So it’s not all doom and gloom for us here in the world of online. The recent IAB/PWC report showed a year on year growth of 28% in the first half of 2008. Crack open the champagne, keep looking for that expensive holiday and lets all be thankful we find ourselves in the one part of advertising industry that’s going to be OK…
All right, so perhaps it’s not really that good. First up, the last 3 months have seen unprecedented turmoil in the world economy, the most extraordinary having happened in the past few weeks. In fact Guy Philipson admits that ‘online is not immune from the economic downturn’. So where exactly does that leave us and what can we expect for the coming months and years?
Here are few of our thoughts here at Internet World towers:
Downturn doesn’t mean a complete freezing of all expenditure
Companies still need to attract customers and as such will continue to spend money on marketing and advertising. Ok so they won’t be spending as much but what they will be spending it on will be looked at very carefully. ROI will be king and what medium is the most accountable? Online… For example, what FD is going to pull a PPC campaign that cost £xxx but returned twenty times that in revenue? What commercial director is going to let them?
Marketing budgets must follow the consumer
A recent IMRG survey revealed that 77% of shoppers plan to carry out about half or more of their Christmas shopping online (up from 57% the previous year). Clearly online is continuing to grow its share of media consumption, especially when it comes to key issue of buying things. If more customers are going be online this year, where do you think savvy (and even less savvy) advertisers will be looking to spend budgets? Online…
New developments – what effect will they have over the next 6 to 12 months?
BBC iplayer set the bar earlier this year for viewing video content online. Now more and more destinations are cropping up where you can watch perfectly good video content online. This is starting to represent a pretty compelling story for advertisers (OK so not on iplayer specifically) looking to target specific audiences.
Online coupons are allowing the highly sought after FMCG advertisers to have some form of tangible way to track effectiveness of their online campaigns. Whilst people are rarely going to click on a banner ad to buy Coca-Cola, they will print off an online coupon offer and take it to a store to buy it. And in an era of belt tightening, how do you think the popularity of 2 for 1 coupons and other offers are going to be affected? I for one would be amazed if this didn’t take off…
Social Media – if our upcoming conference is anything to go by, there is a huge demand for understanding how social media can help your business. Brands like asos.com, AXA PPP, BBC, Bounty, Cheapflights, Chelsea FC, Clinique, EDF Energy, Ford, Intel, iplayer, ITV, Johnson & Johnson, Orange, Panasonic, Telegraph, Thomas Cook, Tiscali, Transport for London, Unilever, Visa are all part of the 250 strong delegate list that will be descending upon the Hilton, Tower Bridge on the 28th October… AT £500 a pop this suggests to me that budgets are there and companies are looking to invest in Social Media.
So where does that leave us?
Now more than ever customer retention is crucial. Why go through the expensive exercise of generating new customers when you know of a whole group of people who have already bought from you. And you (hopefully) have a whole raft of data about them and what they may be interested in. surely a well crafted campaign of incentives to this group would be money well spent.
And also, if you sell stuff and you don’t do so online, you’re quite likely not to weather the coming storm.
James Drake-Brockman
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