JupiterResearch Finds Companies Embracing Web Site Localization Are Better Positioned to Compete in a Global Marketplace

Business Wire, Jan 22, 2008

NEW YORK -- JupiterResearch-- a leading authority on the impact of the Internet and emerging consumer technologies on business, has found that in order for companies to compete in an ever increasingly global marketplace, they must position themselves for global online growth. Outlined in a new report "Web Site Localization: Best Practices in Global Expansion," the companies that are positioned for success in markets outside the United States are those that have not simply developed and applied a uniform template to their web sites, but have tailored the sites to the needs and tendencies of individual countries.

According to the report, 37 percent of all large US companies have not translated their web site content into any other language, despite the fact the average number of languages for the top 10 global brands is almost 30. Large companies that are not developing content for non-English-speaking markets--domestically or internationally--risk losing market share to competitors with relatively more targeted strategies.

"The most successful companies in the long term will be those that develop unique sites that take advantage of users' different behavior and expectations," explained Zia Daniell Wigder, Vice President and Senior Analyst at JupiterResearch. "Given the limited budgets for consumer research and lack of data on some global markets, companies must position themselves to rapidly collect, analyze, and act on analytics data from international web sites."

The distribution of the global online population will shift over the next few years, but companies should bear in mind that online population does not necessarily correlate with online spending. While the number of online users in Western Europe outranks that in the US, the US online advertising market remains far larger than does the European online advertising market. In 2007, online ad spending in the US was almost $20 billion, as compared to $11 billion in Europe. In contrast, online retail spending in Europe was roughly on par with that in the US. Meanwhile, in China, where the online population is about two thirds of the size of the US online population, online retail is still estimated to represent a small fraction of that in the US or Europe. As Internet markets mature and consumption habits begin to shift, both consumers and businesses marketing to consumers will boost their online spending. In many cases, however, this shift will take a number of years.

"Companies investing in international markets should have a long-term strategy that follows the flow of individuals online," said David Schatsky, President of JupiterResearch. "They should have a short-term one that enables them to capitalize on the areas of the world in which consumers and businesses have already begun to allocate significant funds to the online channel."

The complete findings of this report are immediately available to JupiterResearch clients online at www.jupiterresearch.com. For details on JupiterResearch's methodology, visit www.jupiterresearch.com/bin/item.pl/methodology or email press@jupiterresearch.com to request a detailed methodology statement. For additional information on this report or JupiterResearch's globalization research service, visit www.jupiterresearch.com or contact Kieran Kelly, Senior Vice President of Global Sales and Client Service, at 1-800-481-1212 or researchsales@jupiterresearch.com.

About JupiterResearch

JupiterResearch provides unbiased research, analysis and advice, backed by proprietary data, to help companies profit from the impact of the Internet and emerging consumer technologies on their business. The company helps online businesses make critical decisions about technology selection, spending, staffing, and Web site effectiveness; advises consumer-facing companies with online advertising, marketing, and customer service strategies to understand, attract, convert and retain customers; and guides technology vendors and service providers on market opportunity, positioning, product definition, and pricing. JupiterResearch is headquartered in New York City and has offices throughout the US and Europe. For more information, visit www.jupiterresearch.com.