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BizReport : Research archives : April 17, 2007

Web design is growing in importance

As online advertising budgets grow, so do the budgets to create or build an online web presence. According to a recent Forrester Research survey, more top companies are increasing the amount of money they are putting toward websites.

by Kristina Knight

This is leading to a growth of at least 20% in the profit margins of web agencies. Some agencies have seen as much as 40% growth from building state of the art websites.

With this pressure to create the best websites, companies' needs must be being met, right? Not necessarily. According to the survey, many websites are only doing a mediocre job of intriguing users and inviting returns to the websites.

There are many reasons a user might not return, but for many it is simply the layout of the site. With so many companies hiring out for website creation, there is a shortage of qualified site builders and many companies are beginning to see that the websites they have had created aren't measuring up.

As the need for websites intensifies, as it will in the coming years, that shortage of qualified help may continue. A website may technically do what it is supposed to - show users shopping deals, supply information or allow for the sharing of user-generated-content - however, if the site is not inviting to a user, those consumers won't be back.

For companies building or rejuvenating a website, the key will be navigation, availability of information and ease of use. Shopping around for the right site builder or hiring a site builder to work only for that business may be a good idea.

Tags: online advertising, online revenue

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  • Charles Thonen

    Well, this is great news! I have been in this industry for going on 12 years now and have ridden the financial coaster of the DOT-COM boom to the DOT-COM bust.

    In all I can not complain, it’s been a good ride and it looks like we are going up the next ramp of the coaster. I intend to start my design studio back up this winter “Creative Chuck Enterprises ™” Feel free to contact me via email.

    [email protected]

    It is little things that make a huge impact. For instance the first link on the website for will not work, why you ask? The “HTTP” was put in as “HRRP” that will

    do it every time.

    It’s the little things that can make or break a potential client returning.

    Have a great day!

  • This is very good news, since it seems to me that companies begin to realize that their Web Site is actually the face of their business to the world ( one of the main points in a paper of mine published in 2002, underlying among other things, the importance of online presence and the need for businesses to look to this issue as a high priority one).

    Today it is more likely that someone will visit any business online first rather than physically and whether we like it or not the very first impression someone gets from a web site reflects an impression about the company behind it.

  • We are seeing an increase in local IT consultancies using our web design, information architecture, consulting and multimedia content services as they deliver projects that integrate a company's web presence with the IT infrastructure.

    This includes projects like designing and developing the user interface for ACCPAC integrated websites or doing specialist User Experience design for very large e-commerce websites.

    This is a clear sign that the IT industry and their customers are seeing value in web design services.

  • Design is only one of important aspects of a successful Web site. The Web Marketing Association actually uses 7 criteria for their annual WebAward competition: design, copywriting, content, use of technology, innovation, interactivity and ease of use. Each of these factors combine to make a Web site a success.

    The 2007 WebAwards are currently accepting entries at



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