FTD: Online Search Misstep Cost Sales

Share this content:
A decision not to pursue search engine optimization at FTD Group Inc. cost the multichannel floral marketer sales during the second quarter of fiscal year 2006, the Downers Grove, IL-based company said yesterday.


"The consumer business's order growth for the 2005 Christmas season was below expectations [because of] our decision not to pursue high-cost order volume associated with online search," FTD president/CEO Michael J. Soenen said in a statement. "In anticipation of continued competitiveness in the online search environment and to better manage the consumer segment business going forward, we have made management changes within this segment including the replacement of our head of marketing."


FTD's consolidated revenue for the second quarter ended Dec. 31 totaled $109.2 million, a 1 percent gain over the previous year. Net income for the period totaled $5.9 million, or 19 cents per diluted share, compared to net income of $800,000 last year.


The consumer segment's revenue totaled $63.3 million in the quarter, a 1.8 percent gain over last year. Consumer orders totaled 1.1 million, up from 1 million a year ago. Average order value fell to $59.33 from $60.31 a year ago.


The percentage of Internet orders climbed to 89.3 percent from 85 percent a year ago. Specialty gift orders, which include all orders delivered via common carrier, comprised 37 percent of total orders compared with 30.4 percent last year.


Chantal Todé covers catalog and retail news and BTB marketing for DM News and DM News.com. To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting www.dmnews.com/newsletters


close

Next Article in Digital Marketing

Sign up to our newsletters

Company of the Week

Brightcove is the world's leading video platform. The most innovative and respected brands confidently rely on Brightcove to solve their most demanding communication challenges because of the unmatched performance and flexibility of our platform, our global scale and reliability, and our award-winning service. With thousands of customers and an industry-leading suite of cloud video products, Brightcove enables customers to drive compelling business results.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above