BCA

Consumers’ increasing appetite for mobile applications is driving online retailers to speed up their mobile marketing initiatives. According to a Forrester Research, Inc. study produced in partnership with Shop.org, the National Retail Federation’s digital division, nearly three-quarters (74 percent) of online retailers either already have or are developing a mobile strategy. One in five boasts having a fully implemented mobile strategy in place already. The survey of 109 companies is part of The State of Retailing Online research series, which provides eBusiness professionals with an annual industry benchmark for marketing and business investment and activities.

Mobile Commerce has tremendous potential

“It’s imperative for online retailers to stay on top of what their customers want, and these days it’s all mobile all the time,” said Scott Silverman, executive director, Shop.org. “Mobile commerce has tremendous potential and will no doubt grow to become a significant part of overall sales volume in years to come. Whether to increase customer satisfaction, grow their brand, or drive traffic and sales, online retailers are in this game to stay.”

“Mobile investment is modest now, but we see that it will pick up in the future, especially among the biggest brands that have already invested significant amounts in their mobile operations,” said Sucharita Mulpuru, vice president, principal analyst, Forrester Research, and lead author of the report.

Earlier this year, Forrester forecast US online retail sales to total $173 billion in 2010. According to “The State Of Retailing Online: Marketing, Social Commerce and Mobile Report,” Web retailers with mobile strategies:

•Are investing in features that support the cross-channel experience. Product and price information, store information, and coupons to support the in-store experience are among the most popular features that retailers are offering consumers.
•Have varied levels of investment. On average, respondents anticipated spending $170,000 on their mobile sites this year, large multichannel retailers are spending several times that amount, while smaller online pure plays on average are investing much less.
•Are experiencing modest gains. Retailers reported that their mobile browsers at this juncture are generating a little less than 3 percent of overall site traffic and just 2 percent of revenue.

Retailers are spending nearly 40% of their budget on paid searchTried and true marketing tactics such as paid search, email, and affiliate marketing command the biggest percentage of an online retailers’ marketing budget. According to the report, retailers are spending nearly 40 percent of their marketing budget on paid search.

Retailers are finding value in social media marketing, but the ROI for driving online sales remains murky. Listening to customers is the most significant objective for social tools according to respondents, with 80 percent of retailers reporting that they are pursuing social strategies to experiment and learn. And while 28 percent noted that social marketing has helped grow their business, direct sales from social tactics are not widely measured.

Television advertising continues to resonate with US consumers in a number of unique ways, according to a new report.

The Television Bureau of Advertising, the industry body, and Knowledge Networks, the research firm, surveyed 1,562 people in the country in order to gain an insight into their habits and views with regard to media.

Overall, TV was estimated to boast a daily reach of 89.5% among Americans over the age of 18 years old, the study revealed.

This figure stood at 67.5% for the internet, 60.6% for radio, 38.6% for newspapers, 28.6% for magazines and 14.3% for mobile.

Typical viewer spends 319 minutes a day watching TV

In terms of usage levels, the typical participant spent 319 minutes a day watching TV and 159 minutes surfing the web, with the other channels assessed coming in at least an hour behind on this measure.

Turning to advertising, 60.8% of respondents agreed TV spots were the most “authoritative” form of corporate communications.

This compared with 15.4% who said the same for newspaper ads, while 10.8% afforded magazine ads such a status.

Radio registered a score of 8.6%, while perceptions fell to just 4.4% for the internet, indicating the overall dominance of traditional media in this area.

TV rated most exciting

Television spots were argued to be the most “exciting” by 83.4% of contributors, with magazines in second place on a considerably more modest 6%, and the web in third on 4.5%.

Elsewhere, 85.7% of the panel said TV commercials had the greatest degree of influence, while 78.1% asserted that spots shown on this medium also had more persuasive power than other forms of advertising.

When learning about new products, 71.1% of the sample again handed TV the primary role, with newspapers on 8.9%, magazines on 7.3%, and online on 7.8%.

“By every measure, television reaches more consumers every day than newspapers, magazines, radio, the internet and mobile media,” Susan Cuccinello, the TVB’s svp of research, said.

From World Advertising Research Council

General Motors is planning a seismic shift in its marketing spend during the next three years – and where the world’s number one automaker leads, others will inevitably follow.

According to unnamed company executives, half GM’s $3 billion annual budget is to be rerouted from traditional media to digital and one-to-one marketing, including gaming, mobile and interactive.

The trend away from TV and print is reflected in recent changes in the corridors of power at GM Planworks, the dedicated Starcom MediaVest Group agency that services the automaker’s media planning and buying needs.

New president/general manager Ken Taylor is charged with reintegrating Planworks into its parent company (part of the Publicis Groupe conglomerate) although Starcom USA ceo Laura Desmond insists the unit would not disappear.

She declared: “As GM has streamlined and got more agile, it seemed only appropriate to move from a siloed business approach to a more flexible, nimble approach that’d allow them to access all our centers of excellence.” 
  
It will give GM, for example, access to Starcom’s branded-entertainment division and allow it to take advantage of the group’s buying and planning power. In addition, the automaker can tap Publicis’ prize acquisition, Digitas, for digital planning and execution.

GM’s North America vp for vehicle sales, service and marketing, Mark LaNeve remains zip-lipped about numbers and strategy details but did say: “Like all major marketers, we’ve moved into digital media in a big way, but the other media types are still very important and will still be a big part of our mix.”

Small consolation for broadcasters and publishers facing the consequences of economic meltdown in the US and elsewhere.

Rival Hyundai Motor America is also doubling its online adspend this year compared with 2007. Marketing vp Joel Ewanick proclaims ominously: “Online is getting to the point where it may be more important than the 30-second TV spot.”

Data sourced from AdAge.com; additional content by WARC staff , 19 March 2008  Reprinted with permission from World Advertising Research Center