 |
|
|
 |
|
 |
ADVERTISING Major UK brands failing to monetise digital strategies and compete with own trad advertsing, finds study |
|
11/09/2008 15:42:31 |
|
New market research by industry analyst, Redshift Research, on behalf of Oxygen8 Communications – formed from the a management buyout of Opera Telecom – has found that major UK brands are still failing to monetise their digital media strategies, and campaigns are often in direct competition with traditional print or TV advertising campaigns.
The research finds that, while consumers are interested in accessing more services from organisations on their mobile phones, corporates and media companies are failing to make the most of digital opportunities.
Two thirds of organisations recognise that consumers are less receptive to traditional advertising, 76 per cent of corporates feel that internet advertising is more effective than both TV and print.
This sentiment is echoed by media companies, where 83 per cent felt that SMS and email is more effective than the traditional channels. In fact, only 13 per cent of media companies and 23 per cent of corporates believe that traditional media is still more important than digital media.
Budget (40%) and lack of skill and experience (28%) are quoted as the main barriers to using digital media more frequently. Furthermore, while 60 per cent of companies think it would be very or extremely useful to have one single CRM system/database combining traditional and digital media campaigns, 65 per cent collect and analyse campaign data in separate systems, thus rendering them unable to gain a full view into any cross media campaigns’ performance.
Commenting on the research findings, Shane Leahy Group Chief Executive Officer of Oxygen8 Communications, says: “The digital marketplace is undoubtedly the future. However, UK brands need to become attuned to selling new media advertising, from mobile to 3G and IPTV, in a way that complements, not undermines, traditional products and reflects the expectations of the consumer.”
Leahy continues: “This shift in approach requires not only an investment in technology, resources and understanding but also a significant corporate restructuring to deliver an integrated cross-media strategy that maximises average revenue per user (ARPU).”
Oxygen8 Communications is a new interactive communications company that has been formed from the smouldering remains of Opera Telecom following a management buy-out to respond to fundamental changes in the interactive communications market. The company’s mission is to help both media companies and corporates to realise the revenue potential of new digital media technologies such as mobile, video, 3G and IPTV
According to Oxygen8 Communications, while there has been an explosion in demand for digital media in recent years, especially video and IPTV, as yet few UK brands have managed to fully understand this shift in consumer behaviour, nor are they attaining the expected financial rewards.
Furthermore, in a bid to maximise new media, too many companies are pitting their own traditional print, radio and TV products against associated web sites, cannibalising both audience and revenue as a result. This lack of strategic thinking combined with poor processes further jeopardises revenue streams.
At the heart of Oxygen8’s offering is its Oxygen platform which provides UK brands with a ‘one-stop-shop’ solution, enabling them to create fully integrated interactive communications services utilising a variety of different technologies, including WAP, Web, Voice, Video, SMS and MMS. The platform was designed to meet the requirements of customers who need to be able to roll out new services quickly and easily, both locally and internationally. Self-provisioning is at the core of the design of the platform which means that brands have the option to develop and maintain services themselves, and new applications can be rolled out in just minutes.
Oxygen8 Communications provides services direct to some of the world’s leading companies, portals, national broadcasters, national and regional publishers, international carriers, network operators and independent telecommunication companies. With offices in the UK, Ireland, Australia, USA, South Africa, and East Africa, including Tanzania, the company has a true international presence.
Leahy continues: “There has been a sea change over the past few years. The market has moved from the relative simplicity of 2001 to a highly sophisticated, highly regulated market today. Organisations and service providers alike now need to demonstrate cross-media skills and competencies, as well as infrastructure that supports cross-media decision making. And while many are resisting additional investment in a time of declining revenue, this remains a fast changing arena: the further media companies fall behind, the more difficult it will become to put in place a viable, and profitable, interactive strategy.”
Leahy concludes, “The opportunity is vast, but companies must overcome the organisational barriers to create a single, unified offering that maximises ARPU across every media. This will help to mitigate audience fragmentation and will in turn provide a very valuable insight into emerging consumer behaviour that will drive on-going success in the digital market.”
|
|
|
|
|
|
