Consumer Insights on How Technology has Influenced Purchase Decisions

Consumer insights, purchase decisions Catherine Roe, head of consumer packaged goods at Google made a very interesting presentation to the American Marketing Association recently that shows just how much the Internet has changed consumers’ buying process — B2C and B2B.

According to a study conducted by Jupiter Research in 2010, consumers spend 52% of their time online, 37% watching TV, 7% listening to the radio and 4% reading the newspaper. Conversely, only 5% of advertising dollars are online while 63% are on TV, 19% on radio and 8% in newspaper.

The goal of the marketer has not changed over time. It continues to be to grow sales. However, the journey the consumer takes has changed. Consumers now do research on the Internet before shopping.

According to a Booz Allen Hamilton study, 81% of shoppers research before they shop — typically for an hour or more. With access to information online, people are searching for the products or service they are considering purchasing, they are reading ratings and reviews and they are checking out the sellers website before approaching them.

More and more people are doing this with mobile devices since 20% of mobile phones are smart phones. It is estimated that mobile searches will equal desktop searches in 2014. Mobile searches are more immediate and more localized.

Seventy-six percent of U.S. households prepare a written or digital shopping list before they shop. People search for coupons online — queries for coupons are up 288% in two years. Local searches are up 149%, searches for recipes are up 209% and searches for reviews are up 188% in the last two years.

People that go online and do research spend 20% more than those that do not. This may be because they are more affluent, or perhaps its a function of them being more confident that they are getting what they want at a competitive price.

Fifty-one percent of primary shoppers are now men. Twenty-two percent of men say that today’s advertising doesn’t speak to them. Men are less interested in deals and are more brand loyal than women.

Search advertising is the online equivalent of a trade promotion. Integrated search and display ads are effective in driving offline sales and positive ROI.

A geo-targeted strategy is effective at driving sales for a specific retailer at a specific location.

An ad with a coupon resonates best with consumers and drives the strongest offline performance.

Has your allocation of online marketing dollars increased this year?


About Insights From Analytics

Integrated marketing professional who generates insights from analytics to increase revenue. Daily blog now resides at
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