internet commerce and how we got here (mcgill)

What is in it for

Friday, November 20, 2009

YOUWhat is in it for

Launched in August 1999

By FOUR ordained Rabbis

Launched in August 1999

# 1 In traffic in the online jewelry category

Unique visitors

1.3 Million

No. of registered customers

1.6 Million

Acquired Diamond.com in 2006

What we have learnt over time…

iConsumer

Individual

Group Production Group Consumption

Concept

• Learn how to cooperate and work together

• Had to trust each other

• Hunter-gatherers

• Didn’t see the bigger picture, lived in the now, immediate gratification

• Today’s consumer – overnight shipping, want it now, immediate gratification – order online get it before 9am

NB – Dark Ages Pinny Cave man

Concept

• Learn how to cooperate and work together

• Had to trust each other

• Hunter-gatherers

• Didn’t see the bigger picture, lived in the now, immediate gratification

• Today’s consumer – overnight shipping, want it now, immediate gratification – order online get it before 9am

NB – Dark Ages Pinny Cave man

Caveman

Team Work

Barter

ConversaJon

Team Work

Barter

ConversaJon

The Age of Merchants

Commerce

InnovaJon Agriculture

Team Work ConversaJon

Barter 8

Commerce

Team Work ConversaJon

Barter 8

The Age of Knowledge

What do think this is?

EducaJonTransparency

Mass Commerce

Team Work

Barter

ConversaJon

EducaJonTransparency

Mass Commerce

Team Work

Barter

ConversaJon

What happened on December 16th 1773?

Boston Tea Party

Boston tea party

Freedom Equality

Freedom

Flash Mob

Gold Rush

Industrial revolution

60’s

What are 40% of people doing while watching TV?

A) Eating popcornB) Surfing channels

C) Watching Sex in the CityD) Sleeping

What other activities, if any, do you regularly do while watching TV?

Yahoo! Global Market Research Study, 2006.

Engaging the Consumer in a Multi-Channel World

1 2 3 4 5 6 7

37%40%43%

35%36%36%40%43%

Total 18-34

EatWeb

SurfingPhone Read

House cleaning

Sleep Cook

What other activities, if any, do you regularly do while watching TV?

Yahoo! Global Market Research Study, 2006.

Engaging the Consumer in a Multi-Channel World

1 2 3 4 5 6 7

37%40%43%

35%36%36%40%43%

Total 18-34

EatWeb

SurfingPhone Read

House cleaning

Sleep Cook

Over 1000 TV channels

FreedomFriday, November 20, 2009

Freedom

?Friday, November 20, 2009

Educated

Transparency

Experience

Innova-ve

Simplicity

The moment of Realization

Banana theory

Bait and switch

Target

strategyDirect hit

Mission statement

Call to acJonBait and switch

Champion Decoy

Brand Hell

Quality Products

5.3 million views

Nothing personal...

...It’s business!

New Kind Leadership

the new boss

video of the conductor or pic of him

do our leaders have what it takes

(video of the file landing on the table FBI)

CEOPresident

change the rules

turn upside down everything

Where is all began

Internet

• Picture of web

1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005

1958US Government sets up ARPA

1961MIT paper on Packet Switches

1978First SPAM email sent

1980Tim Berners Lee father the NET

1990Al Gore coins the phrase "Super Highway"

1992AOL Launches

1995Amazon is created

2009New EventNew EventNew EventNew Event

2000 2005 2010

1996Yahoo rises %300

1998Google is founded

1999The term BLog was created

2000Dot com bust

2002Google changes CPC

2006Facebook is opened for all

2008Firefox 3.0 launches

• 1 computer per child

Daily break down

Newspapers

8% Magazines

Watching TV

Video or

DVDs 12%

Radio 19%

Internet* 17%

Where are they coming from

Age Breakdown

Gen Y (18-32)Gen X (33-44)Young boomers (45-54)Older Boomers (55-63)Silent Generation (64-72)Geasers (73+)

99% of online population search in a month

73% of online population stream a video

67% of online population visit a social networking site

191 million U.S. people age 2+ online in a month,

But 77% of 841 million

global Internet users now outside of U.S.

Arnel Pineda

HOW DOES THE NET DIFFER FROM OTHER CHANNELS

Availability Global ReachUniversal Standards

Interactivity Information Density

Personalization

Social Cost Reduction

Long Tail

Personalization

Long Tail

Personalization

Long Tail

Personalization

Long Tail

Personalization

Long Tail

Personalization

Long Tail

Personalization

Long Tail

Personalization

Long Tail

Personalization

Long Tail

Ecommerce numbers

• Online sales 253 Billion

• %70 of households are online

• 117 million have bought online

• B2B to reach 3.8 trillion

Corporate Site

Search SEO/SEM Email Comparison

Viral Marketing

Social Media

Online marketing toolkit

Affiliates

Search SEO/SEM Email Comparison

Viral Marketing

Social Media

Online marketing toolkit

Affiliates

internet commerce and how we got here (mcgill)

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