Restaurant chains are losing $2bn per year on their digital marketing strategy

Posted by Business Insider Australia on July 19, 2019 12:05:03The rise in digital marketing costs is hitting hospitality companies hard, with an average of $2.7bn spent each year on digital marketing, according to a new study from digital marketing expert Pinnacle Research.

Key points:The study, which found hospitality spending rose by 12 per cent in 2019 compared to the previous year, found that digital marketing was “not the only option” for hospitality companiesThe study found that the cost of digital marketing for hospitality businesses was the highest in the worldThe average cost of hospitality marketing in Australia rose by $1.6bn over the previous financial year, Pinnacle saidThe study examined data from 190 hospitality companies in the three years to September 2019 and found the cost per visit was “significantly higher” in the United States than in Australia.

The cost per visitor to the United Kingdom was $0.79, while Australia’s was $1,091, the study found.

Australia’s hospitality industry spends a “substantial” portion of its revenue on digital, but the study also found that spending on social media was the least expensive channel for hospitality.

“Social media is now the fastest growing channel for spending in Australia, but it has the highest overall cost per transaction, $1.,859.88,” Pinnacle research chief executive Ian McAllister said.

“This is because it is a relatively new, fast-growing channel for consumers.”

Social media has seen a dramatic increase in use, with Facebook spending more than $1bn on advertising in Australia in the past year.

The average spend per visitor was $2,938, but Pinnacle’s research found that social media spending on the internet was “substantially lower” at $1,-064.24.

Social media advertising is a form of digital advertising that uses the power of social media to deliver targeted advertising to users.

In Australia, Piers Platten said, most hospitality spending was spent online, but this could change if the Government decides to make it easier for businesses to share and promote their products and services online.

“The Government needs to consider the role that digital can play in helping hospitality businesses grow,” Mr Platten told Business Insider.

“It’s the first step to the next step and it could be a game changer.”

Topics:commerce,business-economics-and-finance,online-commerce,digital-services,business,internet-technology,internet,businesss-and/or-firms,internetwork,technology,consumer-protection,internetworking,internetannouncement,technology-and_communication,internets,internettrends,social-media,internetculture,healthcare-facilities,labor,health,australiaContact Lisa WilliamsMore stories from Victoria

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