Home / Industry

Top Online Challenges for Retailers: Cybersquatting and SEM Abuse

Last week, MarkMonitor hosted a webinar with Internet Retailer and our guest speaker from 1-800-FLOWERS.COM on the topic of How to Reduce Traffic Diversion & Other Cyber Abuse. During the webinar, we polled audience members to gauge what their top challenge is in managing their brands online. We learned that 60% of those polled felt that cybersquatting and Search Engine Marketing (SEM) abuse — two prevalent forms of traffic diversion — were their top concerns, more so than other types of cyber abuse.

While the results may incorporate some selection bias — it is very possible that our webinar attracted more brand owners that are concerned about traffic diversion — the fact that 60% of retailers consider traffic diversion to be their biggest online challenge was still eye-opening, but made sense. Retailers are particularly vulnerable to traffic diversion schemes, as their consumer-facing, household names drive considerable volumes of Web traffic.

It is also very clear that scammers are well aware of how customers find retailers online, and they leverage this to their advantage. According to the E-tailing Group Eigth Annual Merchant survey conducted in the first quarter of 2009, the top two ways customers arrive at retail web sites are through direct navigation and paid search ads:

Typing the URL of a retailer into a browser window: 27%
Paid search: 17%

Natural search: 13%
Email marketing: 12%
Other*: 31%

You probably see the correlation: the two biggest online challenges for retailers — namely, cybersquatting and SEM abuse — are directly related to the most common methods of how customers find retailers online — through direct navigation and paid search, respectively.

The retail sector spends much time and resources in driving traffic to their sites; the retail sector, in fact, spent $5 billion on Internet advertising in 2008, far more than any other industry. The sector accounted for 22% of all Internet ad spending, according to the Interactive Advertising Bureau (IAB) March 2009 Revenue Report. Approximately 45% of the $5 billion was spent on search advertising alone. To maximize the return on these investments, it only makes sense that retailers also focus on ensuring that traffic intended for them is not siphoned off by opportunists and competitors. 1-800-FLOWERS.COM offers practical advice on how to do just that in our recorded webinar.

*Other includes Web traffic generated via: catalogs and direct mail (10%), affiliate sites (4%), comparison shopping engines (3%), offline advertising (2%), other (10%) and unknown (2%).

About MarkMonitor

MarkMonitor

MarkMonitor®, the world leader in enterprise brand protection and a Thomson Reuters Intellectual Property & Science business, uses a SaaS delivery model to provide advanced technology and expertise that protects the revenues and reputations of the world's leading brands. (Learn More)

Related topics: Cybersquatting, Domain Names, Law, Web

WEEKLY WRAP — Get CircleID's Weekly Summary Report by Email:

Related Blogs

Related News

Topics

Industry Updates – Sponsored Posts

Minds + Machines in 2014 and 2015

DNW Podcast Interview with Antony Van Couvering

TLD Registry and Right of the Dot Establish a Domain Name Industry "Dream Team"

"Chinese Domaining Masterclass" to be Presented at NamesCon Las Vegas in January 2015

LogicBoxes Announces Automation Solutions for ccTLD

TLD Registry Wins Best Marketing Award at China New gTLD Roadshow

Update on Minds + Machines' Top-Level Domain Launches

ICANN Los Angeles Recap Webinar

TLD Registry Appoints First China General Manager, Mr Jin Wang

TLD Registry Opens China Headquarters in "China's Silicon Valley"

.nyc Goes Public to Brand the Big Apple

pink.host: Breast Cancer Awareness by Bluehost

Infographic: Where in the World Do Chinese People Live?

Mobile Web Traffic: A Dive Into the Data

Auctions Update: MMX Wins .law and .vip

New .ORGANIC Top-Level Domain Welcomes Leading Brands As .ORGANIC Pioneers

Dot Chinese Online and Dot Chinese Website Featured in EURid's World Report on IDNs 2014

New .ORGANIC Top-Level Domain Opens to Serve the Organic Community

Independent Endorsement of Dot Chinese Online & Dot Chinese Website by by FiarWinds Partners

New gTLDs and Best Practices for Domain Management Policies (Video)

Sponsored Topics

Afilias

DNSSEC

Sponsored by
Afilias
Minds + Machines

Top-Level Domains

Sponsored by
Minds + Machines
Verisign

Security

Sponsored by
Verisign
dotMobi

Mobile

Sponsored by
dotMobi