The Weekly Wrap: Paul Carysforth, Pavillion Communication Services Ltd
Paul shares his views in this today's Weekly Wrap.
In much the same way as politicians businesses have to ‘talk the talk’ to attract customers – and our industry is founded on this basis. They also need to ‘walk the walk’ though. It is no use having a cutting edge website or marketing campaign without the expertise to deal with the enquiries it generates promptly and professionally. This is even more important during an economic downturn when enquiries or sales may be much sparser.
We are all conscious that the current downturn may impact clients media spend and the more risqué marketing strategies. Yet innovation is doubly important during this period and if done correctly companies can really take advantage particularly in the online space. If consumers are going out less as research has shown recently then they are likely to be online more. This provides useful opportunities for us to consider over the coming months as the planning season begins. When getting new business is tough, it’s important to reassess traditional targeting methods. One estate agent said that as business was dire they had stopped advertising in local newspapers to save money but then discovered this didn’t affect their enquiry rate as 70% came from RightMove (with 15% from ‘for sale’ boards and 10% from word of mouth). Their data had told them for months that only 5% of enquiries came from press advertising but only now have they really made the decision on how they best attract new business.
This change in consumer behaviour is reflected by this week’s prediction by Carat that online advertising will grow by 23.7% in 2008, increasing its total market share to 8.6%. This will put it in third place as the world’s most popular advertising medium, behind TV and newspapers and magazines. But according to Johnston Press, which produces regional daily papers and local weeklies, their advertising revenues are now down by 9.5% YOY. This again reflects the experience of our estate agent and perhaps points to the day when online will outrank the press as the place to be.
Of course, it’s important not to become complacent, even when business is good. Avid newsreaders may have spotted that the National Association of Estate Agents has announced it is setting up its own free website in competition to RightMove. Rightmove’s Achilles heel is the fee it charges estate agents. But during Hillary’s campaign her Achilles heel was Bill – and she seems to have adjusted her strategy to maximise the current position she finds herself in. Perhaps we can all learn a few lessons from this!