Welcome to FWM Digital Bytes, where we discuss all the biggest digital marketing and digital media news. This week, our post focuses on Asos’ successful application of e-commerce innovation during the Christmas period, Cadbury’s campaign switch to TV advertising and a #CES2014 recap.
Asos tops holiday season sales
Asos posted a big jump in sales over Christmas and says its commitment to e-commerce innovation helped to attract consumers increasingly heading online to buy clothes. Sales for the four months to the end of December were up 38 per cent to £335.7m. In the UK, its biggest market, sales increased 37 per cent to £133.7m, while sales growth was particularly strong in Europe, up 69 per cent.
Active customers, described as those that have made a purchase in the past year, rose 41 per cent to 7.9m. Asos CEO Nick Robertson credits “significant improvements” to its customer experience for the sales boost. These include better delivery options, additional payment methods and the rollout of its premier service, which offers perks such as exclusive access to sales and unlimited next-day delivery. Asos offers features such as “Follow My Parcel”, which lets customers track their purchases in real-time.
It has also upped its marketing investment in recent months to support rapid growth, focusing in particular on digital, including pay per click and affiliate marketing, as well as country-specific campaigns. Plus Asos is using social media to engage with customers, recently launching a new site that gives fans behind-the-scenes access, as well as the opportunity to enter competitions and attend exclusive events.
Liz Faulkner, retail consultant at Conlumino, says: “As widely predicted, this set of results will brand Asos as one of the winners of last year’s festive trading.
Asos’ strong performance highlights the growing importance of e-commerce to retailers. Retailers with well-developed multi-channel services ,including Next and John Lewis, posted impressive sales rises while retailers with a weak online presence, such as Morrisons and Debenhams, struggled.
Cadbury’s ditches ‘Joyville’ campaign but commits to TV advertising
TV will always play a part of the mix in Cadbury’s campaigns, according to Matthew Williams, the marketing activation director at Mondelez International, speaking ahead of a £7.5 million push behind Dairy Milk. In the latest creative, Cadbury has ditched its ‘Joyville’ campaign in favour of a light-hearted portrayal of a man who is prompted to lip-sync along to “on hold” music by the “joy” that eating Cadbury Dairy Milk brings him. The ad campaign, created by Fallon London, launches on Saturday 18 January with a 60-second TV spot. A 90-second version of the ad will air in cinemas and there will also be a 30-second film on TV.
Williams said: “For a mass market brand like ours, Cadbury, to put it in context, is bought by 60 to 70 per cent of the population and, across the whole year, on average more than 20 times. With a brand with that kind of scale, TV is always going to play a part of the mix. ‘’There is a lot of discussion about whether TV is dead, but it’s still a very good way to reach a large number of people with an engaging message. With a brand the size and scale of Cadbury Dairy Milk, TV was always going to be a key part of our plans.”
#CES2014 presents revolutionary ideas
The key word for this year: evolution, not transformation. This year, CES was more about making what we’ve seen in previous years real and accessible, and less about ground breaking new announcements.
With the launch of the PS4 and Xbox One, gaming is set to take another leap in the next few years as wearable tech integrates with these systems to create experiences that are more immersive and powerful than any movie or TV show.
3D printing is inching closer to the mainstream, but it’s not quite there yet, and for now remains in the experimental/early adopter stage. However, by 2015 or 2016 this trend will almost certainly move its way into the main takeaway section.
Most importantly, the show reminds marketers that they need to watch the evolution of these technologies to know how to be ready when the revolution ultimately comes.