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December,
2002
Welcome to the first issue of the Internet Marketing
Strategy
Newsletter. This ezine covers Internet marketing and search
engine marketing issues affecting Vancouver, Canada and the
United States. Strategy intends to serve both businesses
and online marketers needing current information on
industry trends and events shaping Internet marketing. This issue includes
reviews of several Internet marketing campaigns as well as
information on search engines and optimization. |
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Contents
and Articles Below
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Internet
Marketing at BC Escapes - Vancouver
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Marketing
Prescription Drugs on the Internet - Vancouver
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New
Internet Marketing Revenue Stream for Portals - Calgary
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Online
Travel Marketing with Sears - Toronto
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Internet
Marketing with Travelocity
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Online
Marketing Cuts at AOL and New Products - New York
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Internet
Marketing and the Biggest Online Cities
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Internet
Use in Canada
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Internet
Driving Sales at Budget
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Search
Engine Optimization and Uniglobe Travel - Seattle
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Google
- Best Search Engine Alive
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Inktomi
Battles Back with Web Search 9
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Internet
Marketing at BC Escapes - Vancouver
The
BC Escapes Program launched an Internet marketing campaign
targeting long-haul and short-haul travelers to British
Columbia. Long-haul travelers live in cities such as San
Francisco, Los Angeles, and Toronto. Short-haul travelers, in
contrast, live in cities such as Vancouver, Victoria, Calgary,
Seattle and Portland. Reaching 60 million households, the award
winning BC Escapes Program used online banner ads on Yahoo!,
Excite, Lycos,
other search engines, travel web sites and email marketing
campaigns to generate $70 million in measurable tourism revenue.
Promotional travel packages were also displayed on Tourism
BC’s web site (www.hellobc.com).
Tourism BC is an independent Crown corporation responsible for
marketing Super Natural British Columbia to the world.
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Vancouver
based RxCanada4less.com
plans to sell discount prescription drugs to Americans.
Advertising on KIRO radio in Seattle, RxCanada4less consequently
received 23,499 hits, 31,618 hits the next day in November, up
from only 327 hits received in October. (The term “hits”
refers to touch points on a web site and not “unique
visitors.”) Given this information, however, Internet
marketers should consider traditional media such as radio as
part of an Internet marketing strategy.
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Calgary
based DealDispay.com
has developed a new Internet marketing strategy enabling retail
and service based businesses to list both local and online
shopping deals. According to this strategy, news, magazine,
radio stations, directories, search engines, and community based
web sites will be able to generate advertising revenue by
displaying merchant products and services on their web sites.
To
register for this service, portals outline the fees that they
wish to charge merchants. Deal Display customizes the service to
match the look and feel of a portal’s web site. Once linked to
Deal Display, portals receive an immediate advertising revenue
stream from merchants. Deal Display is a unique service since
even merchants without web sites may use the service. Displaying
product pictures, business descriptions, and web site links,
Deal Display offers many advantages over pay-per-performance
models such as Overture
and Google.
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List Your Site with Overture and appear on the top of search results of leading sites like Yahoo!, Lycos and MSN
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The
launch of Sears Canada’s new web site (www.searstravel.ca)
comprises an aggressive entry into the Canadian online travel
market. To encourage shoppers to book online this Christmas,
Sears is offering monthly payments on vacations without
interest. The Internet marketing strategy includes family
friendly destinations such as Punta Cana in the Dominican
Republic, Varadero in Cuba and Puerto Vallarta in Mexico.
Similar to Expedia, the new web site features up-to-the-minute
pricing, travel recommendations, and a 14,000 destination travel
guide. All this may be money well spent as Canadians are
expected to spend $1.1 billion online for gifts this holiday
season.
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Travelocity
has adopted a new business strategy. The company will buy
rooms from hotels in bulk, selling directly to travelers,
instead of paying for rooms as they are booked online. Hotels
benefit from this strategy since they get paid right away,
instead of waiting for hotel reservation companies to remit
payment.
As
part of its core Internet marketing strategy, Travelocity has
also established links between its own web site and hotel web
sites. Presumably, this tracking system will prevent the revenue
losses that occur as individuals routinely visit discount travel
web sites, then book directly through official hotel branded web
sites. Travelocity will also partner with hotels to purchase
rooms for peak and slow seasons to ensure that the company has
more rooms available during peak travel periods than
other companies.
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America
Online has cut about 15%, or 90 jobs, from its Internet
Marketing Group. This comprises the second round of cuts as AOL, cut
120 jobs from the division earlier this May. Veteran Robert
Sherman, and Lisa Brown of USA Interactive have been hired to
develop new flexible pricing products and services for AOL
members.
One
newly developed product is the prepaid Internet card. Offered at
Target Corp. department stores and Western Union outlets,
Internet cards will provide users with up to 500 minutes of
dial-up Internet access. The cost for this service will be US
$14.99 to be used within 18 months of purchase. Once a card is
activated, the user has 90 days from that moment to use the
remaining minutes. While these rules may inhibit AOL’s
Internet marketing strategy, AOL intends to use prepaid cards to
reach potential subscribers needing affordable Internet access.
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The
recent ranking of top online shopping cities by AOL reveals that
e-commerce remains a vital part of the retail world.
Increasingly, online shopping has become mainstream and
multi-channel as 86 percent of Internet shoppers surveyed report
researching or purchasing products online at least once each
month. This result is good news for Interent marketers
interested in advertising online. (These results may reflect the
habits of avid Internet shoppers, which are atypical from the
norm.) Results for shopping behaviour among top 10 US cities
were as follows:
City
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Avg
Times Shopping
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Avg
Spending
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San
Francisco
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5.2
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$225.20
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New
York
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5.2
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221.10
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Sacramento
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4.9
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216.5
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Los
Angeles
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3.9
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225.60
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Boston
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4.1
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197.30
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San
Diego
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3.8
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208.70
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Seattle
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3.5
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280.30
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Portland
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3.3
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349.5
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Baltimore
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6.2
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185.10
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Washington
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6.0
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$200.20
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Typically,
Internet shoppers spend about US $200 per month. They purchase
products for themselves about 57 percent of time and 43 percent
for family and friends. Nearly all shoppers purchase products at
home (95%) with very few purchasing at work (5%). This result
suggests that Internet marketing and advertising campaigns
targeting non-work related hours may generate strong revenue
boosts, particularly in the area of pay-for-performance marketing
campaigns.
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Canadians
will spend CA $320 online this holiday season. Thirty percent of
Canadians report feeling comfortable using their credit card
information online. Another 25% of Canadians intend to use the
Internet to avoid shopping in stores. These results comprise good
news for Canadian Internet marketers who have been waiting for
Canadians to realize the value of shopping online.
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More
than 23 percent of car and truck reservations at Budget
are booked online, up 12 percent from 2001. Currently, the company
receives 51,200 unique visitors daily or 1.5 million unique
visitors monthly. The company attributes this strong growth to
marketing programs informing customers that the lowest rates for
car and truck rentals are available online. Importantly, an
Internet marketing campaign offering double the points for booking
online resulted in fully one quarter of “Perfect Drive” car
rentals being booked online.
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Nobody
Beats Our Prices on Search Engine Optimization
Click
here to View Our Prices
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In an effort to increase return on investment (ROI) from Internet
marketing, Seattle based Uniglobe
has selected search
engine optimization (SEO) as a new strategy to increase
traffic from search engines. Search engine marketing has been
shown to deliver a
stronger ROI than pay-for-performance programs. Due to this
optimization strategy, Uniglobe has realized significant increase
in traffic from search engines, therefore, lowering costs to reach
qualified buyers. At Uniglobe, search engine optimization
strengthens the overall Internet marketing strategy, which remains
to increase both customer visits and inbound phone calls.
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Everyone
knows that Google is the best
search engine online. Google remains unique due to an unflinching
commitment to delivering high quality search results without paid
search listings (as demonstrated on search engines such as Yahoo!,
AltaVista, and MSN).
Google, in contrast, separates paid listings or AdWords
from search results.
Google
offers a wealth of additional services as well. “Image Search”
enables users to find thousands of photos and graphics online.
“Groups” enable users to review and participate in discussions
held by individuals from around the world. The Directory provides
a complete list of sites related to specific search topics.
“News” provides users with comprehensive information on
current events from across the globe. Google even offers
definitions of words. For example, the results for a search on the
word “entropy” will appear as follows: “searched the web for
entropy.” By clicking on the underlined or
hyperlink-word, Google will display its definition.
Google
has specialized
search engines focused on specific topics such as Apple,
Macintosh, Microsoft,
Linux;
and even search engines geared to university colleges and
campuses. Google offers a catalog
search engine for users who want to compare prices. Google
also provides a list of popular
search terms. Parents may instruct Google to block
pornographic content. Google is able to translate
web sites into English from languages such as Italian, French,
Spanish, German and Portuguese.
Google will also find keyword search terms both in Word
(doc) and Adobe Acrobat (pdf)
documents.
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Inktomi,
a leading provider of web search and enterprise information
retrieval services, recently unveiled Web Search 9. In a bid to
battle competitors such as Google, Web Search 9 combines
algorithmic and editorial relevance techniques to provide users
with accurate and comprehensive search results. Inktomi claims
that Web Search 9 will match and exceed competitors in three
fundamental ways: (1) freshness since the “content discovery
system” refreshes the entire index every 10 to 14 days; (2)
relevance by determining the “degree of fit” between user
requests and web sites; and (3) index size will be expanded to
match or exceed both Google
and Fast. Featuring “Smart
Summaries,” an industry first, Web Search 9 displays the most
relevant page summaries for users, instead of their having to wade
through web sites to find the correct content. Reaching over half
of all Internet users worldwide, Inktomi is a strong tool for
Internet marketers.
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List Your Site with Overture and appear on the top of search results of leading sites like Yahoo!, Lycos and MSN
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