Rob Wong from Catalogue Central's Presentation from the 'Power Affiliate' panel at affili@syd - Australia's first affiliate marketing conference, which was run in Sydney in May 2009
3. Case Study– Catalogue Central Database Development
Some Australian households receive in excess of 40 kilos
of paper a year. There are around 6 million reachable
households in Australia.
On average less than 20% ever get read (Roy Morgan Single
Source)
5. Case Study– Catalogue Central Database Development
How to tell people about the service and keep them
coming back?
Content is a given.
Soon realised, we needed a permission database to
allow us to remind them that their nominated brands had
new offers.
We tried press, TV, radio and online, but it was the
affiliate networks that we found to be most successful for
database development.
6. Case Study– Catalogue Central Database Development
Affiliate partners were consistently the most
effective because they were online, committed
to results, offered strong and diverse reach
without cross over, and a variety of creative
options.
We worked strongly with the affiliate networks
to ensure creative was effective.
Catalogue Central and Stylehunter.com
database is now over 260,000
7. The future of Retailing Online - Our
Immediate Past
The online retail market until recently in Australia has
been the domain of niche businesses and small e-tailers
(often who have developed from eBay garages.
The biggest business are no more than one or two major
retailer stores. ( $M 0-80,000), but there is traction.
9. Why Large Retailers are cool on E-tail
Too hard to manage:
Franchise relationships
Distribution of stock
Computer systems
People/Capabilities
Small revenue, difficult to implement
Besides – sales have been good.
Market Dynamics – Australia Specific:
Population concentration around major cities
Westfield 8,000,000 weekly visits.
Low product differentiation (China effect)
10. Why Big retailers are warming to
online as an alternative media.
Decline in Traditional Media Consumption
Newspapers/Magazines/TV/Radio/Direct Mail/Directories
Small advertisers have been switching budgets to online
directories and search.
11. The Rise of online as a Retail
Advertising media.
Rising in Internet consumption and audience growth.
Google, You tube, Facebook, blogs, Twitter, everywhere in diverse
locations and interests.
Over 80% of broadband users use the Internet as a primary source of
product information, from multiple devices. ACRS Google Study 08.
Broadband is an essential service – newspapers are not.
12.
13.
14. Online advertising is growing in
share.
Internet advertising now
accounts for 12% of all
advertising share. $12b
Ad market. (Not
including the $2b
catalogue market)
Mature online spend for
property, motor, finance,
telco, employment,
but not retail - yet
16. Why Big retailers have been cool on
Internet Advertising
Online Brands like oo.com.au are not being challenged
from major retailers for online eyeballs
Adding in estimated $2b catalogue spend and POS
advertising, online spend by major retailers is weak.
17. Why Big retailers have been cool on
Internet Advertising
Retail was doing okay up until October 08.
Website sales are not important, so internet
advertising is waste of time.
“Banner ads don’t give the “bang” like a full page
ad or 24 page catalogue. We need to drive store
traffic”
Big portals owned by traditional media players,
so zero sum game unless forced.
Perceived difficult to deliver mass campaign
reach due to fragmentation of online networks.
18. But there is clear evidence Big
Retailers are looking at online..
CC revenue growth is 80% up YOY.
JB HiFi regularly use search and the Adconian
Network
Harvey’s dabbled in Dec 08.
Clive Peeters
Angus & Robertson
Good Guys
Freedom
Myer
19. So what’s the Online future for Retail
and for Affiliates
Retailers will adopt significantly more online advertising strategies as they
learn it’s potential and technology enables better ad formats to be served
and better access to broad reach through multichannel network buys.
Online sales will develop, but will be slow and hard for major retailers. Focus
will be on database development, driving store traffic efficiently and more
accountability. Aggregated distribution and fulfilment centres will evolve.
Affiliate and content sites that have core and regular audiences will attract
significant advertising dollars from retailers as they realise the value of online
eyeballs. Retailers will bring significant budgets allowing affiliates to capture
budget that will be shifted from slowly declining traditional media.
If 10% of retail advertising budgets are moved online the industry has new
money in excess of 500,000 million to compete for.
Consumers will eventually shy away from being on multiple retail databases,
because retailers will over communicate.
20. Key Points
There is significant underdeveloped opportunity for major
retailers is to use online as an advertising channel to drive both
off and online sale activity.
E-tailing will grow, but be slow and difficult for major retailers.
Pure play e-tailers will do well, but hit growth limits.
Consumers will not want to be on multiple retailer email
databases ensuring plenty of competition for eyeballs residing on
affiliate content sites.
Website publishers and affiliates who attract regular quality
traffic, will attract advertising dollars from major retailers if they
are networked and offer flexible content serving.
21. Thank you..
Robert Wong – CEO
Robert.wong@cataloguecentral.com.au
Mobile: 0419 238768
www.ccmedia.com.au
Please contact me personally if you have any questions.