November 2, 2010

Online shoppers start with search engines

Consult local, print and online sources later

According to the second wave of DAC Group’s North American Search Landscape study, 33% of Canadians use search engines first when looking for business information during the course of making a purchase. After that, they move onto a variety of local, print and online sources. Mobile and social media are not yet primary sources of media when consumers are looking for business information when making a purchase. They do become strategic in the amplification of other online and offline media sources.

Although much has been made of the explosion of these two types of media, one must put the headlines in context. Smartphone sales may have doubled in the past year, but smartphone usage represents less than fifty percent of the Canadian population. Agencies have created the notion of this exploding media to help bolster it as a primary sales vehicle. Mobile media provides excellent geo-targeted and point of purchase advertising as well as providing invaluable support when consumers are searching for a particular business. It is not a primary vehicle for driving sales.

Social media is also an emerging platform in Canada. It rejects the formality of direct marketing and gives businesses the opportunity to create new customer relationships. It creates a two way conversation providing new experiences to attract non-traditional customers. Sales can be created as a result of social media campaigns, but the social media strategy is nuanced and relational. Businesses should not expect it to create sales in a traditional manner.

The DAC Group study of 5,500 North Americans tracks, assesses and analyzes consumer online and offline search habits when looking for business information in the course of making a purchase. Consumers have adopted specific search patterns that differ by vertical, locality and demographic profile. Marketers need to ensure that they take into consideration the category dynamics and the geographic footprint of the business so that appropriate business targets can be set. Mobile and social media are strategic tools that can produce very real marketing results in terms of increased leads or increased market share. The results really depend on the method of execution. Mobile and social will be vital in the future of search marketing, but are not yet ready to be the star attraction. More details of this study will be released to DAC Group clients and on the company’s website.