Luke Judge

12th
OCT

Online retail and online advertising – boom or bust?

Posted by Michael under Business Growth, Online Retail

Two reports in the past month have highlighted the way that online adverts and online retail are impacting each other and the global economy.

Online advertising seeks a future

The annual global media survey undertaken by Deloitte suggests that online advertising needs to innovate or die.  While the popularity of both printed and online newspapers had increased significantly, the influence of online advertising seems to be declining and online adverts are regarded as more annoying than print ones. Apparently, despite the continuing rise in internet use, the influence of internet advertising on buying behaviour remains low in the majority of countries surveyed. In some it is actually declining. Exceptions to this finding Japan, where online advertising takes first place for influence and Korea, where online ads are nearly as powerful as television in their effect on consumer preferences.

The future of advertising online was expected to be customisation: using the internet’s interactive nature to craft intelligent adverts that recognised and responded to the needs and interests of individuals. But there’s a backlash against this vision of the future too, as the survey revealed that consumers in almost all countries were reluctant to provide personal information to websites or have their internet browsing history tracked.

Interestingly, social media (the fourth-most popular internet activity behind search engine use, e-mail activity and news and current affairs) was still rising and may offer an alternative to online advertising.

Online retail seeks profitability

The recent conference of the International Council of Shopping Centres reveals that while many retailers are involved in online selling, far fewer have found it lucrative.

Issues that retailers wrestle with include set up costs for an online shop, stocking it and writing the kind of copy that entices consumers. Then there are what could be called ethical questions: when stocks run low, do you sell the last items to online customers or ones standing in front of a sales advisor in a physical shop?

Many retailers say they’re struggling to understand how to balance the online/physical equation, but they know they can’t walk away from it. Shoppers, especially those aged under thirty, demand the ability to buy online. Even more importantly, e-commerce can fund physical business: customers tend to spend three times more in an actual shop than they do on a website but many consumers are researching those shop purchases online before they travel to buy. And there’s another reason that online retail is booming: niche markets. Retailers are able to put end-of-run or stock clearance items online to clear space in a physical store for new items, and they can also offer specialist items (rare vinyl records for music retailers, collectables for enthusiasts and unusual sizes for clothing) online that they wouldn’t have space for in stores. E-commerce sales rose 18% globally last year, so it’s an important balancing act to get right.

Shopping trolleys courtesy of iboy_daniel

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THE Castlemaine Swap Meet is proving so popular that people have again missed out on getting a site at the event.

Chairman Ron Gartside said 605 sites had been booked this year, and the annual event was again shaping up to be a success.

The event, run by the Castlemaine Lions Club, will help to support community groups in Mount Alexander Shire.

Mr Gartside said all proceeds from the event would go back into the community.

Sporting clubs and schools would be among the organisations that benefited.

He said the event last year attracted 6500 people and raised about $60,000.

People from interstate and throughout Victoria are expected to attend the event, which will feature a variety of stalls.

These include vintage and veteran car parts, motorcycle parts, tools, collectables, memorabilia and bric-a-brac.

Castlemaine has also forged a fine reputation as the hotrod capital of Australia.

It is said that every part of these machines can be made or modified in the district.

Mr Gartside said the family-friendly swap meet was the largest one-day event in the Mount Alexander Shire.

The Castlemaine Swap Meet will take place at Camp Reserve, Forest Street, on Sunday.

Gates open at 6am. Entry is $6 for adults, and children are admitted free.

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