E-Marketing: A Consumer Behavior Perspective Professor: Jacques Nantel, Ph.D Director: RBC Financial group Chair in e-Commerce HEC Montréal May 2006 Jacques Nantel Director: RBC Financial group Chair in e-Commerce

World Wide More and more people have access to the Web or other forms of e-commerce More and more are seeking information through the Web before buying More and more are actually buying on the Web

Source: eMarketer Sept 2005

Active Home Internet Users by Country, November 2005 CountryOctober 2005 November 2005 Change (%)One-Month Change Australia9,935,5969,887, ,838 Brazil11,729,61912,529, ,273 France16,165,91416,855, ,693 Germany30,839,55631,840, ,000,846 Italy17,342,87016,923, ,130 Japan39,634,96939,122, ,159 Spain10,482,92711,055, ,349 Sweden4,852,2514,810, ,434 Switzerland3,510,8233,602, ,747 United Kingdom 23,369,62323,586, ,432 United States 142,174,091142,704, ,325 Total310,038,240312,919, ,881,103 Source: Nielsen//NetRatings, 2005

But unlike what was thought 3 years ago With some exceptions (music) the Web doesn’t belong to pure players The Web doesn’t belong neither to conventional retailers The Web is truly Multi-Channel

Why are consumers active on the Web? –Accessibility –Diversity –Customization –Prices

2- Relationship Marketing versus Mass marketing

Marketing through the Web How to get known Personalization and customization

How to get known 1.Your name 2.External advertising 3.Organic optimisation 4.Paid optimisation 5.Web advertising

How do consumers surf on the net while looking for a product or a service ? Source: The e-tailing group (April 2004)

How do consumers surf on the net while looking for a product or a service ? Source: The e-tailing group (April 2004) 25%

Optimisation on search engines Organic Paid

Basics of search engine optimisation Write good content Use key Words (keyword, meta-tag) Your domain name (URL) Think about spelling Write descriptive page titles Use real headings Use search engine friendly URLs Get linked to Use valid, semantic, lean, and accessible markup Don’t try to fool the search engines

Paid positions There is a nominal, one-time activation fee for Google AdWords. After that, you pay only for clicks on your keyword-targeted AdWords ads, or for impressions on your site-targeted AdWords ads. You can control your costs by telling us how much you're willing to pay per click or per impression and by setting a daily budget for spending. For example, a new advertiser paying in USD can activate his/her AdWords account with just US$5.00, and can then choose a maximum cost-per-click (CPC) from US$ US$100.

Basic tools Web logs

Personalization (Wind Jerry (2001) Journal of Interactive Marketing

Personalization Reduces acquisition costs Increases loyalty Increases AOV

More than just transactions the Web is also a matter of information On a site –Cookies –Password Through consortiums (Double click) –Cookies –Ad Servers Third parties –Microsoft Passport –N-case – 180Solutions - MetricsDirect

What is done with it ? Site Personalization Cross Marketing Affiliate marketing Adapted advertising – s.aspx

Basic metrics CPM CTR CPC AOV

Strategies are getting more focused No of impressions 180 milliards 980 milliards No of Web users 137 millions 193 millions No sites/week Ad market 8$ milliards9.6$ milliards CTR 2%0,41% CPM 25$10.30$ CPC 25$/20=1.20$10.30$/4=2.60$

More focused strategies