Forrester Research: Major Brands May Not Need Websites

1999-11-26:

A new Forrester report questions whether many of the most popular

brands with young adults actually benefit from having a web site.

Large companies such as Nike, Pizza Hut and Coke spend millions of

dollars trying to drive traffic to their sites and this may not be the

best way to use the Internet, according to Forrester.

High brand value does not mean that people will visit a site therefore

major brands need to look at alternative ways to maintain their

equity. The study found that FMCG's are the least in need of a website

because their products are bought on impulse.

Technology companies, on the other hand, benefit most from the ability

of web sites to build brand awareness, followed by retailers, travel

sites, financial services and automobiles.

While young consumers prefer to use sites using the latest graphics

and animation technologies, such as Flash and MPEG video, the emphasis

is on fast download times and easy navigation. Young adults spend an

average of 10 hours online per week, 3 hours more than adults.