We are a creative integrated marketing consultancy specialising in 4 business areas: Business Services, Financial Services, Automotive Aftermarket and Recruitment Advertising. These blogs tell of some of our experiences working in these business areas.
14 August 2013
When I first started my working life, we didn't have internet services for media planning and buying – or even an Internet. Later, as I recall, common advice was to allocate 5% of media spend to online activity. Today, I am resisting allocating above 50% for online activity.
This is symptomatic of the new commercial opportunities that online services provide in nearly every sector, from highend British fashion brands such as Asos, Burberry, Jimmy Choo and Topshop to even replacement car tyres where online portals have made a significant impact on sales performance and EBITs for those OEM tyre manufacturers who embrace platforms such as Blackcircle.
According to Google and OC&C the expected figure for overseas online sales for British retailers would reach £28 billion by 2020 with the biggest growth coming from Europe and Asia. Last year, online UK sales from outside Britain were £4 billion with online contributing around 14% of total sales.
Why the change and how is this growth possible? The answer is because there is a culture-shift to online through tablets and smartphones which is largely unstoppable and puts huge purchasing power in the hands of billions of customers. And it isn't just about ”reach”, it's also about customer experience and being in front of your customers with just the right level of information when they are close to, or at, the point of purchase. It's also possible because of the strength of brands.
Two questions then come to mind:
Chris Abraham is CEO and head of media investment at www.AEPadvertising.com