The Power of

eMarketing
Robert
Fleming
President and CEO
eMarketing Association
 The Internet is
Different
 A rare example of a modern functional anarchy
 No official censors, no bosses, no board of
directors, no stockholders
 No one “owns” the Internet, there is no “Internet,
Incorporated”
 The “Internet” itself, doesn’t even officially exist
as an entity
 The “Internet” never charges for anything. Each
group accessing the internet is responsible for
their own machine and access
Evolution Of The
Internet
Phase One:
Portals
Everywhere

Phase Two:
Simple
Transactions

Phase Three:
The
Digital Decade
 The Internet Grows
 600 million people access the internet
worldwide (2002 est.)
 2002 e-commerce 1 trillion dollars (est.)
 68% increase in e-commerce 2000 vs. 2001
 Over 1 billion web pages, 40 million sites
Rapid Increase in Internet Use in
the United States Across States –
Over half the population

August 2000 September 2001

Greater than 50% of People Use The (35)

Internet
Approx. 50% of People Use the Internet (9)
Less Than 50% of People Use the Internet (6)

Source: NTIA and ESA, U.S. Department of Commerce, using U.S. Census Bureau Current Population Survey Supplements
Internet Use at Any Location,
1998 and 2001
As a Percent of U.S.
Population
100
90 85
80 75.6

70 65.4 63.2
60 51.2 51.5
1998
50
38.9 39.2 2001
40
29.9
30
14.3 16.8
20
10 4.1
0
3-4 years 5-9 years 10-13 years 14-17 years 18-24 years 18-24 years
old old old old old in school old not in
school
Source: NTIA and ESA, U.S. Department of Commerce, using U.S. Census Bureau Current Population Survey Supplements
What are they doing
online?
 More time
 More money
 More services
 Fewer sites
 Online Activities 2001 – Internet users Age 3+

On-Line Education Cours e 3.5

5.2
Trade Stocks , Bonds , Mutual Funds * 8.8
16.4

On-Line Banking* 17.9

17.3
View TV/Movies , Lis ten to Radio 18.8
24.8

Governm ent Services Search* 30.9

34.9
Product/Service Purchas es 39.1
42.1

News , Weather, Sports 61.8

67.3
E-m ail 84.0
Time spent online
9

6
8.2

3
4.3

0
Oct 1999 Oct 2001
Source: Jupiter
 75% of online customers say the Net makes
their lives better
 79% of Net users utilise it for information for
offline purchases
 AOL online average minutes per day:

1999 2001
47 63
 Impact of Internet on
media consumption
 23% Watch TV less often

 20% Read magazines less often

 15% Read newspaper less often

 9% Listen to radio less often

Source: (USA) Scarborough National Internet Study

Reaching consumers
throughout their
media day
TV Print Outdoor Radio Online
7.00am Morning Journey
Breakfast To Work Breakfast Check News/
Paper Mail
9.00am News Show

11.00am Messenger

1.00pm Paper/Mags Out for Drive Time

Lunch News, Sport,
Finance
3.00pm
5.00pm Messenger

7.00pm Leisure Mags

Journey Drive Time Web Cast
9.00pm News, Ent,
Home

Sport
11.00pm
e-commerce only
represents
a minor fraction of total
GDP...
2002 US GDP Projection
e-commerce
(3%)

Traditional retail
(97%)
The Internet has to support
Brick & Mortar
Initiate
Reduce
Relationship
Inventory
in Information
Needs
Stage

Reach Develop
New Internet Contribution Aftermar
Custome to Bricks and Mortar ket
r Sets Contact

Develop Increase
Customer Product
Knowledge Selection
… and Bricks & Mortar must
support the Internet
Reach a
Brand
larger
Reinforcement
customer
and Trust
base

Place to
touch Bricks & Mortar
Facilitate
and test- Contribution to
Delivery
drive Internet
product

Capture Capture
Aftermarket urgent and
Profits impulse buys
Customers must be able to
move
back and forth
seamlessly ...
Role of Bricks and Mortar

Internet o
I nf
e r
tom
u s s
C te m
e d ys
h ar d S
S t e
gra
t e
In
Bricks and Mortar
Dispose/
Awareness Research Shop Buy Own
Repurchase

Transform Bricks and Mortar

 Marketing
Employment Is
Growing
“Employment of advertising,
marketing, promotions, public
relations, and sales managers is
expected to
increase faster than the average
for all occupations through 2010 ”
Source: United States Department of Labor
 eMA Employment
Survey

70% of all management level

marketing positions require Internet
abilities and/or experience.
Internet Related Jobs
Are NOT Just in I T

Source: Center for Research in

eCommerce, graduate School of
Business, University of Texas at Austin
 The Change in
Corporate Culture

 1996 – most web sites are managed by IT /MIS

 2001 – marketing and IT/MIS manage web sites
jointly (in some cases)
 Marketing needs to “own” web site
 IT/MIS are the mechanics – marketing the pilot
 Marketing becomes more collaborative and less
autonomous
 Are the Following IT
or Marcom Functions?

 Corporate communications
 Advertising

 Corporate identity

 Product positioning

 Market Research
 IT/MIS Continues to
Dominate Web
Management

 Lack of technical understanding by

marketers
 Fast changing technology can create

confusion
 Corporate politics plays a role
 Efficient Organization

A d m i n O i sp t e r raM a t tia oi ro nk n e s t i Mn gI S / S

S e r v i Sc eu p p Wo re t b m
 Effective Organization

A d m iO n pi s e t rr M a ta i ro k n eM s t i I nS

W e b m a s

S e r v i c e

S u p p o r t
 Outlook
 Increasing shift of web site responsibility from
MIS to marketing
 Increased technical knowledge required from
marketers
 Internet marketing accounts for 15% of all
advertising impressions and only 5% of
marketing budgets
 The gap will close between impressions and
budget
 Marketer must understand new tools
 No Other Media Has All of the
Advantages of eMarketing.
Period.
 Cost effectiveness
 Global reach
 Interactive response
 Measurability
 Personalization
 Real-time feedback
 But E-marketing
Suffers From
 Lack of data – 5 years vs. decades for magazines,
radio
 Lack of understanding of technology by marketers
 Fast moving and turbulent arena
 Changing technologies
 Lack of trained personal
 Senior management barriers
 Corporate culture
Online Marketing Tools Are
Less Than 6 Years Old
(That’s First Grade)
 E-mail marketing
 Site design for e-commerce
 Viral marketing
 Affiliate marketing
 Banner advertising
 Search engines
 Online publicity
 Research
 CRM
 Site Design for E-
marketing
 Merchant account checkout
 Visitor expectations
 Surveys
 Content
 Technical considerations
 Color
 Plug ins
 Product descriptions
 Company information
What Works on a
Site ?
Common Influences on Online Purchase
Shipping fees 92%
Prices 92%
Product availability 86%
Special promotions or incentives 76%
Selection 69%
Order tracking 66%
Clearly identified delivery time 65%
Return policy 63%
Ease of use 62%
Site performance/speed 51%
Source: Vividence
 Search Engines
 Pay for position taking a strong lead
 Search engine optimization (SEO) critical
 Majority of users rely on search engines for
navigation
 Targeted audience
 Accounts for over 70% of new site visitors
 Turbulent arena
 E-mail Marketing
 E-mail is the number one app with over 90% of
internet users
 Issues such as browser differences, targeting,
and privacy are critical
 Spam, creates a major negative for e-mail
marketing, laws passed in 19 states
 Only 3 years of significant use
 Viral Marketing
 Hot Mail was one of the first examples of viral
marketing
 Another “e” term for “word-of-mouth” advertising
 Bulletin boards, e-mail, chat rooms are the
major conduits for viral campaigns
 What is “buzz”
 Affiliate Marketing
 Partnership and affiliate programs are booming
 Cooperation between online companies
 Commission programs and banner exchange
programs lead this channel
 Banner Advertising
 Volatile history with sharply declining click
through rates
 New forms such as java, active x,
 Pop-ups, pop-under and other new delivery
methods are gaining acceptance
 Branding is possible with banners
 Research
 Log files
 ASP log conversion
 Metrics for e-marketing analysis
 Surveys
 Challenges
 Integration of e-marketing and conventional
marketing creates a “blurred channel”
 Hybrid advertising
 Marketing mix
 Consumer expectations
 Technological limitations
 New innovations
 Legal issues
 Conventional Media
 Addition of web address creates hybrid
advertising
 Web site can degrade or enhance conventional
efforts
 Visitor experience becomes critical
 Diffused metrics
 Technological
Limitations
 Different browsers
 Online software (plug ins java –flash etc.)
 Screen resolutions
 Bandwidth speed
 Operating systems
 Server technology
 Legal Issues
 Privacy policies
 Spam
 International commerce
 COPPA
 19 states have anti Spam laws
 Dozens pending in congress
 Online disclosure
 Emerging
Technologies.
 Wireless poised to triple over the next few years
 Smart chips could track BM purchases
 Higher bandwidth could allow for increased
streaming media on sites
 MPEG4 – good enough for video?
 ???
 80% Still Dial-up
Digital Other
Subs c riber Line 0.5%
(DSL)
6.6%

Cable Modem
12.9%

Dial-up
80.0%
Source: NTIA and ESA, U.S. Department of Commerce, using U.S. Census Bureau Current Population Survey Supplements
One Example
One More
Digital innovations become an integral
part of life
Breaks down logistical barriers
Offers greater flexibility and power
Shrinks time and business
Simplifies complex business processes
Enables effective communication and
collaboration
Opens up new markets
 The 21 Centuryst

 Explosive increase in innovation

 Extraordinary dynamism of technology
 Exceptional increases in productivity
 Myriad new forms of business activity
 Expanding opportunities
 Level playing field
 The eMarketing
Association
 Accreditation body for CeMA and CeM Certifications
 Certifications now offered in over 250 schools
 Largest association representing e-marketing exclusively
 Recognized globally
 Extensive e-marketing resources
 CeMA Certification

Certification—a sign of competence and

achievement in this field—is particularly
important in a competitive job market.
While relatively few advertising, marketing,
and public relations managers currently
are certified, the number of managers who
seek certification is expected to grow.
Source: United States Department of Labor
 For a Copy of This
Presentation
Go To:
Http://www.eMarketingAssociatio
n.Com/ppt.htm
Questions