Digino News & Articles

04 Nov 2008

User trends and the recession help drive digital

As marketing budgets tighten in Ireland the spotlight increasingly turns to digital to offer smart, cost effective marketing solutions. Despite the doom and gloom surrounding the “credit crunch” in the digital sector we are fortunately holding strong. Companies are investing an ever increasing share of their marketing budgets into online, even if overall budgets decrease. Three of the primary reasons for the switch are return on investment, accountability and audience reach.

Supported with our own front line view and by the latest data for the AMAS Irish ‘State of the Net’ report we examine why digital marketing is bucking the trend and outline why Irish marketing managers are investing a larger percentage of their budgets online.

Some key factors to consider:
Follow your customers- they're online>>
Need for ROI and accountability helps to drive digital >>
Proof that marketing managers are increasing online investment >>
Online marketing to deliver- now more than ever >>

Follow your customers – there’re online

Marketing spend needs to follow the customer and increasingly the customer is online.

Latest Update on Irish Internet Audience and Usage*

  • 1.6 million Irish adults are now online. That’s up 15% on last year.
  • We have 833,000 broadband subscriptions and a further 222,000 mobile broadband connections. That sends broadband penetration through the 1 million barrier for the first time in Ireland.
  • Ireland has one of the fastest growing online audiences in Europe (3rd fastest behind only Russia and France).
  • The average Irish internet user is spending 14 hours a month online, which is low relative to our EU partners and almost half that of the UK, but the trend is unmistakeably upwards and Ireland’s level of digital acceptance is growing strongly every quarter.

(*Sources: ComReg, Quarterly Key Data Report, September 2008 and ComScore, World Metrix, June 2008 vs. June 2007)

Need for ROI and accountability helps to drive digital

Ironically the tightening of company purse strings and an increased vigilance amongst marketing managers can only be a good thing for online marketing. Online marketing is the most accountable, transparent and measurable medium of all. When budgets are cut and a stronger emphasis is put on achieving Cost Per Sale and ROI targets, online meets the challenge better that most other mediums. As marketing managers take a more ruthless approach to the allocation of budgets the digital marketing sector in Ireland will benefit rather than suffer.

Proof that marketing managers are increasing online investment

At Digino we have seen a big shift in how clients think about digital in 2008. Both current and new clients now more ever come to us for help with full digital marketing and communications strategy rather than just help with a single web project or digital campaign. Companies at a senior level are realising the importance of their web presence and online marketing, they are becoming aware that their web presence is perhaps very weak but are now prepared to do something about it.

At Digino we see budgets for strategy, planning, web design, search marketing, email marketing, analytics solutions and banner advertising all on the increase. Doing a quick review of our own clients’ marketing plans we would project an average increase in online spend by at least 30% in 2009.

The latest ‘State of The Net’ report for AMAS supports our anecdotal evidence. Some of the key findings were:

  • 56% of Irish companies / Marketing Managers state that they are spending over 10% of their overall budgets online.
  • The percentage of companies stating that they do not use online marketing has reduced from 30% in 2007 to 14% in 2008. A hugely positive indicator.
  • The main reasons been given for increased usage and investment in online marketing are: (1) Value for money (2) Measurement capabilities (3) Ability to optimise audience reach
  • Press and direct mail are being hardest hit by the change in budget allocation. Over 15% of companies said that they had moved more then 15% of the print budgets online. This reflects the international trend where press has been particularly hard hit by the acceptance of online marketing.
  • An interesting finding is that SME’s are more likely to utilise online marketing techniques. It seems that the ability to target niche audiences and execute campaigns on small budget is attracting companies who in the past have seen marketing as an expensive luxury.

Online marketing to deliver – now more than ever

The latest research shows that the Irish market continues to go online and that the marketing spend is following the audience. Also as marketing budgets tighten in Ireland the spotlight, now more than ever, turns to digital for smart, cost effective marketing solutions.

 

Ed Field
Managing Director

Adrian Feane
Director

E: enquiries@diginomarketing.com

T: 1890 927 800

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