The e-Commerce / Online Retail advisory council for ad:tech Sydney 2011 met to discuss the issues that are affecting the market and the content that should be on the ad:tech programme. Here is a summary of the key areas discussed:

The role of international retailers
• US players want to know how to get into Australia because consumers will now purchase overseas, UK retailers are also getting in to the market
• Consumers are realising there’s little risk in buying from overseas, they are more comfortable now, they are actively seeking international retailers and suppliers to buy from
• There are other changes that are fuelling consumers’ choice to buy from overseas:
o changes to shipping policies
o the range of products is better overseas than in Australia
o there may be regulatory changes, drops in GST limit
o there is more cross border transparency, comparison shopping and better information for consumers
• This is increasing threat to online suppliers in Australia but also bricks & mortar retailers in Australia

Customer service
• Customer service standards are ‘set’ in US and UK – standards around returns (being able to return offline is important) are an especially big deal.
• Customer service standards (by bricks and mortar retailers) have always been set in US and now the online service standards are being set there too.
• What are Australian consumer expectations around service? And what is the impact on retailers coming in to the market?
• Now that there are more international retailers in the market it ‘ups’ the competition
• Online customer experience – how do we service a multi channel consumer?

Retailer value proposition
• If prices are the same by aggregators as direct supply then why do or should consumers choose to go direct? What’s the differentiator?
• Retailers need to work on their value proposition – they can’t compete on price
• The advisory, information piece is still missing.
• Where do consumers look for information: retailers / manufacturers?
• Retailers should play the information role, helping people to choose, being experts
• How do you bring other people in for advice, through social media for example.
• Price is still a key driver for people but customer service can be a differentiator
• Security can be a value add / differentiator. Peace of mind is a value Australian retailers can push more. What should or could the ‘peace of mind’ experience be? In terms of service and information?

Mobile
• Mobile is an opportunity, what do retailers do about it?
• The question is whether to do an app or have mobile web presence?
• Product vertical influences the mobile strategy
• Businesses that have repeatable, frequent purchases are ideal for apps
• eBay, have the biggest app for retail in Australia
• What are the technical / technological developments and what do they mean? HTML 5 will change what’s available

Pricing
• The amount that consumers are prepared to spend on mobile is shifting quickly
• For eBay the average price spent on mobile is now higher than on the site, and they can compare consumer behaviour mobile to site
• Eventually payments on mobile will be easier
• What about the virtual wallet and swipe pay?

Screens
• When consumers are using PC / laptop etc they tend to skip between sites – have many screens open
• When they’re on mobile / tablet they tend to stay on one site inc. aggregator sites
• Does tablet vs. mobile matter? eBay have stats on this that show that behaviour is the same but volumes are different. The interface of the technology is important and has impact on online retail behaviour
• It is not the device that’s important or that makes a difference to behaviour but where you are accessing (on the move, at home, in bedroom / living room etc)

Location marketing
• What should your response be when you know your consumers’ location? In US, there’s a retailer who give free coffee to people who’s location they know
• How do you respond to ‘check in’ and proximity?
• It is loyalty points (or versions of that) that drive people to share their location

Behavioural targeting
• When will behavioural targeting hit the market? eBay do behavioural targeting, and are looking at tailoring the whole site.
• Recognising individuals and targeting one to one

Social Media
• Shopping comparison and social media – how do they work together. Facebook connect helps recommendations. And how can recommendations be higher up on the site. It’s important to accept that consumers want to ask their friends for input. Social media can drive up conversion rates
• In this space tactics are confused as strategies
• How do you insert yourself (marketing / brand) in a conversation as opposed to ‘we have to be on a platform’. Advertisers need change to join conversations without selling.
• Public search on Twitter means you can interrupt conversation and insert your sales piece. But it can’t be scaled and it’s spam like
• Can you sell through social media or is it just there to service and advise? Don’t sell stuff; just be helpful; listen, don’t push.
• Sending content and information through social media is successful; sales is not. But it also depends on what you’re trying to achieve, and the market and demographic.
• Social shopping is a new trend. Apparel comparison that links to retailers and suppliers

The ‘group’ model
• At the moment there’s a lot of players in the ‘coupon’ space, the best one will win eventually
• ‘coupons’ links to the Foursquare model – check in and mobilising crowds
• The model means there is a loss on the first transaction in order to get repeat business; loss leading for the life time value benefit of the customers. This used to be an offline practice and now it is online

Franchises
• The franchise model can hinder online performance / capability; it is hard to push online sales when up against franchise marketing as well
• Brand loyalty and story loyalty is a particular challenge for the franchise model

Security
• The check out / paying experience of some retailers is terrible
• PayPal are cutting down the process and making experience better
• There is still a lot of concern about fraud. There are still a lot of stories on security.

Have your say

This is a summary of the points that were made in the meeting. We’ll be working on this and integrating these topics and themes into the ad:tech Sydney 2011 conference programme. If you have feedback on these points or want to make suggestions about additional topics or speakers for the programme then please leave comments or get in touch with me here.

Notes from the other advisory council meetings

Social Media Strategy
Data & Analytics
Digital Strategy
Monetising Digital
Unwired Media
Creative & Brand
Entertainment & Experience
Core Digital Media

Who’s on the other advisory councils:

Social Media Strategy
Data & Analytics
Digital Strategy
Creative & Brand advisory
Monetising Digital
Unwired Media
Core Digital Media
Entertainment & Experience
ad:tech Sydney advisory council groups named

Once again we have an ad:tech advisory council for e-Commerce / Online Retail. This is a rapidly growing industry segment and is increasingly important to digital marketers and advertisers. The ‘usual’ barriers of security, payment challenges, fulfillment and customer service are being addressed and there are more & more local success stories.

The ad:tech 2011 CONFERENCE program will feature presentations on e-Commerce / Online Retail and we’re delighted to be working with this group of local industry executives to shape and guide the content:

Adam Canter, Country Manager, Shopping.com Australia
Tim Hughes, Vice President, Commercial, HotelClub.com, Orbitz Worldwide
Ross McDonald, Head of Retail & Consumer Goods, Google Australia
Hamish Stone, Head of Marketing, eBay Australia & New Zealand

Have your say on the ad:tech program. Use the comments box to suggest topics and speakers that you think would add value to the program. We look forward to hearing from you.

Read about the other advisory councils:

Social Media Strategy
Monetising Digital
Unwired Media
Digital Strategy
Data & Analytics
Brand & Creative
Core Digital Media
Entertainment & Experience
ad:tech Sydney advisory council groups named

Scott Dinsdale, EVP, Global Digital Operations & New Technology, Sony Music

Stories From The Front Line: Digital Transformation In Real Time

16 September 2010
Hilton Sydney
08.00-09.00
Free of charge – blue note charity donation
Light breakfast & hot beverages
Twitter hashtag: #adtechbb

We’re sorry but this breakfast briefing is now fully booked. If you would like to be added to the waiting list you can email our lovely Marketing Manager, Sarah, here. We hope to see you next time.

Keynote presenter
Our charity
club ad:tech
ad:tech Sydney
The venue

Agenda

07.45 Registration, coffee & light breakfast, networking

08.00 Stories From The Front Line: Digital Transformation In Real Time

In 2004 digital music sales accounted for less than 2% of Sony Music revenue. By the end of 2010 that figure is likely to be more than 50% in the US and one third worldwide. Digital media is the driving force across the entertainment, consumer electronics and telecommunications industries among others.

In the fast-paced world of digital media Sony Music has developed an e-marketplace and e-commerce model that works. How did they achieve this transformation in such a challenging consumer environment? In short they, and others around them, put consumers at the heart of the strategy. Scott will talk about the journey that Sony has taken and how today they are leveraging digital capabilities and consumer insights as they continue to grow in an increasingly digital world.

08.45 Q&A

09.00 Closing and head to the office

club ad:tech breakfast briefings are free to attend but we prefer if you’re a club member :)

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Keynote presenter

Scott Dinsdale, EVP, Global Digital Operations & New Technology, Sony Music

Scott is responsible for connecting Sony Music’s roster of artists to its global array of digital partners and channels. Scott’s executive experience includes the Motion Picture Association of America where he was SVP, Digital Strategy leading the development of the film industry’s entre into the digital age as well as BMG Entertainment, Merrill Lynch & Co. and Data Broadcasting Corporation which he co-founded. Scott, an accomplished entrepreneur, also teaches at the University of Southern California’s Annenberg School of Communications where he is also a Sr. Fellow at The Annenberg School’s Center for the Digital Future, home of the World Internet Project.

http://www.digitalcenter.org

Our charity

HeartKids are a young and very special charity solely focussed on Childhood Heart Disease (CHD) – which is the greatest killer of young Australian children (under 5 years) – a fact most people are totally unaware of. CHD takes more lives than all other childhood diseases – twice that of childhood cancers.

HeartKids NSW:

• Support families who have a child with heart disease
• Reduce the incidence of Childhood Heart Disease
• Decrease the mortality rates for Childhood Heart Disease

We do this by:

• Employing Family Support Coordinators in each of the major children’s hospitals throughout Australia
• Running Family and Teen activities
• Funding Research into CHD
• Providing equipment and facilities
• Assisting families with travel and accommodation needs
• Commissioning a White Paper into the needs of CHD from a clinical and community perspective

• Advocating the needs of CHD to Government

We need your help to build capacity to enable us to meet the needs of Childhood Heart Disease. Together we can make a difference.

club ad:tech

club ad:tech was launched to reward those who love ad:tech events and are passionate about the digital media market here in Australia. Membership is open to anyone who is truly interested in digital marketing and those who want to be kept thoroughly informed about what’s happening with local and international ad:tech content and activity.

Membership for the club is free and includes these member privileges:

• Special extended discount periods and advance notice of ad:tech Sydney dates
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Join club ad:tech here.

ad:tech Sydney

ad:tech is the most thoroughly researched and targeted digital media event in Australia and New Zealand. The event includes a full conference program featuring 150+ leading minds from the local market; the most targeted exhibition floor showcasing only industry leaders; globally respected international keynote presentations; free seminars, breakfast briefings and discussions providing key updates, education & insights: and the annual must attend after party.

The venue

Hilton Sydney

488 George Street, Sydney, NSW, 2000, Australia

T: + 612 9266 2000

E: sydney@hilton.com

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Consumer recommendations are one of the most credible forms of advertising because people trust people. Peer to peer recommendations and word of mouth have long been recognised as powerful marketing tools. While online, most companies rely heavily on search ranking to drive traffic and awareness, social content in e-commerce is the merger of these two ideas and represents an incredibly important area for any online retailer to consider.

According to a Forrester study, 71% of online shoppers read reviews, (http://www.ratepoint.com/resources/industrystats.html) making it the most widely read form of consumer-generated content. Additionally, a separate study by Coremetrics (http://www.bazaarvoice.com/resources/stats) found that people who read a review were 30% more likely to purchase a product and visitors who wrote a review were 80% more likely to convert.

Likewise, recommendation engines like Amazon (‘people who bought this product also bought that product’) go a long way to mirroring the retail experience and assisting in driving cross sell and upsell behaviour. When recommendation engines go social however, like LastFM (‘people who like similar things to you also like this’) it really starts to feel even more relevant and personalised bringing an offline experience truly online.

When Google announced their transition to real-time search this catapulted the importance of social media in the search game too. Real-time data is now placed above traditional web search results and as a result, it makes it even easier for a consumer who is purchasing a product to review social content that they may previously have had to work a lot harder to find.

The impact of the social content on sales is undeniable.

Social media has rapidly become one of the most powerful ways to raise awareness, build brands, drive customer loyalty and attract audiences to sites. Building a loyal community who are engaged and willing to contribute social content is potentially one of the most critical components of sales conversion in e-commerce and essential to the digital strategy of any marketer or retailer who is trying to sell their products online.

This is an area that any online retailer should be looking into seriously, and we’ll be discussing the key issues in the session at ad:tech ‘What Is The Impact Of Social Content On e-Commerce?’. The panellists will be reviewing the key issues. They are:

• Mike Hickinbotham, Social Media Senior Advisor, Telstra
• Tim O’Neill, Joint Managing Director, Reactive
• Dan Ferguson, Online Channel Manager, General Pants
• Michael Gorman, Vice President for Strategy, Acxiom Global Multichannel Marketing Services
• Tim Hughes, Vice President, Commercial, HotelClub.com, Orbitz Worldwide

Myself and the ad:tech panel would welcome your comments and thoughts here.

And you can see the video of Tim Hughes sharing his thoughts on the subject here: