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Digital shopping-the-topline-on-online
1.
DIGITAL SHOPPING The Topline
on Online Nikhil Sharma Vice President, Shopper Insights Josh Goldman Global Leader, Digital Measurement
2.
Today's presenters
Nikhil Sharma Josh Goldman Vice President, Global Leader, Shopper Insights Digital Measurement 2 Digital Shopping Copyright © 2012 Nielsen. Confidential and proprietary.
3.
Digital Shopping: The
Topline on Online 1 Digital influence on shopping 2 Considerations for marketers 3 Guidelines for success 3 Digital Shopping Copyright © 2012 Nielsen. Confidential and proprietary.
4.
Digital influence on
shopping 4 Digital Shopping Copyright © 2012 Nielsen. Confidential and proprietary.
5.
'Digital' is widely
pervasive in the United States today ONLINE MOBILE SOCIAL Americans People with with Mobile People On Internet Access(1) Phones(2) Facebook(3) Average Online Time Per Month(1) Minutes Spent on of Mobile Subscribers Social Networks with Smart Phones / or Blogs(1) 5 Tablets(2) Source: (1) Nielsen Netview, Oct 2011 Digital Shopping (2) Mobile Insights, Q4 2011 (3) Facebook S1 Filing, Feb 2012 Copyright © 2012 Nielsen. Confidential and proprietary.
6.
While shoppers continue
to interact with traditional forms of marketing, many are also digitally engaged while shopping % of shoppers accessing sources ‘Weekly’ while shopping 0 10 20 30 40 50 60 70 Mailed Paper Home Newspaper Nearly twice as many Paper in-store shoppers read a Retail e-mail retailers' email than Store site w/computer paper circulars in-store Social More than 30% of shoppers researching Store site w/tablet online while shopping Smartphone Kiosk In store TV c 6 Print Digital Other Source: Nielsen Digital Circulars Survey, Q2 2011 Digital Shopping Copyright © 2012 Nielsen. Confidential and proprietary.
7.
Shoppers are digitally
engaged to varying degrees depending on the products that they buy 31% of ALL purchase Non-CPG Categories 67% Consumer Electronics & Technology decisions involve some 38% Entertainment Items & Content online or mobile activity 34% Health Supplements and Choices 25% of all CPG purchase CPG Food Categories 34% Non-Alcoholic Beverages CPG Non-Food Categories 38% Baby & Child Care decisions are 19% Packaged Food 26% Beauty & Personal Care influenced by some online or mobile 18% Fresh Food 18% HH Cleaning & Detergents activity 7 Source: Nielsen Shopper Benchmark Survey – Q2 2011 Digital Shopping Copyright © 2012 Nielsen. Confidential and proprietary.
8.
Digital usage in
shopping will increase: 70%+ shoppers want to shop with digital engagement in the future % of shoppers accessing sources ‘A Lot’ or ‘Somewhat’ in Future Direct Mail 87 Newspaper 86 In-store 86 Store Website using Computer 75 ~60% today Emails from retailers 72 Millennials Index = 114 Store Website using Tablet 59 Social media site 37 ~10% today Smart phone or mobile phone 31 Millennials Index =176 In-store kiosks 43 Televisions in the store 42 8 Print Digital Other Source: Nielsen Digital Circulars Survey, Q2 2011 Digital Shopping Copyright © 2012 Nielsen. Confidential and proprietary.
9.
Mobile shopping is
also increasing, and shopping apps are among the fastest growing categories of mobile apps Number of People Engaged Fastest Growing App Categories In Mobile Shopping (Q3 2010 – Q3 2011) 23 Million Smart Phone 147% Users 13 Million 100% Scanning App users in Dec ’11 5 Million Tablet Users 82% 9 Source: Nielsen Mobile Insights – M:Shopping 30 Day Activity,Q3 2011 Digital Shopping Source: Nielsen Mobile NetView, December 2011. Mobile scanning apps included are Barcode Scanner, ShopSavvy, QR Droid, RedLaser, Price Check by Amazon, ScanLife, QR Reader, Copyright © 2012 Nielsen. Confidential and proprietary. and Consumer Reports Mobile Shopper
10.
Is impulse purchasing
declining? No…but new tactics required to influence shoppers Q: What are top ways you use information? Shop Their List Impulse Compare ‘My’ ‘My’ New item Coupons Any sale Browse Store Other items Sales item info info Prices Newspaper Paper at home Retailer email Store site (computer) Store site (tablet) Social Kiosk 10 Source: Nielsen Digital Circulars Survey, Q2 2011 Digital Shopping Source: Nielsen Homescan Copyright © 2012 Nielsen. Confidential and proprietary.
11.
What services are
expected; where can you stand apart? Online Circular 93% Expected Site Product 81% Filters Shopping List 81% & Recipes Active Twitter 78% Feed Circular #1 74% Search Result YouTube w/ 63% Content Mobile-friendly 56% site Circular Email 44% Subscription Circular 44% Search Ads Circular via Facebook 41% Differentiate Circular Item 22% Search Ads 11 Source: Nielsen analysis Digital Shopping Copyright © 2012 Nielsen. Confidential and proprietary.
12.
To develop an
effective digital strategy, marketers must influence decisions along the entire ‘path to purchase’ 12 Digital Shopping Copyright © 2012 Nielsen. Confidential and proprietary.
13.
Considerations for Marketers
13 Digital Shopping Copyright © 2012 Nielsen. Confidential and proprietary.
14.
Shopper marketing tactics
changing CUSTOMIZATION AUTHENTIC ENGAGEMENT PRECISE LOWER COST SEGMENTATION 14 Digital Shopping Copyright © 2012 Nielsen. Confidential and proprietary.
15.
Retailers like Safeway
are personalizing and integrating value-added content leveraging their ‘just for u’ platform It's all about me 15 Source: Safeway Digital Shopping Copyright © 2012 Nielsen. Confidential and proprietary.
16.
Brands can add
value to existing purchase journeys and drive pre-store choices in their favor by leveraging digital Search Engine Shopping Text List Ad Landing Circular Page 16 Source: MyWebGrocer Digital Shopping Copyright © 2012 Nielsen. Confidential and proprietary.
17.
Brands can also
trigger new purchase journeys +50% higher click-through rate for brand search campaigns using ‘on sale’ messaging in their ad. 1 out of 7 Shoppers who reached the Lightbox added a brand product to their online shopping list 17 Source: MyWebGrocer Digital Shopping Copyright © 2012 Nielsen. Confidential and proprietary.
18.
Mobile devices enable
personalization by delivering digital content consistent with shoppers’ preferences Likelihood Top 10% Redeemed Demographics of Pilot Participants Over Bottom 10% Index of Pilot App Downloaders to US iPhone Overall, 2011 Nielsen Mobile Coupon Pilot, 2011 135 123 95 71 100 Age: 18-35 36-49 50-65 66+ 143 Children in 68 100 Household: Yes No 18 Note: Redemption results are preliminary and will be updated at Digital Shopping the pilot’ is finalized Copyright © 2012 Nielsen. Confidential and proprietary.
19.
Social media and
consumer reviews ‘level the field’ for smaller brands Impact of Ratings & Friends Brand Advocacy 19 Source: Amazon.com Digital Shopping Copyright © 2012 Nielsen. Confidential and proprietary.
20.
Marketers need to
focus on the ‘right shoppers’ Shopper Segments Based On Attitudes Toward Experimentation SATISFIED & TRENDSETTERS SEDENTARY Love to keep ahead of what's happening…Love trying new Don't generally waste their time trying to keep up with new things…Often tell others about them things…Know what they like, and Demographic Skews don't have to keep trying everything • 25-49 new • Children/Teenagers in Demographic Skews Household • 60+ • More Affluent • Live Alone • Less Affluent OCCASIONAL TRIALISTS Usually keep up with what's happening… Don’t go out of their way to try every new thing Demographic Skews • 50-59 • Live With Spouse/Partner • Middle Class 20 Source: Nielsen Category Shopping Fundamentals Research, Q4 2011 Digital Shopping Copyright © 2012 Nielsen. Confidential and proprietary.
21.
… engage shoppers
with the ‘right message’ Diapers Coffee Laundry Detergent Trendsetters Trendsetters Trendsetters 23% 22% 74% 45% Digitally 43% Digitally Digitally Engage Engaged Engaged d Searching for Browsing Searching for 1 Coupons 1 Online 1 Coupons Reading a Looking for Comparing 2 Flyer/Circular 2 Deals 2 Prices Looking for Searching for Reading a 3 Deals 3 Coupons 3 Circular/Flyer 21 Source: Nielsen Category Shopping Fundamentals Research, Q4 2011 Digital Shopping Copyright © 2012 Nielsen. Confidential and proprietary.
22.
…via the ‘right
medium’ An increasing complex landscape provides consumers with a wide array of choices ONLINE MOBILE SOCIAL IN-STORE Website E- Emails Printable Digital Search/ Mobile Text Mobile Reviews Social Kiosks QR / Circular Coupons Maga- Display Coupon Message Apps Media Bar zines Ads Codes Searching 1 for Coupons 2 Reading a Flyer/ Circular 3 Looking for Deals Weigh IMPACT vs. FEASIBILITY of above tactics to optimize digital platform 22 Digital Shopping Copyright © 2012 Nielsen. Confidential and proprietary.
23.
Digitally engaged shoppers
can be very rewarding - both for manufacturers and retailers Average Category Average Trip Spending Spending (Per Household - $) (Per Household - $) +27% $263 $41 $207 +36% $30 (1) (1) 23 Source: Nielsen Analysis of Homescan Online Data, Q4 2011 (1) Define based on actual visitation to baby care websites (e.g. diapers.com) Digital Shopping Copyright © 2012 Nielsen. Confidential and proprietary.
24.
Guidelines for success
24 Digital Shopping Copyright © 2012 Nielsen. Confidential and proprietary.
25.
Winning principles for
digital shopper marketing 1 Discriminating tastes 2 The digital ‘new math’… 1 + 1 = 3 3 A new ‘digital shelf’ emerges 4 Create advocates, not mercenaries 25 Digital Shopping Copyright © 2012 Nielsen. Confidential and proprietary.
26.
Roadmap for success
BUILD ORGANIZE TO COLLABORATE MEASURE FOUNDATIONAL SUCCEED & ACTIVATE IMPACT INSIGHTS Choose Where to Build a Dedicated Proactively Tackle Clearly Define Win and Understand Shopper Insights Retailers’ Most Success Metrics and Decisions on ‘Path to Team Difficult Issues KPIs Purchase’ Measure Learn From Add Category Depth Develop Flexible and Effectiveness with Shoppers at Every to Retailers’ Broad Efficient Frameworks Shoppers and Retail Opportunity Knowledge Partners 26 Digital Shopping Copyright © 2012 Nielsen. Confidential and proprietary.
27.
What now?
1 Action over perfection 2 Find your shopper first 3 Identify a decision to influence 4 Experiment across platforms 27 27 Digital Shopping MOBILE & ONLINE: INSIGHTS INTO CROSS PLATFORM BEHAVIOUR | FEB 2012 Copyright © 2010 © 2012 The© 2012 Nielsen. Confidential andproprietary. Copyright The Nielsen Company. Confidential and proprietary. Copyright Nielsen Company. Confidential and proprietary.
28.
Q&A Thank you for
attending •If you have follow-up questions or want more information, please contact your Nielsen Professional Services Representative. •If you are not a current Nielsen client, please contact us by phone or email: Phone: 800-553-3727 email: CPGSolutions@nielsen.com OR if you have any questions regarding the content of this webinar, you can also contact: Nikhil Sharma, email: nikhil.sharma@nielsen.com Josh Goldman, email: josh.goldman@nielsen.com 28 Digital Shopping Copyright © 2012 Nielsen. Confidential and proprietary.
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