Steve Katz, Editor01.31.17
Several label manufacturers today are thriving with their e-Commerce initiatives. By definition, e-Commerce (Electronic commerce) is a type of business model, or segment of a larger business model, that enables a firm or individual to conduct business over an electronic network, typically the internet.
Recently, L&NW has profiled a few companies that are making their mark basing their business around strategies steeped in eCommerce. SheetLabels.com, profiled in the April 2016 issue of L&NW is one such label company. According to CEO and founder Adam Gray, SheetLabels.com gets between 50,000 and 75,000 unique visitors monthly, and the vast majoroty of the business is found online. Sheetlabels.com customers can order and pay for their labels via the website, without even having to speak to an actual person.
Another e-Commerce success story is Wizard Labels, chosen as a "Company to Watch" in our annual feature published in the October 2016 issue. Wizard Labels is a new player in the industry, but really not-so-much. Steve Smith, Wizard's founder, is a true label industry pioneer, having previously founded Lightning Labels, an all-digital label supplier that based its business on e-Commerce long before the term became a household word.
And there are plenty of others, and more and more popping up every month. Digital printing and Search Engine Optimization are both playing crirital roles in start-up label companies having great, early success using e-Commerce platforms.
Survey says
According to a new study by the ANA (Association of National Advertisers), within the next two years, more than 80 percent of ANA marketer members will be conducting business via e-commerce.
The ANA Survey Report: E-Commerce Insights also revealed that 73 percent of marketers surveyed believe e-commerce drives revenue for their companies, and of those, 43 percent said such initiatives account for up to 10% of all sales. For the aforementioned label companies, that percentage is much, much larger.
The study showed that currently:
Most e-commerce companies engage in social media marketing, have an online store hosted on the company’s website, leverage mobile payment platforms, and employ third-party online retailers like Amazon or Walmart. According to the ANA survey, 28% of respondents have an e-Commerce department that reports to digital marketing, while 21% of such units function as standalone divisions. The remaining departments are part of integrated marketing (17%), sales (12%), information technology (8%), brand management (7%), shopper marketing (4%), and media (1%).
Most e-Commerce departments report to the CMO (47%), followed by the head of sales (15%), the CEO (10%), and the chief technology officer (8%). 56% of respondents said they use agencies to support their e-commerce strategies. More than half use multiple agencies to help them design ads, create strategy, and assist with mobile and social commerce.
Challenges
Measurement continues to be an issue, particularly with assessing the bottom-line impact of total e-Commerce efforts. Issues cited include poor intra-company communications and a lack of tracking infrastructure.
The study also said that even though augmented reality and virtual reality are becoming mainstream (particularly for gaming), their e-Commerce potential remains largely untapped. Additionally, programmatic buying and the promise of addressable TV have the capacity to drive even more e-commerce growth. However, ROI tracking across devices continues to present challenges.
Methodology
In total, 215 client-side marketers participated in the survey, a cross-sampling of ANA membership. Respondents to the survey, conducted in July and August 2016, have a median of 20 years of experience in marketing, spanning sectors, company size, and marketing spend. Approximately 40% of respondents focus their marketing on B-to-C efforts, 18% on B-to-B marketing, and 42% on both B-to-B and B-to-C. Some of the ANA member companies that participated include AB InBev, AT&T, Bristol-Myers Squibb, Cuisinart, General Electric, MGM Resorts International, Mondelēz, and State Farm.
For purposes of the survey, e-commerce (also referred to as electronic commerce, EC, e-business, or e-tail) refers to a wide variety of internet-based business models. An e-commerce strategy was defined as one that incorporates various elements of the marketing mix to drive users to a website for the purpose of purchasing a product or service. E-commerce includes business-to-business, business-to-consumer, consumer-to-consumer, and consumer-to-business sales via an online company store as well as through third-party retailers.
Label sales innovation
In speaking with label manufacturers, many are reporting e-Commerce success stories. It seems to be an area – much like digital printing – that screams "get involved or fall behind!" Scott Fisher, president of Smyth Companies, the company I most recently profiled in the Jan/Feb 2017 issue of L&NW, told me during our interview that this is an area where Smyth is growing, and is an opportunity for innovation. He said, "If you’re not innovating, you’re in a slow death spiral."
Recently, L&NW has profiled a few companies that are making their mark basing their business around strategies steeped in eCommerce. SheetLabels.com, profiled in the April 2016 issue of L&NW is one such label company. According to CEO and founder Adam Gray, SheetLabels.com gets between 50,000 and 75,000 unique visitors monthly, and the vast majoroty of the business is found online. Sheetlabels.com customers can order and pay for their labels via the website, without even having to speak to an actual person.
Another e-Commerce success story is Wizard Labels, chosen as a "Company to Watch" in our annual feature published in the October 2016 issue. Wizard Labels is a new player in the industry, but really not-so-much. Steve Smith, Wizard's founder, is a true label industry pioneer, having previously founded Lightning Labels, an all-digital label supplier that based its business on e-Commerce long before the term became a household word.
And there are plenty of others, and more and more popping up every month. Digital printing and Search Engine Optimization are both playing crirital roles in start-up label companies having great, early success using e-Commerce platforms.
Survey says
According to a new study by the ANA (Association of National Advertisers), within the next two years, more than 80 percent of ANA marketer members will be conducting business via e-commerce.
The ANA Survey Report: E-Commerce Insights also revealed that 73 percent of marketers surveyed believe e-commerce drives revenue for their companies, and of those, 43 percent said such initiatives account for up to 10% of all sales. For the aforementioned label companies, that percentage is much, much larger.
The study showed that currently:
- 74% of respondents currently engage in some form of e-commerce.
- 66% reported e-commerce growth in the past year.
- 59% have dedicated e-commerce departments.
Most e-commerce companies engage in social media marketing, have an online store hosted on the company’s website, leverage mobile payment platforms, and employ third-party online retailers like Amazon or Walmart. According to the ANA survey, 28% of respondents have an e-Commerce department that reports to digital marketing, while 21% of such units function as standalone divisions. The remaining departments are part of integrated marketing (17%), sales (12%), information technology (8%), brand management (7%), shopper marketing (4%), and media (1%).
Most e-Commerce departments report to the CMO (47%), followed by the head of sales (15%), the CEO (10%), and the chief technology officer (8%). 56% of respondents said they use agencies to support their e-commerce strategies. More than half use multiple agencies to help them design ads, create strategy, and assist with mobile and social commerce.
Challenges
Measurement continues to be an issue, particularly with assessing the bottom-line impact of total e-Commerce efforts. Issues cited include poor intra-company communications and a lack of tracking infrastructure.
The study also said that even though augmented reality and virtual reality are becoming mainstream (particularly for gaming), their e-Commerce potential remains largely untapped. Additionally, programmatic buying and the promise of addressable TV have the capacity to drive even more e-commerce growth. However, ROI tracking across devices continues to present challenges.
Methodology
In total, 215 client-side marketers participated in the survey, a cross-sampling of ANA membership. Respondents to the survey, conducted in July and August 2016, have a median of 20 years of experience in marketing, spanning sectors, company size, and marketing spend. Approximately 40% of respondents focus their marketing on B-to-C efforts, 18% on B-to-B marketing, and 42% on both B-to-B and B-to-C. Some of the ANA member companies that participated include AB InBev, AT&T, Bristol-Myers Squibb, Cuisinart, General Electric, MGM Resorts International, Mondelēz, and State Farm.
For purposes of the survey, e-commerce (also referred to as electronic commerce, EC, e-business, or e-tail) refers to a wide variety of internet-based business models. An e-commerce strategy was defined as one that incorporates various elements of the marketing mix to drive users to a website for the purpose of purchasing a product or service. E-commerce includes business-to-business, business-to-consumer, consumer-to-consumer, and consumer-to-business sales via an online company store as well as through third-party retailers.
Label sales innovation
In speaking with label manufacturers, many are reporting e-Commerce success stories. It seems to be an area – much like digital printing – that screams "get involved or fall behind!" Scott Fisher, president of Smyth Companies, the company I most recently profiled in the Jan/Feb 2017 issue of L&NW, told me during our interview that this is an area where Smyth is growing, and is an opportunity for innovation. He said, "If you’re not innovating, you’re in a slow death spiral."