Are gone the days of brick mortar shopping? If a recent survey is to be believed online ad revenues will reach $ 55 billion by 2010. Park Associates, an emerging technology and consumer research firm predicts in its study, ‘The Changing Face of Advertising in the Digital Age’ that by 2010 online shopping will account for 10% of total U.S dollars.
The figure is based on 27% CAGR.
More than a traffic generator the search is now increasingly used by companies as a branding tool. “Because the Internet is an interactive and versatile platform and offers rich consumer usage data, advertisers can improve their ad targetability and achieve better results,” said Parks Associates research analyst Harry Wang.
There are some basic differences exist between online and off-line branding. Also in the online world the third P Place (that is distribution) has become much more important than traditional stores. Here, customer is more and directly going to be affected by on time result. Amazon.com the largest of its kind employs more than 500 back office employees to take care of customer complaints and a conservative estimate says more than product quality related trouble or price query it is the distribution mess which makes more than 85% of the complaints.
So without strategic multimodal parcel allies it’s not only impossible to excel in scale but also a large number of people will never get their preferred brand from their preferred shop (models may differ) on time intact.
Reasons why Amazon is an example:
1. personalization (with customers through extensive e-CRM)
2. Customer interaction and instant feedback schemes: Remember Doonesbury?
3. Self service option: My account, first of its kind (in 2K)
4. Personal Purchase History: Now may sound cliche. I-Click was damn popular
5. Dynamic Pricing: Auction. Now everyone follows.
Stat and report at Clickz
Image via Bornrich
