The Web is…
Ask for a definition of the web 10 years ago and you would have received some description of the Internet that was largely defined by hardware and connectivity. Today the web has finally left its childhood and we are starting to get glimpses of what it is going to be when it is all grown up, or at least understand its potential. The main reason for this growth is connectivity and bandwidth has finally caught up.
What a difference a decade makes
Just 10 years ago there were 2.6 million broadband households in the US, one out of every 40 homes. At this time I was asked to help a notable company build a large and advance media push on the web and I honestly told this company they were too early. I would have loved the project and the money, but it was too soon. Sadly another consulting team sold them a different reality and this company wasted millions building media and infrastructure that the majority of the market could not consume. Just 10 years later broadband households have increased by 3,000%. Over 80 million households, or two thirds of the population, now have broadband connectivity. Add to these incredible numbers 270 million mobile phones are now in use this up from 51 million ten years ago. If that isn’t enough consider the fast growing segment of smart web-enabled phones with 24/7 access to the web. Consumption of web related content and media is growing exponentially.
Changes in the Web are Accelerating
Consider these facts, Google just celebrated its tenth anniversary and the social site Facebook was opened to the general public the end of 2006 and they now have over 350 million active users.
Consumers spend 34% of their media time online. Marketing is trying to catch up with digital marketing spending rising from $6.2 billion in 1999 to $25.6 billion, or 12% of all marketing spending, in 2009. But marketers still spend most of their energy and dollars on television, newspapers, and radio*.
Companies are still spending too much on the old media that is being abandoned and not enough money on where consumers are spending there time.
Over 85% of all car purchases start on the web
Think about that stat for a second. This flies in the face of conventional wisdom, the term “kicking the tires” was born in the car industry. I am sure it is safe to assume 85% of the sales do not close on the web, but that is not the point. The web is not just about ecommerce, it is about how most sales start on the web with search engines, word of mouth, trusted reviews and other forms of research that all consumers perform prior to ever visiting your brick and mortar and now even your website!
The first Wave is always a warning
One thing you learn surfing is the first wave of a big set is always a warning. You see the first wave rise up and it is time to start paddling out as the waves that follow that first wave are guaranteed to be larger and break further outside. Inexperienced surfers will paddle just enough to get over the first wave only to see two or three more waves bearing down on them and sending them through the washing machine and pushing the surfer far back in their progress or worse ending their day early.
The web had a similar wave and there are many companies that have invested just enough to get past the first wave. This first wave was getting online, putting up a website and connecting to users through email. The set that follows that first wave is much larger and carries with it much more power, it is a wave of social media and truly listening and connecting to users. Unlike the first wave failure to clear this second and following waves will result in the demise of companies and individuals.
What can you as a leader learn from this?
Consumers move much quicker than most companies. Those companies that jump in and start (paddling) working with the new technology will have an advantage. These advantages used to be acquired through manufacturing tools, process and software. Those advantages have become commoditized! Who doesn’t have a CRM, workflow apps, email and a website? Most have cleared the first wave.
When you see web technology shifting, it is time to begin close observation of the models behind it. It may take time for those models to take hold, and in that time, you get the chance to learn. This window is when you need to experiment and figure out how things work, because that’s when it’s cheap and the competition is hanging back (not paddling). The objective is not to make money right off, but to learn the ropes. Because when the transformation happens — and it will — then you will have the advantage of knowledge.
Are you Paddling?
The next wave is upon us and you better be paddling. This next wave is ready to dump on companies and individuals that choose to ignore it or think that the minimalist approach taken on the first wave is going to cut it . This will result in many casualties getting washed out and at best a major setback and loss of ground on your competition that clears the set. This can easily be avoided if you take the necessary steps to prepare yourself and your company.
What are you doing to prepare your company to thrive in the Web’s latest wave?
* Source – Forrester