Europeans buy more online

eMarketer - The Old World takes to new ways.
Europeans have long been avid online shoppers, but according to the “Mediascope Europe 2006 Study,” sponsored by the European Interactive Advertising Association (EIAA) with research conducted by Synovate, now they are becoming online buyers.

The study found that currently 78% of European Internet users shop online. They spend an average of Eur750 and buy 10 items online over six months — which represents an increase of 11% year over year.

Comparing the different countries, online shoppers in the UK and Scandinavia spend and buy the most goods online, while Germans are online bargain seekers, buying a higher number of items at a lower cost.

Increasingly, however, savvy online shoppers throughout Europe are also using price comparison sites to help themselves find deals. Dutch online shoppers are the biggest bargain hunters, with more than half (54%) checking comparable costs online at least once a month; the Germans (50%) and the French (50%) are hot on their heels.

Auction sites are popular with online shoppers in Germany, as well as in the UK, with 62% and 49% of the users in those countries, respectively, visiting them at least once a month, compared with the European online average of 41%.

What are Europeans shopping for online? Mobile phones top the list.

The research shows that mobile phones had the largest growth in conversion rates year over year, growing at 23%, followed by music downloads, car accessories and home furnishings.

“As consumers further embrace their digital lifestyles, they are becoming more ambitious in what they choose to buy over the Internet as well as how much they spend,” said Michael Kleindl of the EIAA. “More money spent and items bought online shows that consumers are integrating online shopping into their daily lives.”

Direct Link Ads giving away 60% revenue share to website owners

Internet advertising firm Direct Link Ads has announced a massive increase in the amount of revenue it will share with advertisers.

Sparked by a huge demand for advertisers associated with travel and finance websites, the leading text link advertising firm said that advertisers would receive 60 per cent of link ad publishing revenue when cash is withdrawn, or a staggering 75 per cent when revenue is re-invested into link buying.

Publishers placing ads on their websites in this way can provide one-way links to relevant websites, gain free content and boost their search engine optimisation.

Direct Link Ads offer some of the highest revenue shares and this will only be boosted by the current strength of sterling. To find out how much you could be receiving from ads on your website, use the LinkRank calculator.

Any sites using PHP, ASP , ASP.NET C# or PERL CGI code can make use of Direct Link Ads, as can most blogs and forums.

Google Kiosk could lead to mall 2.0

paidcontent.org - Google is coming to a mall near you – and UBS Internet Analyst Benjamin Schachter is intrigued by the concept as a logical addition to its existing advertising initiatives. Last month, the search marketing giant filed a patent for an outdoor-display ad concept involving kiosks or billboards displaying audio, video, or graphical ads. Google wants to connect billboard advertising in local malls to actual products for sale in local stores, in the same way that its AdWords/AdSense network that manages contextual advertising on the web. Aside from just altering passersby to a particular sale, the “Google Kiosk” could be set up like an ATM machine and could offer coupons and other communications from stores to shoppers.

In particular, UBS analysts are intrigued by the idea integrating inventory data into the serving of ads. Ads could be displayed by a retailer looking to sell a particular item, and with routine inventory information updating, Google could stop displaying a particular ad when the item is sold out.

ClickZ compared Google’s planned display to current systems already available, noting that advertising in these screens are limited to looped, poster-type advertisements of movie promotions and other nearby events. Google’s new system could remove that burden and allow advertising and inventory cycles to move in tandem. But unlike imany of its other ventures, perhaps, Google is entering a space that’s already crowded and highly competitive. For example, last May, Publicis Groupe entered into a joint venture with Simon Property Group, the nation’s largest owner of shopping malls, to start the OnSpot Digital Network to showcase in-store ads. Whether or not Google is simply testing the waters, this is one area where the internet company might have to play catch up. The UBS report is available as a PDF.

Wikis can be successful on newspaper sites – claims Wikipedia founder

Journalism.co.uk - The founder of Wikipedia has claimed take up of wikis by mainstream media is dependent on the cultivation of communities rather than concerns about vandalism.

Jimmy Wales told Journalism.co.uk that newspaper sites could use wikis to serve as a focal point and support mechanism for communities to post news that would not normally be covered by the paper.

Issues surrounding vandalism and inaccuracy, he claimed, could be lessened with software features.

“To do a successful public wiki it really has very little to do with the software and a lot to do with people,” he said.

“The LA Times experiment with a wiki really pretty clearly failed because it didn’t bother to first cultivate a community of users.”

He added: “If newspapers think of it as a cheap way to get content then people aren’t going to appreciate that.

“But if they think of a segment of the community that it isn’t serving well and which it can’t serve well because the economics don’t work out then this new method of production means they can actually provide a new service.

“I think that would be a healthy way to look at it and it actually has a lot of potential.”

Mr Wales said he did recognise there was potential for news publishers to be open to libel should wikis run on their sites fall foul of vandals. However, he suggested that there were ways to lessen the effect of vandalism.

“One of the things we’re introducing soon is a new feature in the software to allow the community to identify the best work and flag it,” he said.

“It still allows open editing but you could also surface the best version of an article rather than the most recent if something is vandalism prone.

“Some little tweaks in the software like this one will over time make wikis more usable on things like newspapers where they have a feeling they have to be more conservative and cautious about what they are displaying to the general public.

“We’ve never worried too much about it, we come from the internet. This is a new medium and consumers are aware that although the overall product is quite good with user generated content it’s occasionally dodgy and you have to keep an eye out.”

He added that since announcing plans for Openserving, in December, Wikia had received several thousand requests to use the software.

Despite having to work through a sizable backlog of requests Mr Wales said he was hopeful of launching the much anticipated search engine project - wikiasearch - in the next three months for public testing.

“To me the idea of having a freely licensed fully transparent search engines it really cool and exciting. It has really captured peoples imagination and for me this what I intend to spend most of my time working on in the next year.

“We’re hopeful that we can at least match and perhaps surpass the quality of Google but we are going to do it with open source software and open public algorithms.

“What makes it so interesting is that it invites participation from lots of different people. It’s a brand new idea.”

70%+ Canadians see internet as first source for shopping, news, connecting

Canadian poll finds ‘bandwidth boomers’ driving the next wave of social networking

TORONTO, January 16, 2007 Teens and college students turned social networking into an international phenomenon, but a new Leger Marketing study sponsored by Kijiji Canada (www.kijiji.ca) has found that Canadian adults aren’t far behind the trend. In fact, they may be leading the charge when it comes to interacting online within their geographic community.

2007 trend-spotting reports cite a renewed importance on localization as opposed to globalization, and according to the Kijiji Canada/Leger Marketing survey, 73% of Canadians aged 30 and over rely on the Internet to search for local news and products to buy within their community, while 70% now cite the Internet as their resource of choice for finding local services, such as handymen or domestic help. This demographic is also making inroads to meeting people online: 20% say they have met someone who lives in their area online and 28% feel more “at home” in their online community than in their own neighbourhood.

In addition, the vast majority (89%) of survey respondents cited convenience, ease of use and the variety of goods they find online as opposed to more traditional sources like the Yellow Pages as reasons for turning to the Internet for so many of their daily activities.

According to Dr. John Pliniussen, Director, Queen’s Business Consulting, and Associate Professor of eMarketing, Innovation, and Sales, this is the next wave of a powerful social trend for adults and something he expects to become even more mainstream in the very near future.

“In the last six years, Internet use has more than doubled among baby boomers, and this isn’t just to send emails to family and friends or to look at pictures of their children,” says Dr. Pliniussen. “The age-group that I like to call the ‘bandwidth boomers’ are just the tip of an even bigger segment of the population that is turning to the Internet for five main activities: shopping, sharing, caring, earning and learning.”

The percentage of Boomers now using the Net is equal to that of younger demographics (13 45). Boomers constitute just under half the population, and are the wealthiest demographic segment, which presents a huge opportunity for online businesses.

Additional Survey Highlights
Online use

  • Three in four Canadians older than 30 check the Internet at least once a month (73%) for products to buy, services, jobs, or community information, and over half check the Internet once a week or more (54%).
  • 69% of adult Canadians have searched for local services online and 54% view community postings and events online.

Online satisfaction

  • 4 in 5 Canadians older than 30 say their experiences interacting with people online have been positive, including shopping on eBay, participating in blogs or discussion boards or meeting people (83%).
  • Almost 90% say that there is a good variety of goods and/or services online and 86% say it is easy to find what they are looking for online.

Regional Differences

  • British Columbians are the most active, regular users of community websites, as 61% use the Internet once a week or more to search for jobs, products to buy or other local community information.
  • Ontario cites the highest rate of searches for products to buy online, at 40%.
  • Quebeckers have the highest preference for online classifieds, as 43% would choose online classifieds, even if newspaper classified ads were free.
  • Not surprisingly, more than one-third of Albertans look for part-time or temporary jobs online (35%) and one-quarter look for apartments online (25%).

About the Survey
The survey was conducted for Kijiji Canada by Leger Marketing, a Canadian representative of the Gallup International Association, from December 13 18, 2006, with a representative sample of 1,000 Canadians over the age of 30. The survey is considered accurate within +/3.1%, 19 times out of 20.

Most-read lists now a major feature on papers’ websites

Vancouver Sun:

For Wednesday, Jan. 10, 2007, the most e-mailed story from the New York Times website was entitled Appreciations: Mr. Noodle.

It was a sentimental eulogy of the recently deceased Momofuku Ando, inventor of instant ramen noodles.

The second most e-mailed story in the Times website was Happiness 101, about a class at George Mason University in Fairfax, Va., on how to make yourself happier.

The third was Hot Stuff, about the gaudy new range of silicon kitchen utensils.

This ranking was offered, as it always is now by the Times, in the bottom right-hand corner of its Web page, in the section called Most Popular. It ranks the top 10 most e-mailed stories, the top 10 most blogged stories and the top 10 most researched stories.

As such, it’s a kind of barometer, though of what exactly is not clear.

That a story is the most e-mailed does not make it the most important, or that with the most impact. It does not even make it the most widely read, though it could be argued that the universality of the Web increases the odds that the most e-mailed story would have the best chance of reaching the greatest number of readers.

But what is clear about the Times list is the nature of the stories that dominate it.

The majority of them are almost all what a serious newspaper editor would call fluff, or even more tellingly, “human interest.”

They’re apolitical. They’re quirky, even screwball. They have what I call an “ah-h-h” factor — that sigh of relief a reader makes when he or she finds something in the paper to leaven the heavy, if necessary, fare of crime, war and policy issues.

Animals figure big in these stories, but so do stories on nature, cosmology, history, cuisine, art, culture and sometimes even the travails of real live human beings. (And so, too, do the stories of real dead human beings. On our Web page here at The Sun, said managing editor Kirk LaPointe, the obituaries are always among the most highly read parts of the website. That sensibility put reporter John Mackie’s terrific obit on Yvonne De Carlo on today’s front page.)

In the spirit of interactivity that the Web encourages, the habit of including most-read lists has spread among larger North American newspaper websites. (True to form, the Los Angeles Times most-read selections for Wednesday’s paper included a story about the increased use of Prozac to decrease anxiety in pets.) I’m not sure what this says about newspaper readers these days, or what it should tell newspaper editors about what people want to read. There is the danger that, in trying to stanch circulation losses, editors can read too much into it.

“You can’t design a newspaper on a feedback loop alone,” LaPointe said, arguing that while it is no surprise readers are drawn to quirky stories, newspapers have to strike a balance between entertainment and sobriety. A steady diet of cats on Prozac would leave a bad taste in the mouth, and ruin a paper’s reputation as a reliable news source. On the other hand, there is a case to be made that newspapers have become too sober.

In a 1997 study entitled American Journalism and the Decline in Event-Centered Reporting (and thanks to UBC assistant professor of journalism Mary-Lynn Young for bringing it to my attention), authors Kevin Barnhurst and Diana Mutz found that over the past century, news stories in American newspapers grew longer, more analytical and were less about individuals but more about groups and officials.

In other words, newspapers have become more abstract, better researched but less interested in the immediate human experience. Newspapers have gone wonk-ish.

“Instead of moulding and shaping stories,” Barnhurst and Metz concluded, “the new long journalism fabricates other things: abstract themes, expert analyses, and discouraging problems . . . Among the many consequences of the shift to interpretive and thematic news, one may be the most ironic of all: that the new long journalism makes news about ordinary people more appealing.”

Did you know Momofuku Ando invented instant ramen noodles in 1958 because he wanted cheap, nourishing food for the working class? Did you know he died at the age of 96? Did you know 100 million people a day dine on his invention, and that according to the New York Times, he has earned “an eternal place in the pantheon of human progress?”

What newspaper reader, starved for the human touch, wouldn’t devour a story like that?

e-commerce hits all-time high in 2006

Raising the ceiling, raising the bar, raising the ante (here).


E-commerce revenues for one year over $100 billion?

Yup.

That’s what happened last year, 2006.

A barrier has been broken.

Maybe, finally, people will forget all about that little bubble burst around the turn of the century and admit that e-commerce is for real — and it is going to just keep growing. Almost anyone who sells anything should be selling (at least part of what they sell) online.

Holiday sales made the point, emphatically.

Most researchers who track the retail industry in the US put overall 2006 holiday sales at between 2.5% and 3.5% above last year, the slowest pace of growth in two years, blaming the lackluster season on weather (either too warm or too snowy), falling home prices and rising energy costs.

The exception to the rule was online sales.

According to comScore Networks, online sales for 12 days during the November/December holiday season surpassed the $600 million mark — each day.

Wednesday, December 13, marked the heaviest online spending day of 2006 with $667 million spent, followed by Monday, December 11 ($661 million), and Monday, December 4 ($648 million).

By comparison, just six days in 2005 reached $500 million in online sales, with the top day, Monday, December 12, registering $556 million.

In total, 2006 online holiday e-commerce sales (not counting travel revenues) reached $24.6 billion, up 26% over 2005.

For the full year, 2006 online retail spending reached $102.1 billion, a 24% increase vs. 2005.

“2006 was certainly an exceptional year for online retailers,” said Gian Fulgoni, chairman of comScore Networks. “The online holiday shopping season of course played a vital role in the year’s success, as spending accelerated during the final two months of the year, helping push total online retail spending over the $100 billion threshold.”

What will 2007 bring?

To see what is ahead for e-commerce north of the border, read eMarketer’s recently published Canada B2C E-Commerce report.

Internet ad spending to reach $20 billion this year

Market research firm eMarketer has predicted that online ad spending will reach a staggering $20 billion in 2007 (here).This figure represents an increase of 19 per cent compared to 2006 figures and is one of ten key predictions for the coming year made by eMarketer.

Massive online sales at Christmas exceeded analysts’ expectations and so the sharp rise predicted by the firm is certainly on the cards.

In fact, a rise of 19 per cent is down from the 30 per cent or more seen in the past few years but is still far greater than the 1.4 per cent growth predicted for the US advertising sector as a whole.

Other trends identified by eMarketer for 2007 include the increased prominence of online video ads, which consumers tend to actively seek out, growing social networks and more video game downloads.

User-generated content is also expected to make its way on to mobile TV, which will become more prominent over the course of the year.

Other predictions include an increase in Hispanic and African-American internet users, more b2c e-commerce, more user interactivity, the increase of voice over internet protocol services and broadband, and changes to TV viewing and its associated advertising.

Separate research from eMarketer found that gay, lesbian and bisexual internet users are more likely to use social networking sites than heterosexuals.

Search ads to be spiced up

Internet search ads are due to get a makeover to make them more interesting in the coming months, according to experts (here).

American advertisers are expecting a greater variety of ads on the internet this year, the Wall Street Journal reports, including those designed to engage the consumer more.

“They are putting less emphasis on traditional TV and print ads and instead experimenting with a variety of new techniques – including amateur-style videos posted on YouTube and traditional video commercials on the web,” Brian Steinberg and Suzanne Vranica write.

One particular trend they predict is the jazzing up of search ads – currently not the most imaginative of internet advertisements. Usually they comprise a clickable link with the company name and some accompanying words of text.

This year, however, search ads are likely to become more sophisticated and creative as advertisers tie them back to larger ad campaigns.

Google’s head of north American sales, Penry Price, told the Wall Street Journal that the phrases used in a certain search ad could echo those used in a larger TV or radio spot.

This will “remind them of what they’ve seen maybe on television or what they’ve heard on the radio or what they’ve seen in newspapers or magazines,” he said.

Other trends that are likely to continue into 2007 include putting ads on the sites of well-known bloggers so that they carry an extra authority.

As consumers shun the high street and flock to the web to make purchases, the opportunities for online advertisers are growing rapidly.

e-commerce to gather more speed in 2007

This year is likely to see e-commerce gaining even more forward momentum, according to information management firm hybris (here).

New technologies, better accessibility to websites, improved usability, the growth of Web 2.0 products and greater integration with physical stores are all likely to have a positive impact and build on the strong online sales figures witnessed over the Christmas period.

hybris chief executive Ariel Ludi commented: “Many new technologies are coming on-stream ready for 2007 and end-user and business trends mean that the convergence of these will see a massive drive for e-commerce in 2007.

“Many consumers are willing to adopt new technologies as the benefits of online shopping become widely recognised; this, along with the willingness of retailers and businesses to try to push out new types of service will see many new types of e-commerce emerging in the market.”

Future trends identified by hybris include One-Page-checkout facilities, leading to better usability; greater community and user input; increased use of virtual sales catalogues with intuitive turning of pages; increased accessibility of digital downloads; and more cross-selling between partners.

It is certainly an exciting time to be involved in internet advertising, as more and more blue chip firms allocate larger sums to online campaigns, while services such as Google’s AdWords and Microsoft’s Office Live make it easier for small companies to capture a share of the market too.