Liane Dietrich, MD of LinkShare UK, discusses recent trends in consumer behaviours and explains the impact this has on online marketing
Consumer attitudes and behaviours are constantly changing and are often influenced by events which take place around us. From the revolution of the internet in the 1990s to the recent economic crisis: external events like these are having a tremendous impact on the way people
behave. Regardless of whether we are tightening our purse strings or communicating over Twitter rather than text, consumers are constantly changing and in today’s age, it is all about being online. The rise of the web means our tastes and preferences are shifting at an incredible pace and marketers need to have their finger on the pulse.
The impact of technology on consumer behaviour
Successful online marketing is now much more than the relationship between brands and the consumers they serve. It’s also about tracking the evolving conversations that occur from consumer to consumer, the discussions that are happening online and the impact technology has on the way people search for and purchase products and services.
The fact that technology is having a marked impact on consumer behaviour is not new, but ideas around how marketers address this trend is a topic of constant discussion. According to recent research from Ofcom, consumers are spending almost half (45 per cent) of their waking hours watching TV, using their mobiles and other communications devices. They are sending four times as many texts per day than in 2004, spending almost a quarter of their time on the internet on social networking sites and spending three hours and 45 minutes per day watching TV. In a sign of just how complex the situation today is, consumers are also using a number of different types of media at the same time, with the average person cramming in eight hours and 48 minutes of media into over seven hours during the average day.
As a result, the shopping experience is becoming much more social. This is supported by findings from a recent Econ- sultancy study exploring consumer attitudes towards pur- chasing online. The report found that 90 per cent of consumers stated they trust online recommendations from people they know while a further 70 per cent trust opinions of unknown users.
It is against this backdrop that a new type of consumer is emerging, classified as the 'impatient consumer' - a person who may have once spent hours searching online for the best bargains now expects brands to come to them. These consumers are more impatient and less excited by online offers which have instead become the norm. They own multiple gadgets, snack on media, have diminished attention spans and are leaders of the "I want it now" generation.
This means advertisers have to compete with the myriad of distractions posed by modern society and many are now turn- ing to 15-second adverts to capture the diminish- ing attention spans of today’s preoccupied audiences. Research conducted in the USA by Nielsen reveals that the number of 15-second TV ads jumped 70 per cent over the past five years to more than 5.5 million in 2009. These 15-second spots now make up 34 per cent of all commercial
adverts.
This presents an interesting challenge for brands which are all vying to monetise the plethora of consumer eyeballs now firmly engaged online. In such a competitive marketplace, what tips and tricks can companies employ to ensure they are engaging with consumers in the most appropriate way and satisfying the bottom line?
Understanding the impatient consumer
The reality of today’s fast paced society means the time consumers have to digest, absorb and ultimately consume the information they are presented with is diminishing. There is now a whole new generation of individuals with short attention spans who are all looking for new experiences. These people won’t accept messages, promotions or offers that are bland and they won’t listen to a brand just because they are told to do so. Why should they if the brand doesn’t give them anything in return?
Media snacking is also on the rise and is a trend which is creating havoc on consumers’ attention spans. In a marketplace that is incredibly crowded, with people being pulled in every sort of direction, it means it’s even harder for marketers to seize their attention.
To better engage with the impatient consumer, brands need to make their online experience easier and also more inviting, whether through the form of compelling content or innovative approaches. Campaigns need to entertain and respond quickly to prevailing trends. Brands also need to get smarter and use tools that enhance the experience, making it much
more personalised. By targeting customers with the right offer, at the right time, brands are likely to have much more success than the seemingly random offers that are still widely
promoted online.
One such approach that stands out and is starting to deliver on the returns is affiliate marketing. Affiliate marketing is an excellent way for brands to boost their digital marketing
strategies. It is measurable, non-intrusive and helps brands reach out to a large and captive audience.
Engaging in a measurable and effective way
The advantage with affiliate marketing is that companies can capture a large audience, by contacting them via multiple channels in a measurable and non-intrusive way. An effective
affiliate marketing strategy allows both advertisers and publishers to create tracking links online with exciting new rich media options to drive traffic to a brand’s website. Brands can utilise the audiences from all manner of sites, from social networks to online forums, blogs and price comparison websites to create visually appealing content to engage with consumers.
The globalisation of society has bought us much closer than many would have previously thought. It is this rapid pace of change that is impacting consumers more intensely than ever before and while the opportunities are seemingly endless for brands, it also presents
challenges. If products and services are increasingly homogenised, brands need
to deploy clever tricks to ensure they are staying ahead of the competition and growing their market share. With evidence suggesting affiliate marketing is one of the most profitable ways of achieving this recognition, whatever demographic a brand is targeting, it is an essential part of every marketers toolkit.
Liane Dietrich, Managing Director, LinkShare UK
www.linkshare.co.uk