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.
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
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