According to a report in Internet Retailer, online marketing of jewelry and diamonds by Channel Intelligence pays off, www.israelidiamond.co.il. reports. The company claims that second quarter return on advertising costs increased in comparison to return on the first quarter. Among three categories that experienced such better returns, jewelry retailers showed the largest increase, with 78% superior return on advertising costs. Jewelry retailers reported an increase of 28% in sales compared to the first quarter, and the volume of orders went up by 20%, according to Channel Intelligence.
"We`re very excited that on average our customers achieved positive quarter-over-quarter growth in key performance metrics such as sales, conversion rates and return on ad spend. While our economy is trying to recover, we continue to monitor industry trends to make sure we are providing the best possible management and support for our clients` shopping channel campaigns. We are optimistic that the online shopping environment will continue to offer growth opportunities for retailers," says Channel Intelligence senior vice president of sales and marketing, Lanny Tucker.
The increase in return for jewelry advertisements is a result of the increase in sale volume and a 20% reduction in cost per click.
The newly established jewelry search engine JewelrySpotter.com, which specializes in 'spotting deals' for consumers, says that it currently features listings of over 15,000 jewelry and watch styles from global e-commerce websites.
Marty Hurwitz, CEO of JewelrySpotter.com., noted: "The reaction and support from the gem, jewelry and watch industries for JewelrySpotter has been gratifying. Clearly JewelrySpotter is filling a need of getting more jewelry products in front of more consumers on the web."
Jewelry products and images can be posted on JewelrySpotter by jewelry e-commerce websites free of charge. The client who posted the jewelry item is only charged when a consumer clicks through to their e-commerce landing page. The client sets the fee which can be as low as one cent.
Hurwitz described some consumer initiatives: "We've got targeted consumer electronic newsletters generating good traffic and conversions for JewelrySpotter advertisers, our first series of 30-second videos that will introduce jewelry consumers to JewelrySpotter is in production with Emmy Award winning producer Mike Bruining of Morning Sun Productions, our Twitter viral campaign is just starting, and we will be developing some additional unique social networking placements over the next few weeks."
A Bill Me Later "no payment for 90 days" option has been introduced by online jewelry auction site Bidz.com. The service is being made available to eligible U.S. consumers making purchases on the Bidz.com and Buyz.com websites, informs israelidiamond.co.il.
Bidz.com stated that this is a secure way to pay, enabling online shoppers to purchase items without using a credit card.
Bidz.com President and CTO Leon Kuperman stated that the company’s aim is to provide its customers with the best shopping experience by giving them a wide selection of jewelry and brand-name accessories at competitive prices.
Kuperman added: "Providing Bill Me Later's no payment for 90 days allows us to extend that same shopping experience to the payment process that is secure, flexible and easy. Through this new payment option, we are able to offer our online jewelry customers a better shopping experience and generate even higher levels of customer satisfaction."
Like so many other jewelry retailers, Bidz.com's jewelry sales have been hit by the economic crisis, which has caused many consumers to cut back on spending, particularly for luxury items.
Bidz.com’s jewelry sales decreased by 49.6% in the first quarter of 2009, declining from $61.9 million to $31.2 million.
Despite the downturn, according to Internet Retailer magazine's Top 500 Guide, Bidz.com is still the second largest online jewelry retailer with $207.4 million in sales in 2008, second only to online fine jeweler Blue Nile.
You Tube and viral promotions can sometimes be huge successes but there is no guarantee, says israelidiamond.co.il.
Late last year jewelry retailer JC Penney produced a video clip called ‘Beware of the Doghouse’ promoting diamond jewelry sales. The out-of-the-box video met with resounding suceess and generated 20 million clicks. The Dog House campaign brought a surge in diamond sales for JC Penney’s fine jewellery business.
However, the Sydney Morning Herald points out that when the same jewelry retailer tried another concept called Dork Dodge – a game aimed at teen girls – in order to promote their Dorm Life brand, it was unsuccessful.
Ruby Anik, Senior VP and Director Brand Marketing at JC Penney, noted that it is hard to predict what will work even when a campaign tests successfully.
Anik is quoted as saying: "The whole goal was to not only have customers think about us differently, but draw in younger customers, and move more into digital world. We’re investing into social media, such as Facebook and Twitter. We have someone on staff who twitters about sales, and we have a site."
Anik noted that social media is important because it’s a pull media rather than a push media - and customers can choose to interact with the retail chain.
