Spending time online

Recent research shows the average person will spend the same amount of time on the internet as watching TV. Toluna, an opinions website, reports that 65 per cent of people aged 18 and above watch TV for between 11 and 14 hours a week. Online e-tailers, then, will be delighted at the news, given that 67 per cent of individuals in the UK aged 16 and over access the internet on a daily basis, according to a study into online shopping habits conducted by the Office of National Statistics. The same study showed that 53 per cent of those adults who accessed the internet regularly purchased goods online, with slightly more men than women being active shoppers.

With the increase in online shopping continuing unabated, more companies than ever are focusing marketing budgets on this channel. Experian, the data management specialist, report 81 per cent of brand managers are increasing their online marketing expenditure in 2008. Malcolm Dunsmore, brand manager for a leading marketing and PR agency, says: "Our clients are channelling a lot of energy and money toward their online channels. As part of their business development strategy they see this as a growing phenomenon, particularly where the younger market is concerned." Purchases over the internet have increased significantly in recent years and this is having an effect on where companies spend their marketing budget.

Ownership of an online presence translates, in many cases, into big business. Internet users crave up to date and relevant information and any individual or company willing to tackle this requirement stands to be well rewarded. Any organisation not having an online presence risks being left behind in the business development stakes and, as such, website development is big business.

By providing relevant content on a website it will gain higher rankings. This point is vital to bear in mind, as 80 per cent of web traffic is routed via search engines and having a high-ranking site equals high amounts of traffic, which is more than likely to result in increased turnover.

A poll conducted by retail specialist Actinic found that retailers experienced a 27 per cent rise in the number of customers buying online last Christmas compared with the same period in 2006. An even greater increase in internet revenues was reported - 46 per cent of those surveyed indicated that not only are more people shopping online, but they are spending more as well. According to Actinic CEO Chris Barling, the results show that growth in online spending remains remarkably buoyant. He says: "Considering the effects of the credit crunch and the general overall decline in consumer confidence, the levels reported represent a remarkable growth in online retailing". Films, music downloads and DVDs make up the bulk of online purchases, with travel and holidays coming close behind. Surprisingly, clothes are another hot favourite, with books, groceries and tickets for events high up on shopping lists. For those looking for bargains and that hard-to-find item, the internet provides a plethora of opportunity. Every conceivable item and service is available online, with even utility companies jumping on the bandwagon, offering reductions to those buying their gas and electricity using online tariffs.

The British Retail Consortium says that while many of its members acknowledge and welcome the increase in online shopping activity, there is no imminent threat to the high street disappearing from the UK shopping map just yet.