Online Retail Spending Statistics - 2007

$243 Billion will be spent with online retailers in the U.S. alone this year.

Gone are the days where people would only use websites to check emails and do research. Now, with broadband access to almost 50% of the US and rocketing figures in Australia, (that's 140 million people using high speed Internet) websites have the ability to serve up an experience and not just content.



It's primarily the experience that continually entices customers to make the plunge online. But it's also the little things like;

• The Effectiveness of Online Advertising
• More User-friendly Websites
• Greater Online Security
• Cheaper Product Prices Online
• More Diverse Payment Methods
• Easier Price/Product Comparisons.
• Our Time Poor Lives

One thing yet to catch on in Australia is the range of online stores. Retailers still seem to be stuck in an age where that customer coming through the shop front in their only chance and their websites should just be used to direct customers to the store.

Quite simply, their businesses will suffer in the next 2-3 years if they don't catch on fast. There will always be the people who do their research online, get the prices and go in store to make the purchase.

Those days are numbered for an increasing % of consumers, with the decrease in spare time for shopping and easier access to money - we will see consumers turn online in record numbers to make purchases over the next few years.

Retailers shouldn't have anything to fear by setting up an ecommerce store, the worst that can happen is people use your online store for research/pricing and end up purchasing instore. Sure, you invest big $$ in your rent with a shopping center like Westfield, hell - you even pay more based on how much money you make (shouldn't everyone?!).

It's time retailers in Australia woke up to the potential of Online Stores and invested in their future - cost and risk are minimal, while the upside potential multiplies each year by increasing factors. Last year (2006), in the U.S. alone a staggering 35% of all Internet users made online purchases, which is expected to leap dramatically this year.

While we might not have the appropriate range of online stores in Australia, that doesn't stop us buying online - another thing that Retailers should be looking at is the latest stats from Roy Morgan stating that 36.20% of all Australian Internet users have purchased something online.

Chances are, they bought it from the U.S. or UK. Another worrying factor for some, while for others it's a golden opportunity to get into the coming online retail boom in Australia. Have you ever bought online? Do your favourite retailers sell online in Australia? Would love your comments on this.

Web Banner Advertising Grows 17.5%

While we are talking about stats, In the AdAge 2007 digital marketing report they note a very solid 17.5% growth in Online Web Banner Advertising which is now up to a $9.77 billion annual online spend across all industries that feature visual online advertising (animated flash web banners). And it's being driven by a number of factors;

1. Increases in Broadband uptake
2. More consumers spending time online
3. Websites & Advertising now need to be more engaging
4. Marketers are opening their wings to experience new media
5. Cost effective high visibility advertising
6. More portals and targeted websites to place advertising

As more brands become awear of the benefits in moving large percentages of their advertising budgets online we will continue to see solid growth year on year and with web2.0 booming there are more than enough new targeted websites being established to cope with the demand for targeted marketing opportunities.

New Media Online Spending Statistics

The 2007 New Media Online Spending Statistics released by the American Advertising Federation (AAF ) paints an interesting picture for new media, some predictable, others are a little more eye opening.

We all know that Search Marketing has been attracting a growing % of marketers budgets, but these statistics might just confirm why everyone believes Google purchased YouTube as its test ground for online video advertising.



The surge in online video spending is almost something of a craze. Marketers can get a little wrapped up in all the hype and throw cash to media companies just waiting to spend their $$. While online video is booming, I'm not yet convinced that online video advertising is at an influential stage - and I stress "yet".

While broadband is kicking into gear with fantastic adoption rates of recent times, the general public still has its "L Plates" on when it comes to watching video advertising online. After all, that's why we switch TV channels or have turned to downloading our favourite shows - to avoid waiting through the ad break. I don't want to wait for a 60sec Ad to load & play before i can start to watch my desired clips.

As Google has put it, YouTube is a testing ground for video advertising. This will give them (and the world) a perfect test case for video advertising. From ad lengths to implementation, this project will one day set the guidelines for successful online advertising. And one of the key questions will be - are we be able to fast forward or skip the ads?

Social Network spending sitting in at 7.7% was a surprise for me, I suspected a much larger increase in its spending towards the 10-12%, obviously not the case this year. Podcasts are catching blog spending and mobile spending is sitting at around 5%.

Mobile Advertising is predicted as another "next big thing" although there are numerous issues to be solved before it will be adopted. While it's gaining popularity across England, I feel it's 2+ years away from being adopted by users here. Taking note - there are some fantastic blue tooth technologies being developed and will probably be seen in shopping centres over the next 12 months that detect blue tooth on mobile phones and offer to send them the latest offers and discounts.