The internet is HOTTER than ever and it's not going away
The internet is HOTTER than ever and it's not going awayBy Patrick Smith, 3/1/07
As the eMarket enters it 2nd decade, there is no slow in sight. Once again, 2006 has proved to be another show stopper for eCommerce. The eRetail market hammered another double digit growth rate of 25% compared to 05. eRetailed hit another all time high of over $102 Billion in sales and another $40B in travel and hotels bookings. The CAGR or Compounded Annual Growth Rate for the next 5 years is expected to linger at 20%. Wow! How significant is this? Very! If you compare the growth to Retail or commonly known as the Brick and Mortar of sales, the growth rate is basically equal to that of inflation.
More and more companies are recognizing that success in any business must incorporate an internet strategy. It is suggested that 30% of all purchases are researched online. So what are the big boys doing? They are investing. Sears recently announce their investment in Secondlife.com, an online based community where participants live is a virtual space creating avatars of one self. Why? In this community, participants buy homes, products, clothes, and listen to music all in the name of fun. It was identified by companies like Sears and others that participants can help you with product knowledge and marketing. Imagine this: Sears designs a new piece of furniture. They place this item in secondlife in a virtual store side by side other items of similar style. Within a short period, analytics can help them determine the product efficacy and receive real-time feedback. Am I suggesting you invest into secondlife? No. But you must be aware that time are changing.
In an article written by a well respected retail analyst, the study suggests that businesses are poaching from their conventional marketing funds to support aggressive activity in web eMarketing. It was clear that many companies are seeing a greater ROI with web marketing than with conventional methods. The article also suggested that senior level executives are highly engaged in SEO and SEM.
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