Corporate Eye

...compare, compete, excel

Archives for 2011

97% of Google’s Revenue Comes from Advertising

New data from a study conducted by WordStream sheds some light on how Google makes its billions and billions in revenue each year. The answer is just one thing: advertising. In fact, during the full year that spanned from the third quarter of 2010 through the second quarter of 2011, Google reported $33.3 billion in total revenue. $32.2 billion of that revenue came directly from advertising revenue.

In a great infographic created by WordStream, the top 20 most expensive keywords by industry in Google AdWords are revealed. Guess what? Nearly 50% of the most expensive keywords in Google AdWords are related to insurance, loans and mortgages. Check out the breakdown below and click the preceding link to see the complete infographic:

  1. Insurance = 24% ($54.91 top CPC)
  2. Loans = 12.8% ($44.28 top CPC))
  3. Mortgages = 9% ($47.12 top CPC)
  4. Attorney = 3.6% ($47.07 top CPC)
  5. Credit = 3.2% ($36.06 top CPC)
  6. Lawyer = 3% ($42.51 top CPC)
  7. Donate = 2.5% ($42.02 top CPC)
  8. Degree = 2.2% ($40.61 top CPC)
  9. Hosting = 2.2% ($31.91 top CPC)
  10. Claim = 1.4% ($45.51 top CPC)
  11. Conference Call = 0.9% ($42.05 top CPC)
  12. Trading = 0.8% ($33.19 top CPC)
  13. Software = 0.8% ($35.29 top CPC)
  14. Recovery = 0.7% ($42.03 top CPC)
  15. Transfer = 0.6% ($29.06 top CPC)
  16. Gas/Electricity = 0.6% ($54.62 top CPC)
  17. Classes = 0.5% ($35.04 top CPC)
  18. Rehab = 0.5% ($33.59 top CPC)
  19. Treatment = 0.3% ($37.18 top CPC)
  20. Cord Blood = 0.2% ($27.80 top CPC)

As Google expands its online presence and its share of audience time and eyes with new tools and destinations (hint – Google+), opportunities for increased advertising revenue continue to grow. Google is a brand that’s well positioned to stay strong in the near future. Of course, how the company uses all of the data that it gathers about the online audience will play an important part in the future of the brand. This is a brand that must retain its brand promise or it will suffer some serious consequences.

However, with knowledge and money comes power. Google has knowledge about a lot of people’s online habits, and Google has a lot of money. Will they use that knowledge and power for good or will it corrupt? We all know what happened to News Corp.

What do you think? How do you think the Google brand will fare when it comes to continuing to deliver on its brand promise to consumers? Leave a comment and share your thoughts about the power of the Google brand.

Image: stock.xchng

WWF and the Greenest Leaflet Campaign in the World

How does a nonprofit organization that works to save animals and nature distribute printed materials to spread the word and ask for donations? Wouldn’t printing all of those materials be a waste of paper and hurtful to the environment?

WWF found a creative way to get around that problem with an ambient media campaign that included the following items:

  • A single copy of a one-page, one-sided leaflet printed on a desktop printer
  • 2 people dressed as pandas
  • A mall with customers
  • An escalator

With just one copy of a one-page WWF leaflet, two people dressed as pandas visited a mall in a campaign called “Pandas in the Mall.” One panda-clad person stood at the bottom of the busy mall escalator and the other stood at the top of the same escalator. The panda at the bottom handed the leaflet to a person stepping onto the escalator to make the ascent to the next floor. When that person reached the top of the escalator, the panda at the top took the leaflet from him. Next, the panda at the top of the escalator handed the leaflet to a different person as she got on the escalator going down. When she reached the bottom, the panda at the bottom of the escalator took the leaflet back. This pattern continued and that single leaflet was seen and read by many people.

However, it’s what happened next in this campaign that made it such a big success. Word spread about the Pandas in a Mall campaign and a video uploaded to YouTube quickly went viral. WWF estimates that within two weeks, WWF had reached nearly 300,000 people through the campaign. Check out the video below to see how it happened.

I love this campaign. It’s simple, clever, and managed to integrate an online and offline component. Whether that integration was originally planned or not isn’t known, but it happened. In 14 days, WWF’s message reached hundreds of thousands of people all for the cost of 1 printed piece of paper and 2 people dressed as panda bears. Kudos to WWF and the creative team at Akcio360 in Hungary who developed the campaign.

What do you think of this kind of ambient media campaign? Leave a comment and share your thoughts.


Localization, Communication and the Corporate Website

I invited Emma Bartouche, from Capita Translation and Interpreting, to write a post for us about some of the issues involved in creating multilingual websites.

How Well Does Your Website Travel?

localisationWhen a leading entrepreneur contacted Capita Translation and Interpreting about website translation, it probably came as a complete surprise to him that his content management system (CMS) didn’t support multilingual content.

Sometimes it is the blatantly obvious details that get overlooked, or it could well be that online marketing is not your forte. But for whatever reason, this is a classic example of this all too common mistake of website localization being an afterthought of the business.

Most businesses worth their salt realize that if your website is to compete with its peers internationally, website translation and SEO are a crucial part of your online strategy. Whether tackling it in-house or enlisting the help of an agency, if you are looking to introduce your website to foreign markets you need to be sure that the money you invest stands you in good stead to compete against the existing competition. Just because one set of keywords performs well in one country doesn’t mean the same words translated into the target language will perform so well. For example a producer of homemade jam might want to use the word jelly in the U.S.

Once you have ensured the CMS and back-end functionality will stand up to the demands of multiple languages and different scripts, the focus needs to be drawn to what’s on the page. As former German Chancellor, Willy Brandt once said:

“if I’m selling to you, I speak your language – If I’m buying, ‘dann muessen Sie Deutsch sprechen’ then you must speak German.”

I could quote a string of high profile case studies where literal translation of a brand’s corporate motto or product name has caused several red faces, but rather than make light of other companies misfortunes I’d rather draw your attention to the issues that need to be considered when emerging into new markets.

You may remember several years ago HSBC commissioned a number of TV ads which showed social faux pas and cultural differences abroad. The examples were humorous, but seemingly innocent mistakes can result in long lasting brand damage, leaving a bitter taste in the mouths of your target market.

To get off on the right foot it is essential you get your on page copy translated by a professional linguist who understands the genre of your brand and/or products; mainly because some markets require specialist understanding of the subject matter. Not to name names but when a popular IT company released its new tablet laptop in to the French market, the last thing the company wanted to be associated with was headache tablets!

To summarize, whether your online knowledge is in the know or just a ‘no’, here is a list of key considerations when branching out:

  • Will the CMS support multilingual and ‘right to left’ content?
  • Is the on-page copy optimized for the correct keywords in the target market?
  • Could the on-page copy cause offence in any way?
  • Is the website complying with cultural norms?

Thanks Emma!

Emma Bertouche is a Online Marketing Executive who takes a keen interest in social media, SEO, blogging and other online related topics. She currently works in the language translations market and writes for several websites and blogs. For more information or to enquire about getting your on and off line content translated visit Capita Translation and Interpreting.

Brand Buzz Finds a Home on Social Networks

New research from ROI Research reconfirms that consumers talk about brands on Twitter, Facebook and other social networks. In fact, of U.S. social network users surveyed in April 2011, the majority of respondents indicated that they actively discuss brands, products and services on social networks.

Even more interesting is what they’re talking about on those websites. The following statistics from the ROI Research study (via eMarketer) shows the percentage of study respondents who discuss brands, products, and services on social networks for various reasons:

  • Compare prices = 59%
  • Talk about sales or specials = 56%
  • Provide feedback to a brand retailer = 53%
  • Give advice = 50%
  • Get advice on what to purchase = 59%
  • Talk about where to purchase online = 49%
  • Express disappointment about a purchase, brand or retailer = 47%
  • Talk about where to purchase offline = 47%
  • Talk about current styles, models, etc. = 47%
  • Connect with customer service = 36%

Based on these survey results, there are clear opportunities for brands to start and join conversations that consumers are interested in having online. The statistics provide a way to prioritize your social conversations, so you spend time on conversations that most people are willing to have on social networks. Nearly 2 out of 3 social network users are actively using those sites to discuss prices and sales. There is no doubt that starting and joining conversations about pricing and special offers is a tactic that consumers want and need.

The key is to focus on the types of brand conversations that consumers are open to having online. Based on this research, consumers have demonstrated their willingness to discuss brands online, particularly pricing when they’re trying to make a decision on which brand to actually purchase. They’re already in the market for a specific type of product or service, so they’re basically pre-qualified customers. Don’t let them get away. Instead, join the conversation (or start your own) to get your brand in front of those pre-qualified consumers.

This doesn’t mean you should abandon customer service conversations on social networks. There is a place for those, too. However, consumers are more likely to be looking for and participating in conversations about pricing and discount offers. Again, prioritize your time for maximum results.

What do you think? Leave a comment and share your thoughts.

Image: st0ck.xchng

The New Big Beast Of CSR Reporting?

Whenever a journalist describes anything as a “big beast” I always instinctively think of the leading UK politician, Ken Clarke (pictured).

Don’t ask me why .. I guess he’s managed that rare thing of an almost completely successful political career and it’s difficult to think of a political beast with bigger Hush Puppies and more cigars than he.

Which is kind of how the CSR reporting community tend to regard GRI these days.  It is the de facto standard for reporting and if you don’t do GRI you’re generally regarded as somehow second best.

However I recently found myself on the website of the Federation of European Accountants (it’s an exciting life I lead) and from there a quick hop, skip and jump brought me to the “KPIs for ESG” document published last September by the German Society of Investment Professionals (DVFA). (ESG: environmental, social and governance).

At which point my jaw hit the ground .. here was something which could really rival GRI’s dominance.

Actually this is ESG, not CSR

The first thing to make clear is that these are KPIs for ESG, whereas GRI is generally skewed more towards the CSR side of reporting.  You can argue the difference between the two and still never get a satisfactory answer.  They are nevertheless different facets of the same diamond .. unsustainable and unethical behaviour looked at from different points of view.

The second is that ESG is generally a lot tighter and less woolly than CSR.  This is because its perspective is that of investors, and they tend to be a pretty no nonsense bunch who can easily see through the flimflam which can make up a large proportion of many CSR reports.

For instance, although KPIs for ESG has no overarching general reporting framework it makes certain general points precisely and without ambiguity.  These include:

  • companies should use integrated reporting; ie. include ESG KPIs within their annual reports
  • data should be continuous; ie. there should be no material or time gaps and data should always be kept up to date (e.g. on websites)
  • data should be published through annual reports, on websites and as a normal part of analyst publications
  • supporting reference data should also be published which includes financial, numerical and industry benchmark figures.

Thanks to the causes of the current recession investors have lost their appetite for complicated and opaque financial returns: it is appropriate that a high level of transparency is woven into any form of ESG reporting guidelines.

KPIs for EGS : Oil & Gas, Pipeline

Sectoral KPIs

Where KPIs for ESG really comes into its own is in its sectoral measurements.  These are a list of indicators which companies can report against according to their sector, based upon the Dow Jones categorisation of 114 industry subsectors (the same classification Corporate Eye uses).

For example, the Oil & Gas group has KPIs for exploration & production, integrated oil & gas operations, equipment & services, pipelines, renewable energy, and alternative fuels.  In total this spans 149 KPIs ranging from political donations (mid-level); cost of oil spill remediation and fines (high level), and fines and lawsuits on anti competitive behaviour (entry level).

For the record, the other groups covered are: Basic Materials, Industrials, Consumer Goods, Health Care, Consumer Services, Telecommunications, Utilities, Financials, and Technology.

Not competition, collaboration

I’m tempted to say that there’s not a lot more that most businesses could need as a set of KPIs to report against.  Certainly, the indicators seem to be well thought out and fit the businesses they’re aimed at very well.

What really puzzles me, though, is GRI and their continuing work on sector supplements.  Surely here is a great springboard for them to use?  So instead of being big beasts all hunting separately in the jungle of sustainability, these organisations ought to get together and work it out between them.

In fact, this is already happening behind the scenes and there is a lot of momentum now growing for a universal set of CSR/ESG reporting KPIs.  I’m just amazed that these haven’t been given any greater publicity .. does anyone know why?

Picture Credit: shadow business secretary Kenneth Clarke by Underclass Rising under Creative Commons Attribution Share Alike License.

Research Shows Lifecycle Email Campaigns Work

New research from StrongMail (as reported by eMarketer) provides proof that automated lifecycle email campaigns really do work. Currently, 46% of companies around the world use lifecycle email marketing. Does your brand?

In case the term “lifecycle email campaign” is new to you, let me explain. These are the email messages that consumers automatically receive from a company after they submit an inquiry, make a purchase, or perform another action. For example, if you’ve ever registered a technical product online, you may have received a series of automated messages afterwards welcoming you as a customer, offering other products, and so on. Those automated messages are intended to keep the brand in the consumer’s mind and generate brand loyalty and additional sales.

StrongMail’s research provides the following breakdown of how companies are currently using lifecycle email campaigns:

  • Welcome program = 76%
  • Post-purchase program such as product reviews, customer service survey, etc. = 45%
  • Cross-sell or up-sell program = 44%
  • Win back program = 33%
  • Website action program (browsed items, visits, etc.) = 28%
  • Cart abandonment program = 24%
  • Event countdown program (message series leading up to an event) = 24%
  • Price-drop alerts = 9%
  • In-stock notifications = 6%
  • Other = 9%
  • Don’t know = 2%

Of the surveyed companies, 57% claimed that automating lifecycle email campaigns increases open rates, clicks, purchases, and registrations, and 3 out of 4 companies believed that automated email campaigns perform better than email blasts and other outbound marketing initiatives.

Specifically, respondents reported that automated lifecycle email campaigns improve the overall customer experience which leads to better brand perception and loyalty. 67% claimed these programs increase subscriber engagement and 54% believe they increase customer satisfaction and retention. 46% of companies cite increased revenue, and 45% cite higher ROI from automated lifecycle email campaigns.

If you ever wondered if automated email campaigns work, let this survey provide your answer. There is no doubt that these campaigns can drive positive results for brands. However, the emails must be useful and meaningful to recipients and the timing has to be right. This is about real-time (or as close to real-time as possible) engagement with customers based on actions they performed. Sending irrelevant information or delayed information won’t help customers or your brand.

What do you think? Are you using lifecycle email campaigns to market your brand? Leave a comment and share your thoughts.

Image: stock.xchng