Marta Klepka

Gemius SA

Digital insights for e-commerce industry in Serbia

How to improve usabiliity of e-commerce services & virtual merchandising

E-trgovina, Palič, 26.04.2012

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• a global company and the no. 1 choice in EMEA, provides consultancy and expertise on consumer behaviour in the digital world

• ‘one stop shop’ for everyone who needs to measure a website, plan and deliver

effective online campaigns or use the internet as a communication channel

About us

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,

JIC Standard: Poland, Czech Republic, Slovakia, Hungary, Slovenia, Turkey, Israel, Denmark, Ukraine, Belarus, Moldova

De facto currency: Lithuania, Latvia, Estonia, Bulgaria, Bosnia, Croatia

Start-up: Russia, Serbia, MENA (UAE, KSI, Egypt, Lebanon, Jordan, Syria, Kuwait, Morocco, Tunisia)

Gemius as the currency in online measurement

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The story is… • The profile of e-shopper in Serbia and Croatia

• Loyal customers

• Improving ROI thanks to targeting and more effective promotion

• The key to virtual merchandising

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OK, so who is shopping online in Serbia?

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The percentage of internet users who shop via internet increased significantly over the years in Croatia. That gives Serbia hope for the brighter future

How many internet users shop online?

Situation on Serbian market looks quite optimistic Percentage of declared rate of shopping via the internet

58,43%

41,57%

Serbia 2012

do not shop

shop 67,14%

27,69%

Croatia 2008

do not shop

shop

50,62%

45,00%

Croatia 2012

do not shop

shop

Source of data: gemiusAudience for Serbia February 2012 and Croatia - 2008 and 2012

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Croatians are still distrusful when it comes to online shopping outside their country. This trend changes with time but slowly.

E-shopping on foreign sites

76,86%

17,54%

Croatia 2008 e-shopping abroad

do notshop

shop

58,84%

36,13%

Croatia 2012 e-shopping abroad

do not shop

shop

Source of data: gemiusAudience for Serbia February 2012 and Croatia - 2008 and 2012

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At present Serbian men shop significantly more than women. Croatian case shows us this is likely to change with time.

Gender share in online shopping

Croatian case as well as others show us that as market matures, gender disproportions tend to even out

41,75%

58,25%

Serbia 2012

Females

Males

40,68%

59,32%

Croatia 2008

Females Males

46,26%

53,74%

Croatia 2012

Females Males

Source of data: gemiusAudience for Serbia February 2012 and Croatia - 2008 and 2012

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The Croatian case shows us growth in importance of smaller settlements. It is likely that Serbia wil follow that pattern.

Growing role of smaller settlements

Presently inhabitants of major cities dominate the online market We predict that with time this will change.

37,77%

18,68%

18,28%

16,26%

Serbia 2012 over 100,000

25,000-99,999

5000-24,999

up to 5000

32,30%

16,92%

19,28%

25,50%

Croatia 2008 over 100,000

25,000-99,999

5000-24,999

up to 4,999

26,82%

15,80% 19,89%

30,20%

Croatia 2012 over 100,000

25,000-99,999

5000-24,999

up to 4,999

Source of data: gemiusAudience for Serbia February 2012 and Croatia - 2008 and 2012

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Number of seniors (55+) who shop online is relatively high

Seniors

Source of data: gemiusAudience for Serbia February 2012 and Croatia - 2008 and 2012

In comparison in Croatia in 2008 their activity was neglegible and is still small.

26,11%

30,03%

21,50%

11,88%

10,49%

Serbia 2012

15-24

25-34

35-44

45-54

55+

29,30%

27,15%

25,44%

12,76%

0,54% Croatia 2008 15-24

25-34

35-44

45-54

55+

33,04%

29,38%

21,18%

12,00%

4,40% Croatia 2012

15-24

25-34

35-44

45-54

55+

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Nice, but who is the loyal and frequent customer?

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This will probably change with time but now the smallest gap between men and women is in group that shops online least frequently

Men shop online more often

0%

10%

20%

30%

40%

50%

60%

70%

80%

weekly 1-3 times a month A few times a year

Gender

M F

FEMALES SHOP LESS OFTEN …online of course ;)

Source of data: gemiusAudience for Serbia, February 2012

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Different age groups have relatively even share in online shopping, which is a good sign.

Age groups

Most active is group 25-34 already recognized as

SEXY GROUP Interesting feature of Serbian market is quite big group of

ACTIVE SENIORS who shop quite often

0%

5%

10%

15%

20%

25%

30%

35%

weekly 1-3 times a month A few times a year

Age groups

15-24 25-34 35-44 45-54 55+

Source of data: gemiusAudience for Serbia, February 2012

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People with personal income 20-50.000 RSD are largest weekly onine buying group

Middle-class are the most frequent customers

Interestingly also those with no declared income do their shopping online. Probably those are

STUDENTS AND HOUSEWIVES searching for lowest prices.

0%

10%

20%

30%

40%

50%

60%

70%

weekly 1-3 times a month A few times a year

Personal income

100.001 din or more 80.001-100.000 50.001-80.000

20.001-50.000 less than 20.000 no income

Source of data: gemiusAudience for Serbia, February 2012

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Three groups with highest income shop online most frequently. This might indicate a niche in the segment of exclusive products.

But the wealthy shop more often

In total, almost half of the internet users with personal income over 100.000 din

is buying online at least once a month

0,00%

5,00%

10,00%

15,00%

20,00%

25,00%

30,00%

35,00%

40,00%

weekly 1-3 times a month A few times a year

Shopping engagement

100.001 din or more 80.001-100.000 50.001-80.000

20.001-50.000 less than 20.000 no income

Source of data: gemiusAudience for Serbia, February 2012

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So how, with help of the digital insights, e-commerce players can optimize the online sales and adjust their offer to the needs of online shoppers?

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What digital insights to use to boost sales?

• It is worth using the click and hot spot measurement and other tools such as adservers and web analytics

• Most of this investement comes back through

increased revenues and more satisfied customers

WHY?

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Why adserver for e-commerce?

• Bigger conversion

• More satisfied and less annoyed customer

• Optimal monetization of ad space

• Satisfied partners

• Better promotion and discounts management

HOW DOES IT WORK?

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Targeting by devices and browsing systems

Suggest iPhone users to buy other products from Apple

Don’t show Firefox display to Firefox users

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Database targeting Combine it with numerical targeting based on your partner’s database internal campaign and target for example only users at age 20-30.

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Numerical Targeting

CASE: Serve exclusive gold jewelry advertisement only to the richest and mature users

• If average transaction was higher then $ • If product from luxurious categories • If user’s age is between 35-60 • If already bought some exlusive jewelry

Gives possibility to display advertisements after any defined variables of the numeric type and after logic expressions connected to them. E-commerce platforms have wide database that can be used for setting up the most efficient targeting for logged-in users

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Key words capping

Depending on words

user type in internal

search engine

ad server displays

appropriate ads

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Conditional Stop

System stops displaying campaign after pre-defined user action – the Client just bought the bike!

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Re-targeting Change or strengthen the communication by serving different display after certain action occurs.

BUY ME!

1.User see this display

3. User’s changed his mind. After emptying basket user is

served with other bikes suggestions

2. User adds bike to the basket

BUY ME AND GET SECOND BIKE FOR 50%

4. Coming back to the 1st placement user is served with strengthened communication

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Why click and hot-spots’ measurement ?

• Get up to 20% more clicks -> bigger conversion

• More effective bundles of products and product

rotation

• Increased site usability and hot spots identifies

• Real-time site management (1 minute delay!)

• Easy implementation (1 script) and full support

HOW DOES IT WORK?

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Is your site really intuitive?

Check in real-time what attracts the biggest attention and start improving your site!

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Test most attractive titles and images

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Find the hot spots

How many users reaches the very bottom of your page?

Where the promoted material should appear?

Which zones are „invisible” ?

The trend is to shorten the pages

„Heat zones” are not allways at the very top, find the one on your page

Link the unlinked elements if you see users click them

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gemiusHeatMap case studies

Product may be promoted in several ways:

Effect ?

Choose the most attractive photo

Learn where exactly users click

Use your experience for future choices

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gemiusHeatMap case studies

How to rotate with product promotion?

6 products and positions

How to maximize sales potential?

Is it the product/ the position?

Best spot, for the biggest margin on product

Most popular product may remain lower in hierarchy

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gemiusHeatMap case studies

Looking for the bigger picture agregating the traffic

Two different keywords

Lead us to the same location

Generating 2 different URL addresses

http://www.otodom.pl/products.php?productId=1022&keyword=2balconies

http://www.otodom.pl/products.php?productId=1022&keyword=3bedrooms

THANK YOU

HVALA !

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Contact:

Marta Klepka Global PR and Communications Director marta.klepka@gemius.com