Showing posts with label consumer trends. Show all posts
Showing posts with label consumer trends. Show all posts

Tuesday, December 9, 2014

Using Search Engine Behavior in Marketing Campaigns



Companies regularly seek out opportunities to improve their marketing campaigns to encourage higher levels of return from improved purchase rates. A paper by Ye, et. al (2014) discusses how companies use a number of metrics but often fail to incorporate search engine information into their marketing campaigns. By understanding how consumer interest leads to search behavior and eventual purchase companies can better design their marketing campaigns for greater effectiveness. 

Sales do not happen in a vacuum and often rely on pre-existing interest among consumers. Search engines and sites like Google Trends, Adwords, and others track search behavior of consumers. With 80%+ of consumers using the search engine to find information it can be used to help to develop stronger marketing processes that lead to higher sales. 

The search engine becomes a gateway to purchasing behavior based upon the cognitive processes of the consumer and the word choices he or she uses to find information. What is of interest to people will lead to improved sales. You may look at various categories on Google Trends to see general interest categories and their ranking. 

In today’s world, the search engine is an integral part of our lives and can influence how we understand the world around us. Information from products and services found in our environment can be better pinpointed online. Companies can use this search information to better develop stronger marketing programs that lead to higher percentages of conversion. 

Traditional marketing statistics often ignore pre-trending search information that occurs before purchases are made. They ignore these statistics because it can be difficult to understand and incorporate into data metrics. However, it is these general search trends that eventually lead to page visits and purchases. 

The authors bring forward a solid point that understanding search behavior and trends will have an impact of eventual sales as consumer interest converts to purchasing behavior. Since a large section of society uses the Internet on a regular basis it is possible to use some of that trending information to determine which products are going to sell well and which ones are not. The development of marketing programs should factor in popularity on search engines. 

Ye, et. al. (2014). Decomposing the impact of advertising: augmenting sales with online search data. Journal of Marketing Research, 51 (3).

Tuesday, December 3, 2013

Consumers Opt for Online Shopping on Black Friday and Cyber Monday


Cyber Monday rose 18% this year totaling $1.74 billion according to comScore. This reflects the largest volume in history so far. In addition, IBM reported that online sales during Black Friday were up 20% this year. This increase is not due to in-store shopping. Consider that ShopperTrak reported in-store sales on Black Friday declined 13.2% while foot traffic decreased 11.2%. Total sales for Thursday and Friday increased a modest 2.8% for both days.

What does all this mean? It means that more people are opting to purchase items online. They are becoming accustomed to searching out the products and services they desire and scouring the Internet for the best deals. Their high-powered shopping capacity may not get the very best deals but saves them considerable time and effort.

Even those who decided to hit the stores used the Internet to find the best Black Friday deals. They can find deeper discounts on the shelves than online but must make considerable personal investment to be there. When they do go shopping, they skip right over the items they are not interested in and make a mad dash for specific big ticket items like cell phones, tvs, gaming machines, and computers.

Retailers typically offer high discounts on products to drive people to their store locations. The online ads are a form of advertising. To make such deep discounts possible the stores hope that they will purchase other products while shopping or become more familiar with the location for future sales. Consumers seem to be skipping over the concept and watching where they are spending their money.

The trending toward online shopping has a number of advantages for consumers. Driving the car, spending gas, getting ready, finding parking spots, fighting off crowds and carrying arms full of expensive gifts is not very exciting. Shopping at stores can be downright stressful. Spending time online is something most consumers are now accustomed. Enjoy a latte and shop in style…the products will be delivered to your doorstep.

Other Reading:

Boston

TechCrunch

Bloomberg