Will Search-Marketing Dollars Also Shift to Social Media?
by Michael Learmonth
Published: March 09, 2009
NEW YORK (AdAge.com) -- Marketers spend billions to attract search traffic from Google, but late last year Facebook started becoming a bigger source of traffic for some large websites, according to analytics firm Hitwise.
It seems inevitable that, given Facebook's sheer scale (180 million registered users and counting), it would at some point start referring a lot of users to some sites, but the development is surprising. Web users go to Google to figure out where to go next; they go to Facebook to, well, hang out.
Facebook gets a little more than a third of Google's unique visitors in the U.S. (50 million vs. 149 million in January, per ComScore); since last summer, registered users have been growing at a double-digit rate.
Where they're going
But since the beginning of the year, Facebook has become a bigger referring site than Google to a number of sites, including gossip sites PerezHilton.com and Dlisted, mom site CafeMom, Evite, video site Tagged.com, and, yes, Twitter.
There are good reasons for some of this: CafeMom has a Facebook fan page, which no doubt helps drive traffic, and users can synchronize updates with Facebook and Twitter.
It's hard to know why two gossip sites are on the list, aside from the fact that they tend to be places people spend a lot of time. Since the beginning of 2009, gossip site PerezHilton.com has received 8.7% of its visitors from Facebook, compared with 7.6% from Google, according to Hitwise. The same didn't hold true, however, for gossip site TMZ, which got 12.2% of its traffic from Google, compared with 3.8% from Facebook.
Big source for video sites
As NewTeeVee points out, Facebook has also become a big source of referrals for video sites as users post and share clips. Traffic from Facebook accounted for 3.3% of visits to video sites in February, according to Hitwise, up from less than 2% in February of last year.
It all points to the growing power of content sharing; the question is how to harness that and what it means for the future of "search" marketing. Companies spent $12.2 billion in 2008 on search optimization and marketing to get traffic from Google, according to eMarketer.
But Peter Yared, CEO of marketing firm iWidgets, said he thinks some of that spending is going to shift to where the viewers, and the traffic, increasingly are. "Soon the [search-engine marketing and search-engine optimization] spend will start to follow the eyeballs and transition from Google to social media," he said.
More >
Monday, March 9, 2009
Sunday, March 8, 2009
10 High-Impact, Low-Budget Ideas for Marketing in a Down Economy (Part 1)
by Jonathan Kranz
When the going gets tough, the tough get... cheap. Today, a good marketing idea has to be as inexpensive as it is clever. In part 1 of a two-part series, I offer five inexpensive suggestions that can lead to productive results.
1. Use all of the buffalo
The buffalo was more than a source of meat. Hides became clothing and shelter; bones became tools; sinews became bow strings.
Think like a Plains Indian and get the most use out of every marketing effort possible. One case study, for example, can serve as
Spider-food on your website that boosts SEO and provides meaningful content:
A direct mail insert in lieu of the traditional product brochure
A tradeshow handout to jump start conversations
A leave-behind for sales calls
Bonus
Exploit the public relations potential of a big project such as a whitepaper or e-book. If the content is genuinely valuable (not merely promotional swill), you may be able to pick up good press on the cheap.
One of my clients got a half-page article in the leading trade magazine for its industry—and scored a seat at the executive leadership table in the industry's dominant professional association as a result of the great press.
Target appropriate editors/bloggers/reporters with your content and include a quick note explaining its relevance to their audiences.
2. Choose your social-media weapons carefully
What's that background hum? Oh, it's the swarm of expert wannabes chattering endlessly about Web 2.0, social media, the death of print, etc. No matter what the technology or medium—whether blogs or mobile devices, Facebook or Twitter—the message is always the same: You gotta be there—or you're a dumb-dumb... or worse, a dodo.
Look, no doubt some of these may have real value for your business. But the hard truth is that you can't do ALL of them well. Nor should you. Concentrate your resources on the ones that:
Are likely to be used or welcomed by your target markets
You can excel in
You can sustain on a regular basis
Don't impose unrealistic burdens on your resources or budgets
Bonus
A client of mine leveraged social media to help a branch of the armed services meet its recruiting targets. But instead of chasing the latest social media fads, they focused their efforts by doing two key things: listening to the online conversations already in progress and creating open content that their target audiences could freely share. Result? They've hit their recruiting numbers every month.
3. Go organic
Place greater emphasis on your organic SEO rather than simply dumping money into Google AdWords. It's not only cheaper, it can be more productive; I've read various analyses on the Web suggesting that natural listings attract 60% or 70% of clicks as opposed to 40% or 30% for paid listings.
Successful organic SEO requires
Aggressive identification of keywords that should be optimized for each significant page on your site
Development of deep content that feeds search engine spiders and attracts incoming links
Constant monitoring of your site statistics to track trends and progress
Bonus
Don't neglect your titles and meta descriptions. "Titles" are the words that appear at the top of the visitor's Web browser. Search engine spiders take titles seriously, so be sure yours include keywords. The "meta description" in your HTML is what the search engines use to describe your site when it appears as a response to search query; write yours to appeal to potential customers.
4. Play to your strengths
Many years ago, as I was starting my copywriting career, I met a businesswoman who shared what she described as the best advice she ever got at a motivational seminar: Don't try to improve your weaknesses; just concentrate on developing your strengths.
I think that's wise. For us, it means focusing our business operations on our most productive, profitable areas and focusing our marketing efforts on those strategies or tactics at which we most excel.
It's not a matter of what works, but what works for you. If, for example, cold-calling simply isn't effective, drop it. If you're good at networking, plan on investing more of your time and money on networking opportunities this year.
Bonus
So many of my clients get hung up on this so-called "elevator speech" thing—that 30-second pitchoid that each of us is supposed to have at the ready. The problem with these things is that they sound every bit as contrived and unnatural as they really are. So forget about them. Instead, think about questions, things you can ask new prospects that can jump-start conversations and lead to a natural introduction of your products or services.
5. Profile your best customers
Consider this reverse-engineering for marketing. Think of your best customers. What do they have in common? Is it an industry or role? A similar problem or challenge? A quality of temperament, habit, or attitude? The answers form a profile of the kind of prospects you should pursue.
Then think about how you attracted your top customers. Did they come to your Web site first? Or respond to a direct mail campaign? Or meet you at a conference? Again, whatever worked, do more of. And consider trimming back the rest.
Bonus
Be prepared for surprises. You may have started your business with the intent of serving one kind of customer with one kind of need, but in retrospect you may find that your best business comes from an entirely different kind of client with a different need.
I work with a company, for example, that started out in the business of providing inexpensive security for PDF documents. But, over time, it found that the real interest lay in offering PDF analytics—and they've shifted their efforts accordingly.
More>
When the going gets tough, the tough get... cheap. Today, a good marketing idea has to be as inexpensive as it is clever. In part 1 of a two-part series, I offer five inexpensive suggestions that can lead to productive results.
1. Use all of the buffalo
The buffalo was more than a source of meat. Hides became clothing and shelter; bones became tools; sinews became bow strings.
Think like a Plains Indian and get the most use out of every marketing effort possible. One case study, for example, can serve as
Spider-food on your website that boosts SEO and provides meaningful content:
Bonus
Exploit the public relations potential of a big project such as a whitepaper or e-book. If the content is genuinely valuable (not merely promotional swill), you may be able to pick up good press on the cheap.
One of my clients got a half-page article in the leading trade magazine for its industry—and scored a seat at the executive leadership table in the industry's dominant professional association as a result of the great press.
Target appropriate editors/bloggers/reporters with your content and include a quick note explaining its relevance to their audiences.
2. Choose your social-media weapons carefully
What's that background hum? Oh, it's the swarm of expert wannabes chattering endlessly about Web 2.0, social media, the death of print, etc. No matter what the technology or medium—whether blogs or mobile devices, Facebook or Twitter—the message is always the same: You gotta be there—or you're a dumb-dumb... or worse, a dodo.
Look, no doubt some of these may have real value for your business. But the hard truth is that you can't do ALL of them well. Nor should you. Concentrate your resources on the ones that:
Are likely to be used or welcomed by your target markets
Bonus
A client of mine leveraged social media to help a branch of the armed services meet its recruiting targets. But instead of chasing the latest social media fads, they focused their efforts by doing two key things: listening to the online conversations already in progress and creating open content that their target audiences could freely share. Result? They've hit their recruiting numbers every month.
3. Go organic
Place greater emphasis on your organic SEO rather than simply dumping money into Google AdWords. It's not only cheaper, it can be more productive; I've read various analyses on the Web suggesting that natural listings attract 60% or 70% of clicks as opposed to 40% or 30% for paid listings.
Successful organic SEO requires
Bonus
Don't neglect your titles and meta descriptions. "Titles" are the words that appear at the top of the visitor's Web browser. Search engine spiders take titles seriously, so be sure yours include keywords. The "meta description" in your HTML is what the search engines use to describe your site when it appears as a response to search query; write yours to appeal to potential customers.
4. Play to your strengths
Many years ago, as I was starting my copywriting career, I met a businesswoman who shared what she described as the best advice she ever got at a motivational seminar: Don't try to improve your weaknesses; just concentrate on developing your strengths.
I think that's wise. For us, it means focusing our business operations on our most productive, profitable areas and focusing our marketing efforts on those strategies or tactics at which we most excel.
It's not a matter of what works, but what works for you. If, for example, cold-calling simply isn't effective, drop it. If you're good at networking, plan on investing more of your time and money on networking opportunities this year.
Bonus
So many of my clients get hung up on this so-called "elevator speech" thing—that 30-second pitchoid that each of us is supposed to have at the ready. The problem with these things is that they sound every bit as contrived and unnatural as they really are. So forget about them. Instead, think about questions, things you can ask new prospects that can jump-start conversations and lead to a natural introduction of your products or services.
5. Profile your best customers
Consider this reverse-engineering for marketing. Think of your best customers. What do they have in common? Is it an industry or role? A similar problem or challenge? A quality of temperament, habit, or attitude? The answers form a profile of the kind of prospects you should pursue.
Then think about how you attracted your top customers. Did they come to your Web site first? Or respond to a direct mail campaign? Or meet you at a conference? Again, whatever worked, do more of. And consider trimming back the rest.
Bonus
Be prepared for surprises. You may have started your business with the intent of serving one kind of customer with one kind of need, but in retrospect you may find that your best business comes from an entirely different kind of client with a different need.
I work with a company, for example, that started out in the business of providing inexpensive security for PDF documents. But, over time, it found that the real interest lay in offering PDF analytics—and they've shifted their efforts accordingly.
More>
Saturday, March 7, 2009
Strengthening Your Online Presence: Now is the Time
by Vinay Bhagat, Founder & Chief Strategy Officer, Convio
Many nonprofits are feeling the impact of the financial crisis — in particular those reliant on corporate gifts. Others are bracing themselves for challenging conditions. In difficult economic times, it can be a natural reaction to stop all new investments. Yet, building strong constituent relationships and acquiring new donors to replenish losses is more important than ever.
Nonprofits must adopt a strategic approach to their fundraising investments, cutting less efficient areas and investing where gains can be realized. The traditional fundraising model has been in decline for some time. The financial crisis and competition for donor dollars has heightened the imperative to change models today, re-allocating investment from waning traditional fundraising approaches to new approaches that incorporate the online channel.
Challenges with Traditional Fundraising Channels
Direct mail-based donor acquisition has been getting more difficult and more expensive due to postage rate increases, mailing list fatigue, postal mail delivery challenges, and shifting consumer preferences. The Target Analytics Index of National Fundraising Performance, which tracks some very large nonprofits, shows donor counts have been declining consistently for the past two and a half years. In the first quarter of 2008, for the first time in two years, overall revenue declined as well. Revenue fell 1.8% from Q1 2007 to Q1 2008.
Until now, increases in revenue per donor compensated for donor declines, allowing overall revenue to continue to grow. In the most recent quarter in the analysis, however, continued revenue per donor growth could not make up for the donor decreases nor prevent overall revenue from declining. For most organizations, overall donor declines have been due primarily to a decrease in new donor acquisition. New donors declined 2.3% from Q1 2007 to Q1 2008, on top of a 5.3% drop over the same period one year before. Additionally, telephone fundraising is growing more difficult in the wake of "do not call" regulation and the substitution of land lines for cell phones. In this context, nonprofits must find more economic ways to source new donors and enhance their lifetime value.
The Shift Online
As direct mail-based fundraising has become less effective, online fundraising has grown significantly. According to the Pew Foundation, 75% of all Americans are now online at home or at work. According to The Online Marketing (eCRM) Nonprofit Benchmark Index Study, published by Convio in 2008, the median online revenue growth rate across sectors was just over 26% from the first half of 2006 to the first half of 2007, with some sectors, namely Environment and Wildlife, Visitation (museums, zoos/aquariums, and performing arts) and Higher Education growing at over 50%.
Much of the online fundraising growth has come from new, younger donors. Online donors are typically 15 years younger than direct mail donors. In addition, usable email files grew 32% in the same period, showing that nonprofits are successfully developing online prospect lists for future supporters. A first-of-its-kind national survey conducted for Convio by JupiterResearch, a Forrester Research company, shows that of the 175.6 million online adults (age 18+) in the US, more than half (51%) plan to donate to charities during the upcoming holiday season.
If there is a silver lining in the economic cloud, it is that consumers and nonprofits are aligning around the online channel. Given its growth, it is imperative that nonprofits invest appropriately in the online channel to realize its full potential. In fact, according to the Direct Marketing Association, nonprofits are on average growing their online marketing spend four times faster than their direct mail and telemarketing spend.
Power to the People
Today, constituents are taking a more active role in their philanthropy. Many want to see the direct impact of their giving, others are eager to participate in a movement. Increasingly, people are donating because of being asked to do so by their friends or family versus a nonprofit organization itself. The Internet has accelerated these trends which represent a shift of power to the constituent.
A majority of prospective donors will visit a charity’s website to learn more before making an initial contribution. A growing number of people will research charities on sites like Charity Navigator or Guidestar before giving. Direct to beneficiary giving portals, such as Kiva and DonorsChoose, which give donors unprecedented control over where they direct their gifts, have grown exponentially. At Kiva, a donor can make a micro-loan directly to a specific person in a developing country. At DonorsChoose, donors can support a specific funding need posted by a public school teacher.
Online peer-to-peer fundraising tools like Convio TeamRaiser™ and Tributes have enabled nonprofits to turn their most passionate supporters into prolific fundraisers. Convio’s extensions for Facebook and widgets for other social networks like MySpace have extended the appeal of peer-to-peer fundraising to Generation Y.
The Integrated Effect
The value of online marketing should not be measured solely by money raised online. There is increasing proof that online marketing attracts new donors and influences existing offline donors to give more. At the 2007 Convio Client Summit, Jeff Regen, VP Online Marketing & Communications at Defenders of Wildlife, shared how the organization uses online advocacy as a way to attract new constituents, and subsequently deploys a multi-channel approach using email, direct mail and telemarketing to convert non-donor activists to donors. The cohort of new non-donor activists recruited between January and March 2006 contributed over $90,000 within 16 months after being exposed to a multi-channel fundraising effort. About 78% of the donations were ultimately yielded online.
In addition to being a source for new donors and a feeder channel for direct mail and telemarketing acquisition efforts, online marketing also enhances donor loyalty. Convio's joint study with the analytics firm StrategicOne in 2006 demonstrated that online engagement enhances the lifetime value of a direct mail donor through growing both gift frequency and donor retention rates.
Online marketing is emerging as a strong source for new major donor prospects as well. Defenders of Wildlife has found that about one-third of all new major donors are sourced through their online marketing efforts. The Wired Wealthy research that Convio conducted with Sea Change Strategies and Edge Research confirms that mid-level and major donors are increasingly wired, and online communications can help augment and enhance less frequent personal contact.
Now is the Time
Current economic conditions indicate that competition for donors will intensify. Economically sourcing new prospects, converting them to donors, and maximizing their lifetime value is more important than ever. Savvy nonprofits will make the strategic changes and investments required to succeed online, to align to a world where power has shifted to donors, and to implement multi-channel marketing strategies. Money raised online can now more than justify the start-up costs of online marketing efforts, and is a fraction of the true value created by effectively integrating online marketing with direct mail and major donor development efforts.
More >
Many nonprofits are feeling the impact of the financial crisis — in particular those reliant on corporate gifts. Others are bracing themselves for challenging conditions. In difficult economic times, it can be a natural reaction to stop all new investments. Yet, building strong constituent relationships and acquiring new donors to replenish losses is more important than ever.
Nonprofits must adopt a strategic approach to their fundraising investments, cutting less efficient areas and investing where gains can be realized. The traditional fundraising model has been in decline for some time. The financial crisis and competition for donor dollars has heightened the imperative to change models today, re-allocating investment from waning traditional fundraising approaches to new approaches that incorporate the online channel.
Challenges with Traditional Fundraising Channels
Direct mail-based donor acquisition has been getting more difficult and more expensive due to postage rate increases, mailing list fatigue, postal mail delivery challenges, and shifting consumer preferences. The Target Analytics Index of National Fundraising Performance, which tracks some very large nonprofits, shows donor counts have been declining consistently for the past two and a half years. In the first quarter of 2008, for the first time in two years, overall revenue declined as well. Revenue fell 1.8% from Q1 2007 to Q1 2008.
Until now, increases in revenue per donor compensated for donor declines, allowing overall revenue to continue to grow. In the most recent quarter in the analysis, however, continued revenue per donor growth could not make up for the donor decreases nor prevent overall revenue from declining. For most organizations, overall donor declines have been due primarily to a decrease in new donor acquisition. New donors declined 2.3% from Q1 2007 to Q1 2008, on top of a 5.3% drop over the same period one year before. Additionally, telephone fundraising is growing more difficult in the wake of "do not call" regulation and the substitution of land lines for cell phones. In this context, nonprofits must find more economic ways to source new donors and enhance their lifetime value.
The Shift Online
As direct mail-based fundraising has become less effective, online fundraising has grown significantly. According to the Pew Foundation, 75% of all Americans are now online at home or at work. According to The Online Marketing (eCRM) Nonprofit Benchmark Index Study, published by Convio in 2008, the median online revenue growth rate across sectors was just over 26% from the first half of 2006 to the first half of 2007, with some sectors, namely Environment and Wildlife, Visitation (museums, zoos/aquariums, and performing arts) and Higher Education growing at over 50%.
Much of the online fundraising growth has come from new, younger donors. Online donors are typically 15 years younger than direct mail donors. In addition, usable email files grew 32% in the same period, showing that nonprofits are successfully developing online prospect lists for future supporters. A first-of-its-kind national survey conducted for Convio by JupiterResearch, a Forrester Research company, shows that of the 175.6 million online adults (age 18+) in the US, more than half (51%) plan to donate to charities during the upcoming holiday season.
If there is a silver lining in the economic cloud, it is that consumers and nonprofits are aligning around the online channel. Given its growth, it is imperative that nonprofits invest appropriately in the online channel to realize its full potential. In fact, according to the Direct Marketing Association, nonprofits are on average growing their online marketing spend four times faster than their direct mail and telemarketing spend.
Power to the People
Today, constituents are taking a more active role in their philanthropy. Many want to see the direct impact of their giving, others are eager to participate in a movement. Increasingly, people are donating because of being asked to do so by their friends or family versus a nonprofit organization itself. The Internet has accelerated these trends which represent a shift of power to the constituent.
A majority of prospective donors will visit a charity’s website to learn more before making an initial contribution. A growing number of people will research charities on sites like Charity Navigator or Guidestar before giving. Direct to beneficiary giving portals, such as Kiva and DonorsChoose, which give donors unprecedented control over where they direct their gifts, have grown exponentially. At Kiva, a donor can make a micro-loan directly to a specific person in a developing country. At DonorsChoose, donors can support a specific funding need posted by a public school teacher.
Online peer-to-peer fundraising tools like Convio TeamRaiser™ and Tributes have enabled nonprofits to turn their most passionate supporters into prolific fundraisers. Convio’s extensions for Facebook and widgets for other social networks like MySpace have extended the appeal of peer-to-peer fundraising to Generation Y.
The Integrated Effect
The value of online marketing should not be measured solely by money raised online. There is increasing proof that online marketing attracts new donors and influences existing offline donors to give more. At the 2007 Convio Client Summit, Jeff Regen, VP Online Marketing & Communications at Defenders of Wildlife, shared how the organization uses online advocacy as a way to attract new constituents, and subsequently deploys a multi-channel approach using email, direct mail and telemarketing to convert non-donor activists to donors. The cohort of new non-donor activists recruited between January and March 2006 contributed over $90,000 within 16 months after being exposed to a multi-channel fundraising effort. About 78% of the donations were ultimately yielded online.
In addition to being a source for new donors and a feeder channel for direct mail and telemarketing acquisition efforts, online marketing also enhances donor loyalty. Convio's joint study with the analytics firm StrategicOne in 2006 demonstrated that online engagement enhances the lifetime value of a direct mail donor through growing both gift frequency and donor retention rates.
Online marketing is emerging as a strong source for new major donor prospects as well. Defenders of Wildlife has found that about one-third of all new major donors are sourced through their online marketing efforts. The Wired Wealthy research that Convio conducted with Sea Change Strategies and Edge Research confirms that mid-level and major donors are increasingly wired, and online communications can help augment and enhance less frequent personal contact.
Now is the Time
Current economic conditions indicate that competition for donors will intensify. Economically sourcing new prospects, converting them to donors, and maximizing their lifetime value is more important than ever. Savvy nonprofits will make the strategic changes and investments required to succeed online, to align to a world where power has shifted to donors, and to implement multi-channel marketing strategies. Money raised online can now more than justify the start-up costs of online marketing efforts, and is a fraction of the true value created by effectively integrating online marketing with direct mail and major donor development efforts.
More >
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