According to a report by PayPal’s Commerce Index, the number of businesses in the UK expected to begin marketing on social media is set to double in the next six months – a huge increase from the approximate 600,000 businesses that already do so. British businesses are finally set to catch up to the rest of the global average of 35%: currently, just 24% of UK businesses use social media to market their products.
The increase could partially come down to the rise in millennial business owners and marketing heads – with the younger generation being more app and social-media savvy, it stands to reason that millennial-owned businesses would use tools they already know and love to market their services. Yet it’s not only the increase of millennials in the boardroom that are to blame – success stories of brands who invest wisely into the digital sphere and see great returns have spurred interest in the less traditional methods of marketing.
An example of a business that has begun to take digital marketing more seriously is Pandora, which has hired London digital marketing agency Fifty-Five to further enhance its social media and overall online presence. According to The Drum, Pandora is ‘in the process of increasing its investment in digital media as a way to build its brand and drive sales, as well as attract new and loyal customers instore.’ Pandora’s inclusion of the digital sphere as a crucial aspect of its branding is indicative of the turn towards less-traditional marketing techniques that businesses have been embracing more and more over recent years. Despite the brand already being a household name, Pandora is evidently interested in the further capabilities that digital marketing can provide.
If its experience will be anything like the retailer Oasis, it’s likely to be worth it. The clothing store has turned to more savvy digital marketing technique after it faced multiple store closures throughout the UK. Despite the setbacks, Oasis saw an extraordinary 175% increase in revenue and an overall 20% rise in customer engagement after it circulated an email with an ad video featuring Frankie Bridge, former member of The Saturdays. Sophia Holland Thomas, Digital Marketing Manager at Oasis, said, ‘Videos are capturing consumer attention like never before and video marketing is becoming an increasingly important vehicle for companies looking to engage with a millennial audience, where they can enhance their outreach and revenues.’
If that wasn’t enough, the data insights and consulting company Kantar recently released a report that offered its predictions for the upcoming year in the technology and digital world. Duncan Southgate, Global Brand Director at Kantar, wrote, ‘Digital is set to consolidate its dominance in 2020, with 84% of marketers planning to increase spend in online video, and 70% planning to increase spend in social media, according to our recent Getting Media Right report.’
All evidence seems to point to the growing importance and prevalence of digital marketing, and businesses are expected to invest accordingly. And if the success stories of the likes of Oasis are anything to go by, it can be assumed that this will only be good news for those brands that take the leap from traditional, linear marketing such as TV, radio or billboards. At Source, we embrace both traditional and the digital world, where influence and recommendation is key. We’re fluent in the world of online marketing and provide a tailored approach to brands and businesses that look to increase their online reach.
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