Internet Strategy: Seven Pitfalls

By Nicola de la Salle

With advertising available across all the major portals such as AOL, MSN and Yahoo, the Internet has a similar reach to television in terms of numbers of viewers. But while great sales and marketing opportunities exist, preconceptions and myths about the Internet still linger, leading many companies to fall prey to its pitfalls. Following are seven of Internet marketing's most pervasive pitfalls.

FAILING TO ADOPT A MULTICHANNEL APPROACH
There is no doubt that the Internet is a powerful tool and has become of major significance and importance to all companies. The Internet provides lower advertising and maintenance costs and the opportunity to gather important marketing information on the consumer. It is, however, difficult to make this an exclusive tool to promote or sell products or services. Why? Because--as we've seen offline, as well--the most successful companies online have been those who adopt a multichannel approach. The name of the company and its products need to be seen and heard by consumers while they're out there conducting their everyday business, and each consumer has his or her individual preference as to how they wish to make a purchase, e.g., via telephone, retail store, Internet or catalog. Each channel of distribution supports the next and can only add merit and strength to the overall marketing effort.

There is no reason why the Internet can't represent a huge part of a company's sales. It can, without a doubt, be effectively utilized by almost any industry and for almost any purpose or tactic, as long as it is used as part of a wider marketing strategy.

FAILING TO IDENTIFY AND MEET CONSUMERS' NEEDS
A successful web campaign needs to benefit not just the company, but the consumer, too. The lower cost of both Internet advertising and transactions can bring greater profits but only if the advertising and website propositions are presented in a consumer-friendly way.

Distinguishing sites that should strictly provide information (e.g., corporate investor sites) from those that need to sell a product or perform as a value-added information source is very important. As with any other form of marketing, one needs to know the audience and purpose, and then design the marketing around these fundamentals.

The Internet presents an unforgiving audience which is accustomed to accessing information at a touch of a button. This leaves marketers only a small window of opportunity to showcase a limited amount of information and position it in a way that is easy to navigate.

Many sites have failed to create the desired brand experience. They have opted to re-create a brochure or catalog online thinking that the Internet audience will patiently scroll through endless screens of information. Without the strength and familiarity of a large brand, these types of sites usually fail.

TOO MUCH INFORMATION
Many companies overload the consumer with too much information, whether it is a corporate site trying to sell its services or a consumer site selling its wares. Either way, the best advice is to keep it short and simple. The Internet is an "instant" medium whereby consumers can receive whatever they need at the touch of a button and if they can't see what they need immediately, they are likely to abandon the site. Take television as an example: we don't often see advertisements selling multiple products or services. Most focus on a single item or service and some of the leading retail websites have followed a similar path.

The Internet allows us to target specific groups of people and then drive these groups to the specific website of interest where they are most likely to make a purchase.

THE "PROMISE" OF VIRAL MARKETING
There have been a number of extremely successful and very high-profile viral marketing campaigns, such as that of the last year's hit movie Borat. The opportunity to reach a mass audience via the Internet using viral marketing tactics seems effortless. The reality is that more Internet campaigns of this nature fail than succeed.

However, if used as a tool in the marketing arsenal alongside other forms of advertising such as television and paid Internet media, driving consumers to a website where they are able to share an ad can increase the chances of success.

FAILING TO USE KEY DATES TO PROMOTE ITEMS
Key dates such as holidays and popular celebrations can help to increase your marketing activity and sales. Using targeted promotions around holidays such as Valentine's Day or Christmas will also help to drive affiliates and raise natural search rankings as consumers prepare for these dates.

LETTING THE CAMPAIGN GO STALE
Just as with any other form of media, keep your online campaigns current--all marketing needs to keep up with the times and the Internet is no exception. In fact, the Internet is expected to be on the cutting edge. News, fashion, trends and current affairs all impact every form of marketing and efforts on the Internet should reflect this.

FAILING TO TRACK YOUR CAMPAIGN
The Internet is one of the most trackable forms of media, and yet so many businesses treat this as an afterthought. Not only does it provide important marketing information on consumer habits, but it also allows us to make profit calculations and assess a campaign's success rate. If you spend $10 per sale on affiliate marketing and make $30, a $20 profit is yours for the taking. Of course, companies must add their other costs (e.g., shipping costs, manufacturing costs, etc.) into this equation.

Leveraged correctly, the Internet can be, without a doubt, a marketing machine. But as with any machine, the care instructions need to be followed to maintain optimum performance. Fueled by the multichannel marketing campaign, the Internet can represent a significant portion of the brand and its revenue.

Nicola de la Salle is vice president of West Coast operations at Livemercial. She can be reached at (949) 306-9449, or via e-mail at ndelasalle@livemercial.com.