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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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