Source: AccentHealth [pdf]
Notes: Family and friends are a much larger source of OTC information for Millennials (18-34) than for Gen Xers (35-49) and Baby Boomers (50+), per the study, with word-of-mouth rivaling healthcare practitioners as a resource for the younger generation. By contrast, Baby Boomers – who are the most apt to use OTC drugs – are more likely to rely on product advertising, a result which aligns with prior research on purchase influencers by generation. Overall, healthcare practitioners are the most trusted source of OTC information for each generation.
Source: Medialets [download page]
Notes: Mobile ads served in applications had a significantly higher click-through rate (CTR) than those served on the mobile web (0.56% and 0.23%, respectively) during the first half of this year, a finding that aligns with a similar conclusion derived from an Opera study last year. The latest analysis – based on more than 300 billion data points on Medialets’ mobile and tablet ad serving platform – also indicates that ad CTRs were higher on tablets (0.59%) than on handsets (0.41%).
Very, very few YouTube video creators make any real money off of those pre-roll ads, but that might soon change. Google has launched Fan Funding, a new way to tip your favorite YouTube stars directly from the video.
On Monday, Google started sending out press invites to the launch event in India for Android One, its new super-cheap smartphone.
Google is hoping to deliver a solid smartphone experience for less than $100.
Google’s strategy is to work with smartphone developers in emerging markets and to provide them with up-to-date versions of its free Android software so they can make great phones at low prices. It’s the polar opposite strategy of Apple’s, which has the company gearing up for the release of the iPhone 6, likely to cost $700.
The market for cheap smartphones is burgeoning. In the West, smartphones are ubiquitous, but in the developing world, most people don’t have them.
It is not just Google moving in on the emerging market for budget smartphones. Mozilla is launching a $33 phone in India. Microsoft has pushed down the price of its Windows phone. Xiaomi and Motorola have been launching smartphones in India, too, including the Redmi 1S and Moto E costing Rs 6,999 ($115) and Rs 5,999 ($99) respectively.
9to5Google noted that Google had! already partnered with manufacturers Karbonn, Micromax, and Spice for the first Android One devices. Karbonn is the manufacturer that made the A50S, the smartphone priced at only $43.
The bet here seems to be that in the future, it will feel weird to pay large sums of money for a phone. Generally, the history of computing shows that prices drop over time even as devices become ever more powerful. Eventually, Google and its Android manufacturers seem to be hoping, people will face a choice: $700 for an iPhone or $100 for an Android that does the same thing.
Some people think that Android phones compete only with other Android phones and that Apple functions like a separate market. In that scenario, Apple is happy to exist as a minority brand as long as the minority it serves remains highly lucrative.
Right now, that strategy is working for Android, too. Apple remains strong in the U.S., where a huge chunk of the market buys iPhones. But in Europe, Android is taking over. In the top five European countries, Apple’s share is only 7% to 11% of the market.
Of course, Apple’s iPhone 6 is likely to be a huge seller — so after Sept. 9 expect these numbers to change dramatically.
So we know that Twitch’s online broadcasts trump those of WWE and traditional sports, but how does it stack up against cable networks like CNN? According to the New York Times, the game-streaming giant’s peak viewership numbers have surpassed the average prime-time viewers for Headline News, CNN, E!, MSNBC and TruTV since this January. At its best, Twitch had over 720,000 viewers in July alone, but as the NYT points out, it’s still pretty far behind the likes of Netflix and YouTube when it comes to total hours-viewed per month. It’s all pretty fascinating stuff, and there are even breakdowns for what competitive gaming tournament broadcasts are getting the most eyes, too. Spoiler: for this month it’s Riot Games’ League of Legends. Considering that we’ve seen Twitch expanding into more than just gaming broadcasts recently (hosting concerts and even entire conventions) it’s pretty likely that the outfit’s numbers will only continue to climb. Surely Jeff Bezos wouldn’t mind.
Source: New York Times
Alibaba is expected to IPO in September and a new financial report from the company reveals that the Chinese e-commerce giant continues to grow at a blistering pace. The company’s growth pattern, and its recent entrance into the U.S. market, makes Alibaba a serious threat to e-commerce giants like Amazon and eBay.
Alibaba is growing ~50% annually in volume terms.
The gross merchandise volume (GMV) — or, the value of all merchandise — sold on Alibaba’s e-commerce sites reached $248 billion in 2013, 52% more than it sold in 2012.
GMV in the second quarter of 2014 was $82 billion, which is 45% more than the same quarter last year.
Alibaba sells 4X as much stuff in dollar terms as eBay does, and it’s growing much faster.
It’s useful to compare Alibaba and eBay because they are both marketplace businesses — meaning they don’t actually own the merchandise they sell. Rather, retailers, merchants, and consumers use their sites to sell directly to consumers.
Alibaba owns two main e-commerce sites.
- Tmall, an Alibaba site where retailers sell directly to consumers, grew 81% year-over-year in the second quarter.
- Taobao, where consumers sell to other consumers, grew 33% year-over-year and still accounts for the majority of sales via Alibaba.
Mobile commerce is driving an increasing share of Alibaba’s business.
One in three dollars that flowed through Alibaba’s e-commerce sites came from mobile shoppers last quarter, up from 12% one year earlier.
For context, 30% of eBay’s GMV comes from mobile.
More than a quarter billion people bought something through Alibaba in the second quarter.
Alibaba’s customer base is already far larger than eBay’s, and it’s growing much faster.
Alibaba is still very dependent on Chinese shoppers.
Less than 1 in 10 revenue dollars from Alibaba’s e-commerce sites come from customers outside China. However, with the recent launch of its U.S. site 11Main.com, that could soon change. For comparison, almost 40% of Amazon’s revenues come from outside North America.
At $600 billion a year in sales, food and beverage is by far the largest retail category in the U.S. by a wide margin. However, it’s also the category that has been the least disrupted by e-commerce; less than 1% of food and beverage sales currently occur online, according to BI Intelligence’s estimates.
But shopping habits are changing, and niche online grocery services that compete on convenience and selection are gaining traction. Meanwhile tech giants like Amazon are fronting the cost of expensive delivery infrastructure that has so far held back grocery e-commerce.
In a new in-depth report, BI Intelligence looks at why the grocery business has proved so challenging to e-commerce companies — from consumer reluctance to complicated and expensive logistics — and what new strategies e-commerce startups and big-name tech companies are pursuing to push more grocery sales online. Between 2013 and 2018, online grocery sales will grow at a compound annual growth rate (CAGR) of 21.1%, reaching nearly $18 billion by the end of the forecast period. For comparison, offline grocery sales will rise by 3.1% annually during the same period.
Here are some of the key findings explored in the report:
- There are a number of disadvantages to buying groceries online on both the consumer and business side, such as the cost and complexity of logistics, shipping fees, and the quality and freshness of orders. For online grocers to deliver the freshness consumers want, they have to be able to deliver orders fast while maintaining the quality of easily damaged foods like produce.
- But there are still some advantages to online grocery shopping, in particular convenience and a large selection of products. Only 15% of U.S. adults have purchased general food items online, but 25% said they have bought specialty food and beverages online, which are hard to find elsewhere.
- New startups that focus on concierge shopping and subscription prepared meals are innovating on the online grocery model and offering services that really are differentiated from traditional supermarket shopping. We believe these services could change the way people shop for food. In addition, established online grocers have an opportunity in enterprise grocery sales, which lowers costs through bulk purchases.
- Some of the biggest names in tech — Amazon, eBay, and Google — are beginning to offer and promote same-day delivery services. As consumers get used to the convenience of ordering something online and receiving it the same day, grocery e-commerce may benefit too, with people more likely to buy food they know they will get quickly. While same-day delivery comes with a big price tag, 25% of millennials said they would pay a premium for same-day delivery.
North American digital marketing decision-makers are more focused on winning new customers than they are on retaining existing ones, according to [download page] a study conducted by Forrester Consulting on behalf of Salesforce ExactTarget Marketing Cloud. Interestingly, few identified the orchestration of personalized customer experiences across multiple digital touch points to be a top-3 goal. › Continue reading
Source: MAGNA GLOBAL
Notes: US ad revenues are expected to increase by 3.5% next year, with the 4.9% normalized growth rate excluding the effects of Political & Olympic (P&O) spending being the fastest rate of growth since 2005. That would bring core media advertising revenues to $172 billion, a new peak. Digital media ad sales are predicted to grow by 15.7%, fueled by social media (+32%) and video (+31%). Meanwhile, this year’s ad revenue growth forecast has been downgraded from the prior forecast of 6% to 5.1%, due in part to macro-economic conditions and to lower incremental P&O spending estimates.
Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.
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