Zia Daniell Wigder2008-08-26T18:52:36Ztag:weblogs.jupiterresearch.com,2008:/analysts/wigder//43Movable TypeCopyright (c) 2008, Zia Daniell WigderOlympics site as bellwether of global online population2008-08-26T18:52:36Z2008-08-26T17:19:49Ztag:weblogs.jupiterresearch.com,2008:/analysts/wigder//43.101522008-08-26T17:19:49ZYesterday comScore published visitation figures for the official Olympics site Beijing2008.cn during the first 10 days of the event. Much was made of the international nature of the traffic, and indeed, the list of top visitors largely reflects the global distribution of today’s online users (with the obvious exception of...Zia Daniell Wigder
Yesterday comScore published visitation figures for the official Olympics site Beijing2008.cn during the first 10 days of the event. Much was made of the international nature of the traffic, and indeed, the list of top visitors largely reflects the global distribution of today’s online users (with the obvious exception of China overindexing on site traffic):
A handful of countries with substantial online populations are missing from the visitation list, however, notably Germany (4% of all global users), Russia (3%) and Brazil (3%). Much of this can be attributed to the lack of local-language content for these countries: the site only offered content in Mandarin, English, French, Spanish and Arabic. And as John Yunker pointed out in his blog, the last two languages were added only at the beginning of the Olympics - the last-minute nature of these additions may have resulted in fewer Spanish- and Arabic-speaking visitors to the site.
Overall, the traffic figures provide a good reminder of the global nature of today’s online population and emphasize the importance of local-language content in attracting users.
Early in the global learning curve2008-08-15T19:15:35Z2008-08-15T19:11:33Ztag:weblogs.jupiterresearch.com,2008:/analysts/wigder//43.101402008-08-15T19:11:33ZAs I’ve dived into research and interviews for both the global online video and online advertising campaigns reports, one overarching theme that’s emerged is how early companies are in the learning curve in both areas. To date, for example, very few companies are creating professional online video that transcends borders...Zia Daniell Wigder
As I’ve dived into research and interviews for both the global online video and online advertising campaigns reports, one overarching theme that’s emerged is how early companies are in the learning curve in both areas. To date, for example, very few companies are creating professional online video that transcends borders - some B2B companies being notable exceptions. Online video technology providers are beefing up their international offerings in anticipation of a coming wave of interest, yet few companies have taken them up on their promise to help localize and expand the audience for online videos.
Likewise, when it comes to global online advertising campaigns, it’s tempting during these Beijing-focused weeks to assume that advertisers have mastered the planning and execution of international campaigns. To the contrary, most online advertisers have focused on tackling one region of the world rather than a truly global campaign, and have taken cautious steps even in that one region. Language translation is widespread, but localization is not: online campaigns still tend to be based on a core idea developed centrally rather than one that can be easily adapted to take advantage of nuances in different international markets. And integration with offline campaigns remains a core challenge, especially when different channels are used in each market and success metrics can vary within the same channel.
While clearly some market leaders have bucked these trends, (as well as some smaller ones highlighted in the reports), creating global online campaigns remains far from a streamlined process. Our report will look at how advertisers and agencies have worked through the complex issues associated with global campaigns, and highlight some of the more innovative online campaigns that have emerged as a result. Stay tuned.
Innovative global online advertising campaigns2008-07-28T16:46:53Z2008-07-28T16:43:59Ztag:weblogs.jupiterresearch.com,2008:/analysts/wigder//43.100862008-07-28T16:43:59ZWe’re gearing up for a series of interviews with some of the leading advertisers, agencies and technology vendors helping to enable global online advertising campaigns. Our upcoming report on the topic will highlight best practices in creating effective cross-border campaigns. If you’re interested in sharing your innovative initiative(s) with us,...Zia Daniell Wigder
We’re gearing up for a series of interviews with some of the leading advertisers, agencies and technology vendors helping to enable global online advertising campaigns. Our upcoming report on the topic will highlight best practices in creating effective cross-border campaigns.
If you’re interested in sharing your innovative initiative(s) with us, we’d love to hear from you.
Deploying international online video2008-07-17T22:09:35Z2008-07-17T21:49:56Ztag:weblogs.jupiterresearch.com,2008:/analysts/wigder//43.100552008-07-17T21:49:56ZOne of our reports this summer will look at how companies are deploying online video outside of the US. Having spoken with several companies helping to enable online video on international sites, it’s clear there’s a great deal of interest in deploying video in international markets, but still limited action...Zia Daniell Wigder
One of our reports this summer will look at how companies are deploying online video outside of the US. Having spoken with several companies helping to enable online video on international sites, it’s clear there’s a great deal of interest in deploying video in international markets, but still limited action to date.
Today’s international online advertising revenues for US sites remain nowhere near international traffic levels (last week an article in the WSJ claimed a 5%-50+% ratio for many US sites), yet companies are still counting on growing global advertising spending to boost their long-term revenues. Video is increasingly a part of the new content being integrated into new international offerings, albeit at a tempered pace.
Today’s launch of Glam Media in Germany exemplifies this trend. According to the press release,
“The site will feature original stories, photos and videos as well as content from German publishers”
Currently, however, just two videos from Elle appear on the site (the US version offers almost 5,500 in total). More video content will certainly be added over time, and Glam is taking the right approach in adding local partners rather than trying to create all of its own content or localize existing content for the German market. Such a strategy allows them to build a library of content while developing their own offerings and potentially localizing existing video content.
Indeed, the creation of new localized online video for markets outside of the US - and the localization of existing online video assets for non-US markets - is a strategy that many companies are just starting to pursue, but one that US publishers will increasingly embrace as part of their global expansion.
When US online advertisers go international2008-07-08T19:53:05Z2008-07-08T19:34:50Ztag:weblogs.jupiterresearch.com,2008:/analysts/wigder//43.100222008-07-08T19:34:50ZThere’s been much discussion over the past couple of weeks about global online ad markets following ZenithOptimedia’s assertion that in 2008, over 10 percent of all global ad dollars will be allocated online. Having recently surveyed US advertisers about their international campaigns – and gearing up for a report this...Zia Daniell Wigder
There’s been much discussion over the past couple of weeks about global online ad markets following ZenithOptimedia’s assertion that in 2008, over 10 percent of all global ad dollars will be allocated online. Having recently surveyed US advertisers about their international campaigns – and gearing up for a report this summer on global online marketing campaigns – I was curious to see how US advertisers’ priorities stacked up against different global online ad markets.
Indeed, as with online retailers, the assumption tends to be that US online advertisers are operating in the largest global online markets, whereas in fact they’re most likely to be in the English-speaking ones first and then other European markets subsequently (see my previous post on online retailers’ global expansion).
The following is a ranking of key international markets in which US advertisers are marketing products or services online, as measured in our Advertiser Executive Survey last month:
1. Canada
2. UK
3. France
4. Germany
5. Japan
6. China
By contrast, a comparable list of the largest global online advertising markets has Japan and Canada roughly switched: outside of the US, estimates of the online ad market tend to put Japan at #1 or #2 alongside the UK. Canada, by contrast, falls further down the list after Germany and France, closer to estimates for China.
It is not surprising that the list of top international markets for US online advertisers maps to the markets in which US online retailers are operating, it simply reinforces the fact that Canada factors in with US companies well above its market size as a result of its common language, geographic proximity and existing trade relations with the US.
As the balance of global users shifts to Asia and an increasing number of both online content and commerce providers tap into the growing Asian marketplace, look to see the percentage of US companies advertising online in the region increasing. For now, however, it’s most likely that a US company touting its international online ad campaigns is operating north of the border.
Global payments2008-06-27T15:28:11Z2008-06-27T15:24:07Ztag:weblogs.jupiterresearch.com,2008:/analysts/wigder//43.99882008-06-27T15:24:07ZI’ve been working with my colleague Ed Kountz on a global payments report – we’ve just finished up a webtrack that looks at the different payment online methods offered by both global and local retailers in Europe and Asia. Not surprisingly, local companies and the most forward-thinking global players tend...Zia Daniell Wigder
I’ve been working with my colleague Ed Kountz on a global payments report – we’ve just finished up a webtrack that looks at the different payment online methods offered by both global and local retailers in Europe and Asia. Not surprisingly, local companies and the most forward-thinking global players tend to have the most localized payment options, while others offer just one or two options.
What’s also interesting is the continuing discrepancy in preferred payment methods by country and reliance on traditional channels despite growing credit and debit card penetration and e-payment adoption. While some payment preferences such as checks are losing traction in several European countries, in others they remain a popular form of payment. Preferences for bank/credit transfers, too, continue to vary greatly by country.
More on global credit card penetration and preferred online payment methods in the upcoming report.
New survey data on global expansion2008-06-19T20:33:43Z2008-06-19T20:25:06Ztag:weblogs.jupiterresearch.com,2008:/analysts/wigder//43.99722008-06-19T20:25:06ZWe’ve just received the results of two executive surveys with new data on international expansion by US companies. The first survey asks US website decision makers about their global efforts: their use of vendors, staffing models, online spending outside of the US, etc. The second survey includes data on how...Zia Daniell Wigder
We’ve just received the results of two executive surveys with new data on international expansion by US companies. The first survey asks US website decision makers about their global efforts: their use of vendors, staffing models, online spending outside of the US, etc. The second survey includes data on how advertisers and agencies are conducting online campaigns outside of the US.
We’ll be using this information in several upcoming reports, but a few preliminary findings:
- Website spending on non-US properties has increased significantly.
- Centralized staffing models remain the most popular for US companies operating international sites.
- US-based advertisers are most likely to conduct online campaigns in other English-speaking markets (eg Canada, UK); Japan is almost as popular a market for online campaigns as is Germany.
- Campaign goals vary greatly, but a large percentage aim to drive consumers back to US websites to consume content or to conduct online transactions.
Stay tuned this summer for more insight into - and details on - US companies expanding into international markets.
Takeaways from the translation industry2008-06-13T17:23:30Z2008-06-13T17:17:58Ztag:weblogs.jupiterresearch.com,2008:/analysts/wigder//43.99532008-06-13T17:17:58ZJust back from Localization World Berlin where I presented on global social media, focusing on the localization of different types of user-generated content including social networks, blogs and consumer reviews. The conference attracts a large number of language service providers (LSPs), as well as those more broadly involved in the...Zia Daniell Wigder
Just back from Localization World Berlin where I presented on global social media, focusing on the localization of different types of user-generated content including social networks, blogs and consumer reviews. The conference attracts a large number of language service providers (LSPs), as well as those more broadly involved in the translation and localization industry. It’s quite a different event than those we usually attend, since much of the industry has traditionally focused on areas such as the translation and localization of software and documentation for technology products.
There’s growing interest in the consumer online space, however, particularly as sectors such as online retail increasingly look to international markets for expansion. At this event, social media was a clear favorite topic among presenters, both LSPs and others. Indeed, the issue of crowdsourcing – the translation model being deployed by social networks such as Facebook and Hi5 – continues to be a key topic, particularly when it comes to user-generated content. And developments in machine translation (MT) still featured prominently: AsiaOnline, for example, is applying MT to “bring the world's content to non-English language speakers in Asia”.
A final area of great interest to the LSPs right now is international search. With many companies simply translating their sites rather than optimizing based on keywords used in international markets, LSPs are viewing international SEO as a core growth area over the next few years.
Themes in Hispanic social media2008-06-04T20:34:01Z2008-06-04T20:09:51Ztag:weblogs.jupiterresearch.com,2008:/analysts/wigder//43.99042008-06-04T20:09:51ZI spent the day yesterday at ad:tech Miami, an event focused on the US Hispanic and Latin American marketplace. Very strong turnout, especially given it was only the second time they’d held this event. During the afternoon, I moderated a panel on Hispanic social media with Jose Rivera-Font from Yahoo!...Zia Daniell Wigder
I spent the day yesterday at ad:tech Miami, an event focused on the US Hispanic and Latin American marketplace. Very strong turnout, especially given it was only the second time they’d held this event.
During the afternoon, I moderated a panel on Hispanic social media with Jose Rivera-Font from Yahoo! Hispanic Americas, Rick Marroquin from Batanga and Lee Vann of the Captura Group. Great panelists and lots of good conversation with the audience.
A few takeaways from the panel:
Hispanics overindex in almost all categories of UGC, but especially social networking. Hispanics remain highly committed to social networks, whether general social networks (MySpace remains the leader among Hispanics in the US) or those with a Hispanic focus such as Batanga. Young US Hispanics are especially tied to social networks: almost one-half of Hispanic online teens in the US visit one or more sites daily. US Hispanics also overindex when it comes to podcasts, both audio and video.
Music content is especially essential. Both Yahoo! and Batanga cited their music offerings as core areas of focus within the Hispanic market. While MySpace has also carved out a niche for itself in the music category, their 8 million+ artists and bands means Hispanic users must weed through a lot of content to find Latin music.
Targeting remains key. Effective targeting will remain essential to monetizing user-generated content. Yahoo! pointed to their acquisition of BlueLithium last year as one example of their strong targeting capabilities, and said sophisticated targeting would be core to selling social media to advertisers.
No template exists for a successful social media campaign. Since the success stories on social media sites have varied greatly and been limited overall, it’s hard to point to any rigid set of guidelines for building a successful campaign. Marketers have devoted relatively limited funds to social media campaigns to date, and should continue to experiment at this stage.
Users won’t give out information without receiving something valuable in exchange. In discussing Facebook’s difficulties with Beacon, it was pointed out that users had received nothing in exchange for information on their purchases being publicized on the social network. One panelist felt that consumers would only give up personal information if incentivized, and Beacon hadn’t provided enough upside for consumers.
Localization is important on a selective basis. Although localization remains a mantra for targeting the US Hispanic market, localization does not mean creating entirely new offerings for this market. Companies must feature content that speaks to this audience, but should also realize that much of their site framework and core value proposition need not change as they roll out offerings for the Hispanic audience.
Finally, although most of the event dealt with the Hispanic marketplace, there were a couple of interesting points on social media in Brazil from a separate session held during the morning:
Blog advertising is virtually non-existent. There are very few professional blogs in Brazil, and almost no blog advertising. This differs greatly from social networks, which have gained great traction in the country.
Facebook is for adults. Although Orkut is responsible the lion’s share of social networking traffic in Brazil (43% of Orkut’s global traffic comes from Brazil), Facebook has begun to make inroads. However, unlike Orkut, which has done very well among young users, Facebook has become most popular among the adult population.
SMS and machine translation2008-05-30T16:25:53Z2008-05-30T15:53:34Ztag:weblogs.jupiterresearch.com,2008:/analysts/wigder//43.98892008-05-30T15:53:34ZOne start-up in the translation space that’s come up in conversation a couple of times recently is CelloTrip, an Israeli-based company that’s providing machine translation (MT) of text messages. Currently available in English, Spanish, French, Russian, Hebrew and Arabic, CelloTrip does not aim to provide comprehensive translations, but rather specializes...Zia Daniell Wigder
One start-up in the translation space that’s come up in conversation a couple of times recently is CelloTrip, an Israeli-based company that’s providing machine translation (MT) of text messages. Currently available in English, Spanish, French, Russian, Hebrew and Arabic, CelloTrip does not aim to provide comprehensive translations, but rather specializes in short sentences and the language used for SMS. Longer-term plans include tapping into voice translation and the traditional instant messaging arena.
The company’s initiatives are noteworthy less in that they’re targeting the mobile platform - several MT offerings are already available via mobile devices - and more because they’re attempting to tackle colloquial language, traditionally an area in which machine translation does not perform well.
CelloTrip faces competition from larger MT companies with established offerings, as well as a handful of niche companies such as Transclick with a similar focus. Transclick requires a $5 monthly subscription but currently offers its service in 16 languages; by contrast, CelloTrip offers fewer languages but bundles in a targeting platform to enable ads to be delivered based on keywords translated.
The topic of instant messaging translation garnered much attention and excitement several years ago, but hasn’t yet caught on as a mainstream application. However, with both mobile and machine translation being areas of great focus for companies this year – Google, for example, added 10 new languages to Google Translate this month and offers its translation services via SMS – expect to see a renewed focus on translation in the mobile messaging arena.
Trends in international licensing2008-05-20T20:41:30Z2008-05-20T20:27:19Ztag:weblogs.jupiterresearch.com,2008:/analysts/wigder//43.98462008-05-20T20:27:19ZThis morning I attended a panel on global licensing in advance of Licensing International Expo here in New York. The panel consisted of executives engaged in licensing, global licensing agencies and representatives from industry organizations. A handful of figures on the industry, courtesy of the show: The global licensing market...Zia Daniell Wigder
This morning I attended a panel on global licensing in advance of Licensing International Expo here in New York. The panel consisted of executives engaged in licensing, global licensing agencies and representatives from industry organizations.
A handful of figures on the industry, courtesy of the show: The global licensing market is set to surpass $200 billion dollars this year, with the top markets consisting of the US ($108 billion), UK ($17.2 billion), Germany ($12.7 billion), Japan ($11 billion) and France ($7.7 billion). Character licensing remains one of the largest categories at $2.7 billion in retail sales worldwide.
Some takeaways from the panel:
- Interest in licensing mobile applications is growing rapidly. World Poker Tour, for example, has a TV presence in more than 100 markets; the mobile game application is available in over 50. Mobile remains an enormous growth area for them, particularly in developing markets where mobile penetration far outpaces PC or Internet penetration.
- While brands may be licensed in multiple countries, localization of licensed goods remains critical. With Jeep, the South African market proved a strong match for Jeep’s outdoorsy, rugged image. In China, by contrast, Jeep focused more on developing products such as polo shirts that connoted an upscale, clubbier image.
- India’s logistical infrastructure has improved drastically over the past five years, and as a result is becoming a much more compelling licensing market. However, with 12 million retail outlets in India - and 95% of those estimated to be mom-and-pop organizations - the highly fragmented retail market remains a challenge. Some companies are localizing their products by language or region to try and compete, but most still have a nationwide offering. Sesame Workshop, a highly advanced organization when it comes localizing global offerings (there are 20 co-produced Sesame Streets in more than 120 countries), provides uniform content throughout the country but has localized for different Indian languages.
- Although there’s been much focus on the youth market in developing economies, companies are more often targeting the older demographic given the greater disposable income among adults.
Global Online Retail report posted2008-05-14T16:59:43Z2008-05-14T16:46:33Ztag:weblogs.jupiterresearch.com,2008:/analysts/wigder//43.98302008-05-14T16:46:33ZWe've just published our report on Global Online Retail. Many thanks to the dozens of online retailers, e-commerce platform vendors, logistics providers, payments enablers and customer service providers that provided input for the report. For those of you reading the report, I welcome your thoughts and feedback....Zia Daniell Wigder
We've just published our report on Global Online Retail. Many thanks to the dozens of online retailers, e-commerce platform vendors, logistics providers, payments enablers and customer service providers that provided input for the report.
For those of you reading the report, I welcome your thoughts and feedback.
Best Buy stresses localization and cautious expansion2008-05-13T20:49:32Z2008-05-13T20:45:48Ztag:weblogs.jupiterresearch.com,2008:/analysts/wigder//43.98242008-05-13T20:45:48ZAn article in the Financial Times today discusses Best Buy’s international expansion: the company recently announced a retail joint venture in Europe with Carphone Warehouse that brings them into nine different European countries. Best Buy will also open its own stores in Europe, as well as in Turkey and Mexico...Zia Daniell Wigder
An article in the Financial Times today discusses Best Buy’s international expansion: the company recently announced a retail joint venture in Europe with Carphone Warehouse that brings them into nine different European countries. Best Buy will also open its own stores in Europe, as well as in Turkey and Mexico (adding to its presence in China and Canada).
The company has been a strong proponent of launching its own Best Buy-branded stores while simultaneously engaging in joint ventures or acquisitions run by local managers, thereby gaining local expertise that can help in the development of successful offerings. Indeed, CEO Brad Anderson stresses the need to move cautiously and to get the strategy right before scaling, as he describes the company as “extraordinarily concerned” about the dangers of moving too quickly with global rollouts.
Best Buy will follow its current international expansion with an e-commerce offering, allowing the company to tap into markets where no physical stores exist. Indeed, for retailers such as Best Buy that have substantial physical presence in multiple markets, an e-commerce offering is a logical next step, as purchases made online can generally leverage the company’s existing fulfillment and customer service infrastructure.
Other retailers should carefully watch Best Buy’s global expansion as the US retail giant tries to nail international markets with a thoughtful strategy that takes advantage of local expertise rather than simply relying on skills obtained domestically.
Maintaining an advantage in global customer care2008-05-09T15:12:42Z2008-05-09T15:01:12Ztag:weblogs.jupiterresearch.com,2008:/analysts/wigder//43.98122008-05-09T15:01:12ZOur global online retail report, which will be published next week, ended up so long that we decided to spin off a couple of topics into separate reports. One of these topics is global customer care. Many US-based companies look at the global landscape and balk at having to support...Zia Daniell Wigder
Our global online retail report, which will be published next week, ended up so long that we decided to spin off a couple of topics into separate reports. One of these topics is global customer care. Many US-based companies look at the global landscape and balk at having to support multiple customer service channels in multiple languages. As a result, both support channels and languages are often sacrificed outside of the US to try and keep costs in check.
A handful of companies are getting creative to maintain multi-language support. In a conversation with eGain’s CEO Ashu Roy earlier this week, for example, he indicated that some multi-channel merchants in international markets have turned to their local employees to assist with customer service requests. These employees are obviously well versed in the local language, as well as aware of local customer preferences and resources. As companies expand into markets where there may be multiple languages or dialects spoken, not all of which are supported through traditional customer care channels, such a strategy can help fill in the gaps.
Indeed, while there are certainly areas where companies can contain costs in international markets (and the report will help identify these areas), companies must ensure they don’t miss out on an opportunity to differentiate based on customer care. US-based companies are often taken to task for their missteps in global markets; by contrast, there is often a perception that these companies provide superior customer care. In our report, we outline how US companies can take advantage of their expertise in customer service, and identify which tools and options can help them build a leadership position in customer care outside of the US.
Keeping up with localization2008-05-02T15:28:26Z2008-05-02T15:17:31Ztag:weblogs.jupiterresearch.com,2008:/analysts/wigder//43.97892008-05-02T15:17:31ZIn the past couple of months, the topic of localization seems to have been everywhere. In March, both McKinsey and BCG tackled this issue in their publications: The McKinsey Quarterly addressed the central-local debate in global staffing in The multilocal challenge: Managing cross-border functions while the Boston Consulting Group issued...Zia Daniell Wigder
In the past couple of months, the topic of localization seems to have been everywhere. In March, both McKinsey and BCG tackled this issue in their publications: The McKinsey Quarterly addressed the central-local debate in global staffing in The multilocal challenge: Managing cross-border functions while the Boston Consulting Group issued a report on The BCG 50 Local Dynamos which looks at how nimble local companies in emerging markets have staved off competition from multinational corporations.
Daily publications, too, are addressing this issue in great number. In the past few days alone, the UK-based Times Online published an article citing Club Penguin’s localization strategy while The Wall Street Journal’s Marketplace section featured a front-page look at Kraft’s localization of Oreos for the Chinese market (the story was subsequently picked up as a feature on Yahoo!). CNET covered the launch of a new localized Twitter Japan.
Asian-based publications are also eagerly following localization: ChinaDaily, for example, published a story yesterday on the successful localization strategies of Chinese appliance manufacturer Haier. In India, The Economic Times recently covered the trend of retailers localizing by region within India rather than trying to create products with nationwide appeal.
Localization is a topic that’s only becoming more important to global companies; don’t expect coverage to wane any time in the near future.