16 July 2009

The market, us and our clients in 2009

In 2009 we’ve seen more consumer activity online, seen our clients increasing their ROI from online and have observed clients fundamentally changing their attitude and approach to digital marketing. We’re seeing more and more Irish companies getting serious about using online for customer acquisition and retention. With some clients actually offsetting revenue losses from other channels with online gains.

Some key factors to consider:
More Irish consumers online in 2009 and those online are doing more >>
Our clients are reaping greater rewards from online in 2009 >>
What our clients are doing with digital marketing in 2009 >>

More Irish consumers online in 2009 and those online are doing more

Four years ago roughly 90% of Digino’s online marketing activities for clients was targeting overseas markets with probably less than 10% focused on Ireland. Now it’s more like a 70/30 split. Irish consumers are going online and businesses are starting to follow them there. Assessing reports from Comreg, JNIR, ABCe etc we can see that:

• There are now more internet users than ever with over 100,000 more broadband subscribers than last year. Ireland currently has 1.2 million total broadband subscribers.
• Average time spent online is increasing. The average Irish internet user is now spending over 9 hours a week online. Online shopping spend is increasing.
• Digital’s share of Irish marketing budgets is now almost 10%. Spend on digital is up 22%.
• Online’s share of overall media consumption is increasing and now accounts for almost 35% of the average internet user’s consumption. Second only to TV.
• The Irish audience is becoming increasingly net savy and is closing the gap on our EU neighbours.

Our clients are reaping greater rewards from online in 2009

Looking at a broad spectrum of data from dozens of client campaigns we are greatly encouraged by the positive results experienced by most.

• On our 10 most trafficked client sites the average number of website visitors is up by 12.8% in the first 6 months of 2009 versus the same period in 2008.
• Our medium sized clients who sell online (€200,000 to €10m in annual online sales) have seen visitor to buy conversion rates increase by an average of 22%. Usually the result of an improved offering combined with an improved website.
• Search volumes are increasing. The number of Google searches performed in Ireland continues to grow quarter by quarter. Q1 2009 search volume in Ireland was up by 7% on Q1 2008 according to Google Ireland’s data.
• Interaction rates with rich media banners and expandable creative formats are as healthy as ever and still delivering “cut through” for advertisers. Average interaction rates with our rich media campaigns in 2009 to date is 18% which is marginally up on 2008.

What our clients are doing with digital marketing in 2009

We are seeing fundamental changes in how clients are approaching digital in 2009:

• Responsibility for digital is moving up the chain of command. We meet a lot more CEO’s and MD’s now in comparision to 4 years ago. IT is represented at meetings to facilitate but are no longer responsible for the online presence or online marketing.
• Clients are putting more emphasis on strategy and planning. Our fees from strategy and planning work have doubled so far in 2009.
• Clients are cutting banner advertising spend but increasing search marketing budgets.
• Clients are taking budget away from TV, print and outdoor and reallocating to online.
• Clients are refusing to pay anything close to rate card for media but willing to invest wherever tangible ROI can be shown.
• Clients are making genuine efforts to create more higher quality content including text, audio and video.
• Clients are expanding their exposure beyond search, banner advertising and email marketing to additional digital channels such as social and affiliate.

Give them what they want. And succeed. Simple really.

Every business can harness the power of digital marketing to grow. The only question is to what extent digital will deliver for them. More consumers are online and do more online, the smart companies give them what they are looking for and those companies are rewarded accordingly. It’s simple really! Yet for a whole variety of reasons many more fail than succeed. If you wish to succeed online get in touch with Digino today.

Adrian Feane
Director & Senior Strategist

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