Broadband penetration means people spend more time online than ever before, consumer media behaviour has changed and online advertising is seen more as a value-based medium.
According to recent European figures released this year by the European Interactive Advertising Association (EIAA), 81% of advertisers surveyed predict an increased spend in online advertising and predicted growth will be around 16% each year to 2010.
This is a slight decrease on previous years but it is still significant growth. Of the traditional channels, they predict a 40% reduction in advertising budgets for Press, 39% for TV, 32% for outdoor and 20% for radio.
Consumer habits have changed significantly in the last three years.
Europeans are spending less time watching television and radio while spending more time online particularly with the advent of You Tube, BBC iPlayer and ITV streaming soaps on their website.
QUESTION: I own a sports shop, and although we do have a website it doesn't get a lot of business. Would using tools such as "blogs" and "user contributed content" generate more traffic to the site?
NIALL McKEOWN, managing director of ION Online Marketing, replies:
Before I answer that question, I want to know what is the unique reason for me to purchase from your website over any of the thousands of other sports websites that exist.
If the reason is not the unique nature of the products and services you offer, then no amount of web tools are going to work for you.
It is important to bear in mind that you will never outdo Amazon. Product information, cost comparisons, customer comments helping my selection, fast delivery and ease of use are all expected and all well tended to by thousands of UK and Irish sports stores.
If you are not in a very specialist field with something that makes your business unique then go no further.
Your shop on the high street offers locals convenience and trust. These competitive advantages disappear online when you are competing with recognised brands such as Nike or O'Neills.
If, however, you are selling your own brand specialist high quality top-line shin guards, gum shields with my team motif printed on it then you have a reason to trade online and have a to take blogs user contributed comment very seriously. Getting a reputation on the internet among the specialist community you serve is the only way to make a profitable online retail business.
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