Online Advertising Lags Behind Traditional Marketing
Online advertising has strengthened its position in the marketing mix, but still lags someway behind more traditional types of marketing such as local press and direct mail, according to a new study from Continental Research.
The 2003 E-Commerce Report shows that 24% of UK companies regularly use online advertising, helping it to see expenditure increase by 18.7% during 2002 to almost £200 million (see Online Ad Industry Bucks Recession In 2002). However, 33% of British firms prefer to use direct mail and 40% value local press as the most effective way to reach consumers.
Colin Shaddick, director at Continental Research, said: “Although 24% use online advertising only 3% of all UK companies claim to use it a lot. The types of companies most likely to consider this medium are those who rate themselves as being complete technophiles.”
Telephone sales (22%) and trade exhibitions (19%) also ranked highly as valuable marketing tools, but just 14% of companies said they regularly advertise in the national press, with even fewer (5%) using radio.
Alarmingly just 1% of UK businesses claim to use TV advertising, suggesting that the tough economic climate is forcing companies to turn to cheaper, more accountable forms of marketing.
Continental Research categorised the 500 companies that took part in the survey into groups depending on their likelihood to use new marketing methods. These included Quill Pens, which have little or no interest in using new technology to further their business; Laggards, which lack the willingness and expertise to consider new ideas; Move With The Times, which recognise the need to keep up to date with the competition and Front Runners, which have a high level of interest in new technology and embrace its use within their organisation.
Shaddick added: “Interestingly it is the medium-sized companies most likely to rate themselves as a Front Runner. Many will be growing quickly and are keen to utilise new technology as part of their expansion plans.”
A recent study from Continental Research found that around 20% of mobile phone users will soon have handsets capable of receiving multi-media messages (see Multi-Media Messaging Shows Potential For Advertisers).
Continental Research: 020 7490 5944 www.continentalresearch.co.uk
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