Do you research online before buying a high-value product? Most of us would answer yes to this question, but of course there are those who still stick to the 'traditional' offline methods. But according to NRC research, 89% of Hungarian internet users now use the web before making a purchase. This article is based on a piece published in the 13 February issue of Media Post Publications in the US, which discusses the importance of online marketing and the barriers to increasing online advertising investment.
Every marketing, advertising and communications professional is aware of how the internet has changed our daily lives. Media consumption has changed dramatically in the last ten years, with the web now closely following television in terms of popularity among media. According to the latest IBM report, people spend almost as much time on the internet as they do watching TV. Credit Suisse data also confirms that TV is ahead of the web in daily media consumption. However, if we take into account that watching TV is in all cases a passive pastime, while the Internet is in most cases an active activity and provides interactivity, we can conclude that it is undeniably an important medium for reaching potential consumers. According to Media Post Market, by 2011, Internet usage will overtake television worldwide, as media consumption habits have clearly shown this trend in recent years.
However, some industries are still rather slow to adapt to these changes. According to Media Post Publications, companies spend only 7.5 percent of their advertising marketing budgets on online. It is reasonable to ask why, if people spend 30 % of their media consumption time online, companies' budgets have not yet adjusted.
McKinsley recently published a study of 410 marketing executives from across the retail, telecommunications, technology, services and energy industries. The study reveals the key barriers to online marketing investment:
· 59% – Elégtelen adottságok, szaktudás
· 53 % – Nehezen mérhető a hatása
· 33% – Nehéz meggyőzni a felső-vezetést
· 24% – Digitális eszközök korlátozott elérése
As online marketing is still relatively new and constantly changing, it's no wonder that the number one issue cited by the managers surveyed was a lack of expertise.
The McKinsey study does not, however, list all the obstacles to getting online. Media Post Publications found a number of lesser-known factors that make it difficult for companies to invest online:
- The idea that you only need online marketing if you are also involved in e-commerce is wrong. Only a small percentage of online advertisers sell online, but these companies know that most of their consumers use the internet to find out about products on the market before they buy. Shop.org reports that more than 70 percent of online searches result in offline purchases.
- Many companies do not want the inconvenience of learning and change and prefer to stick to the traditional methods they have used in the past. However, the market demands evolution, so these types of firms cannot succeed in the long term.
- Often, the problem is simply that there is no one in the company responsible for increasing investment in internet marketing, so it is ignored and forgotten.
- Online marketing is not just a new channel, it also brings about other changes in the life of a company. Firstly, it requires greater collaboration between the marketing and IT departments. On the other hand, if a company has different products or services and targets different groups, it is difficult to determine who should be targeted by advertising.
In conclusion, although companies may encounter many difficulties in building online marketing, it is not worth missing out on this advertising opportunity, because the competitive market requires all participants to improve.
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