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Greenworld – Spring 2016


or many retailers the digital age is both a blessing and a worry. In

the past it was simply a matter of selecting appropriate advertising

from print, radio or television depending on your budget, audience

and the scale of your business.

Probably 70 per cent of small- to medium-retail business advertising spend is

now dedicated to digital marketing, reversing the previous traditional spending

pattern where that same percentage was spent across print, radio and free-to-air

television. Industry journals, including this magazine, are often the exception as

the information provided is specific and directed business to business.

Convergence is here

In 1997 I gave the keynote speech to Ray White Real Estate at

their annual state conference in Bendigo, Victoria. The topic was

‘Convergence’, which was the new buzzword. Convergence meant that

your television, your radio, your home theatre and a control for all these

devices and more (home appliances, banking, personal communication)

would ultimately be contained in one device. You own that device: it's the

Android or iPhone sitting in your hand.

So how does this effect advertising today? For retailers in particular

these devices are the gateway to the world and your customers. There are

a number of options available to retail business operators to increase their

visibility through digital marketing.

Just because it's digital doesn't mean it's cheap. Companies running

successful campaigns are spending $5000 to $20,000 per month depending

on whether it’s a single capital city, state-based or national campaign. Some

better-known businesses are spending upwards of $100,000 on launch

campaigns for new consumer brands or products per month nationally.

Digital advertising

Facebook offers advertising campaigns that work on a 1km radius basis of

your business. For business (such as a retail store) to consumer this works

quite well if 'real money' is spent. Budget for $1000 to $5000 per month

depending on the size of your business.

Your 'post' must read like a story or anecdote. You can add pictures

to illustrate your point, such as 'What's in bloom', 'Autumnal colours',

'New season's fruit and vegetables'. Facebook advertising offers you the

opportunity to create designated advertisements and pay at varying rates.

Facebook advertising assists you to promote your Facebook page,

Facebook posts, or your website on Facebook. Once you have achieved

'30 likes' on your page you have access to 'insights' and by using the

‘Adverts Manager’ app on Facebook (use the last triangle icon at the

top of the page to open the drop-down menu then click on 'Create

Benefits of digital advertising for retailers

Michael Nelthorpe reviews the progress made in the digital world and looks back at where we’ve come from when it

comes to advertising to retail customers.

Social & Digital Media

Advertising back then

In the Australia of 1996 and 1997 a website was an expensive

prospect. The first websites were little more than novelty value.

Newspapers, stockbrokers, banks and government departments were

the early adopters. Sites were expensive with database-managed sites

costing upwards of $20,000 or even $100,000.

Print advertising ranged from $400 for small block ads upwards

to $5000 for a back page of the daily newspaper – single edition.

Magazine advertisements ranged from $1250 a half page for

moderate circulation (5000–80,000) but a page in the


Women's Weekly

cost about $54,000 (circulation was massive back

then with a readership of more than 500,000).

Television was pretty much out of the reach of most small- to

medium-businesses. An advertising spot repeated outside prime

time maybe three times a night for three weeks could cost $300,000.

On top of this were the costs of producing a television commercial

(TVC), which ranged between $20,000 and up to $500,000.

Television advertising was the province of large corporations with

significant advertising budgets (think Coco Cola, Holden, Ford,

Kellogg’s and the like).

Radio campaigns ran between $10,000 and $20,000 per

two week, 40-spot campaigns. Ads lasted 30 seconds. Radio

campaigns were usually backed up with significant print or

television visual advertising.

The smartphone brings technology to the palm of

your hand.