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E-Tailers Investing Ahead of Recovery

NOVEMBER 13, 2009

Getting ready for consumers to open their wallets

Recovery from the recession is not yet in reach, but online retailers are ready to start spending all the same.

E-tailers know online consumers demand a top-notch shopping experience, and that difficulties navigating e_commerce Websites can lose them sales. Internet Retailer and Vovici Corp. found that more than seven in 10 Web merchants planned to spend more on advanced e-commerce applications and services this year.

E-Commerce  Applications US Online Retailers Plan to Add or Replace*, by Business Model, August 2009 (% of respondents)

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New Chart: Email Spending Sped Up

As the Economy Slowed

SUMMARY: Email has not only been spared the ax that fell heavily on most marketing budget line items, it seems to have actually benefited from the down economy. This boon wasn’t skewed by a few email-reliant sectors, it occurred in every industry participating in our benchmark survey.

email spending chart

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Add Direct Response To Get More

Out Of Rich-Media Ads

by Jason Tafler , Friday, September 25, 2009

As new technologies and more engaging content emerge on the Web, consumers expect more from online advertising and brands demand more value for their ad dollars. Many marketers struggle with creating cutting-edge ads that grab viewers’ attention and drive ROI in a meaningful way. Companies that are getting the most out of their ad buys are using new methods to deeply engage consumers with creative rich-media ads that also incorporate direct-response elements.

These do not have to be standalone strategies; each can play an important role in any comprehensive campaign. Depending on the marketer’s objectives, rich-media campaigns can include features such as data collection, lead generation, printable coupons, targeted product and pricing information, and ticket or product purchasing directly within banner ads, shortening the path to conversion. These capabilities not only provide marketers with more insight into their target audience, but increase consumer interaction time. According to PointRoll benchmarks for 2008, rich media provides a 562% lift in response/return over standard ads and 62% lift over flash banner ads. Depending on the campaign, including a direct-response element increases response by 42%, with an additional 3% increase in brand time.
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Act Now, and We’ll Double Your

Market Share!

Why Kodak Is Using DRTV in Addition to Brand Advertising for Its Printing Products

YORK, Pa. (AdAge.com) — The phrase “As seen on TV” might bring to mind Snuggie, ShamWow and PedEgg but probably not a venerable American brand that invites you to share the most important moments of your life.

Yet for Kodak, direct-response TV has become an effective and preferred way to reach consumers in the year and a half that the company has used it.

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WPP Profit Dropped 47%

in Second Quarter

More Than Half of Company’s Revenue Came From Nontraditional Advertising

By Michael Bush
Published: August 26, 2009

       NEW YORK (AdAge.com) — Using words such as “severe” and “surprise” to describe the recession’s impact on its business, WPP, the world’s largest advertising conglomerate, said today that its profit was down 47% for the second quarter. And WPP Chief Executive Martin Sorrell said it will be a while before marketing executives begin to spend and take chances the way they did just a few years back.

 ”Given the fact that we stared into the abyss six or nine months ago, people are going to take a long time to go back to where they were,” Mr. Sorrell said. “It’s going to be a long time before this generation of managers, who were managing businesses that are faced with the extinction of credit lines, severe sales compression and inventory being eradicated, begin to take risks. They won’t until they are 100% sure things are on the uptrend.”

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Beyond The 30-Second Spot: Online Video Trends   

by Chris Lawing , Friday, August 21, 2009

Brand Videos

Marketing your company online isn’t what it used to be. Words alone are not enough.  A Diffusion Group study projects that by 2013, long-form video will represent almost 70% of online-video ad revenue, up from just over 40% today.  The great attraction to this form of video is not only can company sales and marketing teams leverage a company brand video, they can push it to customers on their Web site, blog, Facebook, YouTube and Twitter accounts. Good storytelling, believability and creative visuals still make the foundation for a powerful brand video.

Whatever you call it - a brand video, company demo, video intro to your company - this online video represents what your company is positioning or selling in a dynamic way with motion and sound.  Apple showcases video right off its home page with its commercials and an iPhone demo. B&H in New York City has a SuperStore Experience video off its homepage, which showcases the store, products, and customer relations.

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Video eMessaging

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 How better to share a Word-Of-Mouth experience then Proactive Video eMail: Drake Morton

 

Brand Spending on WoM Marketing on Fast Track

According to new research from PQ Media, spending on word-of-mouth marketing rose 14.2% to $1.54 billion in 2008, despite the worst economic recession in 70 years. However, WoM spending is on pace to grow another 10.2% this year, placing it among the fastest growing advertising and marketing segments. By comparison, the U.S. economy, as well as the advertising and marketing services sectors are all expected to decline in 2009 for the first time since the Great Depression of the 1930’s.
PQ Media defines WoM marketing as an alternative marketing strategy which encourages consumers to dialogue about products and services through various online and offline tactics, often facilitated by brand ambassadors.

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Are You Making Your Subscribers Feel Welcome?

by Aaron Smith , Tuesday, July 7, 2009

The welcome email is one of the most important messages in any email program. Welcomes come at a time when subscribers are most receptive to receiving messages, generating outsize open and click-through rates. So why do so many email marketers pass up this once-in-a-business-relationship opportunity by delivering subpar welcome emails — or worse yet, none at all?

Sometimes the technology limitations of an organization’s infrastructure come into play. It also may be a result of organizational dynamics, where the group responsible for email marketing may not be in a position to change the underlying technology infrastructure used to send welcome messages. Often it’s simply the result of the email team being over-tasked, unable to add yet another project to an already overflowing queue.
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Google Lifts Ban on Trademark

Terms for Search Ads

Move Could Increase Keyword Costs for Blue-Chip Brands

NEW YORK (AdAge.com) — Get ready for an influx of brand names in Google keyword ads. The search giant, which until now has prohibited the use of trademarked brand terms in ad text on its search-results page, except when permitted by the brand itself, is now allowing the use of trademarked terms in AdWords copy — under some circumstances, that is. (more…)

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Understanding Your Customer’s Shopping Heuristics

by David Baker , Monday, May 11, 2009

The nature of email marketing can be illustrated through a comparison to book buying. The average consumer spends less than three seconds scanning titles of books on a bookshelf in the store, and then spends roughly 20 seconds scanning the contents before making a decision to either purchase or sit down with the book to research further. We have turned into a culture of top 10 lists and recommendations. (more…)