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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.
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.
...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.
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]
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.
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.
joined:June 27, 2000
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.
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?
joined:July 3, 2002
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 :)
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.
I think they understand the browse offline then buy online later attitude.
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...
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.