It’s been decades since the world has been hit with such an economic decline. In fact, for many people under the age of 40, this is the first time that they’ve had to experience what life is like working through an economic downturn. However, what is making this period even more interesting is that it is the first time we have had to experience such an economic slow down during a digital age and the findings are proving to be rather interesting.

Paul Greenberg is the CEO of Australia’s largest online department store, Deals Direct, recently stating that, “while the newspapers headlines are screaming ‘doom and gloom’, there has been a definite upturn in retail activity during the part few months.”

The internet is becoming more crucial for both work and play, with people spending an average of 8 hours a day on the internet. As people have more or less the whole world at their fingertips, they are not spending less however they are being more careful about what they’re buying. In fact, for many, it has become second nature to check out princes on the internet before making any new major purchase.

News Digital Media is an Australian based company that provides a quarterly analysis of what Australians are doing online via their New Digital Media Insight Report. Their recent survey found these responses when they posed the question ‘Why online’?

· 85 per cent say they buy online because the internet helps them compare products.
· 82 per cent say shopping online is more convenient (saves time and resources).
· 68 per cent believe they have more choice online (access to a bigger market with more choice and more price competition).
· 60 per cent of respondents believe it is cheaper to shop online than in-store (no middle-man or overheads).
· More than 50 per cent have increased their expenditure on their cars and groceries online over the past six months. At least 33 per cent are spending more on travel and technology, and just over 25 per cent are spending more on financial services, home entertainment, music downloads, entertainment bookings and games/software.

The consumer wants to be more informed. They want to know that what they are buying is the right choice in times when the perceived cost of making a mistake is much higher.

From a retailers perspective having a strong internet presence is more imperative than ever; as less people are going out they will be spending more time on internet for both shopping and entertainment. Whilst overall marketing budgets are being cut, a bigger share is being dedicated to digital increase.

Suzanne Vranica, Advertising and Marketing Columnist for the Wall Street Journal says, ”this is a key moment for the digital sector and a time to prove that measurable forms of advertising are best, particularly during an economic downturn.”

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