Internet Marketing Weekly News Update #002 July 1, 2009

Online marketing taking share from traditional advertising at a slow and steady pace.
Online marketing budgets as a share of total advertising spending have been growing at a pace of just over 1 percent per year, a trend which is projected to continue. This growth of share is a function of both increases in online marketing budgets and decreases in budgets for traditional advertising.

Slowing growth rates mask the underlying health of online retail.
eMarketer projects that US online retail sales, excluding travel, will decline by 0.4 percent this year. This is due to the recession, and because the large growth rates for online sales are tougher to sustain now that the base of those sales is larger. However, an increasing Internet audience and increasing online sales penetration bode well for continued long-term growth.

Cross-channel marketing enjoying widespread acceptance.
Coordinated campaigns across multiple media channels (principally TV, online, and mobile) is seeing widespread acceptance and application. One survey showed that 85 percent of marketers saw the value in cross-channel marketing, and 67 percent had such campaigns up and running currently. All of this despite the fact that metrics for measuring effectiveness remain elusive.

Amazon pays Toys-R-Us $51 million to settle suit over breach of exclusivity.
Amazon has agreed to pay Toys-R-Us $51 million to end five years of litigation over a breach of an August, 2000 agreement which created a co-branded online toy retailer in exchange for a degree of exclusivity for Toys-R-Us with respect to toys sold online via Amazon. Amazon subsequently greatly expanded its sales of new and used toys from a variety of retailers.

Some online grocers have found a business model that works.
Grocery shopping has been slow to catch fire online, but some online grocers have found business models that work. Part of their success is due to general conditions, such as rising gasoline prices and increased user comfort with online shopping, but it also seems to help to have a specialized niche.

Dell turns social marketing buzz into bucks via Twitter.
Amid all the anecdotal discussion of social marketing strategies, Dell is among the first to offer tangible evidence that they can succeed. The computer company attributes $3 million in sales to its use of Twitter for offering coupons and making special product announcements, and the pace of these sales is accelerating.
The New York Times

Internet news sources gain prominence, though the economic model doesn't rival what it is replacing.
According to a recent survey, the Internet has surpassed newspapers as a source of news, and is gaining on television. Usage of the Internet as a news source has turned sharply upward since 2007, while reliance on television and print news has declined since then. However, online ad revenue has yet to replace lost newspaper ad revenue.
The Economist

LinkedIn president Jeff Weiner has been named CEO of the company.
Weiner joined LinkedIn from Yahoo! in January. LinkedIn founder Reid Hoffman had been acting as interim CEO since December. LinkedIn has 42 million members and is shooting for a second straight year of profitability. It augments ad sales with premium subscriptions and corporate services.

Wall Street Journal publisher expresses frustration at Google, hints at action.
Les Hinton, chief executive of WSJ publisher Dow Jones, called Google a "digital vampire" at a recent media conference. Apparently, the publisher of the long-time champion of free markets doesn't like what Google is doing to its markets, and plans a venture to help online publishers profit from their content.
Crains New York

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