The Web sites are trying to hook consumers from the beginning of their splash into digital photography. Shutterfly, for example, has forged partnerships with Best Buy and the Good Guys to market its services to people purchasing digital cameras. Others are pursuing deals with camera manufacturers. Zing of San Francisco is advertising its photo services on the boxes that encase new Casio cameras. Zing has set up a co-branded photo sharing site for Casio, which will allow the camera maker to sell more products, learn about its customers and try to build loyalty to its brand.
Many sites tailor promotions to holidays and special events that lend themselves to picture-taking.
Partnerships are key to driving consumers to photo sites, but the economics behind the deals are murky. Portals generally charge a premium for exclusive access to its membership, and they probably take a cut of the business they pass along to the fledgling photo sites. Still, the margins in the business of printing images on merchandise are so high that profits will be just around the corner, the Web sites insist. The customer experience is critical in an industry where evoking fond memories is the central theme. A significant factor will be how much behavior needs to change in order to adapt to this new technology.