Andreas Engel - BizDev & Marketing Consulting
andreasengel.com
Monday, May 14, 2007
  eCommerce Fueled by Fast Broadband
Actually I discovered this trend already more than two years ago, but it's always a pleasure to publish good news. Current broadband statistics from the OECD show that 'the number of broadband subscribers in the OECD increased 26% from 157 million in December 2005 to 197 million in December 2006', ergo there must also have been substantial growth in online sales.

An actual study from Forrester published by Yahoo! shows that in the US 'E-commerce is moving "full steam ahead" and is years away from saturation, with double-digit growth expected for several years'.

Unfortunately an other study published by CNET reports that 'sites that sell movies and TV shows such as Apple's iTunes will likely peak this year and then lose popularity as more content becomes available on free outlets supported by ads', eMarketer reports that 'between 2007 and 2011, US ad spending on social networks is expected to increase 180%, to $2.5 billion'.

Participating in a social network centered on user-generated content has become one of the most exiting trends today. No matter wether sites like MySpace or Facebook, targeted niche sites or video sites, free and easy interaction, staying in touch with friends, finding long lost friends, and meeting new people encourages users as well as visitors to share comments, photos and videos, read and write blogs or just hang out.

In brief: further double digit growth for retail sales, but maturing in the US, content sales go down, ad spending on social networks up!

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'People's behavior in researching buying related information and decision making has changed during the last months. Their favorite methods include researching buying related price comparison sites, RSS-feeds, review sites, blogs and travel sites, while consumer generated content and peer-reviews have a huge impact on their decision making.'
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Name: Andreas Engel
Location: Düsseldorf, NRW, Germany

BizDev & Product Management | eCommerce, PMI, ITIL

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