Tuesday, April 11, 2006

Online Searches Lead to Offline Buying

Online Searches Lead to Offline Buying

The Center for Media Research reports that a recently released comScore study begins to show the link between online information gathering and offline buying. According to the report, 25% of searchers eventually purchased an item directly related to their search. Of those purchases, the majority (63%) were made offline and 37% were made online. The study also found that not all online purchases were made during the initial search session. Overall, 44% of the online purchases were made during the initial search and 56% came through a subsequent internet session.

In My Opinion
This new study by comScore (sponsored by Google) adds a new dimension to the search-to-purchase picture. ROI is easy to calculate when an online purchase can be tracked from a specific banner placement or search result. That is online accountability at its best.

Data is also available on users who visit a site and do not make a purchase. This study indicates that instead of viewing those situations as lost opportunities; they should be treated as future opportunities. Simply because a purchase is not made on an initial visit, it does not mean a purchase will not be made. In fact, it is more likely that the purchase will be made at a later time, either online or offline.

And while it is not directly addressed in this study, it would seem obvious that the original search will return multiple results, giving users (potential customers) more than one option if and when they eventually make their purchase.

What This Means to Advertisers
Advertisers should always keep in mind ALL the unique advantages of their online presence. Direct ROI calculations and user tracking metrics have always been at the core of interactive evaluations. But the web can do so much more. This study shows that effective CRM and online-to-offline branding can lead to even higher sales.

With the indication that more sales occur after the initial visit, marketers should provide an incentive for the customer to return at a later date. An online coupon that can be redeemed offline, online purchase upgrade codes, email registrations are all options that can make one site stand out among the rest and secure that follow-up purchase.

This study also shows the importance of consistent online/offline branding. With the majority of online searches leading to purchases offline, customers expect and deserve the same experience online as they see offline, and visa versa. Convergence is here and the two worlds need to be viewed as one.

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