Online Retailers Keen to Try Social Network Marketing
Online retailers are eager to experiment with Social Computing this year, according to Forrester Research. However, Forrester advises against “reckless or experimental spending” on customer acquisition and on social networking.
Social Computing efforts continue to be largely experimental with little correlation to sales.
Therefore, online marketers are better off using core tactics like email, Forrester says in The State of Retailing Online 2008: Marketing.
The report finds that with the exception of the travel industry, US online retailers are continuing to grow at a significant pace, even as they swim against the current of a worsening economy. US online retail activity this year is expected to increase to 7% of all US retail sales from 6% last year. In a separate eCommerce Forecast Forrester projects 10.7% of all retail sales will be transacted online by 2012.
The same five categories that drove nearly 50% of all online retail activity are expected to continued to dominate this year. High-ticket durables, computer products and clothing products are the most important sectors.
Online retailers are focussing much of their marketing energy on direct mail campaigns, Forrester says.
Indeed, online retailers in general show a considerably stronger predilection towards metrics-driven marketing — that is highly targeted campaigns — than traditional retailers. To that end, paid placement on search engines is the single most popular online advertising tactic.
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