The reign of search engines over online shopping may be over as consumers shift their attention to retailer websites, preferring to browse products on two or three favourites rather than searching more widely. Marketers looking to target these high-intent purchasers need to consider how to best allocate ad budgets to effectively convert shoppers to buy.
With so much content now available – which is often confusing and irrelevant – consumers are turning to reliable sources to shop online using web browsers to create their own multi-tab, custom-made store to research and compare. In a typical shopping transaction, users visit 2.7 retail websites on average before making a purchase, choosing to consult trusted retailers that feature product information provided by the manufacturer. Consumers are starting to change their online shopping behaviour, introducing an opportunity for brands to effectively engage consumers where they are actively looking to buy on retail sites.
So as the path to purchase continues to evolve, how are consumers using retailer websites to search for items and how can marketers use this information to place their products in front of the right shoppers, at the right time and in the right place?
Get to grips with search tools
Search tools within retail websites act as gatekeepers to product visibility, enabling consumers to discover products directly relevant to their search terms. The very fact a consumer has searched for a particular item on the relevant site indicates a high willingness to buy, so it is imperative that brands are featured on the results page.
Featured placement is also a key consideration – more than 90% of all products viewed on retailer websites are listed in the first page of results, so brands displayed here are far more likely to receive high click-through rates (CTR), engagement levels, and conversions.
Retail search advertising empowers marketers to place their products in front of these high-intent shoppers in a non-intrusive and disruptive format. Displayed in the same way as a product listing, the ads allow brands to feature in prominent positions on the results page, while acting as the consumer would expect by clicking though to the product page within the same website.
Test, review, and learn
Retail search advertising opens up a plethora of opportunities, but as with any new technology or advertising format, marketers must determine what works best for their products or brands and delivers the highest return on investment (ROI). An always-on strategy works best, as it ensures that brands are visible whenever a shopper is searching. However, increasing your promotional levels on key retail websites when brand awareness is high – such as during a TV or out-of-home (OOH) ad campaign – can help increase return on ad spend. Key trading periods or calendar events also play a key role in deciding marketing spend – for example a sparkling wine or Champagne brand may focus on the lead up to Valentine’s Day and Christmas, so ensuring products are prominently displayed on results page during these times can help them stand out from the competition and significantly boost sales.
Cross-selling is another avenue for marketers to explore when investing in retail search advertising. Linking brands with associated product searches can offer additional opportunities to engage shoppers and drive conversions. For instance, a consumer searching for a spirit such as vodka or rum may also be inclined to purchase a mixer such as cola or lemonade. Placing product listings on these results pages helps recreate the natural in-store discovery process and can create incremental sales for brands.
Plan for the future
Search functions on retail sites will become more important as consumers navigate away from ‘traditional’ search engines, when they are ready to buy. Marketers cannot afford to ignore these high-intent purchasers and in a recent survey of 200 marketing professionals, 65% said they were planning on increasing retail search spend in 2015.
We are seeing a fundamental change in how online shoppers engage with content, and distracting and interruptive ads no longer have the same impact. The ability to shop quickly and efficiently is paramount to consumers, who are increasingly well informed. Product ads that take users to another website – often deemed less trustworthy – or that require numerous clicks will become less effective.
Measurement will also become paramount – attribution tools are set to improve, allowing advertisers to more accurately analyse the impact their online investment has on online conversions as well as offline sales. Marketers should seek to work with partners that can offer these capabilities, demanding full transparency. For example, HookLogic’s Retail Search Exchange provides full sales data directly attributable to advertising spend, ensuring brands know the direct impact and return on their spend.
As the digital shopper continues to pave a new path in the journey to purchase, search tools on retail websites will become increasingly important to marketers seeking to maximise opportunities to drive sales. Consumers will progressively rely on trustworthy retailers with highly relevant product listings that enrich and simplify the buying process rather than interfere. Retail search tools herald a new era in online shopping and edge ever closer to stealing the crown from traditional search engines.
