State of Search 2009: Online Marketing in the New Era

Join us on Wednesday, July 15th at 10am PST / 1pm EST as we share findings from new research on the evolution of consumer search behavior and discuss key strategies marketers can take to adapt to these changes. During this webinar we will discuss:

- How economic uncertainty is changing the way consumers search online
- What changing consumer activity means for search and your online marketing strategies
- 3 tactical areas for marketers to focus on during the rest of 2009

To register for State of Search 2009, please click here.

Posted by Eric Lopez, the Google Retail Team

Capture, Grow, Maintain: Building Global Relationships with Your Clients

As an agency, you often face questions on how to best work with a client on a global scale. The purpose of this webinar is to understand the steps needed to get a global buy started, learn about global relationship structures, and understand best practices for running a global campaign. In addition, you’ll get insight into how to work best with Google globally.

Please join us on Thursday, July 16th at 2:00pm EST / 11:00am PST when our Global Development Manager, Jared Smith, leads a discussion on how to best work with your clients on a global scale.

Registration details:
Event number: 576 838 452
Registration password: agency1
Event password: global
Call-in toll free number: 866-469-3239

Register today at: Global Agency Webinar

Posted by Kate Stonich, the Google Agency Team

Ouch. Fading bling sure does sting. In yet another indication of hard times, the Wall Street Journal reports that the age-old tradition of rap stars bedazzling themselves in diamonds and gold, reflecting status and a lifestyle of opulence and fabulousness, isn’t sparkling as bright as it used to. Word on the street is that a number of hip hop artists are opting for less precious stones and even imitation ice to go with their Cristal. [1]

Consumers aren’t completely following suit with bogus baubles. As WWD explains, the bright side is in spending for special occasions, such as Mother's Day, when a slight rise in sales pleasantly surprised retailers. [2] And like some of these recessionista rappers, American brides- and grooms-to-be are still keepin’ it real by downsizing their engagement bands to smaller carat diamonds, according to the National Jeweler. [3]

As we noted in this post a few weeks ago, marketers have been employing creative recessionary messaging to appeal to consumers keeping their minds on their money and their money on their minds. While the focus has been placed mostly on compassion-based communication to be aligned with money-saving trends, is it just all about saving the Benjamins?

In addition to messaging around coupons, discounts and lower price-point items, some marketers have been focusing on the long-term value of their products. 69% of US adults surveyed by Mediamark Research Inc. say that they buy based on quality, not price, and 74% would buy products by a company they trust, regardless of price. [4] And according to an April 2009 “Word of Mouth and Viral Marketing” report by Mintel, 55% of Internet users surveyed said that they recommend products or services based on quality. [5]

Here are a few examples of Retailers emphasizing high-quality artistry, durability and wearability, and the customer experience as attributes of investments that will stand the test of time.

The David Yurman and GUESS Watch search copy both look to the future and underscore that quality craftsmanship will make these investments last.

Like the GUESS example before it, this Tory Burch ad hones in on the value-trend that is, in fact, anti-trend. Its focus is on the classic, not the frivolous or cutting-edge, highlighting a collection of substance that will never go out of style.

This Tacori ad offers a unique premium buying experience and thoughtful customer service for the uneducated engagement ring shopper.

These are just some of the ways retailers are leading consumers to look at investment in their products as gifts of sentimental value--heirlooms, not just meaningless indulgences. How have you encouraged your customers to get their investment on?

Sources:
[1] Bustillo, Miguel. The Wall Street Journal: "The Culture of Bling Clangs to Earth as the Recession Melts Rappers' Ice," May 26, 2009
[2] Graff, Michelle, The National Jeweler: "Even in tough economy, bridal still booming," April 22, 2009.
[3] Chabbot, Sophia. WWD: "Jewelers Adapt to New Priorities," June 9 2009.
[4] Mediamark Research Inc, Doublebase 2008.
[5] Mintel: "Word of Mouth and Viral Marketing" report, April 2009.
[6] David Yurman, Tory Burch, GUESS and Tacori Search Ads: Google.com.

Posted by Camille Valdes, the Google Retail Team

In today’s difficult economic environment, savvy marketers are realizing that there are internationally-focused buyers within and beyond our shores, who represent a new potential revenue stream. As we began discussing here, you too can be on your way to generating incremental revenue and increasing brand awareness.

201 More Advanced Strategies

• Full Site Translation. There are many third parties that can provide this service. The only danger here is to be certain you are culturally relevant. Did you know that a sweater is called a “jumper” in the UK? Perhaps you remember that the Chevrolet Nova was a great selling car in the United States. However, when the Chevrolet introduced the vehicle in Mexico, sales were dismal. Why? If you speak Spanish at all, you know that no va translates into no go. You must consider the native language of your target customers when naming products.

• Develop Localized Content. This will allow you to communicate with customers through each stage of the purchase funnel - awareness, interest, decision, and loyalty. Customs vary in each country so be sure to “test” your specialized content for appropriateness.

• Highlight any offers that are significant to that market. Shipping internationally can be expensive. If this is an area you have a competitive advantage, let your customers know. It can make a difference in your shopping cart abandonment rate.• Go the extra mile - Beyond website translation, consider having your follow-up e-mails to come “in-language”

• Outsource the ability to transact in currencies to third parties. This can be complicated because of the abundance of currencies and localized payment methods and preferences.

• Experience. There is no replacement for using an experienced search engine marketing team that knows the international landscape.

In summary, technology and broadband access has made us less aware of borders - why should retail be any different? Internet marketing is an outstanding medium to expand the boundaries of traditional retailing and enable advertisers to transact and interact with customers more easily than in the past. Bonne chance!

Posted by Tom Fochetta, The Google Retail Team

Ever wanted to send flowers or a gift to a friend or family member while they were staying in Rome? Have you ever lived abroad and wanted to buy something from a US based web retailer? Marketers sometimes forget that it’s the World Wide Web, not the US web.

Many brands are unaware of the significant demand for their products outside the US. More importantly, traffic reports show that enormous amounts of organic traffic from international locations go unnoticed. Particularly in the US, there’s a tendency to have a much narrower view of the world. Many marketers only think in English and market their products in English. A recent Google internal study into the top U.S. based search query demand for the gift & floral market revealed over 15% of queries were targeted to countries outside the U.S. How well are you connecting with shoppers who want goods and services shipped abroad?

If you are thinking about expanding your brand internationally, you may want to consider some general best practices:

101 The Basics

• Fish where the fish are.

1. Perform a cursory analysis of general market statistics such as GNP, economic and social indicators, political analysis, etc. Does it make sense to start in Latvia or Italy? Some things may surprise you, so a good first step is to verify where your current international traffic is coming from.
2. Perhaps to make it even simpler, US retailers can start with one of the biggest markets first – the US Hispanic market. This market represents almost 15% of the US population with domestic spending at just over $1 trillion [1]. Over half of that market wants or needs to communicate in Spanish. It’s not simply a matter of preference; it’s a requirement to access this lucrative market.
3. Canada is an ideal opportunity for cross border sales since this market is familiar with many US brands. It is the perfect place to jump in and get your feet wet.
   

• In-Language Splash Pages for English sites. Drive potential customers to your site and greet them with an in-language splash page. Speak to those users in their native tongue and you’re sure to see a lower bounce rate than if you hadn’t.

• Display prices in the local currency. Particularly in light of today’s economy, buyers are price sensitive. If they can’t figure out how much something costs, they likely won’t pull the trigger.

• Keywords and ad copy for paid search should be in local languages. People tend to search in their native languages. Leverage translation services that many SEMs offer for a fee.

• Include negative keywords to prevent mishaps and ads showing against unwanted/inappropriate content. Be careful with your choice of keywords. There are many linguistic nuances that could cause you to be associated with the wrong type of content that may damage brand perception.

With these simple strategies, you can easily enter a new international market, often without needing additional resources. On Thursday we’ll discuss some more advanced strategies.

[1] US Census and 24-7pressrelease.com, December 2008.

Posted by Tom Fochetta, the Google Retail Team

Like most retailers, you're probably spending your time analyzing your Positive ROI (Return On Investment) to determine how to spend on your next Search campaign. But do you also have a solid understanding of your Negative ROI (or Risk Of Inaction)? How many sales are you leaving on the table by not taking action? And how many of those sales are going to your competition?

Here's how I would think about your negative ROI: when your customers are searching for you online -- every time you are NOT in front of them is a missed opportunity for a sale. And thus a negative ROI.

Here are a 4 suggestions about how you may want to think about your negative ROI:

• Your Daily Budget Strategy: Do you know at what time of day your daily caps start kicking in? Are they set to tap out at 7:00 in the evening when your customers stop shopping … or do your ads stop serving at 2:00 in the afternoon? Thought about a different way, are you closing the doors to your brick-and-mortar stores at 2:00 or 7:00? Because if you are “closing your online doors” too early your customers are walking down the street and shopping elsewhere (i.e. clicking an ad and visiting your competitors’ sites).

• Your Non-Brand Terms Strategy: A new face walks into your store who’s never been there before. Do your salespeople completely ignore him or do they ask him how they can help him? Well, if they ignore him there’s a good chance he walks out that door never to return – which is what you are doing when you ignore many of your non-branded keywords. Queries you never address are queries that will never be converted to a sale.

• Matching Your Customer’s “Search Cycle” Strategy: Are you coordinating your search plans (both creative and buying) to match your customer’s buying cycle? Are they getting a different message when you know they are in the information-gathering phase than when they are in the buying phase? Are they being directed to different landing pages after they’ve already visited your site versus their first visit? If your search strategy fails to recognize these different cycles of customer behavior -- you risk your customers failing to recognize why they should be visiting your site.

• Your Bidding and Positioning Strategy: You know the top 100 queries you want your ads showing up on … but do you also know which position is most profitable for you on each page? And at what CPC? Asked another way, do you know how to best spend your next $100? Do you know which keywords will pay-out at a higher ROI if only you bid a little more to get higher position and thus a higher CTR? Test and optimize so that you are keenly aware of how you might spend your next $100 to get your maximum ROI … by not knowing your further promoting your negative ROI.

In summary, make sure to take the time to understand your negative ROI as much as your positive ROI. It’s important to expand your strategic thinking beyond what you already know and start trying out new methods to gain new learning. Test and Optimize. Work with your Google consultants. Don’t let your Risk of Inaction catch you buy surprise. By being proactive and strategic, you’re sure to improve that other positive ROI – your bottom line!

Posted by Dan Schock, The Google Retail Team

There is good news for clothing retailers this Father’s Day season. American consumers expect to spend close to $1.3 billion on clothing out of a total $9.4 billion. Of that $1.3 billion, an impressive 20% is expected to be spent online. [1] The old standbys, socks, neckties, and belts, will remain popular, as will gift cards.

So while dad may not need another tie, it looks like that’s exactly what dad’s going to receive. That said, online retailers can think creatively in the final push. What is it that dads would like to receive and families can afford to purchase? What should online retailers be doing to encourage these purchases?

Many have discussed the possibility of family members purchasing gifts that can be used by the entire family: grills, tents, and luggage. Others think that given the economy the past nine months, dads deserve to be pampered with more luxurious personal care products like high-end shaving creams and razors. In fact, the demand for men’s beauty products has grown over the past years [2] but some men still feel uncomfortable purchasing those products for themselves. This leads to increased online sales from the privacy of their own homes, in fact, online sales of cosmetics and fragrances will grow by nearly 67% between 2008 and 2012. [3]

Keep in mind that the main purchasers of Father’s Day gifts are wives and children, each bringing a different budget to the table. Both are interested in sales and coupons and will benefit from clear ‘Order By for Father’s Day Delivery’ dates on the website. For websites with accompanying brick and mortar stores, don’t forget to push last minute in-store purchases through coupons available on your website. Use text ads to highlight ‘In Store Pickup’ or ‘In Store Coupon Available’ as we pass the final ship-by dates.

In 2008, Father’s Day fell on June 15th. As the data below shows, searches for “father’s day gifts” began to rise about four weeks before the holiday. Searches on this term then hit their peak on June 14th, and although consumers may not have purchased items online, they reviewed products and sales on the internet and then headed to the nearest retail store. As an advertiser you must be thinking, “If my consumers can no longer purchase online in time for Father’s Day, how I can attract them to my store?” Again, use what’s been working all year: coupon codes and special promotions. Once the gift is chosen, the consumer is still going to want to find the best price, so make sure your ad emphasizes any current in-store deals. This is a great time to update your Local Business Ads to reflect that as well.


In addition, Father’s Day is later this year, which means consumers are thinking ‘summer’ more than they have in the past. Timing is right for bathing suits and sports apparel like golf shirts, running shorts, and flip flops. As we’ve seen in years past, the online activity peaks on Father’s Day but continues for a few days afterwards. There will always be the last minute and forgetful shoppers, so it’s important to be “on” through the very end.

We all know dads have been working hard, which means they deserve the cards and presents more than ever. Happy Father’s Day!

[1] “Tough Economy Brings More of the Same for Dad: Ties, Gift Cards and Lots of Love,” NRF, June, 2009.
[2] “Marketing to Men: Opportunities for Growth in the Grooming Market,” AllBusiness.com, April, 2008
[3] “Outlook for E-Commerce in 2008 and Beyond,” Forrester Research, February, 2008

Posted by Elizabeth Fabiani and Kelsey Hogg, the Google Retail Team