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This Week in e-Tail: October 8, 2007

  • By Jeff Molander

This Week in eTail

Search Marketing

Search Engines Continue to Re-Invent Search via ‘Universal’ Concept
This time it’s Yahoo launching a revamped search engine last week as they try to gain ground on Google. What’s new? Like Google’s Universal Search, the new Yahoo Search will also present a wider variety of search query results to users — including an extensive array of information/pages/media like videos, online books and media sites/properties owned by Yahoo itself. Google, Ask, and Microsoft have already adopted the concept in some form on their search engines. This makes Yahoo late — again.

Why it Matters: The universal search concept is a radical re-defining of search itself — literally adding to user’s search page results — thus crowding out search engine results pages of Web retailers’ (and other Web publishers).

Performance Marketing

Performance Marketing Outpacing Other Internet Media
Sam Harrelson reports on the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers report released a Internet Advertising Revenue Report stating that “Performance Deals Outpace CPM Deals!”

The report breaks down which segments of the Internet advertising industry are contributing to a record $10 billion figure (first half of 2007 total revenue). Search jumps up a point from ’06 to 41% and lead generation continues to gain traction, moving from 7% in 2006 to 8% in ’07. Rich media (including video) rose two percentage points to 8% with the biggest gain. Classifieds and sponsorships models were lower in their ’07 percentages as compared to ’06.

Says’s Mr. Harrelson, “Perhaps most interesting to my performance marketing minded eye is that ‘CPM Deals’ were replaced by “Performance Deals” as the leading pricing model for internet advertising. In 2006, CPM deals comprised 48% of the overall total while performance deals (CPA, CPC, etc) were at 46%. However, in ’07, performance deals make up 50% of deals while CPM fell to 45%. That is a very important shift in marketing trends which I haven’t heard very many people discussing because it is troubling to the old guard digital agencies who have so much invested in the CPM model.”

Why it Matters: The performance-based ad business (cost per click, cost per action/pay per action, etc.) is where all the action is and Google, in particular, is taking a leadership role in defining what performance marketing encompasses.

eCommerce Platforms

vCommerce Opens Up: A Sign of the Times
Open, open, OPEN! If you’re not up to speed on why or how the world is “going open” you would be wise to pay attention. The concept of open has come to retailers — open brands. Vcommerce Corporation, a provider of eCommerce solutions, announced its Vcommerce Enterprise Connector (VECTORTM). VECTOR enables retailers to access all of their favorite third party applications and “software-as-service” providers. Translation: you can use Vcommerce AND a variety of other solutions that you may already be invested in or want to invest in.

Like whom/what solutions? Today, over 50 vendors and services are integrated… like FAST (search), Omniture (analytics), and PayPal (transaction processing).

Why it Matters: The Open Source movement is real and increasingly powerful — extending beyond the geek crowd and into the world of marketing and Web retailing. “Open” is perhaps one of the most important thought-memes of our century.

Research & Market Trends

Internet Retailer Survey Reveals Opportunity for Drop-Ship eCommerce & Marketing Services Providers
According to a new Internet Retailer survey, Web retailers are looking to expand their business. The “how” is what’s newsworthy:

  1. 65.3% of merchants will launch new product lines
  2. 45.3% have plans to launch new e-commerce or micro-sites and 36.5% that will add services

Why it Matters: How will Web retailers accomplish this — logistically? There seems to be an opportunity here for companies like, vCommerce and Channel Intelligence to assist in bringing sellers together — so as to sell collaboratively and manage back-office headaches.

The Inevitable March of Recorded Music Towards Free
Via “The DRM (digital rights management) walls are crumbling. Music CD sales continue to plummet rather alarmingly. Artists like Prince and Nine Inch Nails are flouting their labels and either giving music away or telling their fans to steal it. Another blow earlier this week: Radiohead, which is no longer controlled by their label, Capitol Records, put their new digital album on sale on the Internet for whatever price people want to pay for it.”

Why it Matters: If you believe in open markets and the Web as the great equalizer (and provider of Long Tail economic opportunity) then you understand the likelihood of Michael Arrington’s prediction coming true. “Pay for what you think it’s worth” may just fly when combined with music artists re-jiggering their business models to rely more on live performances to generate revenue (with recorded music as the “loss leader” creating demand).

About Jeff Molander

Jeff Molander is the authority on starting sales conversations online. He teaches a proven, effective and repeatable communications process to spark buyers curiosity about what you're selling. He's a sought-after sales prospecting trainer to individual reps, teams of sellers and small businesses owners across the globe. He's an accomplished entrepreneur, having co-founded the Google Affiliate Network and what is today the Performics division of Publicis Groupe.

Jeff also serves as adjunct digital marketing faculty at Loyola University’s school of business. His book, Off The Hook Marketing: How to Make Social Media Sell for You, is first to offer businesses a clear, practical way to create leads and sales with platforms like Facebook, LinkedIn, YouTube and blogs.

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Leave a Comment:

Maureen Bleiler says

I have been posting music videos that I have created at YouTube and have discovered that certain artists welcome the music videos because they create renewed interest in their music to the point where their record sales have increased due to the music videos. There is a rule at YouTube about copyright infringement. Posters are supposed to get permission from artists to use their songs. I don’t know how to go about doing this. Music videos at YouTube serve as free advertising for the artists and are beneficial to them. Some of the artists agree to have their music used in a music video at YouTube if they can advertise on the poster’s page. That sounds fair to me. I would appreciate hearing from any artist or record label that realizes that allowing their songs to be used in music videos at YouTube is “good business”.

King Harvest, a musical group from the 70’s, has had increased sales since I posted a music video that King Harvest not only did not object to but asked me for permission to use it on their page at MySpace and has also asked me to link it to a new music video at YouTube which is a version of their song recently produced for the ‘younger audience’. King Harvest knows a good thing when they see it! By the way, my music video had close to 300,000
views before it was deleted. I’m sure King Harvest was not happy about that!

I had 500+ subscribers with more being added every day when YouTube decided to delete my account because of ‘copyright infringement’. This happened on Christmas eve and was quite a shock to me, especially since I’ve been posting videos at YouTube for two years prior to having my account deleted.
“The Christmas Song” sung by Nat King Cole received over one million views and I’m sure CD sales increased as a result of it!

I would appreciate it if you would let YouTube and me know of your interest in this type of arrangement: Free advertising in exchange for ‘freedom from copyright infringement’. Give it some is “good business”!

Maureen52 (former username at YouTube)

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