Big Rise In Use Of Net, Call Centres
The Age
Tuesday July 4, 2000
Total media expenditure grew 15.9 per cent in 1999 to $13.8 billion, driven by a huge increase in the use of telemarketing, new figures show.
The amount of money spent to generate sales through telemarketing increased 19.9 per cent on the previous calendar year to $7.7billion, according to the Commercial Economic Advisory Service of Australia.
Expenditure on television advertising grew 13.8 per cent, but that included the first-time inclusion of The Home Shopping Channel.
CEASA managing director Dr Bernard Holt said yesterday the growth in TV expenditure without the one pay TV channel would be less than 5 per cent but declined to provide the exact amount spent.
The company's annual report on media expenditure also revealed the amount of money spent on Internet advertising grew 175 per cent on the previous year, but from a low base.
Dr Holt said increased use of the Internet by businesses had pushed the cost of maintaining Internet sites 52 per cent higher in the year.
He said 1999 was the year that business adopted the Internet ``in a very strong way".
``Until then, they have been playing around the edges, but that was the year they went in, boots and all," he said.
Dr Holt said the increase in expenditure within telemarketing was driven by the banks, insurance companies and other financial institutions that are using call centres to expand business.
``Once upon a time, you went into a bank and asked for a home loan but now they ring you up and then they shoot people out to you - it's all different," he said.
``The banks are working very hard to keep the pressure up on mortgages and any other products they can sell, but they are now doing it in a totally different way." Dr Holt said the bureau sector within the telemarketing industry, which manages the needs of telemarketing clients, may be slowing down.
He attributed that to growing competition and the fact that many clients use the bureau as a test to see if the system works before setting up their own call centres.
Other areas that experienced large increases in expenditure were catalogues (up 7 per cent), direct mail (up 9.9 per cent) and the exhibition industry (up 11.9 per cent).
Dr Holt said there was no evidence to suggest e-commerce had dented growth in the direct-mail industry.
Expenditure on metropolitan daily and Sunday newspapers increased 5.8 per cent on the previous year, while spending in the magazine sector increased by 8.8 per cent.
CEASA does not measure expenditure in the pay TV or cinema businesses.
© 2000 The Age
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