Online Retail Boom
The Nations retailers are about to wake up from a deep slumber when it comes to digital marketing. According to Lee Stephens, CEO of Aegis Media Pacific, from being one of the worst performing digital advertising groups in Australia, our retailers are now set to fuel a new online advertising boom with the nations most powerful entrepreneurs lining up for a piece of the action.
The business model is deceptively simple. Retailers provide offers that are too good to refuse in the form of coupons. These coupons platforms are distributed to large audience groups that have been built through social media and cross media recruitment. They take up to 50% off the revenues earned by the retailer translating to a huge overall retailer discount. The twist and real value to the retailer, is that the offer is only activated when a minimum number of customers have signed up.
The attraction is not only for new businesses. Struggling US clothing group, Gap, offered a $50 voucher for $25 and received $11.7 million dollars in sales in the first week. The offer was only redeemable in-store, guaranteeing large amounts of foot traffic and a rediscovery of the mature brand.
Regardless of past experience, we are set for a revolution in the way retailers contact new customers in Australia. It will change the way retailers connect with customers forever.
Newsbrief Written by Sandra O’Neill
Source: B & T Magazine – September 17, 2010