Government's Digital Broadband Initiative To Boost eCommerce
The UK Government acknowledges that the digital sector represents a key opportunity for boosting both economic competitive advantage and diversification in the UK.
Part of the strategy for expanding and strengthening the UK's digital capabilities will ensure that by 2012, every uk home will have 2Mpbs broadband access.
According to recent research by the Institute of Practitioners in Advertising (IPA), there is strong evidence to suggest that higher connection speeds directly result in more money entering the digital economy.
The IPA, who represent a bulk of advertising and marketing spend on behalf of clients conducted research which allows analysis of the web sales conversion rate against each type of website visitor internet connection.
Part if the IPA's representation also encompasses online marketing spend against eCommerce and the organisation acknowledges the following benefits of eCommerce:
- Its empirical transparancy
- Online marketing spend is accountable in terms of the sales (conversions) it generates
- Activity which leads to high conversion rates can be expanded and conversely, poor activity can be cut
- The ability to segment web visitors by internet connection speed and corresponding conversion rates
The results of the research which were based on 63.5m website visits indicate that website visitors with a higher speed internet connection are 36.9% more likely to convert to a sale.
This uplift would equate to an additional £1.4bn in revenue through online sales.
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