The New Media Vision
November 30 2001
Consumer e-commerce occurs among 60% of the UK's major companies, half of which expect to see sales grow over the next year. Two thirds also advertise on the net, half of which plan to increase their spend in the coming 12 months. These are the key findings of an ISBA /Advertising Research Consortium (ARC) study on net marketing released recently.
The report, covering corporate activity across websites, e-commerce, net advertising and new media agencies, is believed to be the first of its kind. Development costs of companies' main brand to consumer websites have been substantial - the average cost has been £385,000 per site. Further significant spending is expected over the coming year.
Other significant facts unearthed by the research include:
- In nearly three quarters of companies, marketing people have the responsibility for the main B2C website.
- In 42% of companies, funding for the development of the consumer website has come exclusively from marketing budgets.
- Only a third of companies have funding mainly/entirely from other sources.
- Over 60% of companies have used both direct marketing and public relations to drive traffic to their site.
- Three fifths of companies have used direct marketing in their e-commerce activity, and 35% have used sales promotion.
Jonathan Lace, author of the report and the Allied Domecq associate professor in advertising at Southampton Business School, said "Despite the burst of the Internet bubble the situation amongst leading advertisers appears robust. Spending on website development, e-commerce and Internet advertising will continue."
On the new report, Debbie Morrison, ISBA director of membership services, added "The greatest surprise is that new media remains very firmly within the remit of marketing departments - even when projects involve e-commerce or other heavily technical activities. New media is seen as a standard marcomms tool, funded and managed by the marketing department. Given this, it is striking that almost half of advertisers surveyed believe that they are still failing successfully to integrate on and off - line media."
She continued, "The report also highlights that success in new media and e-commerce depend on there being a clear strategy and vision for new media at the highest levels of management. There needs to be board level understanding and commitment to the role of new media within the business. The greater the investment and the stronger the commitment to accountability - in developing strategy and carrying new media communications forward - the greater the success. Those companies which have been most successful are those which have had the most visible new media "champions" at the senior management level."
All articles 2006-22 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.
