1. Define the characteristics of a great robust online brand. How did they achieve this
and what will sustain them?
Originally the internet was described as a vast electronic catalogue of
information, goods and services designed by companies for users to look at.
However over the past decade the web has evolved to become a collaborative, user
centred, information sharing platform known as Web 2.0 (Wertime and Fenwick,
2008). Successful online brands, whether they are ‘bricks and mortar’ brands or
‘pure’ internet brands for example, Google, Amazon or ASOS, have thrived because
they acknowledge the components of Web.20 and interact with customers to create
a personalised consumer experience (Chernatony, McDonald and Wallace, 2011).
Global online fashion retailer ASOS sells branded and own label clothing products to
fashion forward 16-34 year olds around world. Since launching in 2000 ASOS has
grown enormously and is on track to achieve £1 billion of sales by 2015. The success
of ASOS can be seen in its digital marketing strategy which maximises web 2.0 at all
points of the buying cycle. ASOS uses effective search marketing, online advertising,
social media, viral marketing, mobile marketing and encourages co-creation and
customer engagement. Such elements of digital marketing have allowed ASOS to
become a successful and robust online brand.
Cheernatony et al (2011) point out that the first challenge facing consumers
is locating the brand on the internet. Search engines are the main tool consumers
use to find information, (Rangaswamy, Giles and Seres, 2009). Wertime and Fenwick
(2008) state that users rarely get beyond the first page of search engine result pages
(SERPs). Companies therefore use search engine optimisation (SEO) to achieve the
highest position in the organic search results (typically shown in the lower left).
To successfully implement SEO marketers should ensure that websites have
good quality links and fully optimise the number of times a key phrase appears on a
web page (Chaffy and Smith, 2008). Chernatony et al (2011) point out that firms
must understand key phrases consumers use when searching for their site. Based on
the work of Anderson (2006), digital advertisers and bloggers claim that search
engine marketing campaigns need to focus on the long tail and have a large amount
of less popular key phrases (Skiera, Ekert and Heniz, 2010). However empirical work
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2. by Skiera et al (2010) disproves this, they found that only the top 100 key phrases
(not the long tail) generate the majority of searches, clicks and conversions. ASOS
has aligned its key phrases in accordance with the findings of this study. In less
popular searches for example ‘blue maxi dress’, ASOS is not on the first on the
search engine results page (SERP) (Bedwell, 2010). ASOS does however perform
better on short-tail phrases such as ‘womens fashion’, where it appears above the
fold position at position four (google.co.uk). However despite this Bedwell points out
that given the age of ASOS it is unexpected for newer entrants and competitors such
as ‘BooHoo’ to be appearing above them. Therefore in order to sustain the brand in
the future ASOS may wish to re-optimize its key phrases to avoid threat from
competitors.
Despite this however statistics show that ASOS ranks top, ahead of its
competitors as the most visible fashion brand in organic search. However in terms of
paid search ASOS has very poor rankings (Greenlight, 2010). Paid search refers to
paid results which are usually labelled ‘sponsored links’, and placed above and to the
right of organic search results. Stokes (2008) point out that studies show,
advertisements nearer the top of the page constantly get the highest click through
rates Marketers therefore bid on key phrases, with the highest bidding ensuring first
place, marketers only pay when the ad is clicked on, pay per click (PPC). Research
however has shown that people find organic results more relevant and are more
trusted than paid search results (Enquiro Search Solutions, 2004). Wertime and
Fenwick (2008) point out that brands, for example ASOS, should use both natural
search and paid search as paid search links will increase the likelihood of the
consumer clicking on the organic search result as the paid ad will create awareness
and reinforces the organic position at no extra cost.
Whilst search marketing is popular, internet users only spend 5% of their
time actually searching, the rest of their time is spent with the results, this creates
opportunities for online advertising (Wertime and Fenwick, 2008). Ellsworth and
Ellsworth (1997) believe the web allows marketers to offer deeper and richer
advertisement content. It is a faster, less expensive and immediate global
communication tool. Online advertising therefore provides the ideal platform for
creating consumer demand and building brand awareness (Stokes, 2008).
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3. Chernatony et al (2011) state that a key way to locate a brand on the internet is
through well targeted banner advertisements. Adverts can be targeted on context
where the ads on a page may reflect the content of the page, for example ASOS
advertise on a men’s fashion advice site ‘fashion beans’. Broder, Fontoura, Josifovski
and Riedel (2007) highlight that the increased relevancy here increases click through
rates (CTR) (how many times an ad is clicked on) in comparison to non contextually
based ads.
An alternative form of targeting is behavioural targeting, based on users past
browsing history. For example when consumers visit the ASOS website an ad serving
system recognises there presence from a browsing cookie on a users computer. The
more information gained the more the advertiser can target the content of their ads
to the user. After browsing the ASOS website consumers will receive ASOS adverts
advertising the products they were looking at. Yan, Liu, Wang, Zhang, Jiang and
Chen (2009) found that behavioural targeting improved the CTR of ad by 670%. This
therefore highlights the power of behavioural targeting and the importance of
interaction with customers.
Harris and Rae (2009) point out that the role of digital marketers is no longer
to simply entice consumers to click on an advert but to create “sustained
engagement” using Web 2.0 technology. One way brands stimulate this engagement
is through industry specific online brand communities. Brand communities are
groups of like minded individuals who admire the same brand (Carlson, 2008). In
2009 ASOS launched ASOS life, an online community for consumers to read, share
and debate aspects of fashion and lifestyle. Conversations within brand communities
can not only encourage customers to co-create positive brand values they can also
provide firms with valuable research data (Harris and Rae, 2009). Online brand
communities are therefore important for marketers to understand loyal customers
and create a stronger bond with consumers (Chernatony, McDonald and Wallace,
2011).
In order to sustain the success of brand communities companies need to
understand that community members are not just there to interact with the brand
but other like minded people. Companies therefore need to levy a reasonable
3

4. degree of intervention to ensure that brands values are upheld and community
members provide meaningful information (Chernatony et al, 2011).
Harris and Rae (2009) point out that as well as growth in online brand
communities, more generic online social media has become hugely popular. Social
media is “...is the umbrella term for web-based software and services that allow
users to come together online and exchange, discuss, communicate and participate
in any form of social interaction” (Ryan & Jones, 2009:152). Kaplan and Haenlein
(2010) suggest there to be six different types of social media; blogs and microblogs
(‘Twitter’), collaborative projects (wikkipedia), content communities (Youtube),
social networking sites (‘Facebook’), virtual game worlds (‘World of Warcraft’) and
virtual social worlds (‘Second Life’). Marketers therefore need to manipulate social
media platforms to engage consumers with a brand to create brand awareness and
retain loyal customers.
Data has shown that 75% of U.S households use social networking sites with
‘Facebook’ being the most popular (Porterfield, 2010). Kozinets, (2002) points out
that businesses are also using ‘Facebook’ in order to create a community or for
market research. ASOS is no exception and regularly uses ‘Facebook’ and other social
media such as ‘Twitter’, ‘YouTube’ and ‘Skype’ to share content and interact with a
large amount of consumers. Social networking site ‘Facebook’ accounts for 12% of all
traffic to the ASOS website. ASOS has also recently integrated an e-commerce store
into its facebook page. This allows customers to shop on ASOS without leaving
facebook and provides additional exposure for the brand as customers can ‘share’
their purchases. Social media sites such as ‘Facebook’ also provide marketers with
online advertising opportunities (Ryan and Jones, 2009). Business can target their
ads to users based on their profile information, location, interests and activity. Social
media can attract customers through well targeted advertising and retain them
through constant communication and interaction.
One aspect of social media which ASOS and many other companies over look
is virtual social worlds, for example ‘Second Life’. Kaplan and Haenlein (2009)
suggest that virtual social worlds can offer marketers great opportunities in
advertising and communications. Hemp (2009) points out that real world marketing
activities in virtual worlds are rare however in 2003 Levi’s created virtual jeans for
4

5. residents of ‘There’, this was preliminary a market research exercise however it did
suggest that users who make a virtual world purchase can have an effect on real
world purchases. Such research provides ASOS with ideas to further expand there
social media offering.
Bueno (2007) points out that brand engagement activities such as social
media are crucial to word of mouth marketing. Edelman’s 2010 Trust Barometer
shows that 44 percent of respondents trust “a person like me”. Messages passed on
from a person ‘like me’ is word of mouth marketing and can be very powerful
Stokes, (2008). It has been said that viral marketing is a digital form of word of
mouth (Wertime and Fenwick, 2008; Kaikati and Kaikati, 2004). Viral marketing
refers to any strategy that encourages individuals to pass on a marketing message
online. This often leads to high levels of exposure and influence (Bampo, Ewing,
Mather,. Stewart, Wallace, 2008). Like many companies ASOS use viral marketing.
They have an email system which regularly sends e-mails to existing customers
advertising products and promotions. Customers can forward e-mails to pass on a
message. Stokes (2008) however points out that the greater creativity involved in
viral marketing the more effective it is. ‘YouTube’ videos therefore are commonly
used by companies. ASOS has a YouTube channel with a variety of creative video’s
advertsing their products in a creative fashion which encourages consumers to share
the message via social media.
Wertime and Fenwick (2008) point out that viral marketing is advantageous
as the customer passes on the message at a high speed to an appropriate target
audience who will appreciate the content. Dobele et al (2007) points out that viral
marketing is especially effectively for targeting Generations X and Y (ASOS target
audience) which are harder to reach via traditional media. Viral marketing therefore
is essential for online brand awareness.
Chernatony et al (2011) point out that online advertising however can be
created without input from the brand. This is known as Autonomous co-creation
(Zwass, 2010), where consumers create advertisements for brands. For example
influential individuals often choose to feature ASOS products in a blog they have
written, providing valuable awareness for the brand. An alternative form of co-
creation is sponsored co-creation (Zwass, 2010) where consumers work at the
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6. behest of a brand. For example ASOS fashion finder allows users to build and create
outfits on the website and share them with other users. Companies such as Nike
however have taken this level of co-creation further and allow consumers to
customise clothing and footwear to create a bespoke product. Co-creation therefore
is the creation of value by consumers (Zwass, 2010). Such activity successfully
engages consumers with a brand and creates strong brand awareness.
However not all user generated content can be positive. Berthon, Pitt and
Campbell (2008) point out that some consumers can create advertisements to
disrupt a brand. There are many websites and anti brand communities devoted to
criticism certain brands (Harris and Rae, 2009). The social and sharing power of Web
2.0 can therefore spread bad press very quickly. Marketers therefore need moderate
what they share with consumers in order to sustain their brand in the future
(Leadbetter, 2008). This will ensure that reputable brands such as ASOS benefit
positively from consumer online engagement and do not receive negative word of
mouth.
Sorrell (2010) points out that while most marketers are coming to terms with
digital communications the next challenge will be to utilize mobile as a marketing
channel. There are currently 4.1 billion mobile phone users, that’s over half of the
worlds population (Mocom2020, 2009). Today mobile phones are being used for
greater services, the introduction of the smartphone means that mobile phones are
used for communication, internet access, entertainment, cameras and much more.
Marketers therefore need to adapt there offerings to reflect advances in technology.
According to research 91% of mobile phone users keep their phone within three feet
all day (Ahonen, 2007). This allows marketers to immediately communicate with
consumers. One form of mobile advertising is SMS messaging. Stokes (2008) points
out that SMS can be useful for customer relationship management, in the travel
industry airline reservation can be sent via SMS, with updates being sent at the time
of travel. Similarly ASOS use SMS to confirm orders and as a way of sales promotion.
Stokes points out that messages can also be targeted. Geographic location based
services also allow marketers to target consumers according to their location.
Therefore ASOS for example can therefore send customer SMS messages advertising
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7. their products when they are shopping on the high street to drive customers to their
website.
Hongwei (2010) states that a smartphone has great ‘convenient value’ as its
functions provide the user with relevant information that helps them to manage
everyday life for example consumers have access to information on the internet
where ever they go. ASOS have recognised this and created a mobile commerce site
which allows customers to conveniently buy ASOS products off their phone. An m-
commerce benchmark study has ranked ASOS at the top for best m-commerce site
(Charlton, 2011). ASOS have further developed mobile services with the launch of a
mobile commerce app. This also allows users to make purchases and use of mobile
location based services as ASOS have used this to highlight nearest drop-off locations
for returns.
Ahonen (2008) points out that consumers have great attachment to their
mobile phones and see them as being a very personal and intimate accessory. Whilst
this makes mobile marketing an attractive option for marketers, marketers need to
respect privacy and permission in mobile marketing in order to sustain success with
mobile marketing in the future (Stokes, 2008). Zaidi (2008) highlights mobile
marketing as one of the latest developments in digital marketing and points out that
in order to ensure future sustainability brands need to ensure that they are
incorporating the latest technology and tools into their digital marketing strategies
and campaigns.
Web 2.0 therefore provides consumers with a variety of brand engaging
features that create awareness and help to retain consumers through creative
interaction. Eric Schmidt, CEO of Google, however points out that “The Internet will
transform advertising because of its trackability, not its beauty”(cited in Stokes,
2008). A key characteristic therefore of any online brand is sophisticated use of web
analytics. Browser based measurement tools such as ‘Google Anaytics’ record site
statistics such as the volume of traffic, referring sites, popular content, the most
popular days and times, search engine keywords, conversion rates and repeat visits
(Chaffey and Smith, 2008). Marketers therefore can constantly assess the progress of
online brands and see what areas need readdressing in order to maintain the success
of online brands.
7

8. By using online fashion retailer ASOS as an example, the research presented
identifies key characteristics which are essential to the success and future of online
brands. Effective search marketing, key words and well targeted advertisements are
vital for acquiring customers and driving traffic to a site. By manipulating all aspects
of Web.20 such as social media, brand communities and viral marketing, brands are
able to form collaborative relationships with consumers and increase brand
awareness . Brands are also using the latest advances in technology for example
smart phones to successfully engage consumers in all marketing channels. By
keeping up to date with technological advancement, using the internet to
communicate and collaborate with consumers and analysing web analytics, brands
such as ASOS are able to ensure heightened success in the future.
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