, there are very easy and cheap (FREE!) ways to do this on a regular basis.
Let me highlight some interesting tools to do it.
The very first thing to use, if you didn’t already, is to leverage Google Alerts. Set a few agent that will bring you back on the fly, daily or weekly, whatever web page, news item and now blog posts relative to the keywords you’re looking into. Here is a result of blog search for Marketing 2.0. I use daily agents for the core topics I am covering for Sun and have an e-mail sent to my inbox and provide my team around the world with a weekly summary. Very powerful to always stay on top of things.
Now what about discovering your competitors marketing campaigns? Spy Fu can just help you do this for free. It is still in beta but effective. Enter your competitors name in there and find out how much they’re paying for search advertising daily, the number of total clicks they’re receiving, their keywords ranking and their average ad position. Spy Fu monitors 4.5 million domains.
Another good tool is the Internet Archive. You can track there how many times your competition changes their web site and is it split tested.
Finally, you might want to know who owns one of your competitors site and where it is hosted. Use Whois Source for this. Could be effective to establish partnerships as well and get in touch with the web master.
I’m still looking for a solid blog competition research beyond Google new blog search. Let me know if you found a good one.
Fellow marketers this is serious news. We need to react strongly and bring back CEOs and their staff confidence in marketing – especially in marketing 2.0- up again. According to Blackfriars recent announcement, US Companies did spend 54% less in Q1 than budgeted. Their Q1 index was the lowest in two years and the spending categories reflect traditional marketing mindset. What strikes me again is that on-line marketing spend totals 26% of all marketing spend, and uses mainly Internet advertising (nearly 58%). PR suffers (5% actuals vs 9% budgeted) when advertising gets the bells and whistles (34% actuals vs 22% budgeted). When all marketing 2.0 professionals are highlighting why embarking customers as co-marketers a.k.a. focus on customer centric marketing, is a must, when CEOs are complaining about marketing ROI, why in the world would we reinforce traditional advertising? Do we want to get Dell’d?
We also should be aware by now that isolated advertising does not lead to more sales. Advertising needs synchronous PR and on-line relevance/positive resonance to get a chance for our message to be well accepted, especially nowadays where an average individual is exposed to several thousands messages a day. We know best tactics for quality demand creation are Free trial demos, Webcast/Webinars, White papers and blogs. We know Integrated Marketing is the only effective way to execute – if you still wonder, I guess the shortest way to success left for you would be faith. We know a concise marketing dashboard with ROI driven metrics is the only possible way to articulate marketing value to our CEOs.
Knowing all of this we should never ever see such numbers and CEOs complaints again. Let’s make sure we put our money where our mouth is: focus our marketing spend on appropriate tactics. And let’s use our communication skills to demonstrate to our CEOs that marketing in its latest development a.k.a. marketing 2.0 is the way to accelerate companies growth.