Professional Online Marketing with a Future

The number of internet users is continuing to rise from year to year. Whereas in 2002 over half of  the population (44 million of the 82 million Germans) had access to this new medium, the figure is expected to rise to 62 million this year. However, growth rates in percentage terms have declined noticeably, indicating that we are slowly approaching saturation point. Currently, the growth rate is 5-6 % a year, in contrast to over 15 % at the turn of the century.

Diagram: Forecast of Internet Users in Germany

All graphics can be enlarged with a mouse click

“Mission <one> eRelations AG” in Neu-Ulm is a specialist agency for direct marketing with new media (internet, e-mail, etc.) that recently published a study of online marketing in the natural goods sector. The aim of the investigation, in which 96 companies took part (of the 500 approached), was to find out how much the internet is used as a new marketing channel and to establish how the potential of the internet can be optimised.

In Europe as a whole Germany lies somewhere in the middle in terms of internet use by its population. The Scandinavian countries are in the lead with 66-72 %; France, Italy and Spain trail behind with 35-50 %.

Diagram: Internet Users per 100 Inhabitants 2004

It is not surprising that the highest proportion of users (over 90 %) is in the age group 14-19 years old. But currently even the 60-69 year olds account for over 30 %. In other words, practically every third person in this age group now has access to the internet.

So much growth has occurred precisely in the higher age groups in the past five years that between two and three times as many people are online today as in 2000. Also, although the increase in the frequency of use of the internet has not been dramatic in recent years, it has been appreciable. The group using the internet every day or almost every day rose from 41 % to 46 % over five years. The same applies to the length of time spent online; it has risen to around one hour per day (2004).

Diagram: Intensity of Internet Use in %

What were the results of the mission <0ne> study regarding the use of the internet as a marketing channel in the whole food/natural goods industry?  About 94 % of the participating companies said they had a homepage. Only 6 % did not have one. But only about a third of companies use the internet specifically for advertising with banner adverts. A further third is planning to use this type of advertising in the near future. Only 28 % do not see a need for it. About a half of all the companies (47 %) have an online shop and therefore sell their products via the internet. However, it can be assumed that mainly companies committed to the internet took part in the survey, so that this result may not automatically apply to the other parts of the industry. Roughly a quarter stated that an internet shop is being planned. The study comes to the conclusion that many online solutions are still waiting to be implemented.

Diagram: Status Quo Online Marketing in Companies

A total of 77 % think online marketing will increase in future; 21 % assume it will remain the same, and 2 % think it will decline. Companies are using online competitions to raise customer awareness and to increase their own internet presence. A quarter employs this method; 30 % want to use it in future, while 45 % see no benefit or regard the cost as too high.

Principally organic companies see online marketing techniques as improving customer information (94 %). But customer retention (79 %) and a better image (68 %) play an important part too.

Diagram: Targets of Online Marketing in Natural Products Segment

Another part of the study concentrates on web analysis. Using a variety of criteria, the authors investigated and evaluated the appearance of the companies on the net. The results are that user-friendliness is “good”, design gets “satisfactory” and layout is “adequate”. We are told in summary: “Most websites as a whole are in the “adequate” category.” This means that they are certainly in need of improvement.  Only one in twelve websites scored top marks (8 %).

Regarding the creation of online shops, the mission <one> analysis identifies clear deficiencies in user friendliness, design and layout, so that the biggest group (39 %) is assessed as “adequate”. Analysed from various angles, Hess Natur is held up as a good example of a website with an online shop. The many charts in the study, that is available on the internet, explain the fine details. The average value of purchases in this sector via the internet is between 50 and 125 euros.

Diagram: Expenditure on Products/Services Purchased Online

The use of the internet for e-commerce varies greatly in the countries of Europe. Whereas in Germany 30 % of all online shops belong to an established business, in Britain the figure is 18 %, in France 14 % and in Italy and Spain 11 % and 5 % respectively.

Diagram: e-Commerce in Western Europe 2004

The detailed study is available free of charge by e-mail from www.mission-one.de/biostudie

Contact: Klaus Artmann, Director mission<one> eRelations AG,
Tel.: 0049 (0) 731 20 77-116
E-mail: kartmann@mission-one.de