If you haven’t seen the “Did You Know” videos by now, you should definitely check them out — here is the one Sony did for their annual of meeting of executives in Rome. It currently has 2.5 million views on youtube. A new version is now online, this one by The Economist magazine. It is, perhaps, not as dramatic as the Sony one, but a few statistics certainly pop out. For example, more content has been uploaded on youtube in the past TWO MONTHS than if ABC, CBS, and NBC had been airing new content since 1948! We had to watch it twice to make sure we got it right. What this all tells us of course, is how radically different our world is, and how the WWW has simply revolutionized how businesses are built and millions are made.
‘Research and Statistics’ Category
Here is a scary statistic as reported by USA Today: “More than 40% of people who abandoned their online shopping carts said they did so because of high shipping costs, according to a recent survey by the online payment company PayPal.” In other words, nearly half of all your customers — that you work to bring to your site, that you work to get a sale from — will dump you on the sole reason of the shipping charge. And that percentage is undoubtedly going to grow:
Increasingly — especially during the holiday period — consumers want free shipping, no strings attached. “While 25% of retailers offered no-strings free-shipping deals during the holidays five years ago, 57% say they’ll do so at some time this holiday season.”
The founders of the internet say the web has really just started and hasn’t reached its potential: ” Just 23 percent of the globe’s population currently uses the Internet…” That a lot of potential. Right now only five percent of Africans surf the web. Access is expected to grow substantially with the increase of mobile access, as people will no longer need a computer to get to the internet.
Robert Cailliau, who developed the internet in 1989 with Tim Berners-Lee, said he is surprised that search engines can still sort through all the data. But, of course, that is what makes the WWW so powerful — it’s the opportunity Google saw and ran with.
Once again, facts and current events like this make us think: What opportunities are out there? If only 23% of the world population is on the internet, what businesses can be built based on the needs of the other 77%, once they get online? Is their an angle here?
“Smaller advertisers have a better shot of appearing on the crucial first page of search results, and there are big opportunities for all advertisers to attract attention by bidding on less popular, multi-words… (says) research firm AdGooroo. Read the full story at Internet Retailer magazine.
In other words, focus your campaign on the “longer-tail words” (i.e., “red australian shephard short hair dog” instead of just “dog” or “australian dog”). You may get far fewer impressions but your click-through-rate will be much, much higher. Well, of course, this is nothing new. Chris Anderson wrote a great book about it back in 2006, The Long Tail: Why the Future of Business is Selling Less of More. A good example of what this all means was explained in his book: A Borders bookstore carries about 100,000 titles; meanwhile at Amazon, 25% of Amazon’s total “sales come from outside its top 100,000 titles.” The 20th century was about hits and broadcasting; the 21st century is about nices and narrowcasting. This is, as most people know by now, the heart of e-commerce.
BTW here’s another fun fact about broadcasting versus narrowcasting: Today’s hit “CSI” is watched by 15% of TV households. Compare that to “I Love Lucy’s” 74%. Niche is the thing now.
Let’s say your goal is to get 10,000 unique visitors to your website every day. Is it best to have one website, and concentrate all your efforts on that one website to get those 10,000 visitors? Or is it better to have two websites, with the goal of 5,000 visitors each; is that less work overall than 10,000 for one site?… OR how about having five websites? Surely grabbing 2,000 visitors per site is almost automatic — that would give you your 10,000 total. OORR what if you had five websites that each did just 3,000 — suddenly you’ve got 15,000 instead of 10,000… Welcome to our new segment, WE’RE JUST ASKING. Sometimes it’s important to simply ask the question… You may assume one way is the most profitable…but is it?
(original content by www.richdogmillionaire.com)
Being armed with statistics can give you the edge of need. The Internet Top 500 Guide is published every year by Internet Retailer magazine. We recently reviewed the IRCE, the annual e-retailing convention operated through the magazine. As we mentioned, it’s probably not the convention you need to go to if you are just starting out. Similarly, this “Bible of E-Retailing” may be “too much information” for now. But it can be fascinating, if you have the extra money to spend (a single-user license is $195.00). Basically, it’s a detailed report, with facts and figures, on the 500 top e-retailers. The magazine describes it like this:
“Each annual edition of this data-rich directory profiles and ranks the 500 largest e-retailing businesses based on their latest annual online revenues. It also provides dozens of metrics on their web sites, including web traffic, conversion rates, number of SKUs, average ticket, growth rates, customer satisfaction and performance ratings, search engine effectiveness, lists of all their vendors, corporate address and top management . The Guide also lists contact information for nearly 2,000 top e-retailing executives.”
So this could become a power tool for you when you are in a position to use it… BTW, according to their 2007 report, who was #1? It comes as no surprise: Amazon. Number two is Staples. (Remember this is their 2007 sample, which you can see here.
(reviewed by www.richdogmillionaire.com)
As Bill Tancer says, in the last five words of his book, Click: What Millions of People Are Doing Online and Why it Matters — “We are what we click.” In other words, you can draw a profile of people by looking at online behavior — what they type into search engines, what sites they visit… It is the kind of market research that your grandparents’ generation could only have imagined, even for “real world” applications. For example, as Tancer explains, if you own a store that sells prom dresses, brick and mortar or otherwise, and you assume the biggest promotional or sales season is April/May, you would be wrong. (For prom dresses it’s actually January.)
Like any good storyteller, Tancer starts his tale with some sex — Chapter One is entitled PPC, as in “Porn, Pills, and Casinos.” Fun fact: the domain www.sex.com has generated upwards to $750,000 per month in PPC revenue. A self-employed software salesman registered sex.com in 1994. The domain was subsequently stolen from him, but he eventually got it back. Another fun fact: Twenty-percent of all email spam is for Viagra.
“How to” questions are nearly 3% of all search-engine queries in the United States. That may give you some ideas when you are marketing your business. The internet has fundamentally changed the nature of marketing itself. As one hotel executive told Tancer, “I use to rely on my brand to keep my hotel full.” Now he spends his time keeping up with TripAdvisor.
Studying the internet like this is new, and potentially very powerful. You can start making predictions, based on what people are doing online. More to the point — as an associate of Tancer says — you aren’t so much making predictions as finding out about stuff before everybody else does. The author explains how he has used his research to pick the winners of reality TV shows. And by examining the early adopters of today’s biggest websites, you could, potentially, predict the big websites of the future. Another important part of internet marketing: the superconnectors of social marketing — the increasing power of sites like MySpace and Facebook.
Tancer is a statistics geek and sometimes his excitement for the stats can get into dry territory, but overall we find this amazing material. He works for Hitwise, a firm that concentrates on this type of research. As we have said before, most of your competitors have no idea about this stuff; they probably don’t even think to care. Meanwhile, our copy of Click is highlighted with all kinds of notes and ideas. POP QUIZ: If you are a common celebrity ( female, particularly), what is the #1 thing you can do that will catapult you straight to the top of celebrity-world? In this book, Tancer reveals what it is…. hint: Paris Hilton did it…
(review by www.richdogmillionaire.com)
The internet seems to be about the only place money is being made these days: “Internet advertising revenue grew by 10.6 percent last year to a record 23.4 billion dollars despite the slowing economy, according to a report released on Monday.”
We’re currently reading the book, Click, by Bill Tancer, which we will review here shortly. But we wanted to mention a very interesting statistic that Tancer includes in his book, which you may want to keep in mind, as you build your online business. Basically, the more it costs to sign up for a dating service, and the longer the registration/survey process is, the more that site skews toward females. In order to skew back towards males, a site has to offer the ability to surf/browse photos without having to join or register. The psychology behind this, as you might expect, is that females are more interested in relationships, and the quality of potential partners, versus guys — who wanna see the pics. Tancer’s book contains a lot of other insights, which we will blog about as soon as we finish the book.