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International: Online marketing to take off despite slowdown

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International: Online marketing to take off despite slowdown

According to a study done by Direct Marketing Association of Singapore (DMAS), online direct marketing via email and Internet advertising is set to take off despite the global economic slowdown and dotcom bust.

Email promotions and letters are the "best media for generating immediate sales," besides direct mail catalogues, said a July study by the Direct Marketing Association of Singapore (DMAS).

About 10 percent of the 500 Singaporean households polled bought a product directly or shortly after receiving an email about it while 11 percent did likewise after reading a direct mail catalogue.

"These results, I believe, can also be applied to consumers everywhere," said David Black, principal researcher and managing director of Blackbox Research.

He added: "If you are a small or medium business, either in Singapore or anywhere else, I think the Internet presents enormous opportunities for you because the barriers that are there in the physical world are not necessarily exist online."

The study also revealed about half of the households were willing to spend more than 200 Singapore dollars (111 US) per online purchase.

"Equally, companies appear to be embracing online marketing with vigour despite the dotcom bomb," said DMAS market research chairman Brad Jeffreys, who said he expected online direct marketing to take an increasing share of Singapore's billion-dollar direct marketing pie.

He said the 100 multinationals and smaller enterprises polled felt online marketing was "easy to do" and more than 60 percent said they were very likely to use emails and Internet banner ads to advertise in the next 12-18 months.

Last month, industry monitor AC Nielsen said advertising spending in recession-hit Singapore was expected to remain flat at 1.5 billion Singapore dollars this year.

Singapore's trade-dependent economy is projected to post negative 3.0 growth this year, from a robust 9.9 percent growth last year, due to declining exports and a global crunch in the electronics sector.


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