Future gazing at the future of social media and digital…
Digital is mainstream.
-John Butterworth, CEO, AIMIA
It was widely accepted that the digital industry – that while it had a significant amount of consumer data – the industry suffered from lack of industry data beyond online advertising spend.
- 40% of customers engaged through digital services
- 25% of customer expenditure tied to digital services
- $17.9 billion on digital services in 2008
It was really interesting to note that 77% of respondents to the DSI had more than 1000 employees — Butterworth explained that this was attributed to the surveying of the big banks and other large more “traditional” corporates.
Lord made some interesting points about the results which included:
- online advertising is a third of the spend of total digital marketing. digital marketing is only a quarter of a the over digital spend
- every dollar of advertising — there’s 10 other spent on digital
Perhaps the most interesting was the statistic that demonstrated just how under resourced the industry is — customer engagement through digital at 39% V.S. a 24.8% share of corporate revenue.
David A Murray (IBM) followed who made the point that ownership of digital strategy is at the boardroom level and that the next edition will be completed next year after the financial crash might bear some very different results.
Brad Howarth, Freelance Contributer, Australia Anthill Magazine was moderating the Q&A sessions and made a very engaging presentation on the outlook of the industry:
- Much like trying to service your own car for it’s life time to keep it running we hire experts to cover this for us: yet companies embrace digital with out properly investing or recognising the expertise needed to manage, service and improve our digital strategies, technologies and services.
- There’s no way the Australia online advertising industry can continue to grow at the rate it does. It may slow down, but will not decrease from this point. Howarth’s 6 month outlook: the uptake of digital services will accelerate.
Best question by far was from Jennifer Wilson, Principal, Lean Forward -
Were the companies surprised at the disconnect between customer engagement and revenue used to support it? Or were they ignorant of the fact?
I quite enjoy the answer too.
It was a cathartic discovery when we discovered the disconnect between investment and customer engagement percentages. Didn’t realise it was as significant as it actually was.
What is the role of government in all this?
- Lord: money, and subsidies.
- Butterworth: two things: 1 is a recognition of what is going — which is an education process on the industry’s part. And 2: State and federal could lead by example: A big opportunity: Government in the biggest online publisher of content in Australia
Report avaialble: www.digitalservicesindex.com.au
Next year, round 2.