…just in time for Christmas. The last week has seen the launch of all the major TV ad campaigns for department stores. One of the key aspects of all these campaigns is the huge jump in advertising online. We are seeing a 11% growth in online marketing spend this year, 3 times the rate of TV advertising.
With the convergence of TV advertising and online and the launch of 4G. The user experience online is becoming more and more seamless. 33% of households (March 2013) are now owners of a tablet device a jump from 24% in September 2012. What we’ll see over the coming month is a greater and prolonged campaigns, previous to TV ad campaigns and building the ground swell. Consumer involvement via social media channels will see the bigger chains of John Lewis, M&S and Littlewoods increasingly and importantly make better use of social engagement with customers via ‘competitions and questions’ to build a buzz around Christmas. It seems the major viewing outlets seen by the major consumer businesses is TV and online. People preferring to shop online for bargains and in front of the TV, using their phone or tablet. Shopping at your own leisure sees the trend of ‘lifestyle shopping’ becoming more and more valuable as consumerism shifts and more people go online.
This is also reflected by Google’s continued growth and smashing through the $1000 share price a few weeks back, which is on the back on huge growth in its mobile and video advertising adword service. This is reflected in profits at Google seeing paid-for-ads have risen 26% in the 3 months to 30th September. Even though the cost-per-click is been driven down, the reason; more and more varied companies are going online and the competitiveness may be flat lining in traditional markets. But the sheer size and distribution all aspects see a divergence in businesses advertising online. The biggest winner being Youtube’s jump in video ads by 75% in the last quarter and 40% overall. Facebook’s 3rd quarter results out last week, see a year on year increase of 60% of overall revenue, 49% of advertising from mobile advertising. And there are still increasing the number of users daily and monthly leading us to believe this trend will continue as people continue to surge online.
With the availability of searching for what is trending online and what’s been searched for by consumers, there is a lot of compelling data that can help track and predict consumer trends. The advance of tablets and mobile shopping, means that mobile use is to over take desktop use in 2014, its clear that all websites and especially those that are e-commerce will benefit from being configured to fit a mobile device like an iphone or ipad. And importantly the dialogue between consumer and retailer is now being recognised as something that glues these aspects together for successful campaigns that engage the consumer and build loyalty. Something Littlewoods have being doing with a little Klass!