Why o nline advertising?

1. Why online advertising? www.completehome.com.au

2. The modern consumer • 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 www.completehome.com.au

3. 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 www.completehome.com.au

4. The modern consumer • 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 www.completehome.com.au

5. The Australian online market • 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 www.completehome.com.au

6. The impact of online on business • 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) www.completehome.com.au

7. 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. www.completehome.com.au

8. Therefore, consumer purchasing has changed • 95% of consumers research products online first • They want to make smarter and more informed decisions • They avoid ‘salesman bias’ www.completehome.com.au

9. 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) www.completehome.com.au

10. And, this changes how consumers research for products • They are using: • Search engines • Comparison sites • Vertical websites to gain specific category information etc • Subscribing to free eNewsletters relevant to their needs www.completehome.com.au

11. What’s Google say about online research? • 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 Source: Google www.completehome.com.au

12. The new Breed of Shopper • 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. www.completehome.com.au

13. Cross Platform is the new norm (nielson) • 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. www.completehome.com.au