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The number of online 13- to 22-year-olds will grow from 17 million to 22 million by 2004. How can your company target a group that, unlike adults, internalizes the Internet What do you need to do to attract and keep them as customers How should you alter your marketing and product development strategies Forrester s Wired Youth Summit will help you understand this sought-after group and give you new ideas you can use today to develop these critical relationships.
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hen the Web arrived in the mid-1990s, just about everyone in marketing thought it would be a great sales medium to consumers something like TV, radio, or direct mail. Billions and billions of dollars were invested with that idea in mind. Thousands of new companies sprang up to sell on the Web or to provide services to those who would be selling there. Every major corporation in America produced a Web site, most of which involved the marketing of some product or service. Hundreds of sites planned to make money from advertising placed on their sites by others. Spending on the Web was a big part of the boom times of the nineties. In fact, between 1995 and 2002, very few companies were selling very much to consumers on the Web. With the exception of travel, music, pornography, and books, the sales were very, very small. Why were they so small At rst, people said it was because half the nation was still not on the Web (hence millions of dollars were spent to equip
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Copyright 2003 by Arthur Middleton Hughes. Click Here for Term of Use.
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schools for the Web). Then the argument ran that even those who were on the Web were hesitant to buy because of the possibility of credit card fraud. No one was saying that the Web was not a great sales medium. Everyone just said, These things take time. Amazon.com, the leader that showed everyone how Web sales should be done, didn t make a pro t until 2001. But Amazon s failure was said to be due to its overextension into too many products. If it had just stuck to books, it could have been pro table, everyone agreed. The quote at the beginning of this chapter is really a joke. Here is a wired youth summit that teaches you how to sell to young people who have internalized the Web. I could be wrong, but my experience tells me that in most cases these consumer sales will not materialize for the reasons given in this chapter. Teaching retailers how to reach these wired youths through the Web is a futile exercise. Amazon was the rst Web bookstore. Within 3 years of its debut, almost everyone in the middle class in America had heard of it and had used it. It was impossible for any pure-play Web bookstore to start up and succeed in competition with Amazon. Established booksellers such as Barnes & Noble and Borders opened up competing Web sites. In other elds, retailers rushed to become the rst mover. More than a dozen online supermarkets were started, such as Peapod, Web Van, and Web Grocer. Many travel sites opened up: Travelocity, Expedia, Priceline. Banks, insurance companies, discount brokers, department stores every type of business rushed to be the rst and the best on the Web. As people began to see that the sales just weren t materializing, they began to try to understand why. There was the debate between the pureplay and the bricks and clicks merchants. Pure-play referred to Web sellers who had no retail stores. At rst, Amazon was pure-play, as were E*TRADE and Priceline.com. Some said that success at Web selling would more likely come to established chains that had bricks-and-mortar enterprises, could offer local delivery, were used to lling orders in quantities of one, and understood retailing. Barnes & Noble, by this reasoning, should be much more successful than Amazon because Barnes & Noble had thousands of retail stores. But, despite the debate, only AOL, eBay, and a few others, whether pure-play or bricks and clicks, were making a pro t. Everyone knew that it would all work out some day, but when
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