Implications of internet growth on corporate and marketing communications

Published February - March 2007

The internet is now a mainstream media being used regularly by consumers for information, news and product research.  This has significant implications for corporate communicators and marketers who are looking for pr to support their activities.

Commentators may deride the slow connection speeds of broadband in Australia. However, that is not stopping consumers adopting it.

Of the 4.7 million households with home Internet access in 2005-06, 51% had dial-up access and 48% had broadband Internet access.  In 2005-06, the number of households with broadband Internet connection almost doubled to 2.3 million households compared to the previous 2004-05 period. (ABS 8146.0 - Household Use of Information Technology, Australia, 2005-06) 

How are Australians using the internet?

A research study entitled Australian Online Search Habits 2006 commissioned by Network PR and produced by Galaxy Research revealed that:

• The internet is replacing traditional media as a source of news and current events with 66% of respondents turning to the internet for news updates in preference to TV, radio, newspapers or magazines
• The internet is the most popular source of information about specific products or services, with 96% of respondents turning to the internet for this purpose.
• Travel and Accommodation, Personal Electronics and Motor Vehicles are the leading consumer categories searched
• When searching for online product and service information 85% would use a search engine with only 15% going directly to a known website
• More than 55% of respondents use search engines on a daily basis
• Blog interaction is currently at 14%, web casts 7% and podcasts 5%.  Discussion forums - the more established of the interactive medium is strongest at 22%.

  How does Australia compare with other countries?

The Future Exploration Network http://www.futureexploration.net/ also produced a report at the end of 2006 entitled The Future of Media report which looked at global consumption patterns and found similar trends.

Worldwide, the number of newspapers referencing bloggers has grown considerably in 2 and a half years from around 200 mentions per quarter in 2004, to over 2500 per quarter in 2006.

Blog interactions with key international media such as The Washington Post, The Guardian and The Financial Times are high.  However, interestingly, Australia is not too far behind with The Sydney Morning Herald and The Australian receiving more references per print copy than the New York Times and USA today.

When it comes to creating and sharing content on the internet, including videos and photos, Australians are ahead of the US with 29 percent of Australians claiming to have done compared to 26 percent by Americans.

Australians were also found to have added information to a work or group website or blog (16 percent) more than their US counterparts (13 percent).

However only 4 percent of Australians claimed to have posted to a blog compared to 8 percent in the US.

 What’s transforming the media?

The global media report also highlighted the following five ideas transforming media today that can be applied equally around the world:

 Shifting -media will be shifted by users to suit them e.g. video on demand TiVo and pod casting. Consumers want to read watch and listen to what they want when they want it.

 Time Compression - people are busier than ever so content needs to be good to engage the user. They need content to be easily digestible and fast.

 Infinite Content - it will be increasingly challenging to attract an audience’s attention and build brand loyalty against the infinite choice.

 Generational change - the media is run by ageing baby boomers and they will find it difficult to adjust to the new media landscape of mobile platforms and customer created content.  Most innovation will come from either young people or companies outside the existing media establishment.

 Media is everywhere - in the future media will be everywhere.  If advertisers have their way there will be no respite outside your front door.

 How will pr help corporate communicators and marketers?

Given all these trends there’s a growing role for pr, which has traditionally owned the ‘beyond paid advertising’ space in traditional media, to assume the same position with new media.

 This means pr will need to:

Create engaging and highly targeted  keyword rich copy for websites to target online consumers searching for products and services

• Engage regularly with online communities through social networks and forums.
• Identify the key influencers within the blog community and engage with them as they traditionally have with other influencers  
• Ensure that organisations treat the web as a separate and distinct media with its own needs (see PRI Online Media release article )

Disclaimer: Network PR producer of PR Influences commissioned the Galaxy Research on Online Habits of Australians. You can download the full report from here

Download The Future of Media report.

Network PR, the publisher of ‘PR Influences, specialises in business, technology and digital communication and provides a range of services that helps organisations reach online audiences.  For further general information  view Network PR’s website, or email us network.syd@networkpr.com.au  for specific assistance.