Lavish Party

Imagine throwing a lavish, exciting party and not inviting anyone.

In effect, that’s exactly what’s happening right now with the Internet. Over the past couple of years, companies have spent millions on websites that no-one knows about. And even if customers and trading partners did know these sites existed, they probably wouldn’t care anyway (when was the last time you spent 20 minutes reading a brochure?).

For many, building a website has been a grudge purchase. The attitude is, “I don’t quite know why we need a site but, heck, everyone else is doing it so we’d better have one too.”

Once the website is up, there’s almost a sense of relief that the Internet strategy is sorted so now they can move onto something more interesting.

What a waste.

With over 50 per cent of Australian adults regularly accessing the Net (53 per cent men; 47 per cent women; 75% with incomes over $40k p.a.) the Internet represents the most powerful commercial opportunity for marketers since the mass acceptance of television.

Fundamental to this opportunity, however, is the reason most marketers just don’t get it

The Net is the greatest means for company-to-customer dialogue ever invented.

Most marketers have been trained to only have a monologue with their customers. The billions that are spent on TV, radio, newspaper, magazine and outdoor advertising are proof positive of that.

While obviously effective, I’ve never met a marketer pouring money into these mediums who doesn’t believe in the old adage: “50 per cent of my ad money is wasted - I only wish I knew which 50 per cent.”

Some high profile advertisers like Proctor & Gamble, McDonald’s, Coca-Cola and Unilever have already taken their 1 st online steps trialling email marketing, online promotions, SMS marketing and community building programmes.

It’s no surprise, however, that the companies taking greatest advantage of the Internet are those that have 1-to-1 Marketing as the cornerstone of their communications. Financial service companies – the banks in particular – have been quick to take to the Internet with the boom in online banking the result.

While the Net can deliver many broad business benefits, the following summarises what specifically makes Internet marketing such a compelling opportunity for so many companies:

* Greater customer loyalty and involvement
* Higher profits
* Lower costs
* New distribution channels
* Create word of mouth
* Cost-effective and quick way to research markets at a fraction of the cost of focus groups
* Less wastage due to untargeted marketing
* Greater leverage with trading partners allowing better use of co-operative advertising funds

These are fundamental objectives that every businessperson would love to achieve. The fact that these benefits are being delivered through a computer screen is as relevant as a TV commercial being delivered via a box called a television.

Imagine a major consumer marketer today leaving TV off their advertising schedule. Unthinkable isn’t it. Yet in the late 1950’s, it was equally unthinkable to have TV as a major part of your advertising spend.

With every new technological development, there is always a lag while the market develops a clear understanding of how that development can work to their advantage and social proof of its effectiveness spreads.

As Internet usage has increased faster than any other medium in history, Internet marketing is rapidly becoming an important part of the marketing arsenal.

Once marketers do get over the learning hump however - and the ones who have been first to do so are already reaping the rewards – they’ll wonder how they ever managed without a clear Website and Internet marketing strategy.

And then that lavish, exciting party will really start jumping.