why o nline advertising?

Why online advertising?

www.completehome.com.au

Retailers know they have to be part of the online research journey otherwise far fewer shoppers will visit their store.

Ask any retailer if their customers are better informed today than a few years ago

The modern consumer


‘85% of shoppers are using digital media to support their in-store shopping. Shoppers expect a seamless integrated experience from their desktop to their smartphone to the retailer’. AMP Capital Shopping Centre Retail Practices Report 2011

‘In-store is still 95% of sales – but manufacturer, retailer and specialist websites, eNewsletters, and social media are all driving people to appropriate retail outlets’. AMP Capital Shopping Centre Retail Practices Report 2011

The modern consumerwww.completehome.com.au

Numerous studies (comScore, BIG Research and Yahoo) have found that over 80% of consumers buying in-store have consulted the internet for information prior to the purchase.

Consumers now want choice and multichannel retailers are being rewarded with more long-term, higher profit customers. Aust’n Centre for Retail Studies 2011

The modern consumerwww.completehome.com.au

17 million active internet subscribers Over 9 million mobile handset subscribers Facebook – over 9.5 million users Blogger – over 3.3 million users Twitter – over 3 million users Over 70% use You Tube regularly 63% watch video on a product or service

The Australian online market


Consumers now spend more time online than with TV, radio and newspapers. (Neilson Research)

Australian consumers now spend an average of 21 hours 42 minutes per week online (over 4 hrs more than last year). (Nielson Research)

The impact of online on business


People trust peer reviews or personal interactions far more than a retailer. e.g. Facebook ‘likes’ are a testimonial.

Testimonial type videos are growing – cheaper to produce now. Video types include the owner talking about the business, professional presenter talking, happy customers talking etc.

All businesses should now have a testimonial type video.

The impact of online on businesswww.completehome.com.au

95% of consumers research products online first

They want to make smarter and more informed decisions

They avoid ‘salesman bias’

Therefore, consumer purchasing has changed


The retailer’s role now is more often to confirm the consumers pre-purchase research findings.

86% research online more than once a month – it’s easier, faster, can compare prices etc.

37% look for consumer reviews and expert opinions

(Persuadable Research Corp Survey 2010)

Therefore, consumer purchasing has changedwww.completehome.com.au

They are using:• Search engines• Comparison sites• Vertical websites to gain specific category

information etc• Subscribing to free eNewsletters relevant to their

needs

And, this changes how consumers research for

products


The most important consumer trend is pre-purchase research

Search traffic is growing at 30-40% p.a.

Consumers want to compare – they are less patient if they can’t

What’s Google say about online research?


Source: Google

Internet research has created a new ‘value shopper’

Only 3% of shoppers are loyal to a particular brand

97% willing to consider other brands Source: Google

Assumption: well branded products/businesses will do well – mediocre brands will be caught up in the price comparison war.

The new Breed of Shopper


Today’s consumer is not just researching in retail outlets or through their favourite magazine. They are using a growing array of platforms that advertisers must understand.

Consumer touch points are growing.

Cross Platform is the new norm (nielson)


why o nline advertising?

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