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online shopping behavior

2016 Predictions and Trends

For the First Time, Advertising To Surpass $500 Billion In 2016

IHS analyst Eleni Marouli predicts 2016 ad spending in this Media Post article by Laurie Sullivan.  “Advertising to Surpass $500 Billion in 2016” includes the prediction that advertising will rise 5.7% and video will become the new mobile. Initiatives around measurement in the advertising industry are also discussed by Sullivan.
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Source: http://www.mediapost.com/publications/article/265493/advertising-to-surpass-500-billion-in-2016.html

IoT Will Become Omnipresent in Our Lives

Chuck Martin’s 2016 IoT predictions for Media Post include an extensive list from a variety of cited sources.  Beacons, wearables, encryption technology, smart machines, and more are presented in, “2016 IoT Predictions: Big Data, Beacons, Wearables, Security.” 
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Source: http://www.mediapost.com/publications/article/265353/2016-iot-predictions-big-data-beacons-wearables.html

Fewer but More Creative Ads in 2016

Matt Sweeney, CEO of Xaxis North America, presents six of the top trends that will impact advertising in the year ahead.  In this article for Campaign Live, “Better Creative, Fewer Ads: 6 Trends That Will Define 2016,” Sweeney predicts that ads will be more relevant and less intrusive.
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Source: http://www.campaignlive.com/article/better-creative-fewer-ads-6-trends-will-define-2016/1377923

Native Advertising: FTC Guidance and IAB Concerns

The Internet Advertising Bureau (IAB) plans to seek additional clarification from the Federal Trade Commission (FTC) concerning the Commission’s recent Guidance on Native Advertising.  Brad Weltman, Vice President, Public Policy at the IAB, discusses his concerns in this IAB press release, “IAB Concerned About FTC Guidance on Native Advertising.”  While both organizations agree on the importance of clear disclosure to consumers, they disagree about other points in the Guidance. 
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Source: http://www.iab.com/news/iab-concerned-about-ftc-guidance-on-native-advertising/

Multichannel Online Behavior Can Predict Online Consumer Purchasing

This December 2015 article from the Journal of Advertising Research examines how consumer behavior across multiple online advertising channels can be used to predict conversions. The authors, Sebastian Klapdor, McKinsey & Company, Munich; Eva Anderl, FELD M, Munich; Jan H. Schumann, Universitat Passau, Germany, and Florian Von Wangenheim, ETH, Zurich, Switzerland, suggest strategies for advertisers to target individual consumers based on this research in this article, “How to Use Multichannel Behavior To Predict Online Conversions-Behavior Patterns Across Online Channels Inform Strategies For Turning Users Into Paying Customers.”
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Source: http://www.thearf.org/journal-of-advertising-research-online-access/

Retailers Lag Consumers by Two Years

A recent Warc news release discusses MarketLive’s 7th Annual Holiday Research Study.  Ken Burke, founder and CEO of MarketLive, commented that, “Consumers are adopting new technologies that seemed futuristic just a year ago.”  He also stated, “There’s no question now that consumers are asking for much more than retailers can give, like coupons with local discounts through mobile devices.”

Among the other findings from this survey of 1,000 U.S. consumers who have shopped online at least four times within the past year, own a smartphone, and typically spend $250 or more online annually:

-78% are likely to visit a store as a result of text promotions or alerts sent via mobile prior to store visits.

-69% want in-store text messages with coupons or want be alerted of promotions while they are in the store.

-62% will make a purchase as a result of a notification or offer sent to their mobile device while in the store.

Burke also observed that retailers are struggling to promote their deals in search ads or via search marketing.  As a result, retailers are turning to social media.

At the present time, few consumers are buying via social media, but the majority use social media to search for gift ideas and to share information.  Social media is especially important for millennials, a key target for retailers.

These trends will impact retailers for the 2015 holiday season and in future shopping seasons.

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The Digital Shopper Genome

In this McKinsey Insights article, Gadi Benmark and Maher Masri analyze how to build a meaningful picture of the online shopper. Cracking what these authors call the shopper genome requires converting the vast amount of data regarding consumer behavior and desires into meaningful insights.

Until recently, technology barriers were the major challenge to combining insights across different elements of the organization. As these barriers start to fall, more e-commerce companies and their technology providers have an opportunity to develop a coherent, comprehensive profile of their digital customers and effectively engage them across the seven primary digital touchpoints: Internet display advertising, email, mobile advertising, search, shopping engines, social media, and video.

The authors report that the rewards of building a comprehensive view of the online shopper are substantial. They have found that companies that are able to build this profile to inform the way they interact with customers can achieve revenue increases of 10 to 20 percent.

Cracking the shopper genome will enable the company to build a comprehensive customer engagement program and to deliver on the customer’s increasingly high expectations of the digital shopping experience.

 

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For more on this topic, check out the Marketing Tab in Morning Coffee.

 

 

Americans Increasingly Shop Online and Value Free Shipping

Mintel’s Online Shopping US 2015 report indicates that Americans are increasingly selecting e-tailers rather than brick-and-mortar retailers.

Jack Loechner, writing for the Research Brief From the Center for Media Research, summarizes some of the key points of this study:

-69% of US online adults shop online at least monthly, and 33% have shopped online every week in 2015.

-Free shipping is important to online shoppers.  In fact, 48% of online shoppers admit to occasionally increasing the size of their orders to meet the minimum threshold for free shipping.

-Consumers spend $114 per online order on average.

-Online retail sales have risen from $264.2 billion in 2013 to $304.9 billion in 2014.

-The most frequently purchased products by online shoppers in the past year: books/ebooks, women’s apparel, and footwear.

-Households with larger numbers of children under the age of 18 purchase online more frequently, have higher average online orders, and are more likely to be enrolled in an automatic online reordering service.

 

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For more on this topic, check out the Media Tab in Morning Coffee.

 

 

 

Digital Tools and Their Impact on Online Shoppers

The MarketingCharts staff reviews an Epsilon study which analyzes the digital tools with the greatest impact on the behavior of online shoppers.

This report is based on an online survey of more than 2,800 respondents, and the survey determined an impact score for each digital tool.

Among the digital tools with the highest overall impact score were:

-Retailers’ social media activity

-Price comparison sites

-Shopping applications

-Brands’ social media activity

-Product reviews

The study also compares impact vs. penetration for the different digital tools.

The Epsilon report emphasized that the influence of the identified digital tools has greatly increased from the previous year. These tools impact consumer online shopping and decision-making behavior.

 

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For more on this topic, check out the Shopping & Retail Tab in Morning Coffee.

 

Amazon Prime’s Major Impact on Retail Competitors and Consumer Shopping Behavior

Jason Caine, writing for the Compete Pulse Blog, discusses the impact of Amazon Prime on both consumer purchasing behavior as well as on the responses of online retail competitors.

Caine presents Millward Brown Digital research which shows that the increase in Amazon Prime membership means that an increasing number of shoppers at other retailers are also Prime members.

Research by The Compete Panel of Prime vs. Non-Prime members’ cross-shopping behaviors demonstrates Amazon Prime members consider a narrower set of retailers when shopping online.  In fact, less than 1% of Prime members are likely to consider any of the other popular online retailers during the same shopping session.  In addition, 63% of Amazon Prime members convert on the site during the same shopping session.

The responses of Amazon Prime’s online retail competitors have included price match guarantee offers and the launch of subscription programs. Amazon Prime’s success has emphasized the need for competitors to  focus on the consumers’ e-commerce experience, to lower consumer purchase barriers, and to improve their conversion rates.

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