Based on the quantity and quality of leads generated, companies said email was their best lead generation program, followed by live events, website registrations and webinars. The effectiveness of online channels, coupled with the fact that prospects indicate the web is the first place they look for more information, makes it natural for companies to be increasing their investments in web design, email marketing and search engine optimization.

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In a survey of shoppers in four states, nearly four in 10 told cross-channel commerce solutions provider CrossView they preferred to receive promotional messages from retailers by email. It was the most popular communications channel, with direct mail drawing about a quarter of respondents and text messaging coming in third with 18%. Just 9% of shoppers were interested in promotional messages on social media.

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CHART OF THE DAY: Craigslist’s Traffic Crashes Into eBay

Citi analyst Mark Mahaney put out a massive report on Internet stocks today, and this chart showing eBay’s tanking traffic jumped out at us. Mahaney says, “these long-term very negative traffic trends point to the possibility of sustained eBay U.S. Marketplace underperformance going forward.”

See more at www.businessinsider.com

CHART OF THE DAY: Here’s What People Are Actually Doing With Their Cellphones

Some 34% of cellphone owners polled this year send and receive email on their mobile devices, up about one-third from 25% last year. Some 38% “access the Internet,” also up from about 25% last year.

See more at www.businessinsider.com

Many social media marketers are eager to tie a hard number to the value of their efforts. To that end, firms have attempted to analyze the worth of fans and followers on social networking sites like Facebook.

Digital consulting firm Syncapse and research company Hotspex have come up with an empirical formula that puts an average value of $136.38 on the Facebook fans of the site’s 20 biggest corporate brands. Most of that value comes from how much the fans will spend on the brand’s products, with additional dollars coming from customer loyalty, recommendations and earned media.

The study found that people spent significantly more on products they were fans of, compared with consumers who were not fans. In the case of many of Facebook’s most popular food and beverage marketers, fan spending was more than double that of non-fans.

The pattern of increased fan spending held across all of the top 20 brands on Facebook, with differences ranging from 51% for Oreo fans to 168% for fans of Nokia. Read more at www.emarketer.com

Social Media No. 1 Emerging Channel for Lead Gen

Tech marketers tap social for finding new customers

Social media is developing a reputation for being valuable not just for customer interaction and brand awareness but also for lead generation. In February 2010, for example, inbound online marketing platform HubSpot found Twitter usage could double monthly leads, and Onesource reported in January that business-to-business salespeople were looking to LinkedIn for prospecting.

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Facebook served 16% of all display ads in Q1 of this year, according to comScore, making it the largest online display ad publisher in the US—handily beating #2 Yahoo, reports ClickZ.

Facebook’s growth is impressive whether compared to its Q4 numbers or Yahoo’s numbers. In Q1, Yahoo’s properties saw 132B impressions (12.1% of all online display ad impressions). In Q4, Facebook served about 115B impressions. In Q1 of this year, Facebook served a whopping 176B impressions: a 53% increase over its previous quarter. (Yahoo saw a slight decrease from Q4: down from 140B impressions, or 6%, and all other major ad players also saw declines.)

Last year in Q1, Facebook served 70B ad impressions, which means they increased their ad impressions by over 150% YOY. Read more at www.marketingpilgrim.com

According to Internet Retailer’s recent search engine marketing survey of 102 web-only retailers, chain retailers, catalogers and consumer brand manufacturers, 28.0% of merchants report more than 25% of their site traffic stems from paid search advertisements, while 51.5% say more than a quarter of their traffic comes from natural search. Search engine marketing is one of Internet retailing’s fundamentals, says the report. Web merchants keep pouring money into advertising on search results pages and on search engine optimization projects to move up in natural search results.

In the past year: ·      44.9% of merchants report that the conversion rate on pay-per-click search advertising went up ·      16.3% say it went down ·      38.8% say their conversion rate held steady ·      47% report more than 25% of their web sales stem from search engine marketing ·      44.6% increased their paid search budgets ·      49% say they will increase it in the year ahead Shar VanBoskirk, Vice President and principal analyst at Forrester Research, says “Everything we see from the retail side indicates… considerable interest and investment in search related to… driving more online sales.” 37.7% of respondents spent more than 50% of their online marketing budget, 11.9% spent 61% to 75%, and 20.8% spent more than 75%, according to the Internet Retailer survey of IRNewsLink e-newsletter readers conducted with e-mail marketing and survey firm Vovici Corp. Read more at www.mediapost.com

Criticism of behaviorally targeted ads by consumers, privacy advocates and the government has led to uncertainty in the market, which eMarketer expects to reach nearly $1.13 billion this year. Research from the Network Advertising Initiative (NAI) indicates the high value of those ads, for both marketers and publishers.

The study, which looked at ads run on member networks during 2009, showed that among users who clicked on a behaviorally targeted ad, 6.8% converted. That compared with only 2.8% of those who clicked on a run-of-network ad. Clickers found behavioral ads more relevant, but the NAI did not study how likely they were to click in the first place, a key component of effectiveness.

CPM rates were likewise significantly higher for behaviorally targeted ads, with the average price of a behaviorally targeted ad 2.68 times greater than that of a run-of-network ad. Retargeting also provided higher CPMs.

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Retailers that want to connect with their target audience online would do well to go where their customers already are. And according to the “2010 Social Media Report” from ForeSee Results, 69% of online shoppers regularly use social media sites.

The overwhelming winner in terms of shopper presence was Facebook, with more than one-half of respondents using it regularly. YouTube took the second spot, with former giant MySpace far behind its rival. Only about one in 10 online shoppers surveyed used Twitter.

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The “2010 Digital Marketing Outlook” report found that 81% of the brand executives surveyed expected an increase in digital projects in 2010, and one-half will be moving dollars from traditional to digital budgets. Further, more than three-quarters think the current economy will push more allocations to digital.

Senior marketers reported that social networks and applications were their biggest priority for 2010, followed closely by digital infrastructure. While social media marketing looks set to stay top of mind, a majority of respondents considered a range of digital activities at least “important,” with only games failing to inspire widespread interest.

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There is a pronounced difference between open rates for e-mails that include a coupon offer and those that do not. Open rates of around 24% to 25% for coupon e-mails dropped to just 16% to 18% for noncoupon campaigns, according to Experian.

Higher open rates for coupon offers translated into higher click rates as well, though the difference was much smaller. E-mails with coupons that could be used online were most likely to be clicked, at 4%.

Experian also reported that 80% of online coupon mailings saw higher transaction-to-click rates and transaction rates than noncoupon campaigns. And 78% of that group also earned higher revenues per e-mail. Read more at www.emarketer.com

SUMMARY: Email has not only been spared the ax that fell heavily on most marketing budget line items, it seems to have actually benefited from the down economy. This boon wasn’t skewed by a few email-reliant sectors, it occurred in every industry participating in our benchmark survey.

See more at www.marketingsherpa.com

The Online Publishers Association and ComScore, both seriously interested parties, did a study of 80 campaigns for 50 top brands which was tracked across the top 200 highly trafficked sites and concluded:  1. The 80-20 rule applies to clicks. Eighty percent of the clicks come from 20 percent of the people exposed to the ads. At very best only 1 in 5 ads draws a click whether that was the intention of the ad or not. 2. Displays Ads Prompt Search. Queries for terms exposed in display ads were search 50% more often a week after exposure and 38% more often even 4 weeks after exposure. If you see something that intersects your interests or your personal wish list, you are more likely to search for it directly when you’re ready to buy. Direct and brand advertising interact synergistically online and offline.   3. Display Ads Drive Site Engagement. Those exposed to ads spent 34 minutes per unique visitor on the sites exposed. This is hard to believe in terms of the time spent on site and the amount of “lift”. Maybe it just measures the vagaries of site architecture and navigation. 4. Brand Exposure Bumps Up eCommerce. Those exposed to brand ads spent 7% more on average when they bought. This feels like advertising orthodoxy; exposure drives awareness, consideration and purchase. It’s possible that added impressions convinces customers to trade up a little. Read more at blogs.imediaconnection.com

The 2009 Omniture Online Conversion Benchmark Survey, conducted in July, reveals that most marketers miss opportunities to increase conversions. About 80% of the 1,000 online or interactive marketers responding to the survey do not serve up personalized content to Web visitors, not do they promote Web site content based on performance metrics.

Forty-two percent of marketers participating in the survey spend less than five hours per week optimizing advertising media. Less than one-third frequently test online content. And 70% of the content decisions that appear on Web sites are made by one person, unsupported by data.

See more at www.mediapost.com