Analytics Voodoo

We've Moved!

2007-01-31T00:30:00.000-05:00

Check us out at our new blog Online Marketing Voodoo. Here we will cover web analytics, online marketing campaigns, case studies, consumer generated media, business blogging and emerging technologies that influence Internet marketing.

Video: It’s not just for Television anymore

2007-01-05T13:41:00.000-05:00

That black box that the family used to gather around to watch the likes of Three's Company isn't alone anymore. While certainly not obsolete, television is certainly no longer a single source for consumers to watch video. The Internet is fast becoming the source of video reference, as more people in the US are watching online video - with more frequency - than ever before, according to a recent report by eMarketer.

A simple sampling of how video has evovled:
-In 2003 there were 52.3 million online video viewers.
-The projection for 2010? More than DOUBLE that number with 157 million viewers.

With everything, someone wins and someone loses. In this case, viewers win because they can now watch sports clips, television series, and other videos at their leisure. This is important for companies with a huge online presence. There are options (and integration considerations) when determining reach and frequency in their marketing efforts. Broadcast advertisers (and those that sell in that space) lose however, as consumers are no longer restrained by broadcast network schedules.

The trend should be a red flag for marketers not yet factoring video on the internet into their plans. If you haven't already, it's time to step up to the plate and adjust budgets to reflect this upwardly mobile trend, if they really want to reach their target where they are "consuming" media.

Increased use of Internet by Hispanics

2007-01-02T14:10:00.000-05:00

The United States is clearly a melting pot of cultures: Italians, Hispanics, African American, and many other cultures. Yet, according to an eMarketer report the “Hispanic market in the United States is one of the toughest demographics to understand.” This is due in large part that the Spanish language and dialect is not the same everywhere, and many speak both English and Spanish. Further, you have Hispanics who immigrated here as 1st and 2nd generation Hispanic Americans to take into account.

But according to the eMarketer report, defining buying preferences for this cross-section of American culture is about to get easier thanks to the increased reliance on the Internet by Hispanics. In 2005, there were 15.7 million Hispanics using the Internet and this trend is expected to grow by 33 percent over the next 5 years totaling 20.9 million Hispanics users by 2010.

This is great news for marketers because now they know that this particular demographic is online but a whole new set of challenges arises. The dichotomy that is the Hispanic culture innately brings about the discussion of how to assimilate this group into American culture and tastes while keeping the Hispanic culture alive as well. Ultimately, it will be marketers that are required to achieve this balancing act in order to be successful with this strongly emerging interactive demographic.

Sources: eMarketer.com, iMedia Connections.com

Adults Are Finding Value in Email Marketing

2006-12-19T14:08:00.000-05:00

Happy New Year, Analytics blog readers!

New in interactive news: the results of a recent study by Acxiom Digital and Harris Interactive have found that three in four online adults believe that emails recieved from companies they frequent are "valuable" or "very valuable." The survey found that 30% of online adults have purchased a particular good or service after receiving such emails, and of these, 85% have done so within the past year!

According to Acxiom Digital President Kevin Johnson "Savvy consumers have come to rely on email marketing communications as a resource to help them get the best deals possible. Likewise, retailers have established email maketing as an efficient and productive way yto build and retain a loyal customer base and increase revenue by communicating with consumers in a meaningful way."

Cheers to a great 2007 in interactive marketing!

More New Online Buyers + Spending More = Holiday Spending Increase

2006-12-18T09:20:00.000-05:00

According to a comScore Networks report on consumer online (retail) spending, online sales are up 25 percent versus year ago. The lift is attributed to: 17 percent increase in the number of online buyers and a 7 percent increase in the average $$ spent per online retail consumer.

comScore Networks' Chairman Gian Fulgoni was quoted as saying, "... comScore's data are confirming that... more consumers are becoming comfortable buying online. But, an accentuating factor is that online spending per buyer is also increasing - as a result of more buying transactions and an increase in higher-ticket purchases."

For the 2006 Holiday season to-date, computer hardware category has the highest average order value at $292, followed by consumer electronics, video game consoles & accessories, jewelry & watches, and event tickets.

Top Online Product Categories by Average Order Value (Nov. 1 - Dec. 3, 2006 vs. 2005)

Computer Hardware: $292

Consumer Electronics: $153

Video Game Consoles & Accessories: $141

Jewelry & Watches: $128

Event Tickets: $123

That most of the higher-ticket categories also appeared on the list of fastest growing retail categories confirms that they are significant growth drivers for this year's holiday season.

Fastest Growing Online Product Categories, by Dollar Growth (Nov. 1 - Dec. 3, 2006 vs. 2005)

85%: Video Games

69%: Jewelry & Watches

66%: Event Tickets

51%: Video Game Consoles & Accessories

37%: Consumer Electronics

According to Mr. Fulgoni, "As broadband connectivity in the home continues to rise, we're seeing some online spending shift from work computers to home computers. Nonetheless, online buying at work still accounts for as many e-commerce dollars as buying from home. This could... (reflect) consumers' valuing of the workplace as the location where they're able to confidentially buy gifts online for immediate family members."

Source: comScore Networks
Source: Center for Media Research

DVR Penetration to Eclipse 30% of Homes by 2009

2006-12-05T18:00:00.000-05:00

Since televison began, viewers have found ways to avoid ads. As viewers got more creative (leave the room), advertisers did too (make the commercials louder...to which viewers responded by making the Mute button on their remotes their new best friend). It is a vicious cycle, especially considering the public's passion for tuning into SuperBowl Sunday...not just for the game itself, but to see the ads!

Yet, the fact remains, viewers like to avoid ads when watching television. But digital video recorders (DVRs) are particularly disruptive because of the ease with which they allow users to skip to ads. eMarketer reports that before the turn of this decade, DVRs will penetrate 30% of all US households –a special statistic because it means the technology moves beyond the "early adopter" stage. This isn't all bad news for advertisers. Reports and forecasting also show that DVRs and video-on-demand (VOD) will actually end up creating more opportunities for advertisers because they "inevitably result in an increase in TV viewing", per eMarketer's report US DVR and VOD Usage: Ad Skippers and Time Shifters.

Bottom line reports eMarketer: "TV distribution and access are changing and those willing to adapt to the new breed of TV viewer will reap the rewards. By letting go of how, when and where content is accessed, content providers can reach a greater audience that is able to consume more of its content."

One must always take door in the old adage: one door closes and another door opens.

Web 2.0 Simplified

2006-11-29T12:21:00.000-05:00

Lately, it seems all we hear about is this new “Web 2.0,” but a poll conducted by Zoomerang shows that almost 80% of marketers weren’t familiar with the term at all. Web 2.0 is short for second-generation web sites, sites that users contribute their own content to add value to the site as a whole. Myspace.com, YouTube.com and Facebook.com are all examples of Web 2.0. In fact, blogging, podcasting and social networking are also considered part of Web 2.0.

"Web 2.0 is in the initial phase of adoption and implementation by marketers," said Dana Meade of Zoomerang. "However, given the success reported by vanguard users, we expect to see a sharp increase in the use of second-generation Web tools and techniques by marketers across a wide array of industries."

Over 70% of marketers using Web 2.0 resources believe they’re successful. Not a bad metric for us fickle marketing types!

Online Video Advertising Shoots Through the Roof

2006-11-20T12:10:00.000-05:00

Online video advertising is reaching $410 million in 2006—that’s more than an 80% increase over 2005! The numbers aren’t going anywhere but up in the future, emarketer.com projects that nearly $3 billion will be spent by 2010.

So, what’s driving this huge increase? Companies want to deliver their ad message in a creative format that is familiar to consumers. They also want to replicate the mass appeal of television to Internet users. What better way than online video advertising?

Although we’re seeing this huge growth, it is still a very small percentage of total online advertising. By 2010, video advertising online should account for over 10% of all Internet advertising. Check out this chart with eMarketer.com’s projections.

Consumers and emerging digital channels

2006-11-17T11:56:00.001-05:00

Great news, advertisers! Not only are consumers readily adopting new digital channels such as blogging, podcasting, and mobile, but they are accepting of advertising within these channels (just don't overdo it!). The only negative response seems to be text message oriented, but even the news there isn't that bad, reports BlueStreak, via their recent "Emerging Digital Channels: Consumer Adoption, Attitudes & Behavior," which queiried consumer behavior and attitudes toward emerging channels.

For easy reference of channel and demographic information/breakdowns, charts are attached below, courtesy of eMarketer.

Get Ready for Some Pushing and Shoving, its Time to Start Your Holiday Shopping!

2006-10-31T15:30:00.000-05:00

The projected numbers are out for this year’s holiday shopping. And check out this swing in consumer confidence: per the NRF, the average person is projected to shell out roughly $791 this season (that's up from about $738 pp in 2005). About 2/3 of that will go toward family purchases, with only about 18% going toward friends and coworkers (ahem...not sure my friends and/or MindComet colleagues will appreciate me noting that stat!). Another interesting breakdown of the $791 pp is that about $604 of that spending will be for buying holiday gifts online and offline with the (roughly) $187 will go toward holiday decorations, greeting cards and postage, candy, food, etc.

So, what is all this money being spent on? Here’s the breakdown from eMarketer:

I'll leave you with a final, exciting stat related to online spending this holiday season:
It is projected that a RECORD 114 million users will purchase gifts online this year, with an 18% increase totaling $32 million. Happy Holidays!

Neilsen announces stats tracking for video games!

2006-10-23T16:40:00.000-04:00

Video games continue to be in the news this week thanks to a new update from Neilsen Media Research. Neilsen has just announced they plan to provide ratings for video games. Advertisers and marketers will now have access to credible statistics on video game usage. Excellent!

According to www.clickz.com, Starting in mid-2007, subscribing clients will receive weekly ratings charts and rankings showing the most-played video games. Clients will be given necessary elements -- titles, platform, genre, daypart and demographics -- from which to base their advertising and planning decisions, Nielsen said in a statement announcing the new service.

This is a breakthrough for advertisers and marketers targeting video gamers. Until now, there was no real credible data to base decisions off of. Gamers are increasing across all age groups, so get ready to reach out to both little Bobby AND, as mentioned in lasts week's Analytics blog, Mom!

Video games: not just for teenage boys

2006-10-16T17:50:00.000-04:00

This just in from comScore Media Metrix: Q2 results of Game Metrix, indicates that video games have much broader appeal than assumptions lead us to believe (video games are predominantly used by teenage males). Incorrectomundo! Apparently, on average, "gamers" are roughly 41 years old, claim an average annual income of $55,000 and...drumroll please: FEMALES are 52 percent of the gaming audience. Moreover, these are not web newbies. Your average gamer has been online for nine years and an impressive 84%have broadband access at home.

Tweens and Teens: More Than Just Mallrats

2006-10-05T13:33:00.000-04:00

Kids between the ages of 8-14 are becoming more Internet savvy by the day. They’re not just playing outside and hanging out with friends; they’re organizing the whole operation online beforehand.

According to emarketer.com, over 67% of kids between 8-11 use the Internet and over 74% of 12-14 year olds are regular Internet users. Although it’s easy to group tweens and teens together, there is definitely a difference. Just ask any freshman in high school what they think about their eight year old little brother. They most likely don’t have the same Internet habits.

Teens tend to log on for socializing whereas tweens use the web for game playing. Young teens and tweens today will grow up in a world where if they missed half of an episode of their favorite show, they can check it out online the next day. They won’t need to have mom drive them to Best Buy to hear Justin "Bring Sexy Back", they can just log onto iTunes and have it within minutes.

Teens and tweens also have a huge influence on their family’s purchases. According to international market researcher Euromonitor, "Research suggests that [tweens] will increasingly become powerful and influential consumers. This will result from greater levels of independence, a general rise in disposable income and increased pampering from parents."

A note to those of us in the marketing field teens and tweens are a force to be reckoned with, have high expectations, and ps - they are forming brand preferences right now.

Ad Spending gettin' "spendy" in '07

2006-09-28T14:54:00.000-04:00

According to an article on emarketer.com, ad spending is said to increase nearly 27% by 2007. Although it is still a relatively new medium, a shift in advertising to the Internet is happening.

There are several factors that account for this recent growth of online ad spending, the core being:
• Internet advertising budgets are increasing due to the large amount of online consumers
• Increased prices for paid search and branding ads
• Shift from other media to the Internet

Internet advertising is becoming the fastest growing media in comparison with television, newspaper, magazines and radio. As we all know, it is clearly only a matter of time before it surpasses them.

ePolitics

2006-09-27T09:59:00.000-04:00

Well folks, as we get ready to enter Q4 of the calendar year, our minds start turning to the holidays. Or do they? A report last week from the Pew Internet & American Life Project reported the following:

"On a typical day in August, 26 million Americans were using the internet for news or information about politics and the upcoming mid-term elections. That corresponds to 19% of adult internet users, or 13% of all Americans over the age of 18."

Given the great divide in our country's current political landscape, the upcoming November mid-term elections are drawing a good amount of attention - where better to get immediate and timely updates at the average person's fingertips than by looking online...?

Your audience is "listening" - are you talking to them where they are most interested and what they are most interested about?

A Bit about Blogging

2006-09-19T11:31:00.000-04:00

A few beautiful "nuggets" from the Pew Internet & American Life Project, as per a phone phone survey of 7,012 people they recently conducted:

39% of US internet users read blogs (that's 57 million Americans to you & me)...hopefully that includes this Analytics blog!
8% of US internet users write a blog (that's 12 million Americans, thank you very much!)...and half of bloggers are under the age of 30

Thirsty for more? Ok, here you go:

37% of bloggers are blogging about their "life and expereinces" vs 11% that write about public issues
60% of bloggers are caucasion (that contrasts a bit with 74% of US web users being caucasian)
55% of bloggers use a psuedonym
44% of bloggers publish content elsewhere while 54% report they do not provide their content/creations elsewhere
Male bloggers outrank females, but just slightly: 54% of bloggers are men vs 46% being female

See you again next week!

Television and iTunes make a great couple

2006-09-13T08:26:00.000-04:00

Did you miss half of the last season of Grey’s Anatomy? Why spend your time waiting in line at Blockbuster renting the seasons when you can join the other millions of people downloading the episodes online?

One of the newest online activities, downloading television programs, is increasing at an amazing rate. According to a report from Ipsos Insight, in June alone, over 11 million users over the age of 12 did so.

Due to the expanding content on iTunes, TV downloads have had the quickest increase since 2005 compared to other online video watching. Television downloads are the most popular among the 18-24 aged crowd, with nearly 10% of Internet users in that group downloading a show in June.

With the large amount of video downloads available on the web, an increase in online video advertising is almost certain.

Gift Giving Trends

2006-09-05T08:19:00.000-04:00

All I can say is: I am glad I can tell my fiance it is "not just me." The proposal, the beauty of two lives into one...and oh yes, the merging of finances. When "forced" to co-create our "budget," I found myself having to commit to certain practical expenses that, while I have long been a zealot at paying bills on time, I had never actually had to put into a little excel spreadsheet that I not only had to keep to, but could be audited by either of us. Ugh. What my dear fiance had not counted on when getting us to this pinnacle of balancing budgets was that I would be adding line items to HIS budget: oh yes, the "gifts" line item.

"GIFTS?!", he said quite audibly, although clearly he knew the battle was useless as I had that indignant look that one gets when it is clear one will not budge on this particular line item when the entire "budgeting process" was against my will.

HOWEVER, it turns out I am not alone: The Center for Media Research reported this week that according to a new survey by VoiceQuilt, Trends in Gift Giving indicate the following:

47% of U.S. women buy gifts for 10 or more occasions throughout the year
25% say they gave gifts for 15 or more events
19% say they gave gifts for 20 or more occasions in the last 12 months.

Even better, when citing reasons for gift giving, "just because" was a surprisingly popular reason to give a gift. Check out the popular rankings in numeric order:

Birthdays: 95%
Religious holidays: 88%
Mother's day: 74%
Valentine's Day: 70%
Father's day: 66%
And, the "just because" reason: 65%!

Women also appear to want the gift to be personal, sentimental...and wanted. The leading reason for giving a gift is to demonstrate "I love you" (62%) although even then, the majority of those polled indicated that a gift should be something the receiver actually wants (90%).

As for online purchasing:
The large majority spend $50 or under on gifts.

Anyone up for some online shopping?!

I'll take product placement for $500, Mr. Trebeck

2006-08-22T07:09:00.000-04:00

For us marketers, we have been noticing a growing trend of product placement across various media - heck, we may have even had a hand in placing it. What was a tactical execution has become an outright Marketing strategy and big names are racing to catch up. Gone are the days for generic products, today the big dogs in CPG, adult beverage, gaming, entertainment...you-name-it, are including product placement in account strategy and planning.

As we marketers continue to source new and innovative way to reach and engage consumers, we have turned to the previously underutilized channel of product placement. The result? It isn't so underutilized anymore: global paid product placement spending spiked 42.2% in 2005, reaching $2.21 billion. And, predicts PQ Media, 2006 forecasts indicate global paid product placement will rise almost 39%, or in equatable dollars: $3.07 billion.

"Product placement has evolved from a novel marketing tactic to a key marketing strategy on a global scale, as brand marketers seek more effective methods to make important emotional connections with consumers," said Patrick Quinn, president of PQ Media. "This trend is significant in that there is a new media order emerging worldwide in which fear of ad-skipping technology, doubts about traditional advertising's effectiveness, and declining government media subsidies have fueled a dramatic increase in the value of seamless brand integration."

It's Not Just MySpace Anymore

2006-08-14T18:03:00.000-04:00

It's your space too. User-generated content sites now account for five of the Top 10 fastest growing web brands out there. Surprised by that percentage? Take a look for yourself:

Last month, Disney impressed many by posting on a "clean" area to promote its blockbuster Pirates of the Carribean 2: Dead Man's Chest. This month, National Restaurant News is touting that Chili's has entered the MySpace domain.

Why the flurry by such large consumer brands? Because companies know this is where their target audience is living and how eager they are to interact with the media they are presented with. Seems nuts not to meet them there...

Diamonds Aren't A Girl's Only Friend

2006-08-08T17:12:00.000-04:00

A recent article in eMarketer noted that the song Marilyn Monroe made famous "Diamonds Are A Girl's Best Friend" is no longer accurate for today's female. Citing the new "Girls Gone Wired" study by the Oxygen Network, 3 of 4 women, or 77%, surveyed would prefer a plasma tv over a diamond necklace and a "well designed cell phone" over a pair of designer shoes. In fact, the female audience's behavior online is mapping remarkably close to that of their male counterparts.

It is important to note that men and women still may have very different mindsets online and respond in kind to different messaging. But it is also an important message to those that cling to stereotypes because if today's female is your target, you might need to rethink your interactive strategy a bit!

2011: Online ad spend projected to account for 9% of marketing budgets

2006-07-31T08:38:00.000-04:00

This just in from JupiterResearch's new report "US Online Advertising Forecast, 2005-2011": by 2011, interactive marketing will equate to 9% of total marketer budgets, with an estimated, comprehensive spend hovering at $25.9 billion. On the more immediate side of the coin, online spend already blew 2005 forecasts out of the water by 40% and is set outperform 2006 forecasts by 21%...and we're only in August of 2006, folks.

What is driving this? Search. Analysts are projecting that Search will account for a whopping 43% of all online spend by 2011. Want $$ to equate to that percentage? 43% of all online spend translates to a very attractive $11.1 billion according to the report.

"The large increase in search advertising is due to new clients experimenting with search and advertisers competing for keyword placement, which drives up prices," said Emily Riley, JupiterResearch's lead author of newly released report. "Additionally, as search advertisers mature, they start using longer lists of keywords, increasing their overall budget."

But the exciting news doesn't stop there. Dramatic growth is projected for rich media and video too, according to MarketingVOX. Rich media ad dollars is set to account for a 21% compound annual growth rate while video is likely to increase at a 27% rate.

Definitely an exciting time to work in interactive marketing!

College Students are on the web...A LOT

2006-07-25T07:13:00.000-04:00

It's a pretty standard assumption that college students are on the web. How would they not be given they have not lived in a world that didn't have some form of internet at their fingertips. But this just in according to a study from Experience: 4 out of 10 college students are on the web at LEAST 10 hours a week. What are they doing? Looking for information, communicating/surfing MySpace, watching video clips, checking out YouTube, emailing, IMing, etc.

According to the study of 350 students about their online media habits:
43% of college students are online at least 10 hours a week
31% hover between 6-10 hours a week
19% are online 3-5 hours a week

To give you contrast, a mere 17% indicated they watch TV more than 10 hours a week while only 1% spend 10 or more hours a week reading print (magazines, newspapers).

Integrated media planning is still important, as demonstrated by this sampling from the survey:
36% students are more likely to respond to ads if they appear in more than one form of media (e.g. online & print)
14% indicate they are more likely to respond with 3 forms of media

Gaming - still hot and getting hotter

2006-07-17T15:35:00.000-04:00

Those that feel Gaming is "old school" in the interactive space or no longer the "cutting edge, new idea", think again. It is hotter than ever. Clients continue to brand themselves within gaming, agencies continue to model integrated opportunities to include branded gaming. While plenty of industry support exists to support this, perhaps most telling is that, per market research NPD Group, U.S. video game sales rose 25 percent in June to $844.5 million.

This is in part thanks to Nintendo's dual-screen portable players the new box office-hit inspired "Cars" video game, per an editorial on MediaPost. Just think: the new "Cars" video game (launching in sync with the movie's release) sold roughly 646,000 units in its first month alone, outperforming previous top-performing launches for "Finding Nemo" and "The Incredibles." Anita Frazier, an NPD analyst, told Reuters: "Normally, we expect good things in June with graduation and Father's Day gifts helping to spur retail sales, but this performance goes beyond typical lift from those occasions."

Gaming continues to grow, and with it, a myriad of new opportunities for brands.

Will that be Debit or Credit?

2006-07-10T14:02:00.000-04:00

Recent research is indicating consumers are more comfortable using their debit cards rather than credit cards. In fact, according to a TNS Financial Services Consumer Credit Card Program Study, a whopping 60% prefer debit to credit for their purchases as debit feels more like "real money."

Debit card usage has increased quite a bit across households in the past 3 years. Debit cards with rewards programs tied to them are used by 57% of households rather than credit cards with rewards programs associated. While household income does not appear to be a significant player in debit card reward users, age does. 73% of users who participate in debit card rewards programs are 35 and older.

What this means? Banks have a huge opportunity to continue this upswing by associating more rewards with debit cards. Interestingly, while many users factor and/or are aware that banks have awards associated with them, a small percent actually capitalize on them, making it a no-brainer for banks. Truly, it is a win-win for banks: increase brand loyalty as well as affinity for debit card usage while drawing payment directly from the user's funds already in their account(s).

While debit cards now factor about equally to cash for in store purchases (both hovering around 33%, according to the 2005/2006 Consumer Payment Preferences Study from the American Bankers Association), debit cards are really seeing traction in the form of online payment. In fact, Jupiter Research is forecasting that 46% of online purchases will be in the form of debit by 2010, up from an already impressive 41% today.