End of Financial Year Performance – Digital Style

There has definitely been staggering growth in the Australian digital space during the 1st 6 months of the year. With a new financial year upon us I have no doubt that companies in Australia will continue to shift funding from offline to online. Thus I felt it timely to release a compilation of general digital statistics from the first half of 2010 to assist marketers and agencies alike to build their business case for online marketing initiatives. Enjoy!

eCommerce & General Internet Usage

1. Online Internet Usage in Oz – According to Nielsen, Australians spend an average of 17.6 hours a week online, making up 33 per cent of their total media time.
2. Online retail spend in Australia – eBay-owned payment company PayPal predicts online retail spending to reach $33.8 billion in Australia by 2012 – a significant increase on the $24 billion generated during 2009.
3. Loss of online sales to international providers – 40% of Australians online spend is going to overseas stores. Compare this to the US who are losing 10% to overseas counterparts and this crystalises the impact of delayed online investment by Australian retailers.
4. Average consumer online spend Australia – According to Frerk-Malte Feller, Managing Director, PayPal – in the last six months alone the average consumer spent $1,223 online, an increase of $130 from the second half of 2009.”
5. Retailer online investment in 2010 – According to a Forrester report released in July “online retailing in Australia 2010: Marketing, merchandising and customer service”, 69% of retailers are planning to invest in improved site content and 66 per cent will spend more time on online marketing to drive sales & growth.
6. Online purchasing frequency – According to the ACRS’ latest report: “Value and Optimisation in Multi-Channel Retailing”, approx 36% of Australians are making purchases online at least once a month and 6% are buying online once every week.
7. Online / Offline Channel Effect – According to the ACRS by 2012, nearly half of all retail transactions are expected to be executed by consumers crossing channels – making multi-channel retailing essential.

Social Media

8. Social Network & Forum Usage – According to Hitwise Australia social networking and forum usage increased 36.1% in the past year and overtook search engines as the most visited industry by Australian Internet users in March 2010.
9. The power of online WOM – According to a survey conducted by RightNow 16% of Australian consumers said they had stopped doing business with a company because of a social media discussion they had seen about how the company treats customers. Another 16% stated they had also seen a positive consumer discussion about a company and had gone on to make a purchase.
10. Influence of Online Reviews – A study by RightNow found more than half of respondents (58 per cent) deemed customer reviews and feedback online to be the most important source to influence decision making, of least importance was advertising in any shape or form.
11. Online Community Usage – Australians look to communities of interest such as parenting or sports sites as a key channel for social media discussion – 62 percent of Australian Internet users visited a message board or forum in 2009.
12. Online Video Usage – Australians have a huge interest in online videos and this continues to grow. In January 2010 alone, Australians consumed 33 million videos online daily.
13. LinkedIn Members – LinkedIn has seen one of the fastest growth trends amongst social media sites in Australia, with unique audience numbers increasing by 99 percent from July 2009 to May 2010.
14. Twitter Users – According to Tribalytic Twitter subscribers in Australia are estimated to stand at 2.5 million.
15. FourSquare Members – According to socialmedianews.com.au Sydney FourSquare users have reached the 60,000 mark.

Mobile Statistics

Mobile Internet Usage16. Australian Mobile Internet Usage – Australians’ ownership of internet enabled phones now sits at 43 per cent, with 29 per cent regularly using it to search, email, find maps and share their lives on Facebook, Twitter and MySpace.
17. Mobile Internet Behaviour – Internet searches are the most popular online activity on the phones. Some 73 per cent of mobile internet users users conduct online searches by mobile now, compared with 30 per cent a year ago.
18. Mobile Device Share – Nokia has 35% share of handsets in Australia vs Apple’s at 28%. Apples share is expected to reach 61 per cent this year, according to MediaSmart.

Search

19. Search Engine Market Share – According to Hitwise for the week ending the 10th of July 2010, Google’s market share in Australia equated to 92.52%, Bing was 3.44% and Yahoo was 2.39%.
20. Political Term Search Growth – Given the upcoming election this last one is a timely. Political related search terms are on the rise – Yahoo recorded a 6829.44% rise on the search term ‘Julia Gillard,’ a huge 8164.49% increase on the term ‘Julia Gillard biography’ and a 2600% increase on ‘Julia Gillard pics,’ from Wednesday 23 June until Friday 25 June. Additional search terms on the rise at Yahoo! included, ‘Australian Labor Party’ (2597.72%), ‘Tony Abbott’ (3107.65%), ‘Kevin Rudd’ (3106.67%), ‘Kevin Rudd biography’ (2042.72%) and ‘Julia Gillard MP’ (1334.60%).

Watch: The growth of eCommerce and eBusiness in Australia in 2010?

References

http://news.idg.no/cw/art.cfm?id=C9356544-1A64-67EA-E489E8D76F64ADA4
http://www.smh.com.au/business/media-and-marketing/aussie-advertisers-yet-to-take-bite-of-apple-20100708-102ej.html
http://www.smh.com.au/digital-life/mobiles/australians-take-to-mobile-internet-20100429-tszn.html
http://www.socialmedianews.com.au/foursquare-has-60000-users-in-sydney-business-urvey/

Consumer-Electronics


http://www.insideretailing.com.au/Latest/tabid/53/ID/8517/Australia-reaches-customer-experience-impasse.aspx
http://www.dynamicbusiness.com.au/articles/articles-news/online-retail-grow-40-percent-by-2012-1785.html
http://blog.tribalytic.com/2010/05/13/how-many-australian-twitter-users-are-there-and-where-are-they-from/
http://www.hitwise.com/au/datacentre/main/dashboard-1706.html
http://www.computerworld.com.au/article/351204/search_engines_running_hot_gillard_krudd/
http://www.buzznumbershq.com/2010/australian-social-networks-and-forums-usage-increased-36-1-in-the-past-year/
http://www.marketingmag.com.au/news/view/consumers-go-multi-channel-for-retail-2238

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On The Move – Mobile Marketing

Just a week ago I was reading an article which was regurgitating the same old line – is this the year of the mobile? For those working in the industry, we all know that mobile internet has received strong enough penetration to consider it an important digital channel – one which cannot be ignored.

In fact in a recent report from Mark Meeker’s, from Morgan Stanley it was declared that by 2014 mobile will become the primary device for accessing the internet reinforcing just how big a role mobile will play in our digital strategy in the coming years. However just like social media the mobile space is moving rapidly and organisations are beginning to innovate in the space. So what are some of the trends emerging beyond those that we have already witnessed like Augmented Reality. 5 of the most interesting I have come across are detailed below.

Comparison Shopping – Mobile Style

Mcommerce. Mobile ShoppingThe introduction of applications like ShopSavvy will provide consumers with new ways to compare and shop on the move. Named a potential game charger – comparsion apps combine location with traditional comparison technology to enable consumers to do online research out in the field. By scanning bar codes users can compare prices of the products in the area simplifying the process of “shopping around”.

Jeffrey Grau a senior analyst from eMarketer recently said “Until now, researching online and buying in a store have been sequential activities that take place hours, days or even weeks apart. But customers who bring their Web-enabled mobile phones with them into a store can do online research at the point of a purchase decision.”

mCommerce

Gartner analysts are predicting an explosion in mobile transactions this year, with the number of such purchases likely to increase by over 50%. The data, compiled by Gartner, showed the Asia-Pacific region to be the leader in mobile transactions, with 41.8 million users in 2009 – a number which is expected to rise to 62.8 million by the end of 2010. However with Australian retailers behind on the general commerce front it will be interesting to see how quickly retailers will embrace mobile commerce opportunities.

Location Based Marketing & CRM for Mobile

Globally in markets such as the US and UK, mobile is providing a key tool to drive traffic and sales to traditional bricks and mortar retailers – bridging the gap between online and in-store purchases. Mobile coupons are one of the key ways in which retailers such as Subway and Target are using mobile to drive consumers in-store. This presents a significant opportunity for Australian retailers who are yet to be convinced about the value driven through investment in online channels to drive sales in-store.

A newer opportunity is also surfacing and could also revolutionise mobile marketing and that is Geo-fencing. A geo-fence is a virtual field around a location that is used to shoot a mobile message to a user when they come into or leave that area through applications. For brands who have engaged consumers in the mobile space, geo-fencing presents an opportunity to communicate to their audience in a timely, relevant manner – based on their location. By doing so retailers will be able to drive repeat patronage in store and potentially increase share of wallet from its consumer base.

Appvertising

In-App AdsBoth Google (AdMob) and Apple (iAds) are heavily investing in networks to monetise the increasing number of applications being loaded into app stores. Unlike other forms of advertising networks, mobile networks can combine location based data with user profiles to deliver a new targeting capability. And whilst statistics of mobile advertising vs other forms show market share is still relatively small the opportunity is significant. The Apple iStore alone has experienced over 4 billion downloads for free apps – and this sheer volume of consumer usage and engagement is one which many marketers will be looking to leverage – particularly early on. Like any newer form of media, consumer interaction is high partly due to lower advertiser saturation rates and noise. Statistics currently show that that appvertising campaigns are delivering response rates of between .3% – 6%.

Location Based Social Media

Location based social media is one other area that is significantly on the rise. FourSquare, Gowalla, Google Latitude and others are rapidly innovating and consumer take up is rapidly increasing. A month ago I provided a full overview of these networks and how they are changing the mobile and social landscape along with the opportunities they will present to marketers.

What other trends do you see emerging in the mobile space? Share them below.

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