Marketing your business

A Consumer Market that Feels Like Home

Australian consumers respond to many of the same marketing cues as their international cousins. In response, local retailers are targeting their investment to maximise revenues. However, it should be noted that popularity doesn’t always mean that the channel is worth paying for advertising. In some situations, organic is the most effective option but this will differ across brands. Across 3 core marketing channels 68% of marketers are focusing on Social media (up 11% from the previous year), most retailers (90%) are using email and 67% are using campaign management. In revenue terms, 50% of online transactions are now carried out via mobile devices so there is a growing focus on a mobile optimised user experience. This growth in mobile is also impacting expectations around how transactions take place. Mobile payment is a massive growth area in the Australian market as consumers are growing more accustomed to the reduced friction that this payment mechanism offers. It was projected in Australia’s CIO publication that mobile payments will grow by 60.8% come the end of 2015. This is due to many reasons, but the advances in Apple payments have paved the way and been readily embraced by a large portion of the public.

A major shift amongst Australian marketers has been a focus on personalisation, particularly in the B2C space, for Australian marketers. Of the marketers questioned in the Sitecore Emerging Trends report, 26% saw personalisation as the greatest growth opportunity for the 12 months following (2015/2016). As consumer expectations have been steadily increasing, particularly around the customization of content, marketers are now realising this is a huge growth area. [1] 

Shoppers

As a country, Australian shoppers would be relatively more inclined to spend more online if they weren’t required to register on the site beforehand. Whereas light shoppers are likely to increase their purchases if their personal details were guaranteed to be better protected, heavier shoppers are more attracted by a greater variety of payment methods. Two-thirds (67%) of Australian shoppers are likely to switch off and drop out if they are presented with unexpected or hidden costs. [2]

Social Media

Social media is used, by varying degrees, for content consumption from friends, family, businesses, news organisations and brands. The difference between Australia and other markets is that local expectations for customised content are quite high. You need to understand your consumer’s interests before marketing to them on social media by paid channels. Social media does have a high level of engagement but growth appears to have flattened off. However, Facebook has 13.6 million users and appears to be increasing its user base despite the overall number of social users declining marginally. It was quoted in the Power Retail 2014 social commerce report that “2014 looks to be the year of social commerce, with companies finally able to generate a significant percentage of revenue.” This rings true in particularly on Facebook over all channels. 97% of all social networking users are connected via Facebook. The most important thing to remember, as confirmed in the report, is that investing in social spend for growth is important at the beginning, but it needs to be backed with a solid content strategy. If your content is not appropriate or shareable, you’re not going to have engagement. [3]

Major shopping categories

A wide range of categories are purchased by online shoppers in Australia, with clothes (27%) and music downloads (27%) being the most popular. Credit cards are the most popular type of payment used by online shoppers, with 82% using this method in last 6 months. Both debit cards (31%) and PayPal (30%) are also popular. Younger shoppers, most notably in their late twenties, are the highest spenders in Australia and have a relative desire to purchase either groceries or books online. Such items are bought either by using a credit card or with PayPal. [4]

Major retail holidays

January 2 - New Year's Day, October 1 - Buy Nothing New, January - Back to School, October 2 - Labour Day, January 26 - Australia Day, October 31 - Halloween, February 14 - Valentine's Day, November - Black Friday, March 15 - World Consumer Rights Day, November - Buy Nothing Day, March - Cash Mob Day, November - Sofa Sunday, November - Cyber Monday, December - Green Monday, December 15 - Free Shipping Day, April 25 - Anzac Day, May - Mother's Day, June 19 - Winter Sale, December 26 - Boxing Day, Boxing Day, Cyber Boxing Day, September - Father's Day [5]

Sources

  1. eCommerce Worldwide. Australia Country Guide. "eCommerce in Australia"
  2. Worldpay. "Are You Giving Your Customers What They Really Really Want?"
  3. eCommerce Worldwide. Australia Country Guide. "eCommerce in Australia"
  4. Worldpay. "Are You Giving Your Customers What They Really Really Want?"
  5. Calendar Australia "Shopping Calendar Australia"
Population:

24.1 million

Median Age:

37.4

Internet Use:

88.4% (23rd)

Most Popular Social Network:

Facebook (15M users)