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Online Retail and Internet Advertising Still Growing
Fresh reports from Verdict Research and the Internet Advertising Bureau (IAB) indicate that the internet will account for 10 per cent of all retail shopping in the UK by 2013.
The forecast from Verdict Research predicts that four years from now, online sales in the UK will gross over £31 billion ($51 billion). This year, online sales are expected to top last years figures by more than 13 per cent, setting a new benchmark of almost £21 billion ($35 billion).
Retail analyst for Verdict Research, Matthew Piner said: “with its clear price advantage over the traditional bricks and mortar channel, online will become even more attractive to recession-hit shoppers as the venture back to buying big ticket items,” according to IAB.
Internet shopping is becoming increasingly popular for its budget prices and bonuses such as free home delivery. The report also showed that online spending would grow as the demographic model changes to include lower bracket earners.
The report will inevitably influence the way that advertisers structure their marketing budgets, as the push for more online advertising becomes more prominent. Recent research from the IAB showed that online marketing now accounts for one in every five pounds spent in UK advertising budgets. The market is set to continue growth in double figure percentages for the next few years attracting an even greater proportion of total advertising spending.
"Market conditions are tough, yet online is continuing to innovate and emerging formats such as mobile advertising and online video advertising look set to become big players in the next few years as brands see the benefit of cross-platform marketing campaigns,” commented Alison Fennah, an executive director at the EIAA.
Online Advertising news posted by David Finklehorn on 03 June 2009
