Archive for the ‘Digital Trends’ Category

End of Financial Year Performance – Digital style

Sunday, July 18th, 2010

There has definitely been staggering growth in the Australian digital space during the 1st 6 months of the year. With a new financial year upon us I have no doubt that companies in Australia will continue to shift funding from offline to online. Thus I felt it timely to release a compilation of general digital statistics from the first half of 2010 to assist marketers and agencies alike to build their business case for online marketing initiatives. Enjoy!

eCommerce & General Internet Usage

1. Online Internet Usage in Oz - According to Nielsen, Australians spend an average of 17.6 hours a week online, making up 33 per cent of their total media time.
2. Online retail spend in Australia - eBay-owned payment company PayPal predicts online retail spending to reach $33.8 billion in Australia by 2012 – a significant increase on the $24 billion generated during 2009.
3. Loss of online sales to international providers - 40% of Australians online spend is going to overseas stores. Compare this to the US who are losing 10% to overseas counterparts and this crystalises the impact of delayed online investment by Australian retailers.
4. Average consumer online spend Australia - According to Frerk-Malte Feller, Managing Director, PayPal - in the last six months alone the average consumer spent $1,223 online, an increase of $130 from the second half of 2009.”
5. Retailer online investment in 2010 - According to a Forrester report released in July “online retailing in Australia 2010: Marketing, merchandising and customer service”, 69% of retailers are planning to invest in improved site content and 66 per cent will spend more time on online marketing to drive sales & growth.
6. Online purchasing frequency - According to the ACRS’ latest report: “Value and Optimisation in Multi-Channel Retailing”, approx 36% of Australians are making purchases online at least once a month and 6% are buying online once every week.
7. Online / Offline Channel Effect - According to the ACRS by 2012, nearly half of all retail transactions are expected to be executed by consumers crossing channels - making multi-channel retailing essential.

Social Media
8. Social Network & Forum Usage - According to Hitwise Australia social networking and forum usage increased 36.1% in the past year and overtook search engines as the most visited industry by Australian Internet users in March 2010.
9. The power of online WOM - According to a survey conducted by RightNow 16% of Australian consumers said they had stopped doing business with a company because of a social media discussion they had seen about how the company treats customers. Another 16% stated they had also seen a positive consumer discussion about a company and had gone on to make a purchase.
10. Influence of Online Reviews - A study by RightNow found more than half of respondents (58 per cent) deemed customer reviews and feedback online to be the most important source to influence decision making, of least importance was advertising in any shape or form.
11. Online Community Usage – Australians look to communities of interest such as parenting or sports sites as a key channel for social media discussion – 62 percent of Australian Internet users visited a message board or forum in 2009.
12. Online Video Usage - Australians have a huge interest in online videos and this continues to grow. In January 2010 alone, Australians consumed 33 million videos online daily.
13. LinkedIn Members - LinkedIn has seen one of the fastest growth trends amongst social media sites in Australia, with unique audience numbers increasing by 99 percent from July 2009 to May 2010.
14. Twitter Users - According to Tribalytic Twitter subscribers in Australia are estimated to stand at 2.5 million.
15. FourSquare Members - According to socialmedianews.com.au Sydney FourSquare users have reached the 60,000 mark.

Mobile Statistics
16. Australian Mobile Internet Usage - Australians’ ownership of internet enabled phones now sits at 43 per cent, with 29 per cent regularly using it to search, email, find maps and share their lives on Facebook, Twitter and MySpace.
17. Mobile Internet Behaviour - Internet searches are the most popular online activity on the phones. Some 73 per cent of mobile internet users users conduct online searches by mobile now, compared with 30 per cent a year ago.
18. Mobile Device Share - Nokia has 35% share of handsets in Australia vs Apple’s at 28%. Apples share is expected to reach 61 per cent this year, according to MediaSmart.

Search
19. Search Engine Market Share - According to Hitwise for the week ending the 10th of July 2010, Google’s market share in Australia equated to 92.52%, Bing was 3.44% and Yahoo was 2.39%.
20. Political Term Search Growth – Given the upcoming election this last one is a timely. Political related search terms are on the rise - Yahoo recorded a 6829.44% rise on the search term ‘Julia Gillard,’ a huge 8164.49% increase on the term ‘Julia Gillard biography’ and a 2600% increase on ‘Julia Gillard pics,’ from Wednesday 23 June until Friday 25 June. Additional search terms on the rise at Yahoo! included, ‘Australian Labor Party’ (2597.72%), ‘Tony Abbott’ (3107.65%), ‘Kevin Rudd’ (3106.67%), ‘Kevin Rudd biography’ (2042.72%) and ‘Julia Gillard MP’ (1334.60%).

References

http://news.idg.no/cw/art.cfm?id=C9356544-1A64-67EA-E489E8D76F64ADA4
http://www.smh.com.au/business/media-and-marketing/aussie-advertisers-yet-to-take-bite-of-apple-20100708-102ej.html
http://www.smh.com.au/digital-life/mobiles/australians-take-to-mobile-internet-20100429-tszn.html
http://www.socialmedianews.com.au/foursquare-has-60000-users-in-sydney-business-urvey/
http://www.digitallabblogasia.com/?p=408&utm_source=twitterfeed&utm_medium=twitter
http://www.insideretailing.com.au/Latest/tabid/53/ID/8517/Australia-reaches-customer-experience-impasse.aspx
http://www.dynamicbusiness.com.au/articles/articles-news/online-retail-grow-40-percent-by-2012-1785.html
http://blog.tribalytic.com/2010/05/13/how-many-australian-twitter-users-are-there-and-where-are-they-from/
http://www.hitwise.com/au/datacentre/main/dashboard-1706.html
http://www.computerworld.com.au/article/351204/search_engines_running_hot_gillard_krudd/
http://www.buzznumbershq.com/2010/australian-social-networks-and-forums-usage-increased-36-1-in-the-past-year/
http://www.marketingmag.com.au/news/view/consumers-go-multi-channel-for-retail-2238

© Digital Marketing Lab Blog

Written By: Teresa Sperti

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On The Move - Mobile Marketing

Friday, July 9th, 2010

Just a week ago I was reading an article which was regurgitating the same old line – is this the year of the mobile? For those working in the industry, we all know that mobile internet has received strong enough penetration to consider it an important digital channel – one which cannot be ignored. In fact in a recent report from Mark Meeker’s, from Morgan Stanley it was declared that by 2014 mobile will become the primary device for accessing the internet reinforcing just how big a role mobile will play in our digital strategy in the coming years. However just like social media the mobile space is moving rapidly and organisations are beginning to innovate in the space. So what are some of the trends emerging beyond those that we have already witnessed like Augmented Reality. 5 of the most interesting I have come across are detailed below.

Comparison Shopping – Mobile Style
The introduction of applications like ShopSavvy will provide consumers with new ways to compare and shop on the move. Named a potential game charger – comparsion apps combine location with traditional comparison technology to enable consumers to do online research out in the field. By scanning bar codes users can compare prices of the products in the area simplifying the process of “shopping around”.
Jeffrey Grau a senior analyst from eMarketer recently said “Until now, researching online and buying in a store have been sequential activities that take place hours, days or even weeks apart. But customers who bring their Web-enabled mobile phones with them into a store can do online research at the point of a purchase decision.”

mCommerce
Gartner analysts are predicting an explosion in mobile transactions this year, with the number of such purchases likely to increase by over 50%. The data, compiled by Gartner, showed the Asia-Pacific region to be the leader in mobile transactions, with 41.8 million users in 2009 - a number which is expected to rise to 62.8 million by the end of 2010. However with Australian retailers behind on the general commerce front it will be interesting to see how quickly retailers will embrace mobile commerce opportunities.

Location Based Marketing & CRM for Mobile
Globally in markets such as the US and UK, mobile is providing a key tool to drive traffic and sales to traditional bricks and mortar retailers – bridging the gap between online and in-store purchases. Mobile coupons are one of the key ways in which retailers such as Subway and Target are using mobile to drive consumers in-store. This presents a significant opportunity for Australian retailers who are yet to be convinced about the value driven through investment in online channels to drive sales in-store.
A newer opportunity is also surfacing and could also revolutionise mobile marketing and that is Geo-fencing. A geo-fence is a virtual field around a location that is used to shoot a mobile message to a user when they come into or leave that area through applications. For brands who have engaged consumers in the mobile space, geo-fencing presents an opportunity to communicate to their audience in a timely, relevant manner – based on their location. By doing so retailers will be able to drive repeat patronage in store and potentially increase share of wallet from its consumer base.

Appvertising
Both Google (AdMob) and Apple (iAds) are heavily investing in networks to monetise the increasing number of applications being loaded into app stores. Unlike other forms of advertising networks, mobile networks can combine location based data with user profiles to deliver a new targeting capability. And whilst statistics of mobile advertising vs other forms show market share is still relatively small the opportunity is significant. The Apple iStore alone has experienced over 4 billion downloads for free apps – and this sheer volume of consumer usage and engagement is one which many marketers will be looking to leverage – particularly early on. Like any newer form of media, consumer interaction is high partly due to lower advertiser saturation rates and noise. Statistics currently show that that appvertising campaigns are delivering response rates of between .3% - 6%.

Location Based Social Media
Location based social media is one other area that is significantly on the rise. FourSquare, Gowalla, Google Latitude and others are rapidly innovating and consumer take up is rapidly increasing. A month ago I provided a full overview of these networks and how they are changing the mobile and social landscape along with the opportunities they will present to marketers thus to view this click here.

What other trends do you see emerging in the mobile space? Share them below.

© Digital Marketing Lab Blog

Written By: Teresa Sperti

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Location Based Social Media – Coming To A Town Near You

Tuesday, June 8th, 2010

2010 is definitely the year of location based social media – well overseas that is. Whilst the many sites popping up are of course a few digital years off the Facebook and Twitter status – this new breed of social sites are set to follow in their big brothers footsteps.
So who is who in the location based zoo and what are some of the key usage statistics;

Foursquare
What is it? Foursquare allows you to share your location with friends. Users on Foursquare earn points and “badges” for checking-in frequently, or at a certain time. If you raise enough points you become “mayor” of a certain area.

Key Statistics:
Foursquare recently hit the 1 million user mark and is currently gaining momentum. According to CEO Dennis Crowley Foursquare is adding 15,000 users per day which is 450,000 per month. Furthermore according to Crowley, Foursquare is achieving approximately 700,0000 checkins per day and by the end of June should be achieving the 1 million mark.
In March 2010, Foursquare said it had 1.4 million venues logged in its system, with 1,200 businesses offering special deals to people who check-in via Foursquare.

Foursquare Partnerships:
To gain traction in the market, Foursquare has partnered with some major brands to provide organisations a unique way to connect with their audience and to get consumers talking about the Foursquare platform. Foursquare’s partnerships include the likes of Starbucks, MTV, PepsiCo and Bravo. The press and discussion associated with these partnerships have gained considerable coverage in the market and as such other brands such as Domino’s and Jimmy Choo have begun to leverage Foursquare as part of their marketing strategy.

Gowalla
What is it? Gowalla is a location-based social networking game created by Alamofire. Gowalla allows iPhone and Andorid phone users to check-in when they arrive at a business or location. By checking in, Gowalla stamps the user’s passport and provides them with rewards.
Hmm sounds a bit like Foursquare I know.

Key Statistics:
Statistics about Gowalla are hard to come by however despite all of the hype, Gowalla’s user base is dwarfed by Foursquare and currently stands at between 200,000 – 250,000 users. Even so Gowalla only had just over 100,000 earlier in the year so whilst its numbers are small it has been increasing share rapidly.

Gowalla Partnerships
Like Foursquare Gowalla is teaming up with several brands to drive interest and growth in the platform– however it seems these partnerships are more content / travel driven then possibly Foursquare. Gowalla sees its relevance for users on the move – particularly those that are travelling. Gowalla has partnered with National Geographic & The Washington Post to deliver walking tours and traveller advice. More recently Gowalla has also teamed up with the Austin Stateman newspaper to deliver 8 trips for users. Each trip offers a detailed description, map, editorial insight and user photographs.
It is difficult to determine if Gowalla is attempting to carve a unique position in the market in the travel arena – as it has also partnered with brands such as Chevrolet. However one thing is certain with a lack of differentiation between the services, both of them will need to consider where they will focus their energy – as only 1 geo-location social network will prevail, just look at what Facebook did to MySpace.

myTown
What is it?
Whilst all of the hype and talk has largely centred around Foursquare & Gowalla, another player has emerged – myTown. myTown, is a location based game that is sort of part geolocater, and part real life Monopoly and SimCity. When you go somewhere in your real life city, you check in at that location and get points, you can purchase the virtual equivalent of that location, and when other people in your town playing the game check in there you earn rent. Unlike Foursquare and Gowalla, myTown seems to take elements of virtual worlds and combine it with geo-location social media and so it may not be seen as a direct competitor to the above players.

Key Statistics
MyTown recently passed the two million users milestone, and is adding more than 100,000 new users a week. The location based game has notched up more than 60 million check-ins, with user spending a startling 70 minutes a day playing on average. However myTown has only formally launched in the US and is still only available as an iPhone app – thus myTown is obviously showing immense growth potential. In fact by the end of 2010 myTown aims to have over 6 million users on its platform and their latest $20 million in funding may just get them there.

myTown Partnerships
myTown has recently partnered with Google to boost its location based data set. Through the Google API myTown will gain access to Google’s massive data set of over 50 million locations around the world. This will enable myTown to rapidly expand to other countries (without having to form custom partnerships with local directories).
MyTown have also partnered with several brands including H&M earlier this year to provide users with points and virtual goods for checking in at store locations.

Google Latitude
What is it?
Trying to make their name in the social space, Google too has launched its own location based service – Google Latitude. Google Latitude is however no Foursquare, Gowalla or myTown. The service tracks you constantly, so there is no “checking in” or earning prizes.

Key Statistics
Whilst Google has failed to gain traction in the desktop social media market, they feel they have a competitive advantage in this market. Google Latitude already has over 3 million people signed up and by stealing a page from Foursquare’s book, an enhanced Latitude would have a check-in feature and a bolstered location history scheme. And since nobody can match Google’s grip on map data, Latitude would automatically add locations, whereas Foursquare requires user input. However it is important to note that a quarter of Latitude users have zero friends, meaning 750,000 users are largely dormant.

Google Partnerships
In true Google style, Google has partnered with the community to ensure its location based services benefit from the best development minds in the world.
Google announced that it will be launching an API (Application Programing Interface) that will allow people to build all sorts of different applications and layers on top of the system. But Latitude’s biggest hurdle toward mass-popularity is the iPhone. Google built a Latitude app, but Apple — who essentially hates Google — rejected it from the App store.

Whilst most of the above services are yet to truly cement sizable user bases in the local Australian market, it is only a matter of time and therefore it is likely that in the next 12 months location based marketing promotions will start to pop up across the Australian digital landscape.

© Digital Marketing Lab Blog

Written By: Teresa Sperti

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DigiCast – The Next Big Social Phenomenon - FourSquare

Wednesday, January 6th, 2010

Those boffins of the Silicon Valley have obviously been at it again trying to crack the next in thing in the social media world. And it seems that a few geeks have possibly come developed the next craze with all of the buzz currently surrounding a new concept called FOURSQUARE!

What is it?
Foursquare is a location sharing service that mashes up social networks, maps and other features, then combines them with a rewards program for “checking in” at various locations and businesses, such as bars, restaurants and retailers.

Foursquare globally and locally
Since March, Foursquare has acquired 150,000 users and is apparently growing at a rate of 45 – 50% per month. In Australia, Foursquare is currently ranked in position 1,322 on Alexa. However despite that the site is driving some traffic from the local market, it seems Foursquare is still in its infancy. Taking a test drive in my local city of Melbourne, 3 out of the 4 places I wanted to add to my to do list were not listed – making it a little time consuming to build a list of things I am interested in doing. In addition Foursquare is currently only geared up for the cities of Brisbane, Sydney and Melbourne – alienating key cities in Australia. Despite its current limited availability and use however, I wouldn’t underestimate its potential for sizable growth in our local market. My assumption for growth is based on Australians obsession with social media. We are so obsessed that Australia is ranked as one of the largest consumers of social media per capita in the world. This combined with our ever increasing thirst for internet access via mobile devices and social nature will drive take up of FourSquare.

FourSquare’s Revenue Model
In 2009 FourSquare did not generate any revenue. However unlike Twitter it seems as the sites premise is based on location it will open up several opportunities for location based advertising, along with targeted consumer promotions based on interests. In addition to the advertising opportunities available to FourSquare I firmly believe Google will make a play to buy this site in the coming 12 – 18 months. From Google’s perspective the site offers 3 strong propositions for Google to cement their stronghold in certain digital areas which include – local search, mobile and of course social media.

To visit FourSquare go to –www.foursquare.com

Do you think FourSquare will be one of the next big social media tools? Share your thoughts below.

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