As a geographic unit, the market for business and government purchases of information and communications technologies (ICT) in Western and Central Europe will grow by 3.8% in 2011 (measured in euros), compared with 6.4% growth in the US (measured in US dollars). Excluding slow-growing telecommunications services, the information technology (IT) market in Western and Central Europe will grow by 4.5% in euros vs. the 7.4% growth in US dollars in the US (see June 7, “European Information And Communications Technology Market 2011 To 2012 -- The North-South Divide Persists, With Wide Variations In Country Information And Communications Technology Growth”).
For the past few years I have watched enviously as the Finovate online financial technology show has gone from strength to strength in San Francisco and New York. So I was thrilled to hear that Finovate was coming to Europe and today I was lucky enough to go along to the show in London.
For those of you who aren’t familiar with Finovate, it’s a fast-paced format with seven-minute live demos and pitches from 35 financial technology vendors. It’s produced by Online Financial Innovations, the people behind the excellent NetBanker blog.
Rumors became official on Tuesday: Siemens succeeded in finding a viable partner to buy its IT Solutions and Services (SIS) business. For all of us following the market in the past it wasn’t a surprise that ATOS ORIGIN is paying €850 million to take over Siemens’ IT business. This sum is a mixture of shares, bonds and cash, which will make Siemens a prime shareholder of ATOS for at least for a five-year period. In return ATOS will provide Siemens with Managed Services and System Integration worth €5.5 billion over a period of 7 years.
Question: What does this mean?
In the short run, even though this transaction will make ATOS the biggest European-headquartered IT service provider (with an expected combined revenue of approximately €8.7 billion in 2010 growing to an expected €10 billion in 2013) the direct impact for the IT user market will be minor. The mentioned outsourcing contract effectively represents one of the largest deals globally, but the impact on clients will be minimal as SIS delivers a significant amount of services to Siemens today. Second, ATOS ORIGIN is currently running a major restructuring program called TOP. And those projects combined with an acquisition of the mentioned size will be a challenge — at least. Thus meaning that ATOS ORIGIN’s focus will either be to finish the TOP program and then integrate SIS or extend TOP to include SIS. Either way the new organization will need some time to form — and so will the market impact.
Earlier this year, Josh Bernoff and Augie Ray introduced a new way to look at influential consumers called Peer Influence Analysis -- and showed off some great data from the US market to support their analysis. I’m pleased to report that we now have this same data available in Western Europe as well.
Peer Influence Analysis introduces that idea that there are two distinct groups on influential consumers online: 1) the Mass Mavens who use blogs, forums, and review sites to share complete opinions about brands and products online (creating what we call "influence posts"), and 2) the Mass Connectors who use sites like Facebook and Twitter to connect their friends to influential content from companies and consumers (creating what we call "influence impressions"). Josh and Augie found that both types of influence were highly concentrated: In the US, only 13.8% of online consumers create 80% of influence posts, and just 6.2% of online consumers create 80% of all influence impressions.
Somewhat remarkably, in my new report on peer influence in Europe, we found that peer influence in Europe is further concentrated still. Across Western Europe, just 11.1% of online users create 80% of all influence posts -- and only 4% of online users are responsible for 80% of all influence impressions:
I've always loved examples of the crossover between online and offline influence; my 2009 report The Analog Groundswell contains some of my favorite examples of that overlap. Our new London-based Interactive Marketing Research Associate James McDavid is here with the story of how Smirnoff brought social media into the real world -- and how it had a bit of fun in the process:
The weekend of November 27th saw the culmination of a multinational marketing campaign by Smirnoff that showed the extent to which a clear, well-executed social media strategy is able to drive engagement with a brand across multiple regions and interactive channels.
Using Facebook pages and Twitter accounts, Smirnoff asked fans and followers in 14 cities (such as London, Rio, Miami and Bangalore) what made the nightlife in their city unique -- and then wrapped all the best elements from each city into shipping containers and delivered them to other host cities. Smirnoff posted a steady stream of Facebook status updates asking fans to say which city they’d like to exchange with. The company also made videos showing the shipping containers being filled -- as well as videos of the parties to celebrate the crates' departures -- and posted them to its YouTube channel. Once the crates arrived, Smirnoff threw the parties in its new locations, with its fans and attendees generating even more content and sharing it online.
Amazon today launched a localized site for Italy, its first new international offering since acquiring Joyo back in 2004 (Amazon’s UK and Germany sites were launched in 1998, France and Japan in 2000 -- the Canada site came in 2002. Full timeline available here). According to today's press release, the new offering has more categories than any new Amazon Web site has ever launched with -- not surprising given the six years that have elapsed since the last international launch.
As part of its new offering, Amazon is pushing its selection of “hard-to-find Italian language items” to cater to local consumer needs -- indeed, Amazon has tended to excel in its localized offerings, ranging from its varied payment methods by country to its semi-localized categories (note the “Auto and Motorcycle” category on the German Web site or the “DIY” link on the UK one).
Amazon’s choice of European markets mirrors many US online retailers’ expansion into Europe. Of the top 50 online retailers in the US, some 19 operate dedicated transactional Web sites for the UK, 14 operate sites for Germany, 12 for France and 14 in Italy. Less than 10 operate eCommerce sites localized for Spain. See the graphic from our recently published Establishing A Global Online Retail Footprint below.
Customer advocacy is the perception among customers that the bank does what’s right for them, not just what’s right for its own bottom line. In every country we survey in our Consumer Technographics® research, we’ve found that customers who view their main bank as a customer advocate have more accounts at their main bank, are more likely to consider their bank for their next financial purchase, and are more likely to recommend it to others.
Recently, Google changed its policies to allow European marketers to bid on other companies' trademarks — but surprisingly, the floodgates haven't opened yet. In fact, we're not seeing very much competitive keyword bidding at all in Europe — nor in the UK, where Google has allowed this type of bidding for several years. This got us thinking: What types of marketers should bid on their competitors' trademarked keywords — and which (if any) shouldn't? Is competitive bidding best used as a branding exercise or to generate leads and sales? When you bid competitively, how should you change your creative strategy and your landing page choices? And, critically, how should you respond if you find your competitors bidding on your keywords?
I'm working with my new colleague Lucilla De Sarlo on a report on these topics right now, and we would love to hear your opinions. Feel free to post thoughts in the comments below or to e-mail Lucilla at: email@example.com.
Many of my colleagues in the eBusiness & Channel Strategy team at Forrester have been working extremely hard for the past few weeks, preparing for next week's Consumer Forum, which is taking place at the Hilton in Chicago on October 28th and 29th. Among my colleagues who are presenting their latest research are Brian Walker, Diane Clarkson and Zia Daniell Wigder, while Carrie Johnson is hosting the entire event. I'm sure it will be two days well spent.
If you’ve ever talked to Forrester about social media, chances are you’ve heard of the Social Technographics® Ladder -- our tool for measuring how people use social technologies and for helping marketers (and product strategists and market researchers and others) understand how to engage with those people in the social Web.
Today we’ve released our new 2010 Social Technographics data worldwide (you can see the US data here), and you’ll notice that this year, for the first time since we introduced the ladder, we’ve added a new category of social engagement. The new category -- “Conversationalists” -- is designed to capture the short, rapid conversations that are now taking place on Twitter and through Facebook status updates. How many people are engaged in these behaviors? Almost one-third of European online adults participate in these rapid public conversations every week. In just over two years, this activity has come from nowhere to become one of the most popular social behaviors we track.
And this Conversationalist activity has come along at just the right time, too -- because more “traditional” forms of online contribution have levelled off. The percentage of online Europeans who post their own blogs, videos, photos, or other media -- what we call “Creators” -- hasn’t grown in either of the past two years. And the percentage who participate in message boards and forums or who post comments on blogs or other social sites -- what we call “Critics” -- has grown just one percentage point in Europe each of the past two years.