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Consumer Research

 

Shoppers who research online spend more

Shoppers who research online spend more

Exposure to online advertising is fundamentally changing the way consumers shop, according to new research from Yahoo! and comScore, Inc.

The study, which examined the impact of search and display advertising on in-store sales for five major retailers, showed that consumers exposed to online advertising tend to research or ‘pre-shop’ online prior to purchase, and this behavior ultimately leads to increased in-store sales.

These highly-engaged ‘pre-shoppers’ spend an average of 41 per cent more in-store when compared to consumers not exposed to online advertising. 

Senior Director of Retail Category at Yahoo, Amy Vener, said, “Although recent research cites 89 per cent of consumers shop for information about products online,  less than 7 per cent of retail sales actually take place online.

“This means retailers have a prime opportunity to engage this audience of ‘pre-shoppers’ through online advertising to capture incremental sales in-store.”
 
Vice President of Direct Marketing at JC Penney, Dave Abbott, added, “The JC Penney website is our shopping hub for consumers whether they’re planning to buy online or in-store.

“Therefore, we are continually focused on developing online marketing and merchandising programs that help us understand the relationship between our customers’ online engagement and our in-store sales.”
 
Key insights from the study also included the following:
 
Consumers exposed to online advertising are more engaged -  Consumers exposed to display and/or search advertising viewed an average of six more pages during the period in which they were researching compared to those not exposed to advertising.
 
Almost 90 per cent of the incremental sales generated by online advertising take place in-store - Consumers exposed to online advertising spent an incremental six dollars in-store for every one dollar spent online.
 
Integrated search and display campaigns have maximum impact - Combined search and display ad campaigns resulted in deeper engagement for consumers exposed to those ads, leading to increased sales.

AJR
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