Archive for May, 2009
According to a new Ad-ology Research study, “Advertising’s Impact in a Soft Economy,” more than 48% of U.S. adults believe that a lack of advertising by a retail store, bank or auto dealership during a recession indicates the business must be struggling. Conversely, a vast majority perceives businesses that continue to advertise as being competitive or committed to doing business.
C. Lee Smith, president and CEO of Ad-ology Research, says “It is critical to advertise in the current economic climate, to maintain long-term positive consumer perception of your brand… advertising… assures consumers of a business’ reliability… ”
Other key findings include:
According to the first installment of of Retailing Online 2009: Marketing Report from Forrester Research and Shop.org, e-commerce sales, including event and movie tickets, will grow about 11% to $156.1 billion this year from $141.3 billion in 2008. Online sales will account for 6% of total retail sales this year, up from 5% last year. Retailers report that their conversion rates continue to hover between 3% and 3.5%.
While Internet sales growth continues to outpace traditional retail sales, 54% of online retailers expect overall retail growth to slow during the next 12 months, and 57% acknowledge the economy is hurting their bottom line, according to the survey.
Although many retailers expect lower sales, however, four out of five surveyed online retailers think the web is better suited than other channels to withstand the recession and one-third say the downturn has helped them capture greater market share, the study found
Scott Silverman, Shop.org Executive Director, says “… Online retailers are trying to weather this economic storm by doing more with less, making smart spending decisions, and leveraging effective, affordable tactics like e-mail to grow their businesses.”
A survey by Lightspeed Research and the Internet Advertising Bureau concludes that the Online audience relates most to advertising that is relevant, useful and incentified with special offers, but there are key differences by age group when developing creative executions.
The survey found that money-off particularly appeals to 18-35 year olds who are more interested in special offers, the entertainment factor, and exclusive information. For 45-54 year olds however, ads need to be more relevant and useful to make an impact. And, in all age groups, there is an appeal to advertisers to better understand their needs.
Every age group surveyed chose sponsored links in a search result, and advertising within a page as the top two ad formats for sparking their interest to click through to the advertisers’ website. Newer forms of online advertising are gaining ground, says the report, with ads using sound and video, widgets, in-game advertising and free gifts.