Last month we attended the Shop.org's Online Merchandising Conference, and sat in on a session presented by Sucharita Mulpuru, VP & Principal Analyst at Forrester Research, in which she discussed the State of Retailing Online (SORO). The main objective of SORO is to highlight retailer benchmarks, such as site metrics, merchandising and mobile investments. There were some key takeaways, a few of which you can find below:
- Google dominates the web marketing landscape; PLAs are gaining steam and taking share from comparison shopping engines. Right now, paid search accounts for 36 percent of online marketing budgets, and PLAs account for 11 percent. Keep in mind that it’s getting harder and harder to make paid search work because cost CPCs are increasing.
- Display ads are becoming much more effective due to remarketing and behavioral targeting. Display ads are increasingly becoming a more important acquisition tool, and according to polled retailers, 29 percent say retargeting ads have been their most successful vehicle to acquire new customers in the past year. Additionally, 10 percent of retailers indicated that behavioral targeting ads were their most successful source.
- Email continues to be the workhorse of web marketing. Email marketing is not slowing down any time soon. According to polled retailers, 72 percent spent more money on emailing marketing this year than they did last year.
- Mobile marketing budgets are going up but spend is going toward email, search and display. Mobile marketing is making serious headway in terms of adoption, with 75 percent of retailers indicating that they currently use paid search campaigns optimized for mobile, 66 percent indicating they use mobile email optimization, and 53 percent indicating they use mobile ad display.
- Attribution models are a work-in-progress. Measuring sales impact across different touch points (mobile, online, in-store) is proving to be tricky for retailers, with 51 percent saying that it is difficult to recognize customers across devices and 46 percent saying that it is difficult to connect data across devices.
As data indicates, creating relevant and personalized experiences for customers is becoming increasingly important for retailers. Jirafe is a great tool to understand how retailers can better serve customers through omni-channel, and give them access to the right data so they can improve attribution. Learn more about how Jirafe can help your business become a customer-centric brand by signing up for a demo: