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WSJ: Study Says Marketers Shifting Toward Internet, Direct Mail
5 countries: U.S., Japan, Germany, the United Kingdom and France
rcjordan




msg:543643
 1:07 am on Jan 8, 2003 (gmt 0)

media advertising, which includes television, radio, press, posters and cinema, will account for 44.4% of marketing spending in the five countries by 2003, down from 45.4% in 2001. Direct mail will grow to 13.3% in 2003 from 12.8% in 2001. Interactive marketing, which includes such tactics as e-mail marketing, Web-site design, Internet advertising and cellphone ads, will command a 7% share in 2003, up from 6.1% in 2001, the study predicts. The role of sales promotion is set to decline to 19.4% of the mix in 2003 from 19.8% in 2001. Public relations and sponsorship activities will remain steady with about a 12.8% share, according to the study.

"The shifts indicate a significant change in the way expenditure is being used,"

One other quote:
"The predicted strong growth in interactive marketing is somewhat surprising, because Internet advertising has been widely criticized for being ineffective and annoying."

Surprising ...if you haven't been reading here, perhaps.

WSJ [online.wsj.com]

 

rcjordan




msg:543644
 1:11 am on Jan 8, 2003 (gmt 0)

Meanwhile, back at the ranch....

Poor Holiday Retail Sales Hit The Bricks While Internet Sales Surge [centerformediaresearch.com]

online (US) consumer sales (excluding auctions) are on track to post an estimated $74 billion for the year, reflecting growth of more than 39 percent versus 2001. This is particularly impressive, considering the fragile economy and one of the worst holiday retail seasons in recent memory.

comScore shows that among U.S. Internet users:

- 53 percent believe the Internet is the easiest or most convenient way to shop.

- 50 percent report that they like to try new things, so they use the Internet to shop.

- 64 percent feel Internet shopping is a real time saver.


rcjordan




msg:543645
 1:18 am on Jan 8, 2003 (gmt 0)

...and, apparently, they're surfing --not stuck on a few bookmarked sites.

...nearly two-out-of-three (63.1%) frequently visit new websites. BURST also found that young web users (24 years and less) are less likely than older web surfers to say they "frequently visit new sites.

Overall, four-out-of-five respondents (83.5%) said in a typical week they visit more sites today than compared to a year ago.

-and-

Not surprisingly, search engines and word-of-mouth are the most common ways web users hear about new websites - with 61.3% and 50.8% of respondents citing these sources.

Frequent Visitor Stats [mediapost.com]

chiyo




msg:543646
 2:43 am on Jan 8, 2003 (gmt 0)

the bit i found most interesting is that older age groups (over 25 and middle age) seem to be using the web more now, - and more intelligently. It's no longer a young person's trendy activity.

I still see however tennybopper celebrities on top of most frequently searched terms lists, and "trendy" designs that seem more targeted to younger age groups.

I think there may be an interesting trend there that can be exploited!

Interestingly Im always surprised when we do "age checks" here, that WebmasterWorld has a very wide range of age demographics, when the majority of web sites look like they have been designed for the 14 to 22 year old age group.

hannamyluv




msg:543647
 3:13 am on Jan 8, 2003 (gmt 0)

Our target audience is age 55 and older (mostly older). A huge potential market for the web but just about the most inept segment you can think of. We aim for bottom level comprehension on our site.

Business is booming though. Grandma and Grandpa are finding the web to be a great place to be "involved" in the world without the effort that their age tends to prohibit.

All age groups on the web are growing. Companies are going after all of them. They know what works. Mostly because the smart companies talk to one another about what works and what doesn't, in terms of real marketing, not the idealized internet version that came out in the 1990's. Internet advertising gets a bad rap because a) it wasn't the revolution that dot commers from before hyped it up to be and b) mostly the only people who respond to polls about internet advertising are people who live, breathe and die the web. (No offense to any parties reading :) ) Of course they are annoyed by internet advertising, because it goes against everything the internet originally stood for.

Everyone else on the web (the majority) is a typical consumer. And they respond and have a tolerance to ads the same as in any other medium. Do you fast forward through the comercials if you have the chance, sure you do. If you can't, do you declare that you will never watch this TV show again? No.

Let's face it, we live in a world where the latest As Seen On TV infomercial draws a halfway decent Neilson rating. You can't say the American (I can only speak for them) consumer really cares about the amount of advertising on the web when they will willingly sit through a half hour comercial about the latest and greatest, "change your life" Ginsu Knife.

defanjos




msg:543648
 3:23 am on Jan 8, 2003 (gmt 0)

hannamyluv,

Very well put, I do agree 100%

grnidone




msg:543649
 3:29 am on Jan 8, 2003 (gmt 0)

Direct mail to grow? I didn't think direct mail advertising was effective.

jeremy goodrich




msg:543650
 3:48 am on Jan 8, 2003 (gmt 0)

Those are some great stats and trends there RCJ. Shows that we are all doing the right thing - by reading WebmasterWorld.

The trend to visit more and more new sites is very suprising for me - I guess perhaps people are realizing there is lot more to be found on the web than just 'shopping'?

Perhaps related to this, I'm seeing many surfers catching my sites on page 2, page 3, up to page 10 in Google. :)

I wonder if that is part of the trend - people feeling more 'comfortable' with the web - and thus, visiting more and more sites too as a result?

Something to ponder.

rcjordan




msg:543651
 6:06 am on Jan 8, 2003 (gmt 0)

Just had a related conversation with my mother this afternoon. The senior set is tearing the news, weather, and financial sites apart, they love it! --TV news audience share has to be suffering.


This is the one that surprised me:

young web users (24 years and less) are less likely than older web surfers to say they "frequently visit new sites."

Gamers and chat, maybe?

Dante_Maure




msg:543652
 7:26 am on Jan 8, 2003 (gmt 0)

Direct mail to grow? I didn't think direct mail advertising was effective.

Tell that to AOL. ;)

Check out the SRDS at your local library and you'll see that direct mail is alive and kicking for those that know how to use it..

mayor




msg:543653
 9:34 am on Jan 8, 2003 (gmt 0)

>> Gamers and chat, maybe?

Not from my experience with a teenage daughter. She easily outspends me, and guess whose credit card she uses!

Thank the Lord her own website is starting to generate revenue!

jackofalltrades




msg:543654
 9:35 am on Jan 8, 2003 (gmt 0)

>Interactive marketing, which includes such tactics as e-mail marketing, Web-site design, Internet advertising and cellphone ads, will command a 7% share in 2003, up from 6.1% in 2001, the study predicts.

It would interesting to know what else the companies that were surveyed considered to be "interactive marketing".

Is SEO interactive marketing?

Presumeably "Internet Advertising" refers to banners and affiliates programmes?

Id be willing to bet good money that marketers will only shift towards their own perspective of what marketing is on the Internet and not to what we would consider to be web marketing:

"Hey, that popup generated $100 last month.....if we have 10 then they will be 10 times more effective....."

IMHO anyway :)

JOAT

rogerd




msg:543655
 6:47 pm on Jan 8, 2003 (gmt 0)

I didn't think direct mail advertising was effective

The reason your mailbox is jammed with catalogs from August through December is because direct mail works. At 50 cents to a dollar a catalog (in the mail), these companies would be broke in a hurry if direct mail didn't work. Certainly, the landscape may be shifting a bit with the growth in web sales, but there are still a lot of people who prefer looking at paper.

JamesR




msg:543656
 7:00 pm on Jan 8, 2003 (gmt 0)

The great thing about interactive marketing is it puts a degree of control into the users hands and empowers them. Alot of traditional marketing you are forcing information at the user. Interactive should work with the user to help them find what they are already working for and then making the sale an easy process (1 click checkout par example)

nipear




msg:543657
 7:00 pm on Jan 8, 2003 (gmt 0)

Just look at Jcrew.com. They've been very very successful on the web. I've ordered plenty online but never through the catalog yet my mailbox is full of their paper catalogs.

I think they understand the browse offline then buy online later attitude.

gopi




msg:543658
 12:01 am on Jan 9, 2003 (gmt 0)

SEO is sure THE BEST form of Interactive Marketing!

Its the reverse of Broadcast marketing in which marketers tell a very large group of people what product to buy whereas in SEO , people tell exactly what they want and find the product...

As Sergey Brin said the marketing power of web is not in showing banner ads to a million people but in very precise targetted marketing ...in no other medium you can get to this level of targeting...

hannamyluv




msg:543659
 2:13 am on Jan 9, 2003 (gmt 0)

Direct Marketing works b/c direct marketing is a science unto itself. It alway amazes me how much people throw a fit about their privacy online when online is NOT where you need to worry about it.

I hate to tell all of you out there, but if you have only worked in internet and not direct marketing, you have not even touched the iceberg on targeting. I have heard the theory that the direct marketing universe could tell more about you than the government (no matter what country you live in). I have seen it and I know it is true.

Direct marketers know exactly what you make a year, how much you spend on almost any kind of purchase, your age, sex, address and any medical aliments you suffer from plus a few million other details that you never wanted anyone else to know.

The thing is that they really don't care who you are on a one on one basis. While it would be no problem to find you on a list, why bother? All they care about is if you will buy... And trust me, the good ones know if you will buy. Thank god the government is too poor and too disorganized to work like direct marketers. Otherwise, we would be in very deep trouble.

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