MCU mitchell communication group limited

Turn over up a little. found these snippets...

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    Turn over up a little. found these snippets

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    After 10 years with the one media buying agency, MediaCom, David Jones is considering alternative suppliers. David Jones GM Damian Eales will be approaching Universal McCann, Mitchell Communications, MediaCom and OMD. The review was sparked by management changes at MediaCom


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    DIGITAL marketing is booming but the retail industry continually fails to recognise its effect on the bottom line.

    I'd be surprised if Australia's big retailers allocated more than 1 per cent of their expenditure to digital world, and I don't blame them.

    Nielsen AdEx data shows that in the year ending June 30, retail ad expenditure accounted for 22.1 per cent of Australia's $9 billion plus non-digital media market.

    This share shrinks when looking at the digital world, the IAB Online Advertising Expenditure Report showing the category only accounted for 3.2 per cent of general display advertising online.

    Ultimately, retail marketing is measured by sales. To date, the digital industry has failed to provide retailers with hard evidence that the online space can bring customers (and their wallets) into stores.

    The internet has drastically changed the media and advertising landscape and we are now seeing evidence it has also had a major effect on the way people shop.

    There are three key steps in the path to a sale-awareness, consideration and purchase.

    Traditionally, a person is made aware of a product through advertising and for retail, this has typically been TV, radio or print.

    Consideration usually took the shape of visiting a couple of shops and comparing prices, but now, people jump online and instantly access a huge amount of options to be considered.

    Customers can research products in depth before setting foot in a shop and they can compare prices with a click of the mouse.

    When they do eventually hit the shops, they're armed with a depth of knowledge about the product and competition products, right down to the last detail.

    They know the product at least as well, if not better than, the salesperson pitching it to them.

    A recent report by Google cites findings from the Australian Centre for Retail Studies that 50 per cent of shoppers research online before they make a purchase and not for just for big-ticket items such as cars and electronics. People are seeking information for everything from clothing to homewares, skincare to toys.

    With this wealth of knowledge readily available, price has become less of a deciding factor. People can thoroughly research the features and benefits of different brands to make their decision, rather than just basing it on their hip pocket.

    For retailers to harness the potential of digital, they need to reach shoppers early in the purchase process.

    The Google report found that purchasers rely on a small suite of internet sites to provide their information: 52 per cent of shoppers visit one to two sites, 36 per cent visit three to five, and only 12 per cent visit six or more sites.

    Retailers need to be one of the first few sites found by their customer to ensure cut-through.

    The digital space can be daunting for an industry that has always relied on traditional media, but traditional media drives online search.

    Retailers need an online presence to capture the interest created by their traditional media expenditure.

    The rewards (the sales) are there for retailers who recognise the opportunities that digital delivers.

    John Murray is managing director, digital of Mitchell Communication Group. Digital planning and buying agency, emitch, has recently appointed a retail strategy director to oversee digital requirements for retail clients.
 
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