Member Article

Online businesses experience growth

Businesses that operate online are growing, despite the current tough economic conditions, according to research from Barclays.

The average online company surveyed experienced 11.4% compound annual growth over the last three years.

Barlcays Online Business Outlook 2013, showed nearly two thirds of online businesses are optimistic about their growth prospects for the year ahead.

Sean Duffy, managing director and Head of Technology, Media and Telecoms at Barclays, commented: “Online businesses have bucked the trend over the last three years and experienced success in spite of the stagnant economic conditions.

“The next challenge for companies operating online is sustaining this level of growth and ensuring that they take advantage of new and rising trends. We are advising our online clients to become mobile-ready, as it’s a significant opportunity, particularly with the imminent roll out of 4G networks across the UK due to make mobile browsing easier for more and more consumers. Businesses that fail to move with the times risk losing out on valuable ecommerce opportunities.”

64% of respondents believed that a mobile strategy was important for success in 2013, although almost the same number admitted to not having devised one.

Online businesses that have developed mobile sites or apps generated 27.8% of their revenues from mobile in 2012.

Mr Duffy added: “In our experience, online businesses that have already invested in the mobile side of their business through the development of mobile-ready websites or apps are already seeing a significant proportion of their business coming from mobile devices.

“Our research backs up what our clients are telling us – mobile-ready online businesses generated more than a quarter of their revenue from mobile last year. Considering that the average online business in the UK generated £8.9 million in revenue in 2012, this equates to almost £2.5 million of potential income through mobile. Online business is already booming and with the number of mobile consumers only set to rise, our view is that it will continue to do so.”

This was posted in Bdaily's Members' News section by Tom Keighley .