Tuesday, May 13, 2014

Smartphones Lead Online Purchase Behavior

Smartphones Lead Online Purchase Behavior image GoogleMultiPathPurch

Last summer, Google released shopping research which provided insights into consumer online behavior. The following graphic illustrates a startling fact. Purchases start on a Smartphone 61% of the time and then continue on a PC/Laptop or Tablet.

In May of 2013 Bloomberg reported, “There are 6 billion mobile phones, according to the International Telecommunication Union, while 1.2 billion of the planet’s 7 billion people lack clean drinking water.”

Just let that last statement sink in a bit. More people have access to a Smartphone than they do to clean drinking water. From a marketing perspective, this has profound implications. Think about the last time you advised your client to put only 15% of their budget into digital marketing.

Gartner reported in January 2014 that “Marketing budgets as a percentage of revenue were 10.7% in 2013—to increase by 8% in 2014. Digital marketing budgets as a percentage of revenue were 3.1% in 2013, up 20% over 2012—to increase by 10% in 2014.”

It would seem there is still a very large gap between how consumers are entering the path to purchase and how retailers market to them. This, of course, does not mean online advertising can replace broadcast, print, Out-of-Home, and other forms of marketing including social media, but CMOs, their staff, and their agencies should have no illusions the world has changed in the last couple of years. It’s clear that smartphones lead online purchase behavior.

Need more proof? See the graphic below which is also from Google by Forrester Research in 2012. For the first time in the history of the world, time spent online is now equal to TV.

Source: B2C_Business

Smartphones Lead Online Purchase Behavior

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