Sorry, Retailers–Cyber Monday’s Days Are Numbered

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From my Forbes.com blog The New Persuaders:

Not long after Cyber Monday was invented in 2005 as an online alternative to Black Friday, I called it a “marketing myth” because it was actually not even close to a top holiday shopping day.

Then a funny thing happened–Cyber Monday, created by the National Retail Foundation’s Shop.org online unit, became a self-fulfilling prophecy as retailers jumped on the term and began offering special sales that day after the Thanksgiving holiday. By the following year, it had turned into a real phenomenon, at least for many retailers, and last year it became the heaviest shopping day ever to date. It might even happen again this year.

But now, even as many retailers have made Cyber Monday sales a stock part of their holiday strategy, I’m betting its days are numbered. Why?

* Early sales. Smart retailers noticed that before Cyber Monday, at least (and perhaps still), the period leading up to the big day actually were even more active shopping days. And in their never-ending attempt to get a step ahead of rivals, many retailers ran not just pre-Cyber Monday sales, but pre-Black Friday sales as early as the evening before Thanksgiving. Apparently they worked. They almost certainly will cannibalize Cyber Monday sales. …

Read the complete post at The New Persuaders.

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Amazon’s Ad-Supported Tablet: What Took So Long?

The current Kindle Fire

From my Forbes.com blog The New Persuaders:

Ever since the first, rather expensive smartphones came out five years ago, I wondered: Why not offer cheaper ones supported by advertising? After all, even if you’d prefer not to see ads, you’re already taking a subsidy from a wireless carrier that often entails (I’m talking to you, Verizon) carrier widgets and interface limitations than are far more onerous than any advertising.

But since then, the only ad-supported portable devices that I can think of, at least that are still around, are Amazon.com’s Kindles with Special Offers. Now, however, the Wall Street Journal says Amazon may debut an ad-supported new 7-inch tablet as a followup to now sold-out Kindle Fires, as a way to offer a lower price in an increasingly competitive tablet market. The tablet could come as part of an expected Amazon launch of new tablets on Sept. 6.

The tablet apparently would display an ad as the device “wakes up.” The story mentioned no specific price break. The Special Offers Kindles offer a $30 to $50 price break, which if applied to the current Kindle Fire price of $199 would come in as low as $149. That would provide a considerable discount from Google’s Nexus 7 tablet, whose key appeal since it debuted in mid-July has been its low price.

Apple also is expected to come out with a similarly sized iPad Mini this fall, that could be priced as low as $249. However, Apple’s brand would still make a higher-priced device appealing to many people.

Assuming the ad-supported Amazon tablet actually launches, what took so long? Well, for one, tablets are still a pretty new category, so perhaps it just took awhile to work out the economics. Also, it’s possible that the ad formats on each tablet have to be so unique that it’s hard to get marketers interested at a more than experimental scale. Not least, a lot of people may figure that if they’re already paying a couple hundred dollars or more for a device, having to watch ads as well is a step too far.

But given that the three key tablet combatants today–Apple, Google, and Amazon–each are already in the ad business to varying degrees, and as it becomes clearer what kinds of ads work best on mobile devices, I wouldn’t be surprised to see more ad-supported models before long.

How Retailers Can Benefit From Consumer ‘Showrooming’

From my Forbes.com blog The New Persuaders:

Showrooming, the practice of checking out products in a physical store and then buying them online, is a rising concern among retailers as smartphones and other mobile devices become ubiquitous. Various apps make it easy to scan a barcode to compare prices and buy a product cheaper online.

I’ve somewhat skeptical of the impact this has on retailers, in part because of my own anecdotal experience. Even more than I showroom, I research a product online–often at Amazon and other online retailers presumed to be the key culprits in showrooming–and then buy a product in a physical store because I need it now or simply want to touch a range of products, not just look at photos of them. In other words, it works both ways.

In any case, some of the most savvy brand managers are making the case that physical retailers can actually benefit from consumer behaviors that lead to showrooming, leveraging them into a marketing and advertising opportunity, or at least employ ways to head it off–without draconian techniques that may do more harm than good. Today at MediaPost’s Mobile Insider Summit at Lake Tahoe, livestreamed online, a panel offered insights into how marketers can do just that.

On the panel were moderator Carla Paschke, director of mobile innovation for marketing agency EngaugeMike Bloxham, executive director of the research firm Media Behavior InstituteHans Fredericks, VP for mobile business development for researcher comScore; Sloane Kelley, director of interactive strategy for ad agency BFG Communications; and Alexis Rask, VP and general manager of brand partnerships for retail shopping app Shopkick. Here’s what they had to say:

Q: How do each of you view the opportunities with mobile?

Bloxham: Mobile is the first umbilical media we’ve ever had. It’s deeply personal. One thing that’s really important to understand … is mobile use in the full context of their lives, other media. Mobile and TV are inextricably linked, but so are other media. We can’t look at mobile in a vacuum. People use their mobile devices to inform their thinking before, during, and after purchasing.

The idea that retailers should suppress showrooming is delusional. That ship has already sailed.

Fredericks: Folks’ usage of smartphones vs. tablets vs. laptops is different. Folks are using that PC during the course of the day. The smartphone is fairly steady during waking hours, because it’s very personal. Tablets show very pronounced evening-hours use. By and large, it is more of a home use device.

Kelley: Brands that get hip to this early can really rise above the rest.

Rask: We see two main trends. One is what to do about the in-store experience. What doesn’t get talked about enough is that arc from the couch to the store. At Shopkick, about two-thirds of our usage is couch mode. People are planning their shopping trip. They’re basically deciding: Am I going to make a left out of the driveway or a right out of the driveway?

Bloxham: TV dominates by far in the home in terms of share of mind. A lot of people also use another screen. That’s actually the first screen, not the second as we often call it. Radio dominates in the car, and there’s an opportunity to drive people to a coupon on their mobile device, like what they’re going to eat for lunch.

Rask: Mobile is the only medium where you can map a full path to purchase. …

Read the complete post at The New Persuaders.

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