ecommerce

drag2share: How Amazon Is Trying To Create A Huge Mobile Business (AMZN)

source: http://feedproxy.google.com/~r/businessinsider/~3/NiXEajBcahU/amazon-creating-huge-mobile-business-2013-6

amazonU.S. mobile commerce is exploding. Amazon, as a leading ecommerce site, is set to grab a big chunk of that.

But when it comes to mobile, Amazon’s ambitions are anything but limited to ecommerce.

Recent reports from BI Intelligence detail Amazon’s mobile ambitions, analyzing everything from the potential impact of a rumored Amazon smartphone to Amazon’s ability to become a huge player in mobile advertising.


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Thursday, June 27th, 2013 news No Comments

drag2share: Mobile Commerce Had A Huge First Quarter

source: http://feedproxy.google.com/~r/businessinsider/~3/lbAOENlAlkI/mobile-commerce-had-a-huge-first-quarter-2013-6

U.S. Mobile Commerce Was $5.9 Billion In The First Quarter (comScore)
That translates to 11% of all retail U.S. ecommerce in the quarter, up from 8% a year prior. Mobile accounted for 48% of traffic on U.S. retail properties, and the top 50 properties extended their desktop audience by an average of 45% through mobile channels. Overall, mobile accounted for 48% of Americans’ time spent online in March. The report also found that the average smartphone shopper spent more over the course of the quarter than the average tablet shopperRead >

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Wednesday, June 12th, 2013 news No Comments

Why eCommerce Can Thrive in a Soft LCD TV Market

Source: http://blog.compete.com/2012/07/31/why-ecommerce-can-thrive-in-a-soft-lcd-tv-market/

Old Television

Image from: Old Television / Shutterstock

CNN Money recently reported that for the first time ever, shipments of LCD TVs were down in Q1 2012. The article attributes the decline to market saturation – most consumers already own a flatpanel TV, and those who don’t are likely willing to defer their purchase, especially given the weak global economy.

We’ve seen from past research that the majority of TV purchases are made offline – it’s an expensive, highly considered purchase for most consumers and seeing the product in person provides some reassurance that you’re making the right decision.

However, the online channel plays an important role for many consumers, in particular early in the research process. Retail websites are among the most popular resources for TV shoppers, who visit sites like BestBuy.com and Amazon to read consumer reviews and comparison shop feature sets and prices of TVs.

If interest in flatpanel TVs is waning, we would expect to see evidence of that in the online shopping behavior of US consumers. To test this, we looked at the volume of consumers shopping for LCD TVs at BestBuy.com, a leading online retailer of TVs.

LCD TV Researchers at BestBuy.com

Interest in LCD TVs on BestBuy.com has actually grown significantly (up 36% Y-O-Y in Q1 2012). This held true in April & May of 2012, where LCD interest was up 62% Y-O-Y vs. 2011.

LCD TV shipments are down, yet online consumers continue to show strong interest in the product category – what’s driving the diverging trends? Consumers are still interested in buying TVs, they’re just becoming more cautious about pulling the trigger. As a result, consumers are likely spending more time researching and shopping for deals from multiple sources online.

As online consumers become increasingly savvy about seeking deals for TVs and considering alternative options like tablets, the pressure will be on OEMs and retailers to optimize their campaigns and eCommerce experiences to compete for a shrinking pool of dollars.

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Wednesday, August 1st, 2012 news No Comments

Groupon Buys eCommerce Data Targeting Startup (And Angelpad Alumnus) Adku

Source: http://techcrunch.com/2012/02/06/groupon-buys-ecommerce-data-targeting-startup-adku/

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I love the smell of acquisitions in the morning! We’ve just heard that Groupon has acquired Adku, a stealth startup that uses big data in order to personalize the online shopping experience for people visiting eCommerce sites like eBay, Amazon and Zappos.

The company built their personalized targeting technology in three months, and have basically been in stealth since they launched at the Angelpad Demo day a year and a half ago. Adku is backed by Greylock Partners, Battery Ventures and True Ventures in addition to being an Angelpad startup.

Although CEO Ajit Varma and several members of the six person team are former Googlers, from what I’m hearing this wasn’t a talent acquisition or acqhire but a team + technology play  – with a price beyond $10 million. Varma would not disclose what the team will be working on when they get to Groupon.

While it’s not clear what the technology will be applied to, the acquisition makes sense on a lot of levels, especially because a personalized experience is where most of eCommerce is headed. Greylock VC David Thacker now runs product for Groupon, so that couldn’t have  hurt either.

Wrote Varma in a blog post, “We started talking to Groupon to bring our technology to more customers and quickly realized that we wanted to be a deeper part of a company that people love and is empowering merchants and customers in a way that’s never been done before.”

Stay tuned!

OK @adku (three former Google engineers) is a company that Techcrunch will slobber over. Dynamic content. Interesting company.—
Robert Scoble (@Scobleizer) November 11, 2010


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Monday, February 6th, 2012 news No Comments

Even Walmart Is Snapping Up Social Media Companies (WMT)

Source: http://www.businessinsider.com/even-walmart-is-snapping-up-social-media-companies-2012-1


Walmart shoppers

Walmart wants to transform itself into a social media retail mega player and it’s backing that desire by investing millions of dollars into its young, little-known development lab, @WalmartLabs.

Born in April with the $300 million purchase of Kosmix, @WalmartLabs today announced  its fourth acquisition, a mobile app company called Small Society known for writing apps for clients like the Democratic National Committee and Starbucks.

@WalmartLabs had previously bought mobile point-of-sale app maker Grapple. It also snapped up location-aware mobile ad company OneRiot.

The co-founders of Kosmix, Venky Harinarayan and Anand Rajaraman, are the leaders of Walmart Labs. Each has been granted the title of senior vice president of Walmart Global eCommerce and head of @WalmartLabs.

Their goal is to have Walmart create the next great shopping experience by melding physical stores with online search and social media input.

“We are at an inflection point in the development of ecommerce. The first generation of ecommerce was about bringing the store to the web. The next generation will be about building integrated experiences that leverage the store, the web, and mobile, with social identity being the glue that binds the experience,” said Anand Rajaraman in a blog post when @WalmarLabs was launched.

Using what it calls its “Social Genome” applications, it scans Twitter and other social sites to seek out and analyze consumer trends. The team is also writing mobile apps for shoppers. 

What’s interesting is that Walmart would rather build its own than use some of the many social media tools for retailers already on the market, even from big IT companies like Oracle and IBM.

So far the group has launched a classic iPhone and iPad shopping app and one called ShopCat for Facebook users. ShopCat scans Facebook friends’ profiles to recommend gifts for them from Walmart, RedEnvelope, Barnes & Noble, and ThinkGeek.

But the team clearly has bigger plans for changing the way everyday people shop for everyday items. And it looks like @WalmartLabs has only just begun: it’s got a career section 25 jobs long.

Please follow SAI on Twitter and Facebook.

Join the conversation about this story »

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Wednesday, January 4th, 2012 news No Comments

the economics of advertising sucks, but it will suck a lot more soon

it’s a simple matter of supply and demand. Let’s do a thought exercise.

1.  eMarketer forecasts that retail e-commerce will grow roughly 10% per year for the next few years. This means that the total “pie” of people spending online will only grow by an average of 10% per year. Note that sales is (or should be) the goal of advertising. So that’s why we are looking at e-commerce sales and comparing it to online advertising because both are completed in the same medium and we can eliminate cross-media uncertainties and breakdown of tracking.

e-commerce

2. online advertising is still exploding with trillions of pageviews per month, thanks to social networks which throw off ungodly numbers of pageviews when people socialize with others. The Compete chart below shows the top social networks which rely on banner advertising (impression-based advertising) to make revenues. Notice that just Facebook and Myspace alone generate 115 BILLION pageviews a month. And if you consider that Facebook shows 3 ads per page, that would be 250+ BILLION impressions per month served by Facebook alone. Furthermore, the rate at which pageviews grow is 250% – 1,000% per year, depending on the site in question.

pageviews

3. In the online medium, we have end-to-end tracking from the advertising (banner impression) through to the sale (e-commerce). The banner is served (impressions); a percent of users click on it to go to a site (click through rate – CTR); a percent of those make their way through the site and end up completing a purchase online (conversion rate). Those users who are looking for something and who are considering buying something will be online searching and researching. Those are the ones who are likely to click on banner ads, compared to others who are online to do something else, like write email, socialize with friends, etc.  And if the purchase is their ultimate end-goal (to make a purchase) we have a farily reliable indicator of the growth in not only such interest but also the completion of the task — namely, e-commerce, which grows at 10%.

4. Now, if the number of people who will click grows that 10%, but the number of advertising impressions grows at a slow 250%, the ratio of clicks to impressions drops dramatically because the denominator is growing 25X faster than the numerator. Serving more ads simply will not get the amount of e-commerce to grow significantly faster. The point of diminishing returns has been reached and passed, so incremental ad impressions are ignored and useless. The number of people who will end up buying will not increase significantly faster. And given the tough economic climate the amount of sales may actually decline before it goes up again.

5. If we generalize this back to all retail commerce, it grows at an EVEN slower pace than ecommerce. When you compare this to the dramatic increase in ad impressions and the shift from traditional channels (TV, print, radio – whose impressions and audience sizes are dwindling) to online channels (portals, news sites, social networks – whose impressions and audience sizes are skyrocketing) again the ratio of sales to available advertising drops dramatically. This is a measure of the effectiveness of advertising (sales  divided by advertising spend). It was already small — it sucked — and it will get dramatically smaller soon — it’ll suck more soon.

A way to mitigate this “sucking” is to peg advertising expenditures on a success metric which is an indicator of user intent — cost per click — versus a traditional indicator of reach and frequency — ad impressions served — which from the above is NOT an indicator of consumers’ intent to purchase.  This way, advertisers only pay when someone clicks. Those “someones” click when they are looking for something and are more likely to complete a purchase than those who don’t click.

“CPC banner advertising” anyone?

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Sunday, March 15th, 2009 digital No Comments

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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