Member Article

The Digital Economy is thriving but it could do better

I’m sure you’ve seen the stats: for every £1 spent on digital marketing £4.80 is delivered back to the UK economy (Digital Dividends Report IAB). Compelling stuff. But it could be more, so much more.

The report shows that digital advertising is now a cornerstone of the UK economy, contributing £129 billion GVA in 2022 and supporting 2,000,000 jobs, equivalent to six per cent of the UK workforce (that’s more than double the automotive industry).

Furthermore, free, ad-funded digital services were found to contribute an average of £14,600 per year to every UK household.

While these figures are inspiring, we believe they lay the groundwork for a conversation about how brands can further harness the power of digital advertising to maximise growth and customer satisfaction. Optimisation, conversion, and personalisation hold the key.

Driving the Digital Economy: The digital economy, fuelled by ad-funded digital services, is thriving. Brands that effectively optimise their digital presence, convert visitors into customers, and create personalised experiences are essential contributors to this growth. The digital economy is no longer a niche; it’s the heartbeat of modern commerce, and it’s driven by brands that understand and harness the power of digital advertising.

Optimisation for Success: Optimisation ensures that an organisation’s digital presence is in its best shape. From website performance to social, it’s about making sure that every aspect of an online presence performs at its best. Optimisation is no longer optional; it’s a critical component of success in the digital landscape. It’s about delivering what customers want, when they want it.

Conversion for Prosperity: Conversion is the ultimate goal for brands. Organisations that invest in conversion strategies, like A/B testing and data analysis, understand their customers better. They adapt and fine-tune their approach to boost conversion rates and when more visitors become paying customers revenue goes up.

Personalisation for Engagement: Today’s consumers expect tailored content and experiences. Personalisation is the key to meeting these expectations. It’s about delivering content, products, and offers that align with customer preferences and behaviours. Personalisation leads to increased engagement (a study by the FT revealed that personalisation led to an uplift of 60 per cent in engagement), higher conversion rates (80 per cent of businesses that have implemented personalisation have experienced an uplift in conversion ) and greater customer loyalty (more than a third of customers will give a brand their loyalty as a result of a personalised experience, even if they find the product or service for sale somewhere else more cheaply).

In essence, optimisation ensures that your digital presence is in its best shape, conversion ensures that it is effective in converting visitors into customers, and personalisation ensures that your customers have a tailored, engaging experience.

The digital economy is not just about numbers; it’s about creating a dynamic ecosystem where brands and consumers interact seamlessly, with value flowing in both directions.

As we navigate the digital landscape, it’s clear that the brands that embrace these principles are not only more likely to thrive but also to contribute significantly to the overall quality of the digital economy. It’s a win-win situation, where brands benefit from increased revenue, while customers enjoy better experiences.

This was posted in Bdaily's Members' News section by Lean Convert .