The NetPlus chief strategy officer talks about how search plays a crucial role in direct sales, what to watch for in 2006 and more.

When I recently moved, my favorite black skirt somehow lost its way. It was perfect: the perfect length, perfect fit and perfect black suede. It was also more then three years old and not a very popular brand, so it was not easily replaceable. After scouring through everything, suitcases, boxes and bags, I decided that it was in fact missing forever. As difficult as it might be I started on a mission to replace it. So off I went in search of my favorite black skirt -- first stop, Google.

As a generally accepted marketing theory, consumers typically follow a buying process that flows through such stages as problem recognition or awareness (I need to find my favorite black skirt!), information research, browsing, shopping, consideration and evaluation of alternatives (off to Google, Nordstrom.com, Saks.com, shopbop.com, eBay) and then decision of where and how to purchase.

Online marketing plays a strong role in this direct sales process, particularly in the research, consideration and evaluation phases. Search engines are often the first place consumers go to research a purchase. Hitwise in November 2005, reported that the 10 leading comparison shopping sites visited after Google.com comprised 11.3 percent of total shopping and classified visits for the week.

Brand recognition or awareness also plays a key role in the shopping and buying cycle. While consumers may often start with a search engine, retail chains or ecommerce stores that have high name recognition online capture a notable market percentage during the research, consideration and evaluation phases. These sites also tend to rank very high in Majestic Research’s listing of sites that attract shoppers who type the retailer’s URL directly into their browsers, rather than coming through search engines or affiliate programs.

Here is Majestic Research’s Top 20 websites during the recent 2005 holiday shopping period and the percent of customers who came by inputting the URL into their browsers:

1. Amazon, 86%
2. eBay, 86%
3. Victoria’s Secret, 82%
4. Target, 79%
5. Wal-Mart, 76%
6. Overstock, 71%
7. Half.com (eBay), 70%
8. The Home Depot, 70%
9. Kohl’s, 68%
10. Best Buy, 68%
11. Bath & Body Works, 66%
12. Sears, 65%
13. Circuit City, 64%
14. Kmart, 62%
15. Buy.com, 61%
16. Lowe’s, 60%
17. Old Navy, 57%
18. Bed, Bath & Beyond, 56%
19. J.C. Penney, 52%
20. Macy’s, 45%

While search clearly is an important part of an online sales program, online direct sales marketers -- such as cataloguers, retailers, internet stores, wholesalers, even individuals, anyone who has an ecommerce or online “retail” storefront -- have a number of new opportunities to sell their wares. There are a multitude of online advertising strategies and tactics to choose from.

A typical online direct sales effort from these business groups may include shopping aggregators, search engine advertising and optimization, affiliates and pay-per-performance vendors.

However, as competition increases and the market expands, expect more diversity and depth from direct marketers in their future programs. Rich media, sponsorships, banner ads, emerging platforms and other forms of online advertising and marketing are finding their way into online direct sales programs.

Online advertising and marketing formats, techniques, strategies and tactics beyond the more typical elements of an online direct sales program create opportunities for growth. Such growth means driving more incremental sales, generating more profits and ultimately gaining more from a direct-marketing sales campaign.

Ice.com, for example, took the plunge into more emerging platforms such as blogs. Initially launched as a customer service vehicle, Ice.com’s blogs had an unexpected benefit that increased their search engine rankings. Similarly, Auntie’s Beads expanded its use of paid search to build segmented customer lists. And in the same vein, NetPlus’ experience with behavioral targeting has proven extremely effective to drive consideration to closing the sale.

As the market matures, look for more innovation, advancement and integration from online sales direct marketers in 2006.

Here are some things to watch for and consider in 2006

• The advancement of mobile shopping.
• Further advancements in multi-channel marketing driven by increased abilities to track and measure across channels and platforms, as well as an increased focus on integrated, upfront planning.
• More customer-centric focused efforts.
• Enhanced and expanded programs to focus on driving incremental sales and overall profit, rather then limiting metrics to lowest cost per lead.
• More emphasis on increasing conversions, improving and optimizing results from campaigns at the site level.
• Increasing levels of sophistication and capabilities to track, analyze and understand customer behavior. 
• Expansion of efforts beyond search, affiliate marketing, pay for performance and other more typical ecommerce/online direct sales strategies and tactics.
• Increased applied importance on strategy and long-term planning.
• More testing of new platforms and vehicles such as click to call, blogs, mobile advertising, video and rich media.
• More efforts to build awareness and reach consumers earlier in the buying process.
• Expanded use of behavioral targeting.
• Expanded use of content and new emerging technologies.
• More campaigns and programs developed to reach, engage and motivate customers at multiple points in the shopping and buying cycle.
• Increased efforts in the area of search engine optimization.

So are you wondering if I ever found my skirt?

Yes, I did. Same brand, color, style, size -- the exact same skirt. Simply perfect.

I found it on eBay and bought it from a woman in Canada who goes by "Gorgeous Girl."

Denise Zimmerman is chief strategy officer and co-founder of NetPlus Marketing, a top 50 Interactive Agency based outside Philadelphia, Pennsylvania. Market leaders such as Charming Shoppes, Toll Brothers, Pharmavite (NatureMade) and Universal Studios to name a few, trust Zimmerman and the NetPlus team to provide value to their business. Zimmerman's vision, leadership, strategic insight, and experience have fueled the online success of many in more than a decade of practice. A passionate industry veteran, Zimmerman contributes to many of our industry's leading publications and organizations such as iMedia Connection, DMNews, eTail and others.