Online advertising is the most effective means of building brand awareness for retailers, according to a new report.
Research conducted on behalf of the Internet Advertising Bureau revealed web-based promotions are the best way for the retail sector to build brand awareness and secure long-term relationships with customers.
Despite this, the IAB study expressed surprise at how little the retail sector spends online.
It noted that total consumer spending though the internet during the last six months of 2007 was £47 billion, yet the sector accounted for just five per cent of all online promotional spending.
What interested me about this report is that key wording – long-term relationships. Long term.
As the economy wobbles towards a period of negative growth, shoppers might not be spending as freely as they have been.
However, the ongoing work of building brand relationships needs to continue. Retailers have to ensure their target consumers feel engaged with their product when the pennies start rolling more freely again.
While recession bites, though, businesses may not want to spend the same amount on marketing, even to secure their consumers’ long-term loyalty.
This makes it more sensible than ever to spend promotional budgets online; doing so is cheaper, more effective and makes it easier to measure the ROI.