[BusinessTeam] FW: ICONOCAST 12-Oct-00
Alex Chang
afchang at yahoo.com
Fri Oct 13 21:41:03 2000 UTC
___________________________________________M a c r o v i e w
CRM --> Outlays forecast to increase to $125 billion by 2004
___________________________________________P a g e v i e w s
Online Ad Trends --> Spending will soon lag only TV, papers!
_____________________________________________T h e B i g E
AdWare --> Managing your digital assets in the streaming age
DSL Update --> Nearly 1.2 million subscribe to DSL this year
_________________________________________I C O N O C L A S H
Clash of the Week --> Summary of the week's best discussions
______________________________________T h e J a c o b y t e
Haiku epitaph, kibu, use X-daddy, Promotions.com, Jim Cramer
___________________________________________M a c r o v i e w
CRM
***
A growing number of consumers are demanding a better online
shopping experience, which in an era of rising customer-
acquisition costs can make all the difference. That's why
IDC believes the worldwide market for CRM products and
services will explode to $125 billion by 2004, from $34
billion last year.
This summer, the Federal Trade Commission fined Toysrus.com,
Macys.com and five other online retailers $1.5 million for
making promises they couldn't keep during the 1999 holiday
season. While that's an extreme example, it illustrates the
growing importance of CRM in the online economy.
We're now entering an age investment banker Lazard Freres
dubs the "customer economy" -- a world where a multitude
of complaint-sharing sites and message boards broadcast
customer dissatisfaction to the masses. Lazard notes that
half of the Fortune 500 companies have grievance sites.
CRM, a catchall phrase describing what companies do to
acquire and retain customers, involves gleaning data from
customer interactions and feeding it back into marketing
efforts and planning. The ideal result is a single
comprehensive view of the customer with synchronization
of all customer contact channels. That should include order
fulfillment, says Jupiter Media Metrix, who advises linking
CRM to SCM (supply chain management) to avoid the problems
that plagued merchants during the last holiday season.
Step one, of course, is acquiring the customer. A Boston
Consulting Group/shop.org online retailing survey shows
that customer acquisition costs averaged $40 in the second
quarter of 2000, a slight increase from the last non-
holiday 1999 quarter:
+----------+----------------------+
| Quarter | Average Customer |
| | Acquisition Cost |
+----------+----------------------+
| Q3 1999 | $35 |
| Q4 1999 | 71 |
| Q1 2000 | 45 |
| Q2 2000 | 40 |
+----------+----------------------+
Source: Aug. 2000 Boston Consulting Group/shop.org
The shift from expensive TV advertising to more economical
online campaigns has helped bring the popular barometer
down, but online retailers surveyed are also diverting more
spending to customer retention. The reason is simple: The
average online marketer needs three purchases to break even
after acquiring a new customer, according to the survey.
!!!!!!!!!!!!!!!!!!!!!!!!!!! FLAG !!!!!!!!!!!!!!!!!!!!!!!!!!!
Are you forced to justify an ad budget based on last month's
media performance? Only you don't have a clue which media
performed? There's a way to quantify results and back up
your next campaign with tangible eMarketing data. A single
source lets you see relationships between referring sites,
browsing behavior and transactions. Coremetrics provides on-
line marketing analysis that unifies your view of consumers.
http://www.coremetrics.com/ico.html
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
While adding CRM solutions should lead to better shopping
experiences, NetRaker Chief Research Officer John Burshek
tells ICONOCAST that there's plenty of room for improvement
now: "At no other time in history have companies had so
much of the information needed to control their destiny,
and not known what to do with it."
In the rush to sell online, many retailers are failing to
take advantage of data analysis opportunities, Burshek says,
adding that customer feedback should be related back to
product and site design.
And direct customer interaction is the best way to gather
this data. Jupiter reports that 76% of respondents say
e-mail is an indispensable part of customer service. Next
in importance are a listed phone number (65%) and a FAQ
section (53%). But those e-mails must be answered promptly.
Jupiter found a sizable gap between customer expectations
(the majority expect an answer within six hours) and
retailer performance:
+-------------------+--------+---------+-----------+-------+
| | Within | Between | Between | More |
| | one | one and | six hours | than |
| | hour | six | and one | one |
| | | hours | week | week |
+-------------------+--------+---------+-----------+-------+
| Customers' | 15% | 40% | 50% | 0% |
| expectations | | | | |
| Site results | 8 | 12 | 51 | 29 |
+-------------------+--------+---------+-----------+-------+
Source: Jun. 2000 Jupiter Media Metrix
All the site categories Jupiter surveyed fared poorly in
e-mail responsiveness. Retailers led with 33% responding
correctly to a query within six hours, followed by travel
(20%), financial services (16%) and content sites (8%).
For more CRM trends, please visit our new resource, Dotcom
Marketing:
=> http://www.iconocast.com/dotcom/ecommerce/crm_p2.html
-----------------------------------------------------------
Provide us with your comments -- subscribe to ICONOCLASH at:
=> http://www.topica.com/lists/iconoclash
------------------------------------------------------------
!!!!!!!!!!!!!!!!!!!!!!!!!!! FLAG !!!!!!!!!!!!!!!!!!!!!!!!!!!
AROUND THE WORLD EVERY MONTH?
There's no better way to armchair travel than with
wine.com's Wines of the World Monthly Club. Every month
you'll receive great wines from around the world. And,
starting at $39.50 per month, there's no reason to wait
for your next trip! Now, for ICONOCAST subscribers only,
pre-pay for 3 months and get the 4th month free. Click here:
http://www1.wine.com/cmkt/world_offer.jsp?link_from=icon914
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
___________________________________________P a g e v i e w s
Online Advertising Trends
*************************
Despite of the Street's negative reaction to Yahoo!'s latest
financial results, the outlook for online advertising is
good, with U.S. spending pegged at $16.5 billion by 2005,
accounting for 7.5% of the U.S. advertising market. While
this bodes well for the online industry as a whole, the
factors driving growth will impact what publishers sell
and advertisers buy.
In 2005, total online spending will have inched ahead of
yellow pages, magazines, cable TV and outdoor, lagging only
behind broadcast TV and newspaper ad revenues:
Projected U.S. ad spending in 2005
+---------------------+------------+
| Medium | Spending |
| | (billions) |
+---------------------+------------+
| Newspapers | $58.9 |
| Broadcast TV | 52.3 |
| Radio | 23.9 |
| Online advertising | 16.5 |
| Yellow pages | 16.0 |
| Magazines | 13.2 |
| Cable TV | 12.7 |
| Outdoor | 2.2 |
+---------------------+------------+
Source: Jul. 2000 Jupiter Media Metrix
By then, the U.S. online population will have jumped from
104 million in 1999 to 194 million. Surfers will spend more
time online, rising from an average 7.5 hours per week to
10.5 hours. As a result, the money will follow eyeballs. And
many of those eyeballs will be at work, a traditionally
difficult-to-reach demographic.
The good and bad news is that 90 million new users create a
lot of pageviews and each pageview generates a new ad avail.
But excess supply will create downward price pressure on
CPMs. Meanwhile, ad clutter will jump through the roof.
Jupiter says that, by 2005, the average daily ad exposures
per surfer will more than double, from 440 per day in 1999
to a mind-boggling 905. As banners risk becoming a commodity
product, content providers will slice inventory to maximize
revenue yield. Publishers will increasingly sell premium
"positions" based on delivery by daypart, by frequency, or
demographic and quietly dump run-of-network ads at low CPMs.
In turn, advertisers will use their financial clout to
demand results through guaranteed clickthrough rates,
registrations, sales or customer acquisition costs. Jupiter
predicts that 30% of all online revenue will be tied to
performance-based programs by 2005.
What can we expect over the new few years?
* Even more sophisticated ad targeting from the top
publishers and bargain basement knock-offs from second-
tier content providers
* Complicated partnership and revenue-sharing arrangements
between publishers and advertisers. Advertisers will push
the boundaries separating church and state, with embedded
content and special sponsorships.
* More diverse software tools -- The distinction between ad
servers, networks, measurement and CRM categories will
blur. Vendors will extend core offerings into each others'
playgrounds to meet sophisticated demand from publishers
and advertisers.
!!!!!!!!!!!!!!!!!!!!!!!!!!! FLAG !!!!!!!!!!!!!!!!!!!!!!!!!!!
WIRELESS WATCH is the newest e-newsletter from
RedHerring.com, the trusted, original source for
insider perspective on the new economy.
Learn how to sponsor Wireless Watch, Catch of the Day,
Dealflow, IPO Critic and all 14 e-newsletters by
visiting our media kit, and subscribe to THE BUZZ
e-newsletter for media and marketing professionals, at
http://www.redherringmedia.com/Iconocast
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
_____________________________________________T h e B i g E
AdWare
******
Arbitron says consumers are ready for streaming advertising.
Now theres a service that promises to make the tracking of
media assets, including potentially explosive streaming
video libraries, a breeze. AdWare, recently acquired by
Mediaplex, has teamed up with IBM to sell AdVISUAL.
Arbitron says that 60% of consumers who see an online video
ad pay attention to it, compared to 46% for audio ads and
41% for banner ads. Since mating the Internet with video is
the holy grail, the popularity of streaming is apt to surge
in the next few years. But this will create a major headache
for agencies and other interactive services that need to
track growing digital media assets.
AdWare President Don Fitzpatrick tells ICONOCAST that the
company lets users search more than 140 different file
formats, including MPEG, GIF, PDF, etc. These assets can be
tagged with unlimited keywords. The browser-based product is
architected on top of IBM's content manager, which uses a
"workbasket" metaphor. Users need no special hardware to run
AdVISUAL. Current clients include McCann-Erickson, but IBM
has also reportedly sold the software to Coca Cola and
Ogilvy & Mather, among others.
=> http://www.adware.com/products/advisual.html
DSL Update
**********
Sharp-eyed ICONOCAST readers took issue with an Aug. 17
article in which the total number of DSL subscribers was
estimated at 286,300 (Source: Telecommunications Reports
International). To set the record straight, we turned to
IDC, who put the total at nearly 1.2 million subscribers:
Second Quarter DSL Subscribers
+-------------+------------------+
| Provider | Lines in Service |
+-------------+------------------+
| SBC | 399,000* |
| Verizon | 220,000 |
| Qwest | 175,000 |
| Covad | 138,000 |
| BellSouth | 74,000 |
| NorthPoint | 62,000 |
| Rhythms | 31,100 |
| Broadwing | 29,000 |
| Total | 1,194,000** |
+-------------+------------------+
Source: Jun. 2000 IDC
*Could be less due to backlogged orders **Reflects estimates
Confused? Telecommunications Reports International Managing
Editor Amy Fickling explained that the 286,300 figure
represents DSL-only households (so customers who upgraded
from dial-up would not be counted). Her organization also
discounts a certain amount of the telco-reported numbers
due to backlogged orders.
------------------------------------------------------------
Provide us with your comments, subscribe to ICONOCLASH at:
=> http://www.topica.com/lists/iconoclash
------------------------------------------------------------
!!!!!!!!!!!!!!!!!!!!!!!!!!! FLAG !!!!!!!!!!!!!!!!!!!!!!!!!!!
Looking for the perfect audience?
MusicVision is the world's largest music network and we make
online advertising work. Through rich media and our 12
diverse channels we leverage 6.5 million users' love of
music to build brands, drive traffic & acquire new users.
For a campaign that delivers call 212-260-7400 or visit
http://www.musicvision.com/results
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
_________________________________________I C O N O C L A S H
ICONOCLASH is a lively forum for debate. Each week, we pick
the most spirited clashes to run in ICONOCAST as "Clash of
the Week." To sign up, visit:
=> http://www.topica.com/lists/iconoclash
CLASH of the Week
*****************
*The Best Battle on the ICONOCLASH Discussion List*
Issue: The U.S. Congress is considering online privacy laws
that would include mandatory opt-in practices. Will this
help or hurt Internet marketers?
Bill Via wrote:
This issue comes from our inability to figure out how to
make a profit online. Let's put our thinking caps on,
respect the shift of control to the user and come up with
creative ways to generate revenue online -- then we can move
past this dangerous dance around a fundamental foundation of
any democracy -- each individual's right to privacy.
Lisa Mullennix wrote:
I truly believe that companies that cater to their customers
and respect privacy will strengthen their business, while
those who do not will lose customers and, eventually, their
business. Still, we should strive to make improvements and
allow moderate self-regulation to occur, as long as it moves
forward at a steady pace.
Jeffrey Baumgartner wrote:
In Europe, lack of consumer trust and confidence have been
identified as key reasons why many people do not buy online.
Although more Americans shop online, there are still many
who don't and, arguably, a lack of terms and conditions are
responsible for Yankee non-shoppers as well. If more people
are more confident about buying online, that means more
customers for all of us. So, perhaps a wee bit of
legislation isn't such a bad thing after all.
Wanna join the CLASH? Go to:
=> http://www.topica.com/lists/iconoclash
!!!!!!!!!!!!!!!!!!!!!!!!!!! FLAG !!!!!!!!!!!!!!!!!!!!!!!!!!!
GETS USERS TO YOUR SITE-AND KEEP THEM THERE-WITH NEWSEDGE.
Create action on your site (more visits, longer stays, more
transactions) with eTopics from NewsEdge. eTopics uses real
people, experts in your industry, to filter through
thousands of news stories, and deliver just the targeted
content your users need most. For more info, plus a free
analyst report,"Targeting End-Users with the Right Content,"
visit http://www.iconocast.com/list/29/newsedge.html
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
______________________________________T h e J a c o b y t e
Keeps those tips rolling in! Your "tip-offs" are on the way.
Those of you who have yet to contribute to Jaco's cause, get
cracking! Any published item receives these rewards: Instant
$25 gift certificate from GUILD.com, a two-for-one dinner
certificate from EssEff's Venture Frogs (vfrogs.com), plus a
kewl ICONOCAST bag! Send the scoop to: jaco@iconocast.com.
<*> Jaco's dotcom epitaph contest has legs! Here's a Haiku,
courtesy of Mitchel Ahern from Indimi:
Gaze upon this site
Which once held your hearts desire.
Now please turn away.
This B2C play
Capped a billion dinero.
Revenue: zero.
Unique visitor,
Tracked and triangulated,
You remain unknown.
<*> To quote RuPaul: "I have just one thing to say: sashay,
chante!" Kibu's Elizabeth Horn had this reaction to Jaco's
report of a corporate encounter of the bird kind:
"You're, like, not even funny and it's lovely how you, like,
made everything up but our name and where we're located. I
guess when you're stuck in a 2D world of text-based e-mails
newsletters and you do, like, nothing creative on your own,
it's, like, easy to make stuff up, like, articles, like this
one here. If you're trying to be sensational, you're not
even close. Plus now there's no use even reading the rest of
what you write, since it's probably fabricated facts, too.
Good job, like, totally. LOL."
Hey, Liz, like, Jaco luvs you too!
<*> Don't think The Journal has a sense of humor? In an
article discussing the use of FedEx (called "X-Daddy")
and Priority Mail ("Pri-Daddy") by drug dealers to send
drugs and money, Jaco was struck by this quote:
"In recent years, drug traffickers across the country have
leapt enthusiastically onto the New Economy bandwagon of
supply-chain efficiency, motivated by the speed and
dependability of express-delivery services..."
The story reminded Jaco of an interview an acquaintance once
had with the head of Kozmo, who said that if it weren't for
potheads, Kozmo wouldn't be a success in New York City.
Hey, where's Jaco's Cheetos order?
<*> And speaking of drug use, Jaco's tidbit about the L.A.
Times story on "selective" drug testing elicited an e-mail
from their PR agency to include a link to the story. But,
the Times forces you to register for archived stories, so
we just won't bother. However, there was another interesting
tidbit in the article that merits your attention:
"Two economics professors at Le Moyne College in Syracuse
in 1999 looked at a sample of 63 computer equipment and
software firms and found that those with drug-testing
programs had lower levels of productivity than those
that didn't." Reminds Jaco of that infernal Brewer and
Shipley song: "One toke over the line sweet Jesus!"
!!!!!!!!!!!!!!!!!!!!!!!!!!! FLAG !!!!!!!!!!!!!!!!!!!!!!!!!!!
Target IT Pros at TechRepublic
TechRepublic is fast becoming the premier web site for IT
pros. We provide engaging technical content, community
interaction, and because we're partners with Gartner, we can
deliver an IT audience like no other site on the Internet.
Reach IT pros where IT pros go to connect. See our media kit
at http://www.techrepublic.com/mediakit/mediakit.jhtml
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
<*> Jaco hears from Courtney Pulitzer that it was all "class
and style" at Silicon Alley events this week. Lisa Novitt's
"Bits, Bytes and Bar" for the Downtown Alliance was held in
the posh World Trade Center's Windows on the World. Food and
drinks flowed thanks to sponsor Deloitte & Touche [thank God,
they weren't counting the beans!].
Meanwhile, in Tribeca, folks at Salomon Smith Barney's "The
Future Economy: How To Capitalize On It" were full of
comments like "reality check" and "educational," but were
far more interested in charging towards buffet tables laden
with steamed dumplings, sushi and antipasto.
And iSyndicate hosted a "Syndication Summit," which drew a
bi-coastal literati crowd, including EssEff's dearly beloved
Craig Newmark of CraigsList. The pah-tee held at the trendy
Lot 61 was swish, says Courtney.
!!!!!!!!!!!!!!!!!!!!!!!!!!! FLAG !!!!!!!!!!!!!!!!!!!!!!!!!!!
Media Planners and Buyers!!!!!
p Win A pogo.com SCOOTER!!!!!
p o g
p o g o o
p o g o o WIN
p o g o One of 100
p g SCOOTERS!
For info please visit http://www.pogo.com/giveaway/scooter
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
<*> Where there's dotcom smoke there could be a big fire.
Jaco hears rumbling from a "senior" company contact, who
says the 13% staff reduction announced by Promotions.com on
Oct. 4 is, in fact, much larger. That drives a Webstake in
Jaco's heart!
<*> Maybe they're taking their civil service exam. Sources
tell Jaco that the top marketing echelon of govWorks is
"missing in action." Seems that no one's returning calls,
and there's no forwarding address for their e-mail. Oi ve!
<*> You've got a friend, Cramer! Last week's news that Fox
News Network settled its lawsuit against TheStreet.com must
have been a bitter pill for its beleaguered founder, James
Cramer. The company's erstwhile genius had been wining to
the press that "The [New York] Times is our partner. They
have always been our best friend. In a world where we have
no friends, they are our friend."
But before you go saying "Poor Jim," you should know that,
as Jaco hears it, News Corp.'s Fox was close to bailing out
TheStreet.com, but the deal fell apart over stock price.
Seems Diamond Jim didn't want to sell for $6 a share, or
whatever the price was at the time. This reminds Jaco of
that old Zen saying, "Always remember, Jim, you're unique,
just like everyone else."
The Jacobyte
<<<<<<<<<<<<<<<<<<<< NEW FROM ICONOCAST! >>>>>>>>>>>>>>>>>>>
"THE BEST OF WEB ATTACK! 2000" VIDEO
Meet 27 "MASTERS OF E-MARKETING" in just 60 minutes!
*** $79.95 while supplies last ***
First 25 orders take home a kewl Web Attack! event bag.
<<<<<< http://www.iconocast.com/webattack/video.html >>>>>>>
If you've been paying attention, you know the Internet is
all about TIME COMPRESSION.
That's why ICONOCAST has sampled 99.44% pure marketing gems
from its epic two-day Web Attack! event into a CONCENTRATED,
60-minute highlights video -- the perfect inspirational
e-tonic for e-marketers everywhere. You'll get answers to
questions like:
o How did eTour hook its marketing wagon to the wildfire
viral marketing effect of everyone's favorite Turkish
Internet celebrity Mahir to boost its site membership?
o Was hiring supercelebrity spokesperson RuPaul a BOOM or
BUST for online meeting provider WebEx?
It's an ENTERTAINING romp through intriguing viral case
studies, 360-degree marketing, extreme offline branding,
new wireless wonders and e-commerce metrics.
Along the way, you'll also hear from top marketing and
advertising execs at Engage Media, About.com, WebEx,
TBWA/Chiat/Day, Vindigo and more. Hear what works,
what doesn't and how much it costs. Plus El Exigente
offers his much talked about prediction of the accelerated
18-hour business cycle.
=> http://www.iconocast.com/webattack/video.html
.................... E D I T O R I A L .....................
Sharon Anderson T 415.764.1402
Reporter sharon@iconocast.com
Sean Pfister T 415.778.0807
Research Director sean@iconocast.com
Gary Suen T 415.778.0957
Creative Director gary@iconocast.com
Michael Tchong T 415.778.0804
Editor michael@iconocast.com
............................................................
.................... M A R K E T I N G .....................
Julie Chervenak T 415.778.0803
Account Executive julie@iconocast.com
Gretchen Dianda T 415.778.0955
Vice President/Business Development gretchen@iconocast.com
Greg Ogarrio T 415.778.0805
Marketing Director greg@iconocast.com
Beth Weintraub T 415.778.0956
Art Icon beth@iconocast.com
............................................................
............... A D M I N I S T R A T I V E ................
Michele Beelen T 415.764.1403
Executive Assistant michele@iconocast.com
Veronica King T 415.778.0806
Vice President/CFO veronica@iconocast.com
............................................................
................... T E C H N O L O G Y ....................
Garth Gillespie T 415.764.1400
CTO garth@iconocast.com
............................................................
.................... I C O N O C A S T .....................
ICONOCAST Inc. T 415.778.0800
470 Third St. #102 F 415.778.0808
San Francisco, CA 94107 http://www.iconocast.com
............................................................
................. L E G A L N O T I C E S ................
While ICONOCAST and its agents used their best efforts in
collecting and preparing the information published herein,
ICONOCAST does not assume, and hereby disclaims, any
liability for any loss or damage caused by errors or
omissions, whether such errors or omissions resulted from
negligence, accident or other causes. ICONOCAST and its
affiliated individuals may, from time to time, own, have
positions or options in companies discussed herein and
may also perform advisory services, and/or have other
relationships with those companies.
ICONOCAST is a trademark of ICONOCAST Inc.
Copyright 2000 ICONOCAST Inc. All Rights Reserved.
You may freely distribute ICONOCAST material,
as long as it bears the following attribution:
Source: 2000 ICONOCAST http://www.iconocast.com
............................................................
....................... H O S T I N G ......................
ICONOCAST.com is hosted by Navisite, Inc.
Visit http://www.navisite.com
*** Online success for real world business ***
............................................................
................ S U B S C R I P T I O N S .................
ICONOCAST is published weekly. Subscriptions are free.
**** Powered by Flo Network ****
Visit http://www.flonetwork.com for more information.
............................................................
You're subscribed as:[afchang@post.harvard.edu]To subscribe,
visit:http://www.iconocast.comTo unsubscribe,
visit:http://profile.flonetwork.com/iconocast/optout.html.................
..
..........................................
_________________________________________________________
Do You Yahoo!?
Get your free @yahoo.com address at http://mail.yahoo.com
_______________________________________________
BusinessTeam mailing list
BusinessTeam@mail.nano.com
Message-ID: <6B75EF096AE0BE428B8CEDEA89C5F6327822A8@exchange01.lab49.com>
Back to the archive index