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Sunday, November 5, 2000

Over 80% of Web Sites Use Promotional Content

More than 80 percent of consumer Web businesses utilize online promotional content on a regular basis to build awareness, maximize site traffic, and drive action, but few recognize its power to influence overall consumer activity online and off-line, according to a new report from Jupiter Research, a worldwide authority on Internet commerce. With nearly all businesses using scattershot promotional content tactics, Jupiter analysts advise sites to refocus efforts so they align with overall business goals. Both online and offline impact should be used in measuring success rates.

Jupiter analysts coined "promotional content" to describe the gray area that straddles the promotional goals of merchandising, advertising and utility functions, but appears more like content to site users. Promotional content, which is actively sought by online users, not passively consumed like advertising, should engage consumers through entertainment, creating an emotional bond or encouraging participation through incentives. Some of the most common deployments include online events, guest chats, original online-only content, and branded games.

A recent Jupiter Executive Survey found that 81 percent of Web sites regularly deploy these types of content features, but most do so on a scattershot basis with little understanding of what to use, when to use it, or how it affects consumers. Jupiter data also reveals that sites neglect to see the impact online promotional content can have on off-line and cross-property consumer behavior. Further data reveals that the surveyed executives view promotional content primarily as a way to increase site traffic and gather rich data through increased site registrations. But few sites recognize the impact these tools can have on building off-line subscription bases, increasing consumption of traditional media and promoting brand interaction on a daily basis.

"While we are seeing more and more sites deploying some form of promotional content, it is apparent that executives continue to view it as a tactic to reach online-only goals," said Stacey Herron, an analyst with Jupiter Research. "Although promotional content can accomplish specific online acquisition and retention goals, influencing overall consumer activity – online and off-line - should be the prime motivator to provide promotional content. In this way, executives will be able to reach consumers in a different medium and encourage consumers to interact with their content or brand online."

Herron believes that promotional content is most powerful when tied to an off-line counterpart, seasonal theme, or event. A Jupiter Consumer Survey found that more than one third of users said they visited a Web site to receive a promotional item, a higher percentage than any other activity. Survey findings support that consumers respond to original online content and rewards --such as having an influence on programming, receiving items, or obtaining simple acknowledgement.

Reaching those goals will become more difficult as more sites increase the amount and variety of promotional content they offer. Players must focus on breaking through the clutter by providing consumers with innovative and engaging content to spur desired consumer activity. Web executives also must pay attention to driving traffic to both on and offline properties, and focus on matching the goals of promotional content to the quantitative metrics that flow from wider content distribution.

Sites should continue to focus on metrics such as duration of site visits and amount of traffic, and continue to seek rich consumer data through site registration, while broadening their focus and incorporating off-line metrics. For instance, direct actionable results--such as an increase in subscription for online periodicals or sales following an online promotion--evaluations of consumer feedback through email or postings on message boards as well as results of consumer surveys and focus groups.


Online Fraud a Growing Problem
According to MSNBC:

"Fraud is a growing problem with doing business online, according to a new survey that will be released as early as Friday, and a growing number of businesses are taking steps to counter illegal transactions. Eighty-three percent of the merchants who sell goods online say fraud is a problem, up from 75% who said so a year ago, according to a survey jointly conducted by CyberSource Corp., a vendor of software for online transactions, and Mindwave Research, an online research company.

The survey polled 132 companies, including both corporations that sell exclusively over the Internet and those that sell goods online as well as at stores or through catalogs. The survey also found that online purchases amount to 5% of all credit-card transactions, but amount to 50% of all fraud involving cards..."

Click here for the full story. (link has expired on MSNBC)

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