E-commerce: You can build it, but will they come?

You've heard the hype, you've seen the statistics. Kiwis spent $242 million on internet shopping in the past year - a figure expected to balloon into the billions by 2004, according to the Government.

Most significant companies have a presence on the net even if they are not transacting business through the web. But the burning question remains: how does a company drive clients to its site?

Last year, companies in the US spent $US4 billion trying to capture internet traffic, a figure expected to grow to $US19 billion next year. But how much of that was successfully spent, and how much was wasted trying to nail jelly to the wall?

Just how do you make your site known among the 15 million-plus pit-stops along the information superhighway?

According to the experts, it's not enough to just put up your website then sit back and hope that your target market will follow its collective nose to your URL.

As website developer Linda Geary from Netbyte says: "when a company proudly says it has its 'brochure online', it makes me see red."

The Business Herald asked online marketing experts to spill the beans on smart, cost-effective ways to market your site, and got these tips.

Form alliances with other sites

Geoff Shaw of APC Marketing says the most important thing is to see where your target audience goes online and attempt to advertise on those sites. There is some disagreement over exactly how effective banner ads are, but most agree that they can bolster brand recognition - if they are eye-catching enough.

Frank van der Velden, of digital communications group Brave New World, says New Zealand has only 10 to 12 general consumer sites worth considering. "Beyond that, you can get into niche sites that demand a premium, so don't get hung up on cost per impression."

But it may be worth seeking out a niche site if your target audience is narrow. It's all about deciding whether to spread your online ad spending across a range of pages (width), or choose two or three sites your consumers are likely to visit and be ubiquitous (depth), says Mr Shaw.

Be sure everyone knows where you are

It's a tragedy when staff cannot remember the address of their own company's website, says Mark Roberts, director of web marketing and development firm Avatar.

"Put your web address on absolutely everything - business cards, newspaper ads, outside the front of your building - don't hide!"

He agrees that specialised websites and directories are another prime position for promotion, and suggests spending time and effort getting yourself listed with the major search engines.

"A lot of clients do really well from search engines," he says.

"And some of the major ones like Yahoo, Altavista and Google are free. You just have to put some effort into finding out how to do it."

Go offline to boost online traffic

Foote Cone & Belding e-marketing strategist Christopher George says offline advertising campaigns are vital to driving people to your site, because "the site is a brand, and regular above-line advertising drives brand recognition."

Controversial American marketing exponent Jim Rosenfield, who described net marketing as "direct marketing on steroids" suggests attracting people with mail-outs signposting sites and what they offer.

APC's Mr Shaw says that, e-commerce aside, sites should consider offering information and "next-level" service to whatever is offered outside the electronic world.

Most important, he says, is to acquaint yourself with the media habits of your target audience and keep that information top-of-mind, "just like you would for any other marketing strategy."

Use e-mail

Spam is a definite no-no, says US-based e-mail permission advocate Derek Scruggs, but e-mail is a relatively cheap and easy way to customise messages to your clients.

That, she says, is "very important in times when customisation is king."

And if clients have opted-in to receive those messages, you ensure you end up with a captive audience who might even be willing to provide demographic information about themselves.

Deborah Mayo-Smith, of Successful Internet Strategies, offers another key tip when using e-mail as a marketing tool: never put more than one name in the 'to' field.

"By addressing your e-mail to everyone at once, you destroy the impression of a personalised message, you invade your clients' privacy by publishing their name to everyone and expose your client list."

She says an incredible number of companies make this basic error. "Bcc [blind carbon copy] everything or use an e-mail software package to avoid this mistake."

Herald Online feature: e-commerce summit

Official e-commerce summit website