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Online spending is expected to rise a robust 17% this year,
despite a sluggish economy that has bruised many brick-based retailers. With sales expected to top $204 billion this
year, it seems the Internet is the continual rising star for the retail
industry. To capture the dollars this year will require more sophisticated
marketing efforts.
Growth
Categories
Apparel, computers and autos top the list of the online sales
categories. Most shoppers use the
internet to either shop for the best deal or take advantage of the convenience
associated with online shopping. With
the number of new online users beginning to decline slightly, companies are
being forced to find new ways to reach online shoppers. It seems this year it is going to take more
than free shipping to get shoppers to swipe their cards more often.
Social
Networks To Build Brand
Companies are beginning to see the importance of the internet
marketing. According to the State of
Retailing Online 2008: Marketing report done by Forrester Research, Inc.
businesses are spending over 53 percent
of their marketing budgets on online customer acquisitions and 21 percent of
their budgets on customer retention. This
is going to be crucial to ringing up more cash. Growth will need to come from
getting more sales from existing customers and first time buyers.
Businesses are also embracing Social Computing initiatives as 55
percent of retailers said that social network advertising, such as Face Book, You
Tube, Forums and Widgets would be categories of increased focus this year. While
Social Computing initiatives are more useful for brand building than driving
sales, other forms of online marketing such as email and free shipping
promotions are investments proven to drive sales.