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Retail e-Commerce Demographics

E-commerce remains the province of young, white, highly educated and affluent consumers, according to a February 2008 online shopping report by Pew. Pew provided a demographic breakdown of Internet users who buy online versus those who do not:

  • Age: Individuals ages 50 and above account for only 29% of adult online buyers but constitute 40% of Internet users who do not buy online.
  • Race/Ethnicity: While Hispanics and blacks each account for about 10% of online buyers, a higher percentage of Hispanic Internet users abstain from buying online.
  • Household income: Affluent Internet users are more likely to become online buyers than are users from lowerincome households.
  • Broadband: A high-speed Internet connection goes hand in hand with online buying: 77% of online buyers have broadband access at home.

from US Retail E-Commerce: Slower But Still Steady Growth (EM-2369)

Web 2.0

The monetization of user-generated content will depend in part on how successful user-generated content sites are at continuing to attract large audiences. Furthermore, marketers will have to take consumers’ ad-type preferences into account in order to avoid alienating their audience. A January 2007 Harris Poll study showed that up to 73% of consumers would visit YouTube less if the site’s clips were preceded by short commercials.

On the other hand, banner ads on YouTube would be tolerated by 63% of US Internet users polled by Wired magazine in October 2006.

So, while user-generated content sites have great potential to attract advertising dollars, there are obstacles that marketers and content owners will have to overcome in order to reap profits from this area.

"User-generated video is going to have a lot of issues to resolve before it becomes an effective advertising medium," said Screen Digest senior analyst Arash Amel."There’s how will people react to personal media with ads, and how will advertisers feel sitting around rude or offensive content."

from User-Generated Content: Will Web 2.0 Pay Its Way (EM-2289)

Online Business-to-Business Marketing

The growth of spending on the Internet can be attributed at least partially to the increasing pressure on marketers to prove (and improve) the effectiveness of their spending choices.Two-thirds of the marketing executives surveyed by the Economist Intelligence Unit agreed with the statement "Marketing will be forced to quantify its direct contribution to the bottom line more than before." However, while data on Web clicks, search terms and open rates are easily attainable, their usefulness is limited by the marketing department’s ability to analyze and extrapolate from the numbers.

Despite this challenge, the Internet is expected to be the most effective marketing tool, by far.Through 2008, according to 78% of the manufacturing marketers surveyed by SVM, Web sites would make the best marketing investment; 65% chose search engine marketing, 55% said e-mail marketing and 48% said Webinars. Only 31% felt that banner ads would be more effective in three years, while 53% said they would remain the same as today and 16% expected less return on their investment.

Two studies show marketers are making progress in their ability to measure their marketing ROI, albeit only slightly. In May, MarketingProfs and the Lenskold Group released the results of the 2006 Marketing ROI and Measurement Trend Study, which surveyed more than 800 marketing executives worldwide. As BtoB reported, 16% of the respondents described their ability to measure financial returns on marketing efforts as either "a real source of leadership" or "as good as it needs to be" - compared to just 8% of respondents who had made either statement only one year earlier. Respondents who answered "a long way from where it could be" dropped to 42% in 2006 from 53% in 2005.

from B2B Marketing Online (EM-2257)

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Subcategories:
  • Digital Rights Management
  • Ebusiness
  • Ecommerce
  • Internet
  • Online Demographics
  • Web 20
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