UK Brands “Failing to Make the Most of Digital”

New market research from the analyst Redshift Research, conducted on behalf of Oxygen8 Communications, has found that major UK brands are failing to monetise their digital media strategies. The research finds that while consumers are interested in accessing more services from organisations on their mobile phones, corporates and media companies are failing to make the most of digital opportunities. Two thirds of organisations recognise that consumers are less receptive to traditional advertising, with 76% of corporates saying they feel that Internet advertising is more effective than both TV and print. This sentiment is echoed by media companies, where 83% felt that SMS and email are more effective than traditional channels. In fact, only 13% of media companies and 23% of corporates believe that traditional media is still more important than digital media.
Budget (40%) and lack of skill and experience (28%) are quoted as the main barriers to using digital media more frequently. Furthermore, while 60% of companies think it would be very or extremely useful to have one single CRM system/database combining traditional and digital media campaigns, 65% collect and analyse campaign data in separate systems, thus rendering them unable to gain a full view into any cross media campaigns performance.   
The digital marketplace is undoubtedly the future, says Oxygen8 Group Chief Executive Officer, Shane Leahy. However, UK brands need to become attuned to selling new media advertising, from mobile to 3G and IPTV, in a way that complements, not undermines, traditional products and reflects the expectations of the consumer. This shift in approach requires not only an investment in technology, resources and understanding but also a significant corporate restructuring to deliver an integrated cross-media strategy that maximises average revenue per user (ARPU).
Oxygen8 is a new interactive communications company that has been formed following a management buy-out to respond to fundamental changes in the interactive communications market. The company says its mission is to help both media companies and corporates to realise the revenue potential of new digital media technologies such as mobile, video, 3G and IPTV. 
At the heart of Oxygen8s offering is its Oxygen platform which provides a one-stop-shop solution, enabling brands to create fully integrated interactive communications services utilising a variety of different technologies, including WAP, Web, Voice, Video, SMS and MMS. The company says the platform was designed to meet the requirements of customers who need to be able to roll out new services quickly and easily, both locally and internationally. Self-provisioning is at the core of the design of the platform which means that brands have the option to develop and maintain services themselves, and that new applications can be rolled out rapidly.