The Impact of Digital on Path to Purchase - Semantic Scholar

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Sep 28, 2012 - e-Commerce Share of Corresponding Consumer Spending*. Source: comScore for .... Smartphone Shoppers: 19 M
The Impact of Digital on Path to Purchase Presented at the MMP2P Conference 2012

Josh Chasin; Chief Research Officer September 28, 2012

Agenda

 eCommerce and the General Digital Landscape  The Game Changer: Mobile Digital Access  The ‘Showrooming’ Phenomenon  Social Commerce Trends

© comScore, Inc.

Proprietary.

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comScore’s Global 2 Million Person Panel Powers a Plethora of Digital Insights The Only Global Measurement of Audience and e-Commerce

360° View of Consumer Behavior Web Visiting and Viewing

Demographics Life Stages

Mobile Usage

Advertising Exposure

41 Media Metrix Reported Countries 170+ Countries with Sample Presence

© comScore, Inc.

Proprietary.

3

Online / Offline Transactions

Search Behavior

Streaming Video

The Purchase Funnel

© comScore, Inc.

Proprietary.

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McLuhan: The content of any new medium is the previous medium

© comScore, Inc.

Proprietary.

5

eCommerce and the General Digital Landscape

As consumers continue to shift their spending to the Internet, the overall e-Commerce share of spending approaches 10%

e-Commerce Share of Corresponding Consumer Spending* Source: comScore for e-Commerce & U.S. Department of Commerce (DOC) for Retail

9.4%

10.0%

8.6%

9.0%

e-Commerce Share

8.0%

7.4% 7.3%

6.0%

3.0%

8.1%

5.1% 4.3%

5.3%

4.5% 4.6% 4.3% 4.0% 3.7%

5.3% 5.0%

6.3% 5.9%

6.5% 6.6%

6.8%

6.9%

7.1% 7.1%

e-Commerce share peaks in colder seasons (Q4 & Q1)

2.0% 1.0% 0.0%

*Note: e-Commerce share is shown as a percent of DOC’s Total Retail Sales excluding Food Service & Drinking, Food & Bev. Stores, Motor Vehicles & Parts, Gasoline Stations and Health & Personal Care Stores.

© comScore, Inc.

8.0% 7.7% 7.6%

5.9%

4.0%

7.7%

6.4% 6.7%

7.0%

5.0%

7.6% 7.7%

8.9%

Proprietary.

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E-commerce now accounts for a substantial share of consumer buying, especially in tech categories

Product Category

E-Commerce as % of All Sales

Computers*

37%

Printers*

28%

Navigation*

28%

Still Digital Cameras*

25%

Portable Digital Players*

23%

Accessories*

14%

Footwear*

13%

TVs*

12%

Toys*

9%

Apparel*

9%

Consumer Packaged Goods**

1% Source: *The NPD Group, Inc. and **comScore, Inc.

© comScore, Inc.

Proprietary.

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Digital Media Fundamentally Shift Power to Consumers by Facilitating Availability of Improved Price Data

comparison shopping sites 85 million monthly visitors

online retailer sites 187 million monthly visitors

coupon sites 45 million monthly visitors

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Proprietary.

search 224 million monthly searchers

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SOURCE: COMSCORE MEDIA METRIX, JANUARY 2012

Search-Plus-Display advertising generates greater lift than either alone…

Incremental Lift in Retailers’ Offline Sales per (000) Exposed Source: comScore Ad Effectiveness Solutions

120%

+119%

100%

+82%

80% 60% 40%

+16%

20% 0% Search and Display

© comScore, Inc.

Proprietary.

Search Only

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Display Only

…but the reach of a display campaign will far-exceed the reach of a search campaign. • Because, a priori, persons exposed to a search campaign are further along in the funnel (thus filtered/qualified) • As a result, even though the sales lift among those exposed to a search ad is higher, the total dollar sales gained from display ads is often larger than search due to the smaller lift acting on a larger base

% of Households Reached

Incremental Impact on Offline Sales per (000) Exposed

Total Sales Volume Lift Index 198

+11%

Note: 0 equals par in above chart.

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Proprietary.

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Source: comScore Ad Effectiveness Solutions

Display ads can lift retailer sales-- both on- and offline

Dollar Sales Lift Among Households Exposed to Online Advertising

Conclusions  Exposure to display ads doesn’t just impact online sales – it lifts in-store sales as well

% Lift: 17% $11,550 $9,905

 The absolute dollar lift in offline sales is 5x higher than the lift in e-commerce sales

% Lift: 27%

$994

$1,263

Online

Offline

Unexposed

Exposed

© comScore, Inc.

Proprietary.

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Source: “Whither the Click?” 139 comScore studies in the June 2009 Journal of Advertising Research

The Game Changer: Mobile Digital Access

Over 12% of Digital Volume Now Comes From Non-Computer Platforms …and it’s doubled in a year.

14% 12% 10%

4.1%

8% 6%

1.5%

1.8%

1.9%

2.1%

2.2%

2.5%

2.3%

2.9%

3.1%

3.4%

3.6%

5.8%

5.9%

6.1%

4% 2%

4.5%

4.2%

4.4%

4.3%

4.5%

5.2%

4.7%

5.5%

3.7%

6.6%

0%

Mobile © comScore, Inc.

Proprietary.

Tablet 14

Other

Source: comScore Device Essentials

7.5%

More than 4 million new smartphone subscribers activated in Q2, taking the audience over the 110 million mark

Acquisition Trend for Smartphone Subscriber Base and Total Smartphone Subscriber Base Source: comScore MobiLens, U.S., 3 Mo. Avg. Sep-2009 to Jun-2012 +7.0

New Smartphone Acquisitions (In Millions) +6.0

120,000

+6.5

100,000

Total Smartphone Subscriber Base (In Thousands)

+5.0 80,000 +4.0

+2.0 +1.0

+2.9

+2.7

+3.0 +1.9 +1.3 +1.3 +1.1

+3.8

+3.6

+3.3 +2.3+2.3 +2.1

+2.7 +2.9 +2.1+2.2 +1.6

+2.0

+1.3 +1.3 +1.0

+1.8 +0.7

+3.5 +3.3

+3.1

60,000 +2.6

+2.5 +2.2

+2.1 +1.4 +0.7

+0.0

40,000 +0.9 20,000

0

© comScore, Inc.

Proprietary.

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Smartphones are Changing E-Commerce…

E-commerce and Related Services Accessed by % of Smartphone Users Source: comScore MobiLens, US, 3 mon. avg. ending Dec 2011

Deal-a-Day

17%

Shopping Guides

17%

Electronic Payments

19%

Credit Cards

20%

Online Retail

25%

Bank Accounts

35% 0%

© comScore, Inc.

5%

Proprietary.

10%

15%

16

20%

25%

30%

35%

40%

Smartphone Shoppers: 19 Million Buy On Device Top 5 Smartphone Purchase Categories

1

Clothing or accessories

32.4%

Social Networking is the 1 inMost 5 23.5% Tickets Popular Online Activity Made Consumer electronics/ Purchase Worldwide 22.3% household appliances on

Smartphone in April

Meals for delivery/pickup Books (not eBooks)

21.2% 21.0%

Source: comScore MobiLens, 3 mon. avg. ending Apr-2012, U.S.

…and Smartphones are changing the in-store experience

% Smartphone Owners Performing Task in Physical Retail Store Took picture of a product

20.7%

Texted or called friends/family…

17.9%

Scanned a product barcode

17.0%

Sent picture of product to…

16.5%

Compared product prices

10.4%

Found store location

10.0%

Found coupons or deals

8.7%

Researched product features

7.6%

Checked product availability 0.0% © comScore, Inc.

Proprietary.

4.6% 5.0% 18

10.0%

15.0%

20.0%

25.0%

Source: comScore MobiLens, US, 3mo Avg ending June, 2012

Americans’ New Shopping Companion: More than Half of Smartphone Owners Use Phone While in a Brick-and-Mortar Store to Shop

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Social Networking is the Most Popular Online Activity Worldwide Source: comScore MobiLens, 3 mon. avg. ending Dec-2011, U.S.

Nearly 1 in 10 e-Commerce dollars are spent via mobile device

Percentage of Total e-Commerce Dollars Spent via Mobile or Tablet Device Source: comScore Mobile Measurements

9%

Spike in percentage of e-commerce sales via mobile coincides with surge in tablet ownership

8%

9% 8%

6% 6% 3% 3% 2%

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2010 2010 2010 2011 2011 2011 2011 2012 2012

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Proprietary.

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Mobile App access dominates Mobile Web access for most leading pure play online retailers

Selected Leading Retailer Mobile Web Properties Unique Visitors (000): Mobile Web + App Combined

Share of Mobile Time Spent by Retailer App vs. Mobile Web

Source: comScore Mobile Metrix, U.S., March 2012

Source: comScore Mobile Metrix, U.S., March 2012

App

Amazon

41,215

eBay 13,351

Wal-Mart

12,673

Best Buy

Barnes & Noble

3,508

18% 1%

99%

5,471 4,319

14%

82%

6,927

Redbox

Etsy

86%

27,190

Netflix

Target

Mobile Web

18%

82%

16%

84% 95%

5%

39%

61%

5%

95%

2,423

27%

© comScore, Inc.

Proprietary.

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73%

Nearly 2 in 5 tablet owners have purchased something online via their device in the past month, more than double smartphone owners

Smartphone Owners Who Purchased Item/services via Mobile (past month)

Tablet Owners Who Purchased Item/services via Tablet (past month)

Source: comScore MobiLens

Source: comScore TabLens

Smartphone owners

18%

Tablet owners

39%

Tablet owners are generally more engaged overall – in addition to the above ‘purchased’ metric, 43% have researched items and 42% have compared product prices in the past month (compared to 21% and 22% for smartphones, respectively) © comScore, Inc.

Proprietary.

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Compared to smartphones, tablet ownership is ramping up much faster

40 Million Consumer Tablet Owners in less than 2 years Device Ownership – Smartphones vs. Tablets Sources: comScore MobiLens + comScore TabLens U.S., 3 Mo. Avg.

Device Owners (000s)

100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 © comScore, Inc.

Proprietary.

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Tablet owners tend to skew to higher incomes: 6 in 10 make $75k+ U.S. Tablet Owners by Household Income Source: comScore TabLens U.S., 3 Mo. Avg. Jan-2012 to Mar-2012

% Share of Tablet Owners

45% 38%

40% 35% 30% 25% 20%

17%

17%

$25k to