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SAMPLE: Innovation Report

Last updated: 05/11/2010 SAMPLE ONLY - please download the full 150-page report (with 31 new entries) from: http://econsultancy.com/reports/innovation-report

SAMPLE: Innovation Report Last updated: 05/11/2010

Published November 2010

All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher.

Copyright Š Econsultancy.com Ltd 2010

Econsultancy London 4th Floor, The Corner 91-93 Farringdon Road London EC1M 3LN United Kingdom Telephone: +44 (0)20 7269 1450 http://econsultancy.com help@econsultancy.com

Econsultancy New York 41 East 11th St., 11th Floor New York, NY 10003 United States Telephone: +1 212 699 3626

Contents 1. About Econsultancy 2. About Innovation Awards 3. Innovation by Digital Marketing Discipline 3.1.

Affiliate Marketing

3.2.

E-commerce

3.3.

Email Marketing

3.4.

Mobile Marketing

3.5.

Multichannel marketing

3.6.

Online Advertising

3.7.

Online PR and Social Media

3.8.

Online Video

3.9.

Search Marketing

3.10.

Usability and User Experience

3.11.

Web Analytics and Optimisation

3.12.

Business Models

4. Acknowledgements

SAMPLE ONLY - please download the full 150-page report (with 31 new entries) from: http://econsultancy.com/reports/innovation-report

SAMPLE: Innovation Report Last updated: 05/11/2010 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright Š Econsultancy.com Ltd 2010

1.

About this report The report focuses on innovative digital marketing tactics or strategies. Rather than just citing developments which use „technology for technology’s sake’, we are looking for examples of innovation which clearly add value for consumers and businesses, and help them achieve their goals more effectively.

This means each example included in the report may not necessarily be the first company using such a tactic but, nevertheless, it stands out as an inventive and pioneering approach to marketing online for that particular company.

The report is broken down by digital marketing discipline, and includes the following sections:  Affiliate marketing  Email marketing  Mobile marketing  Multichannel marketing  Online advertising  Social media and online PR  Search marketing  Usability and user experience  Web analytics and optimisation As well as including examples of innovation by category or disciplines, the report also includes a section on innovative business models.

This report is work-in-progress and will continue to be updated on a regular basis. We are conscious that there is plenty of innovation out there which has not come to our attention. If you spot other examples that should be included in future versions then please let us know!

The report is based on information from a variety of sources, including those mentioned in the Acknowledgements section. The process for building this document included contacting a range of experts about what and whom we should include. Each idea was then reviewed by Econsultancy‟s content team. Ultimately, inclusion in the report is at the discretion of Econsultancy’s content team, which makes the final decision regarding whether each example meets the necessary requirements.

If there is information that you feel is inaccurate, missing, or incorrectly credited then please get in touch with Aliya Zaidi: aliya.zaidi@econsultancy.com or phone +44 (0)20 7269 1450. Likewise, if you would like to contribute data or research, please contact us.

Please also see the information on page three about our Econsultancy Innovation Awards.

Inclusion in this report does not mean automatic consideration for the awards as there is a separate process for submitting entries.

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2.

About Econsultancy Econsultancy is a digital publishing and training group used by more than 200,000 internet professionals every month.

The company publishes practical and time-saving research to help marketers make better decisions about the digital environment, build business cases, find the best suppliers, look smart in meetings and accelerate their careers.

Econsultancy has offices in New York and London, and hosts more than 100 events every year in the US and UK. Many of the world's most famous brands use Econsultancy to educate and train their staff.

Some of Econsultancy‟s members include: Google, Yahoo, Dell, BBC, BT, Shell, Vodafone, Virgin Atlantic, Barclays, Deloitte, T-Mobile and Estée Lauder.

Join Econsultancy today to learn what‟s happening in digital marketing – and what works.

Call us to find out more on +44 (0)20 7269 1450 (London) or +1 212 699 3626 (New York). You can also contact us online.

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3.

About Innovation Awards Since 1999, Econsultancy has been a leader in bringing together the digital marketing and ecommerce communities and helping the industry to learn, share, experiment and innovate.

In 2008, we launched the industry‟s only Innovation Awards, designed to give clients, suppliers and agencies recognition for genuine innovation and success in digital marketing.

This year, we have assembled an international judging panel from companies known for innovation, such as BBC, Mercedes-Benz, Dell, O2, DuPont, BT, Net-a-Porter, Mindshare, bigmouthmedia, SMAC and Newsforce.

This year‟s global panel includes digital gurus Paul Boag, Sam Decker, Michelle Goodall, and Ian Jindal.

Our team of experts are looking for an approach, idea, practice or technology which holds out the promise of being a smarter, better, way of doing things in the digital space. Not just new for the sake of being new, but a fresh take on solving a particular challenge or improving on the norm.

There are 21 awards categories, each relating to innovation in a chosen discipline or area:  Innovation in Affiliate Marketing  Innovation in B2B Digital Marketing  Innovation in E-commerce  Innovation in Email Marketing  Innovation in Lead Generation Online  Innovation in Mobile Marketing  Innovation in Multichannel Marketing  Innovation in Online Customer Service  Innovation in Online Marketing Research or Customer Insight  Innovation in Online PR  Innovation in Paid Search / PPC  Innovation in Rich Media and Video  Innovation in SEO / Natural Search  Innovation in Social Media  Innovation in User Experience  Innovation in Web Analytics and Optimisation  Innovation in Web Content Management  Most Innovative Digital Agency  Most Innovative Digital Marketing Team  Most Innovative New Technology  Most Innovative Online Advertising Campaign

The Innovation Awards offer high credibility in the industry and beyond. This is your chance to receive acclaim as an innovator, be recognised by your industry peers and stand out from the crowd.

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The Innovation Awards are open to:  Individuals, client organisations, suppliers and agencies (you may nominate your own work or on behalf of a client or supplier).  Product, services or activity related innovations that have been made in the last 12 months  All countries Taking place entirely online (with no expensive award ceremonies to attend!), these awards recognise innovation on a global scale: good innovation has no boundaries!

Visit http://econsultancy.com/awards for further information. For more details about the entry process and the information we're looking for on the entry form, please see the "How to enter" page.

Please note that the deadline for entries is 19 November 2010.

What do we mean by Innovation?

"Innovation - an approach, idea, practice or technology which holds out the promise of being a smarter, better way of doing things. Not just new for the sake of being new, but a fresh take on solving a particular challenge or improving on the norm."

Ashley Friedlein, CEO and Co-founder, Econsultancy

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4.

Innovation by Digital Marketing Discipline

4.1.

Affiliate Marketing

4.1.1.

Buy.at / Littlewoods Direct - Online interactive video application Category: Affiliate Marketing Buy.at‟s interactive video advertisements use technology developed by Coull, and feature models wearing clothing from LittlewoodDirect.com site. The ads allow users to click on individual items of clothing, which are then redirected to their own customised dedicated product page.

Each item of clothing and accessory featured in the video has been assigned its own tag. The activity is tracked to ensure affiliates are paid the correct commission for the activity they generate, allowing affiliates to get paid commission for each individual item that they sell.

Buy.at tracks clickthroughs, sales and cost-per-acquisition commissions by integrating video tags with its tracking and campaign analytics. If the LittlewoodsDirect.com video advertisement is copied from an affiliate‟s site and pasted into another website or a customer‟s social network profile, Coull‟s technology ensures the tracking and reporting remains embedded. This means that affiliates can be certain that they will be rewarded for all the activity they generate, even when it is indirect.

The video advertisements are effective not only for the user, who can click straight to purchase on the item that they are interested in, but is also fairer for affiliates, as it allows them to only earn commission from the specific item that they sell.

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4.2.

E-commerce

4.2.1.

Jellyfish - Smack shopping Category: E-commerce URL: http://www.jellyfish.com/smacktv Jellyfish‟s „Daily Smack‟ is a reverse auction. One item is sold per day, with the price dropping until a customer chooses to buy the item.

The auction involves selling a product with limited stock, with the price dropping over time, until the user decides to purchase. If the user delays purchase, then the price drops lower and lower, but they risk missing out if they don‟t buy in time. This means that prices keep falling without the user ever knowing what the limit will be, driving the customer to purchase at the lowest possible price.

In order to retain their competitive advantage, shopping comparison sites need to move away from being just ad-hoc hop-on, hop-off sites and differentiate themselves to become destination sites. Jellyfish‟s „Smack Shopping‟ is innovative, because it offers a unique user experience that is not available on any of the other major comparison engines.

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4.3.

Email Marketing

4.3.1.

eBags - Best time to send your email Category: Email marketing URL: http://tinyurl.com/2tanob A study by online retailer, eBags, used an innovative tactic to work out the ideal time to send emails to individual users to ensure optimal deliverability and engagement.

Choosing the best time to send out email is a key issue for email marketers, but the optimal time of the week is usually selected on a general one-size fits-all basis.

However, research by eBags aimed to analyse the best individual times to send out email. The research worked on the hypothesis that if users were available to sign up to an email list at a certain time, then they would be far more receptive to receiving an email at the same time as when they signed up. eBags individually calculated the best time to send the email by looking at the behaviour of each user within the email list, recording when the exact time when they signed up to the list.

eBags found that sending the individually timed emails resulted in:  Click-through rates increasing by 20%.  Conversion rates increasing by 65%.  Average value per order increasing by 45%.  Overall average revenue per recipient increased by 187%.

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4.4.

Mobile Marketing

4.4.1.

Layar – World‟s first augmented reality browser Category: Mobile marketing Company: Layar URL: http://layar.eu/ http://www.youtube.com/watch?v=b64_16K2e08 Layar is the world‟s first augmented reality browser for mobiles phones, and works by overlaying information about your surroundings onto your camera phone viewer.

The application, mixing digital information with reality, currently works on the Android platform.

Android has all the features necessary for an augmented reality application to work, including GPS, a compass, and a camera. However, Layar are also building browsers compatible with the iPhone and other platforms, including Symbian and Windows.

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4.5.

Multichannel Marketing

4.5.1.

Houston Fence - Seamless mobile content via QR codes Category: Multichannel marketing URL: http://houstonfence.mobi/?page_id=2 The Houston Fence is a temporary outside installation that uses QR-code patterns. The fence is a two-sided structure that uses put-in cups to create a permeable pattern. When these patterns are scanned by mobile phones, this allows the user to seamlessly connect to online content, including websites and blogs.

“A QR Code is a matrix code (or two-dimensional bar code)… The „QR‟ is derived from „Quick Response‟, as the creator intended the code to allow its contents to be decoded at high speed. QR Codes are common in Japan where they are currently the most popular type of two dimensional codes.

“Although initially used for tracking parts in vehicle manufacturing, QR Codes are now used in a much broader context, including both commercial tracking applications and convenience-oriented applications aimed at mobile phone users (known as mobile tagging).

“QR Codes storing addresses and URLs may appear in magazines, on signs, buses, business cards or just about any object that users might need information about. Users with a camera phone equipped with the correct reader software can scan the image of the QR Code causing the phone's browser to launch and redirect to the programmed URL. This act of linking from physical world objects is known as a „hardlink‟ or physical world hyperlinks.”

Wikipedia The fence can be read at different scales and speeds (i.e. for cars, pedestrians and cyclists) and the online content accessed from any mobile phone that can read QR codes.

Source: www.trendwatching.com

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4.6.

Online Advertising

4.6.1.

InSkin - User-friendly video ad format Category: Online Advertising Company: InSkin URL: http://www.inskinmedia.co.uk/adgallery.php InSkin is a new ad format that allows publishers to monetize video in a more consumer-friendly and non-intrusive way. The „skin‟ wraps around online videos, much like a banner ad and remains wrapped around when the user selects a full-screen view. Users can also click on different elements of the wrapped around ad, which can display interactive elements or video promos.

Unlike existing video ad formats, such as pre-roll or overlay advertising, the InSkin ad format allows advertisers to display their branding without interrupting the user experience for the consumer (although some people may be distracted by the additional branded border). Pre-roll ads can also be packaged in with the InSkin ad format, combining video with interactivity and adding an extra layer of visibility to the ad.

“InSkin is a fantastic solution to a problem that has been facing media owners and advertisers for some time: How to achieve impact and ROI for advertisers without destroying the user experience” - Pete Wootton, Managing Director Dennis Interactive; InSkin website “With the InSkin format we can now offer the rich media experience of pre-roll to advertisers supported by longer brand exposure measurable by the second and an extended opportunity for consumer interaction with the advertiser. Ultimately InSkin provides more effectively monetized real estate for Emap video content.”

- Nick Jenkins, Group Head of Digital at Emap Advertising; InSkin website

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4.7.

Online PR and Social Media and

4.7.1.

“Will It Blend?” - BlendTec‟s viral video campaign Category: Online PR URL: http://www.willitblend.com/ Will It Blend? is an example of a highly successful viral video campaign. Whereas blenders are usually targeted towards a traditionally female audience, using clever positioning, Will It Blend? succeeds in making blenders engaging and interesting.

On YouTube, the Will It Blend? iPhone video generated over five million page views and 12,000 comments. It also generated a whole range of BlendTec spoofs by the YouTube community.

Additionally, the campaign has also been tied to marketing through other offline channels, with the videos being recently featured in a TV commercial for Dibs. Seth Godin also used the Blendtech videos to promote Meatball Sundae.

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4.8.

Online Video

4.8.1.

Invideous – In-video PPC marketing Category: Online Video URL: http://www.invideous.com/ Invideous‟ service takes the traditional cost-per-click model and enhances it by using video as the initiator of the click instead of simple text ads.

Cost-per-click advertising is effective because it is highly accountable and delivers results.

Invideous‟ services have all the strengths of traditional CPC marketing, but are far more effective in engaging users.

The ads works through clickable hotspots, where users view a pay-per-click ad when hovering above a particular product in a video. They can then choose to click-through to the ad.

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4.9.

Search Marketing

4.9.1.

Like.com - Visual search shopping engine Category: Search Marketing URL: http://www.like.com Like.com is a visual search engine that allows users to search for clothing and fashion accessories using both text and images as queries.

Like.com‟s technology creates a digital, visual signature, using approximately 10,000 data points, to query images to visual search results. Like.com compares the product‟s shape, colour, and texture to similar items and displays the best matches.

Although there are other examples of search engines using visual search technology, Like.com stands out in terms of the effectiveness of the technology and the overall user experience.

Like a shopping comparison site, Like.com aggregates products from a range of different retailers.

Users can search for items using text-based queries and then click „Visual Search‟ on each of the results to generate search results with similar items. The results are comprehensive, as users can narrow their search by overall product matches or by style, pattern or colour.

An additional feature of the site allows users to upload their own pictures, and Like.com can then search for similar or matching items.

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4.10.

Usability and User Experience

4.10.1.

Jessops / PrismaStar - Product search tool Category: Usability/User Experience URL: http://www.jessops.com/ Jessops‟ innovative „Camera Selector‟ on its UK website is a next-generation search tool that uses technology from PrismaStar software.

The Camera Selector allows users to select from a range of different camera features, including price, colour and resolution. This means that customers can rank different cameras according to how strongly they match the user‟s chosen specifications. The specification of the „best matches‟ can then be compared side-by-side.

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4.11.

Web Analytics and Optimisation

4.11.1.

TagMan - Tag content management system Category: Web Analytics Company: TagMan URL: http://blog.tagman.com/ TagMan is an intelligent content management system for tracking tags, through deployment of a single TagMan tracking tag on a web page.

TagMan manages all existing tags (e.g. for web analytics, paid search, ad-serving, email, usability, surveys, and MVT and A/B testing) and replaces them with a single tag.

The single TagMan tag then calls the relevant third party tags depending on prior user activity.

The advantages of TagMan lie in the convenience associated with the ability to manage all existing tags with a single tag. TagMan also offers real-time report of each marketing channel, allowing for side-by-side comparison.

Other advantages of TagMan include:  Quick and easy to implement. Use the same TagMan tag on every page and then configure your 3rd party tracking requirements via an easy to use browser interface rather than through additional page-side coding.  TagMan works with any ad server, search, affiliate, behavioural targeting or other marketing solution.  Eliminate duplicate CPA payments with conditional tag serving based on post-impression and post-click activity.  Better data protection practice by offering visitors a global opt-out of tracking rather than relying on each third party tagging solution provider to do their own thing.

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4.12.

Business Models

4.12.1.

Kiva - democratising venture capital Kiva is an online microfinance site that allows people to lend up to $25 to entrepreneurs in the developing world.

The business model is innovative because it charges a small amount ($3) to give people the opportunity to lend money. Kivaâ€&#x;s website says that it is the first person to person microfinance site, empowering people from all walks of life to effectively become venture capitalists.

Kiva partners with existing microfinance organisations to gain access to entrepreneurs in impoverished countries worldwide.

Email updates are sent throughout the year, as repayments are paid, enabling site users to lend to other entrepreneurs once their loan has been repaid.

This is a business model that truly has the potential to change the world. At one point, all the entrepreneurs on the site had been funded, and in order to allow everyone to contribute, Kiva had to impose a $25 limit on loans.

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5.

Acknowledgements Econsultancy would like to thank the following organisations and individuals for information: Abbie Upton, Punch Communications Alison Guise, Mediaplex Andrew Girdwood, bigmouthmedia Andy Betts, SearchIgnite Antony Mayfield, iCrossing Avinash Kaushik, Google Bill Hunt, Liberate Media Colin Telford, R.O. EYE Dave Chaffey, author and E-marketing consultant Frank Lombos, Fredhopper Gerred Blyth, Lighthouse Experience Heikki Haldre, Fits.me Ido Ariel, Barriliance Indira Thambiah, Yorkshire Building Society Janet Parkinson, Quirk eMarketing Joanna Burton, Crescent Communications John Moorwood, Wonga Jonathan Kay, independent consultant Joshua Rex, Open Kate Williams, Headstream PR Katie Howell, Immediate Future Kevin Mason, Intimis Kyle Clayton, Endeca Magnus Nilsson, Net Media Planet Marko Balabanovic, lastminute.com Paul Crabtree, Adestra Rob Mobberley, ClickTorch Rob Stevens, Bunnyfoot Rolf Elmer, Avail Intelligence Ruth Baker, Nixon McInnes Shawn Collins, Affiliate Summit Sri Sharma, Net Media Planet Teddie Cowell, Guava Tom Stewart, System Concepts Vincent Meyer, Criteo Wendy McAuliffe, Liberate Media

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Other sources: A4U Iconoculture Internet Retailing New York Festivals Innovative Advertising Awards NMA PSFK Trendwatching.com Springwise

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