Harnessing the power of the internet to increase awareness, engagement and sales
As digital consumer advertising continues to evolve, these trends from Adobe's Digital Intelligence Briefing: 2017 Digital Trends in Retail & Ad Insights are worth noting.
MOST CUSTOMER JOURNEYS START ONLINE, BUT END IN STORE
Most customers blend online and offline channels, starting their journeys “digitally” from a mobile device and ending them “physically” in a brick and mortar location. Although customers spent $35 million on mobile devices in 2015, mobile engagement helped drive another $977 million in sales taken by shop assistants at registers.
Many retailers have recognized this channel inter-dependency and have turned their websites into digital showrooms designed to entice customers into their stores. However, many of their strategies are still too focused on the purchase as the main activity and don’t give enough attention to the activities along the path that lead shoppers to conversion.
DEVICES DON'T BUY PRODUCTS, PEOPLE DO
Of course, understanding what the customer needs along the path isn’t easy. Because the average customer is using seven devices, nine times out of ten, marketers can’t connect the dots from a laptop visit in the afternoon to a mobile one later that night. Therefore they can’t get an accurate view of their customer or know what messaging will make an impact. And they resort to marketing to a device, not to a person.
But because devices don’t buy products, and people do, marketers need to shift from selling products toward selling experiences.
IMPORTANCE OF THE CUSTOMER EXPERIENCE (CX) MANIFESTS ITSELF IN FOCUS ON PERSONALIZATION
More than half (54%) of retailers say that the customer experience is their most important area of focus, way ahead of cross-channel marketing (16%), data-driven marketing (14%), mobile (11%) and programmatic buying/optimization (4%).
Asked about their tactical priorities, a third (33%) of retailers say that ‘targeting and personalization’ is one of their top three priorities for the year ahead, higher than for any other marketing tactic.
TRIED AND TRUE CHANNELS MAY BE LOSING THEIR EFFECTIVENESS
Advertisers have increased spend on search by +42% over the past two years while corresponding site visits driven by search has only increased by +11%.
VIDEO AD EYES SHIFT FROM DESKTOP TO MOBILE
Mobile video ad impressions: +53% YOY | Desktop video ad impressions: -27% YOY
Mobile formatted ads served on mobile see a 60% completion rate while Desktop formatted ads served on mobile see a 47% completion rate.
Opening seconds are critical to capture attention.
15 second ads see a 67% completion rate, and 68% of viewers are still watching a 30 second during the same time frame.
1 in 5 viewers move on after an advertisement has played for five seconds.
MAKE 'EM LAUGH
Consumers are most likely attracted by ads that make them laugh.
Consumers want to see online ads less frequently, and also would appreciate more humor.
83% like personalization, but 55% say that the personalization of today’s ads could be improved or less creepy/intrusive.
57% of those 18-34 agree they prefer to see ads that are personalized based on their interests, shopping habits, and preferences (vs. 41% of those 35 and over)
54% of those 18-34 agree that social media channels are getting better at giving them relevant content and advertisements (vs. 25% of those 35 and over).
61% of Millennials say they often see relevant ads on social media (vs. 22% of those 35 and over), with 58% saying Facebook is the social media site doing the best job of showing them interesting and relevant ads.