SAN FRANCISCO -- Well-established companies that learned early how to take advantage of the Internet are capitalizing on it now, according to Web-marketing guru Michael Tchong.
FedEx and UPS, for example, have posted record earnings because of e-commerce, said Tchong at his inaugural Inconocast Web Attack online-marketing conference Thursday.
The conference proved to be a metaphor for the Web itself -- fast-moving, chaotic, and entertaining. It opened with basketball star Dennis Rodman roaring in on a motorcycle, in a display of star power. However, as the smoke cleared, Tchong got down to business.
The Internet has led to the biggest, most sustained explosion in stock market history, he said. It took the Dow Jones industrial 14 years to grow from 1,000 to 2,000, but only seven more to hit 3,800. This year, only five years after that, it hit 11,000.
"It used to be you could live 18 years on a business model," Tchong said. "The Internet has made it 18 weeks, headed toward 18 days. In the future, you can get up at six, write your business plan, get funded over lunch, be a success by dinner, and be out of business by the time you go to sleep."
Anyone who can deal with time compression, ramped up marketing, and other new realities can be a success, he said.
Newsweek managed to jump on the Internet trend early, said Michael Rogers, editor and general manager for the online division of the news magazine Newsweek. The magazine established a bureau in Silicon Valley in 1995. It also established on online presence, first on AOL and later on the Web.
The result, he said, is that Newsweek's readership has found it is already an established online brand as they come onto the Web. A recent study found almost identical levels of Internet use between the magazine's online and offline readers.
Online entities such as Discover Brokerage, OutPost.com, and others are breaking into the public consciousness with clever TV ads in 1999, according to Tchong.
Mary Murphy, senior vice president of marketing at Wired Digital, described how her company jumped-started the HotBot search engine with a television campaign. Between October and January, she said, they managed to grow consumer awareness from 57 percent from 37 percent and usage to 18 percent from 5 percent.
Online branding can be so quickly improved, and that should be encouraging to any current also-ran hoping to do business online, Murphy said. "The branding window is wide open," Murphy said. "There isn't a lot of brand loyalty online."http://www.techweb.com/news/story/TWB19990618S0032