Are we running out of hypes?
Budgets are shifting from offline media to online media. Online is where a growing number of consumers browse and purchase their products. Research supports this figure showing a 1,200% per annum growth of the World Wide Web.
So much for the big numbers. So much for the hype. Let's have a closer look at what really is going on...
"However the World Wide Web is still growing at 1,200% per annum, this rate is no longer true for the UK nor for the rest of Europe", Roy Dewell states. Growth for the UK in 2008 is in reality 216%. Dewell took a step back from the big numbers in his latest white paper "The growth of UK e-commerce is slowing down".
Over the last 5 years the e-commerce market has seen a year on year growth rates of 100% + in users and double digit percentage growth in value of sales.
But if we look at the next 5 years, we see:
- growth of UK web customers reduces from 216% (2008) to 10% per year.
- growth in annual e-commerce sales reduces from 28% (2008) to 10%.
- number of sites offering e-commerce will double (+200%).
- conversion rate of 6% achieved in 2008 will fall to 3% or less.
The conclusion must be: in the coming years we can no longer rely on the growth coming from double digit percentage growth of internet penetration. We have to become smarter. In his white paper Roy Dewell reveals some techniques to slow down and reverse this trend.
© 2005-2010 Jansen & Riemersma 
23/2/2010 10:55 AM
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