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Is digital just another channel?

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Tired of the digital discourse? While no one disputes its relevance in advertising Wai Kwok questions whether digital is ‘just another channel’.

I was recently in a brand planning meeting with one of the bigger media agencies in Sydney in which the senior media planner discussed how their brand idea would work through their channel planning process. He told us that digital is just another channel to consider in the mix and that the consumer is at the centre. Apart from being a bit peeved and of course biased, it did get me thinking – he’s right, but not for the reasons he thinks he’s right.

So why are we pulling digital consumers out as a separate discipline? Well, let’s face it, the digital consumer is a little different. We see people every day quite happily sharing their identities, location, friends, etc. on properties like Facebook and MySpace. Now if I was to say I was going to post blown-up pictures of you on bus shelters and billboards around Sydney and Melbourne along with your contact details, you would probably be horrified – so why do people do this online without a second thought?

It’s often touted that one of the key roles of the internet for consumers is as a key aggregator for price comparisons. While this seems rational and sensible, fresh research from the UK suggests that this is not necessarily true for all demographics. The research found that the key driver for e-commerce is convenience, so all you retailers should add 10 percent to your prices and add it to your usability budgets! But that’s a whole other issue, for now I want to share with you some facts about the Australian digital channel and consumer.

The category is big and mature, but still with plenty of growth left in it, which I think will largely be driven by the new broadband developments recently announced. In 2006, online advertising surged ahead at 61.5 percent year-on-year growth and attracted just over $1 billion of advertiser spend. Yep, a large part of that is classifieds, but still a pretty impressive economy in itself. There was one report I stumbled across the other day by eMarketer that provided a very good summary for Australia:

  • comparative APAC internet penetration is high within the total population online, at 64.5 percent in 2006
  • according to Nielsen, on average these internet users log on approximately 45 times per month and spend 40 hours online
  • there are 5.9 million Australian online buyers
  • $11.35 billion was spent shopping online in 2006 in Australia, and
  • the leading online purchase is online tickets.

6 Comments

Nat
  • Wrote on 1 May, at 10:14PM
I define 'Channel' as a way to connect with the consumer. To me Digital is more than that - It is an 'Environment' where users have the ability to read, comment, share, watch, interact and listen.
l'Attitude
  • Wrote on 2 May, at 12:01AM
I believe so.

Contrary to what the digital pundits would have us believe, digital has no mystical properties which require the techniques only they possess.

I do concede that it does require a rethink of the old channel ways which permitted/dictated one-way communication only, but then so does viral marketing, experiential marketing, sponsorship marketing etc etc etc ad infinitum.

l'Attitude in Cairns
TimmyB
  • Wrote on 7 May, at 10:01AM
Digital is the "IN" Channel in todays interactive world!

There is no other medium that allows a greater, cost effective, world wide, direct and mass market communications - all in 1 - than digital!

It allows interactivity, loyalty, and a "Portal" into something far superior to any other communications Channel! The best users of this channel are those who use digital as a major tool, while also using it as a complementary tool to their other in market activities.

I totally agree with Nat, this is an "Environment" and those who truly harness Web 2.0 open the door to a whole new world of opportunities!
TimmyB
Berlin74
  • Wrote on 7 May, at 10:50AM
L'attitude you are a pompous (BAD WORD FILTERED) and your use of english looks as if it were formed in a Marketing school.

Verite
Editor | Scotland
  • Wrote on 7 May, at 11:20AM
Miaow Berlin74/Verite - retract claws. Let's try and keep our criticisms around the arguments, not the people presenting them. I was at the DM Forum (www.actionwords.com.au) last night, and Nic Jones, MD of Starcom and former CEO of Yahoo was candid about the way in which digital has sort of been pidgeon-holed as a direct medium over the years.

We chatted afterwards and he was honest about the fact that the rush to provide ROI online in the early days of display advertising has rather led to the web being seen as a DM channel. But most people these days are trumpeting the need for the web to grow as a branding platform.

Got me thinking. Digital isn't really a channel as such imho. It's a mode - of delivery, production, compression etc. This means that it is across all other channels to greater or lesser extents. The fact that online it has been across DM so heavily is more a representation of the way traditional advertisers have approached the web, rather than properties of digital or online themselves.

As always with new technology, it's more about people than it is about the technology itself.

Thoughts? And let's play nice eh Berlin74/Verite
LukeF
  • Wrote on 8 May, at 10:09AM
In my view the conversation / topic is too broad and somewhat self defeating.

The fundamental issue is that the term ‘channel’ implies a one way broadcast attitude that the old guard seem to be having trouble dropping.

If you think of the Web as a channel then to you it will be so. It is classic nail to hammer stuff.

If on the other hand you are open to a different and perhaps challenging future then you may wish to take a step back, take a deep breath and consider the new dimensions and opportunities the web brings. (Forgive the bullsh1t marketing speak Berlin74/Verite – but given that you had no actual opinion, really who cares).

We had a shot at opening peoples minds to a wider view of the web using a visual / model – in web 2.0 style it is available in the public arena here: www.aim9.org, you can also download the original Marketing mag article as a pdf here.

Please:

  1. Ignore the webpage it is housed in – we will upgrade it someday…

  2. Feel free to use the model as a thought starter

  3. Remember it is not for commercial use unless via lcubed


I would love to hear your (worthwhile/constructive) feedback. Via this forum or contact us...

If you would like an expert to run an assessment or program based on the AIM9 approach please visit www.lcubed.com.au.

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