There is a definite disconnect between Australian consumer usage of the internet and the investment in digital from organisations. Despite the many articles promoting the potential of digital – it is only few – mainly the pure play online organisations that are benefiting from the digital phenomenon.
However despite the strong signals of consumers both spending increasing amounts of time and money online, organisations are not slow off the mark to invest in the digital channel. And the statistics prove it.
Australian Online Behaviour & Organisations Online Spend
Statistics from Mike Hall, Director of Holler advised that more than 13 million Australians are online and the digital life survey suggests that as a nation we now spend one-third of their leisure time online, which according to Nielsen is 16.1 hours online per week. But our time online is not just spent browsing, according to Mike in 2008 Australians spent approximately $24 billion dollars online.
The Nielsen advertising report, released in March 2009, demonstrated the significant gap that exists between online promotion and consumer consumption of media. Of the top 10 retail organisations advertising in Australia, only 1% of ad spend is invested online. This same trend currently exists within the beauty & cosmetics sector whilst in the entertainment and leisure sector the proportion is slightly higher at 3%.
But the time spent online by consumers is not matched by the online spend of organisations.
So whilst many businesses will claim that Australian consumers are not likely to buy online, the above demonstrates the lack of investment by organisations.
So why is there such a disconnect?
Poor Digital Leadership;
Lack of client side knowledge;
Lack of local training & case studies;
In addition, whilst there are many online case studies for brands successfully leveraging digital channels overseas, Australia lacks the local examples to prove that digital campaigns can be successful in the local market. This makes it difficult for marketers to push the digital agenda within their organisation.
Local big boys aren’t leading the way;
Lack of understanding of the online influence for offline sales;
Thus many organisations are failing to see the direct correlation that exists between online efforts and offline transactions. Organisations need to understand that not being there during the initial research phase, may mean the brand is not in the consumers final decision set when it comes to making the purchase. Until organisations can quantify this, uptake and investment will be slower than it should be in the Australian market.
Do you have any thoughts or insight into why Australia is slower on its uptake of Digital? If so share your thoughts below.
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