Archive for February, 2010

Adding value to online retail: the in-store shopping experience

Sunday, February 21st, 2010

With time to kill in between appointments last week I found myself in Top Shop’s flagship store on Oxford Street in London. Not for the first time I was struck by how different the shopping experience is. Indeed Top Shop is less of a shop nowadays, more like a nightclub-cum-youth club-cum-beauty salon. With TVs and music blaring, girls of all ages (thirteen up to forty!) were browsing, chatting, phoning, texting. Oh and there was some purchasing going on too. Top Shop is a real-life social media experience.

Back in the virtual world, in December 2009 £5.46 billion was spent online in the UK, a 17% increase y-o-y. According to the IMRG Capgemini e-Retail Sales Index, the Clothing sector saw an 18% annual increase in online spend and Accessories in particular saw a phenomenal 101% annual increase. Driven by a quest for shopping on demand, online retail, or e-tail, is certainly thriving.

The challenge for both online and bricks and mortar retailers is that the Millennial generation – defined as the mid-teens to late twenties who have grown up in a digital world – are a fickle bunch. They want social interaction but they also want a highly personal experience. They expect you (the retail brand) to know exactly what they want, and they want to have it now. They have been spoilt by the instant gratification of Google, and the infinite choice of niche sellers that the Web has to offer. It’s all about me, or “me-tail”, after all.

Customer acquisition and retention strategies must therefore be cross-media and highly targeted. Indeed, in its Industry Report entitled ‘The “me-tail” revolution’, Accenture urges retailers to radically reinvent themselves, and cite the example of Domino’s Pizza’s use of Facebook and mobile phone apps – as well as TV – to facilitate orders, and Best Buy’s leveraging of Twitter to answer customer queries.  According to Accenture, it won’t be long before this new generation of always-on customers spurns the concept of retail grazing.

Whereas for the last ten years, retailers have been trying to work out how their websites might add value to in-store spending, the tables are now turning. What is clear from the Top Shop experience is that the physical store space must now add value to the price-led, convenience and personalisation of shopping online.

This blog post was written by Amanda Davie, Managing Director, Reform.

Search Engine Marketing in Russia – International Search Review Issue 2

Tuesday, February 16th, 2010

Thanks to everyone for their feedback on the first issue of Reform’s International Search Review. Issue number two is now available, as we move north into Russia.  Like China, Russia is a large market where Google is not the search engine of choice, playing second fiddle to Yandex.ru.  As a result, SEO and general search marketing strategies from international companies looking to expand into Russia often find obstacles here.

For instance, it can be difficult for foreign companies to do PPC advertising on Yandex. Their PPC service is known as Yandex:Direct – which has a user interface for accounts that is entirely in Russian. Unless you have a fluent Russian PPC person on your team (and even then), potential advertisers are advised to let Yandex manage the PPC accounts on your behalf. This is known as the “Yandex.Direct Carefree account” – which their site says will provide you with a dedicated, English speaking account manager who will help you create and run your campaign (assistance with keywords selection, composing the ad text and advertising strategy consulting).

The initial take up of broadband was behind the pace of many other markets, but in the recent years Russia has started to really experience a steadier increase, becoming one of the top countries in regards to take up and usage of Mobile internet usage and Social Networking.   Russia is currently the eighth largest country in terms of internet user population, and is set to overtake the UK into seventh place.

Download a copy of the full “Russia Search Review” issue here

Take a look through the PDF and hopefully we can answer any questions about the search market share in Russia, along with the habits of the local internet user population there.

We look at the Yandex natural search algorithm, along with recent changes in Gogo.ru and Mail.ru, which had made an agreement with Google to use their natural search results, but instead opting to build their own algorithm first and using Google’s as a back up. Gogo.ru and Mail.ru do however use Google’s PPC results, which has helped extend its reach (and earnings) there. Considering Google had a 5% market share in Russia only 4 years ago, it has come a long way. But like in China, there are many factors which will try hard to make sure it never crosses the 50% line.

The overall search market share in Russia currently (along with other key stats from the PDF include):

- Yandex – 54.5% (62% when including Mail.ru) / Google 34.5% / Rambler – 1.9% / Bing – 0.4% (Source: Comscore, August 2009)

- 42,000,000 Internet users as of Jan 2010 and only a 33% estimated internet penetration.

- The average user in Russia spent 6.6 hours per month on social networks (highest in the world out of 38 countries that were reported), compared to a worldwide average of 3.7, 4.6 in the UK and 4.2 in the US. (World Metrix / Comscore: July 2009). The top choice of social network was Vkontakte.ru, followed by odnoklassniki.ru and mail.ru – while Facebook was a distant seventh.

- Twitter integration into search results was done on Yandex first in 2009 (before Google or Bing), yet Twitter usage in Russia is still relatively low, holding less than 0.5% of the overall global Twitter market share.

To get more details on this and everything else, download a copy of the full issue here – and let us know any comments / feedback.   Contact us, and we’ll get the next issue out to you before anyone else gets it!

You can also leave a comment below too.

Can the gap between full-service and DIY search management be filled?

Tuesday, February 16th, 2010

As a director of several small businesses I have struggled to find a service provider that can fill the gap between full-on bespoke search support and do-it-yourself on AdWords- so imagine my elation when I see BT offering a service geared at SME’s for just £100 per month. Branded SearchSmart it purports to offer “Affordable pay per click management from search specialists”

Unfortunately a call to the BT sales line gives rise to a little confusion. The £100 per month for PPC is actually £300 per month unless you take other services, and BT take £90 of this and that the remaining £210 is spent on media through Google, Yahoo and Bing.  Apparently I can transfer any Google accounts that are set up back to my name without any impact on my quality score, and that “all the work is undertaken by BT employees and nothing is outsourced”. This may be news to Alex Hoye the CEO of Latitude who is quoted on their website saying “This partnership brings together BT’s reach and trust with Latitude’s technical expertise to enable small businesses to succeed as more consumers move online.”

In terms of reporting I am told that I can see reports on what is happening online, but logging on to the Demo Site suggests that I am not going to learn very much, and far less than I would learn from my existing free Google Analytics account. BT do also offer me access to Google Analytics but for £75 (with one part of the website saying this is a monthly charge and another saying it is a one off). The real killer though is in the small print on the website which says that I can’t use any of the BT services if I have had an active account with Google in the last 90 days. So much for the trouble free transfer.

Bottom line is that you still can’t get proper search management for peanuts, and the reason is that proper search management requires sophisticated and time consuming input from experienced practitioners; people who understand that each and every website is different in the same way that each and every searcher is different.

A guest blog post by James Kilpatrick, non-Executive Director of Reform and Director of Craigie Mains (http://www.craigiemains.com).

Search as a Commodity?

Thursday, February 4th, 2010

The recent trend in agencies outsourcing search to cheaper suppliers, whether they be in the UK or abroad, signals the possible commoditisation of search skills in the near future.

Both SEO and PPC practitioners are available in plentiful numbers at low rates; there are companies in India willing to work on hourly rates as low as £5. That’s 80p lower than the minimum wage for an adult in the UK, so you can see why it would be tempting for clients and agencies alike.

In practice, outsourcing opportunities will deliver a very cheap solution for the simpler aspects of PPC or SEO delivery. My experience of being involved in relationships (from a third party perspective) where both PPC and SEO have been outsourced has always seen something lost in the translation though, with poor quality results being achieved through either poor campaign builds and management in paid search, or the use SEO techniques that are slightly outdated and that fail to address the real issues needed for success in natural search.

So what’s the reason for this? Where is the value being lost? Let’s face it, some of the actual delivery work in search doesn’t require a huge amount of brainpower – adjusting keyword bids when a CPA is too high or re-working meta-tags to have an emphasis on different words is a simple task. So why does it go wrong so often?

The problem comes from the fact that search strategy is inextricably entwined with its delivery. For example, with paid search, when you’ve spent several hours analysing results, understanding how various factors affect the different metrics, and deciding where to focus your efforts, the matter of performing the optimisation is a relatively simple task. Natural search will sometimes similarly require someone to immerse themself in the market, observing what’s working well for the competition, translate this into a strategy for their site, and then spend time delivering what then seems to be relatively simple output in terms of actual SEO work.

So what does this mean for clients or agencies looking to outsource work? I’d suggest that although there are cheap options out there, the skillset of this type of business or individual is never going to be able to drive real success in search for your business by using them alone. Perhaps we need to look at a more traditional model where a planner would devote their time to building a strategy and a separate buyer would then specialise in buying the media – so for search you may be able to draw value from outsourcing options by using them simply as an implementer of the more time consuming tasks, but you will still need a channel expert to decide your strategy, spend time interpreting the data and recommending what changes need to be implemented to your site or PPC account. For all but the largest of advertisers, the benefit is going to be minimal.

Of course, this may change over the next few years as businesses in lesser developed markets become more savvy and develop their skill sets further. When that does happen we may see search agencies turning into more specialist comms planning style businesses and we’ll see companies who specialise in cost effective implementation springing up to complement them. Larger agencies may choose to break staff down into planning & implementation departments to respond to the market.

So while the current standard of delivery from cheap outsourcing options isn’t yet high enough to actually benefit from the cost saving, the threat to the current search agency model from these suppliers is real – and we can expect to see it driving change in the way search is bought over the next few years.

For more information on how Reform could improve your business through search, please call us on +44 203 178 3086 or email us at info@reformdigital.com

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Adding value to online retail: the in-store shopping experience

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Search Engine Marketing in Russia - International Search Review Issue 2

Thanks to everyone for their feedback on the first... more »

Can the gap between full-service and DIY search management be filled?

As a director of several small businesses I have s... more »