Nielsen Holiday eShopping Index Up 20%

According to Nielsen//NetRatings, their eShopping Index, comprised of 120 representative companies that give analysts a better sense of online shopping trends, received 20% more visits in 2006 than in 2005.

You can read the whole press release HERE (will open PDF), but to me, this means that online shopping is really hitting its tipping point. More and more people are visiting retailers' sites online, and many are visiting stores like Ebay and Amazon that don't even have brick & mortar locations.

What does this mean? In plain terms, I believe this means that increasingly Web-savvy customers are tiring of the long lines and inconvenience associated with shopping in crowded arenas. While in some categories, there is no substitute for a consumer holding a product in his or her hand, many consumers just don't feel the need to go to a store before buying a product.

Interesting stuff - heavy implications for retailers ignoring their Web presence. You listening?

Talk with you later.

Garret

Emerging New Medium: Soccer Jerseys

Hi All -

I hope everyone had a wonderful holiday. I'm just getting back into the office and getting settled in, but I have a lot of things that have come across my desk that I wanted to post. I'll start with this one from the New York Times, written by Jack Bell. Apparently, United States Major League Soccer has just made the decision to allow the sale of advertisements - "mobile" billboards, if you will - on the jerseys of the players. The minimum cost of these ads is $500,000, but the benefits and value could be staggering. Not only are the ads adorning each player on the League's 13 teams, but advertisers are also seeing the benefits of the sale of thousands of replica jerseys, purchased in droves by the League's loyal fans.

http://www.nytimes.com/2006/12/25/sports/soccer/25soccer.html?_r=1&oref=slogin

What's next? I think I have an idea that could make millions if done properly - email me if you are curious!

Garret Ohm

More Online Buyers are Spending More. Much More.

New trends, as reported by the Center for Media Research...not surprising, though. This is what industry analysts have been saying would happen for years now...

Garret


More New Online Buyers, Spending More, Account for Holiday Spending Increase

According to a recent comScore Networks report on consumer online retail spending, online sales reached $12.42 billion during the period November 1st through December 3rd., an increase of 25 percent versus year ago. They conclude, hovever, that this gain is being driven by a 17 percent increase in the number of online buyers, coupled with a 7 percent increase in the average dollars spent per buyer.

Non-Travel (Retail) Spending (Online Spending Drivers Nov. 1 - Dec. 3, 2006 vs. 2005)
	Percent Change
E-Commerce Spending	25%
Number of Buyers	17%
Dollars Per Buyer	7%
Source: comScore Networks

Gian Fulgoni, chairman of comScore Networks, said "... comScore's data are confirming that... more consumers are becoming comfortable buying online. But, an accentuating factor is that online spending per buyer is also increasing - as a result of more buying transactions and an increase in higher-ticket purchases."

For the 2006 Holiday season, to-date, the computer hardware category has the highest average order value at $292, followed by consumer electronics, video game consoles & accessories, jewelry & watches, and event tickets.

Top Online Product Categories by Average Order Value (Nov. 1 - Dec. 3, 2006 vs. 2005)
Retail Category	Avg. Order Value
Computer Hardware	$292
Consumer Electronics	$153
Video Game Consoles & Accessories	$141
Jewelry & Watches	$128
Event Tickets	$123
Source: comScore Networks

That most of the higher-ticket categories also appeared on the list of fastest growing retail categories confirms that they are significant growth drivers for this year's holiday season.

Fastest Growing Online Product Categories, by Dollar Growth (Nov. 1 - Dec. 3, 2006 vs. 2005)
Retail Category	Percent Change
Video Games	85%
Jewelry & Watches	69%
Event Tickets	66%
Video Game Consoles & Accessories	51%
Consumer Electronics	37%
Source: comScore Networks

Mr. Fulgoni commented, "As broadband connectivity in the home continues to rise, we're seeing some online spending shift from work computers to home computers. Nonetheless, online buying at work still accounts for as many e-commerce dollars as buying from home. This could... (reflect) consumers' valuing of the workplace as the location where they're able to confidentially buy gifts online for immediate family members."

Holiday E-Commerce Spending by Location (Billion $,2006 vs. 2005)
Purchase Location	2005	2006	Percent Change
Home	$4.18	$5.44	30%
Work	$4.51	$5.36	19%
Source: comScore Networks

For more information, please visit here.

From The Why Didn't They Think of That Sooner File...

Here's an article from MediaPost (which, by the way, if you haven't subscribed to, you need to - www.mediapost.com) that talks about a new strategy that Whole Foods is testing out.

Massage In Aisle 7: Whole Foods Opens Spa

by Christine Bittar, Wednesday, Dec 13, 2006 5:00 AM ET

WHOLE FOODS MARKET WANTS GROCERY shopping at its natural supermarket chain to be associated with relaxation. It's testing the waters with an unusual spa-within-a-food store concept. Refresh--The Everyday Spa at Whole Foods Market opened last week in a store in Dallas, where the company is headquartered. The prototype is serving as a test bed for consumer acceptance of spas within grocery stores, before any rollout. Looking to create a tranquil environment within the giant-sized suburban Whole Foods Market, the Refresh spa is enclosed with a soundproof lounge complete with fountains, several treatment rooms, and a private balcony where lunch is served. The 4,500 square foot Dallas trial spa, like other stand-alone spas, offers a mélange of face and body treatments such as massages and facials, and has wellness consultants and nutritionists available by appointment for consultations. Also contained within the spa is a shop that sells treatment products, cosmetics, jewelry, shoes and organic, natural-fiber clothing. The move comes as other retailers, including Wal-Mart and Trader Joe's, have accelerated the introduction of natural and organic food offerings. This week, Safeway stores announced that it is extending its O Organics line into baby food and foods for children ages 6 to 12. Introduced a year ago, O Organics currently features staples such as milk, produce, meats and cereal. With the stated goal of luring customers from Whole Foods Market, Safeway--the third-largest U.S. grocer--also said it is introducing a new line for adults who are dieting or just want to eat more healthfully. It's still too soon to know whether enough consumers will be compelled to stop for a massage after carting baskets of rice cakes and organic granola up and down aisles. However, this isn't Whole Foods' first foray into the market for organics that aren't ingested. Five years ago, the chain launched its first Whole Body section, a store within a Whole Foods store specializing in health and beauty. It now features 152 of them within its 187-store chain. This past October, Whole Foods introduced a full-color cosmetic line called Mineral Fusion, picking up on the currently hot mineral makeup trend.

Digital Billboards

I remember back when I was a young lad. Billboards used to be so simple. Just your average amalgamation of steel and plywood. No muss, no fuss. All you had to do was to contract with a billboard company and they'd print out your graphics and have it up in a hurry. Depending on your budget and marketing objectives, you'd leave it up for one, two, three or more months. If you wanted to get really sophisticated, you rotated boards for maximum exposure.

Then, technology advanced significantly and they actually came out with rotating billboards. It gave advertisers many more low-cost and "tweener" options for outdoor advertising, and allowed the outdoor media companies to sell one location to 3 or 4 different advertisers. This gave them the ability to earn much more from just one billboard - it quickly offset the cost of implementation of these boards.

Well, the next generation of billboards is about to hit the scene: Digital billboards. Digital billboards allow advertisers to change their message often and are being credited with a renewed interest in the outdoor advertising. Computer-controlled LED displays offer many new opportunities, including the ability for companies to sell space in a time-share arrangement.

It's a pretty cool concept, really. Now, outdoor advertising may become even more targeted. For instance, the local Royal Farms store could buy space in the mornings to tout their amazing coffee selections. Then, during the day an advertiser such as Whole Foods could advertise their fully stocked salad bar - perfect for lunch! At night - the local Greystone Grill could do some awareness advertising for their concept in hopes of attracting the dinner crowd. NEAT!

Digital billboards are drawing mostly local advertisers, such as department stores and automobile dealers, but analysts expect more national clients to come around as the technology hits the tipping point. There is only a small number of these digital billboards on US roads so far. As I'm writing this, probably around 500, compared with nearly 5,000,000 regular old billboards.

Pretty neat stuff. I can't wait to see them around here!

Garret

Been A While

Hi Everyone - it's been a while since I wrote last. I'll get my feet wet by posting a little overview of some of the bigger marketing headlines in the past couple of weeks.

Feel free to comment!

Enterprise Rent-a-Car is going to be updating its logo and "look." Not changing - just updating, in an effort to keep the brand "fresh" and up-to-date.

According to the Radio Advertising Bureau, radio advertising revenue was up 6% in October. Pretty good stuff!

The Best and Worst Brand Extension Awards - From Brandweek - The American Red Cross emergency radio--featuring a hand crank, cell phone charger and a siren--was the clear winner as the "Best Brand Extension" in an online survey of 860 branding professionals co-sponsored by Brandweek and TippingSprung, a New York branding firm. Its nearest competitor was Pantone Eurolux house paints.

As usual, 2006 also produced a bumper crop of nutty extensions. A Diesel Jeans wine, "Chicken Soup for the Soul" pet food and a Lamborghini notebook computer rounded out the top five "Most Inappropriate Brand Extensions." Starburst soap, a Cheetos-flavored lip balm and Salvadore Dali deodorant stick were also ill-advised.

Toyota plans a HUGE launch for new Tundra pickup truck - It is planning the largest product launch by far in its HISTORY. This is their strong effort to grab the pickup and light truck marketshare from the Big 3.

The recent Sprint 2006 Sprint Productivity Survey of wireless phone users shows that 93% of wireless phone subscribers bring work-related mobile phones on vacation, 73% have achieved work-life balance (a meaningful daily achievement and enjoyment in one's home and working lives), and 67% are more productive today than two years ago. 84% of the respondents report technology is vital to their productivity, with 35% saying they could not accomplish what they do without technology.

Barbie Reinvented: Barbie is the top toy for girls this holiday season, according to a survey of parents by the National Retail Federation, and Mattel Inc. says sales are up for the first time in several years.

I'll write more later, promise!

Garret Ohm

Advertising Affects The Health of America's Youth

Here's a story that I read recently in the Health section of CNN.com - I thought you might enjoy, even though if you're an ad lover, you might not love what the study has to say.

http://www.cnn.com/2006/HEALTH/12/04/doctors.inappropriate.ads.ap/index.html

I do have to say, though, that we don't support advertising aimed directly at children. Especially not advertising that could lead to something damaging like drinking, smoking, etc. We agree - public health must trump capitalism when it comes to these types of issues.

What are your thoughts? I'm curious...

Garret Ohm

Is That Cookies I Smell?

Hi all -

I found this article in the San Francisco Chronicle about a new guerilla marketing campaign that is being attempted in some parts of San Francisco by the California Milk Processing Board. I thought it was pretty resourceful, and despite being potentially offensive for one or two asthmatics, it should be very effective and will resonate with the target audience (milk and cookie lovers!).

Check it out:

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2006/11/30/BAGC2MMHUO1.DTL

Garret Ohm