Page 1 Understanding the Consumer Buying Cycle The Role of Search Sara Stevens Director –...

Understanding the Consumer Buying CycleThe Role of Search

Sara StevensDirector – Marketing Solutions

comScore Networks, Inc.

Drilling Down on Local: The Online-Offline Opportunity

April 19th, 2005

comScore ResearchStudy Summary & Objectives

Improve search marketing performance by understanding:• How patterns in overall search behavior provide insight into the buy cycle

• The role and relationship among the various types of terms (including trademark) during the buy cycle

• The role of search in driving sales – both online and offline

Multiple Studies focused on better understanding search:• Yahoo! Search Marketing Study: Tracking consumer behavior from initial

search to conversion. Include offline connection for conversion.

• Performics/DoubleClick: Looking backwards from transaction to understand build-up to purchase.

comScore ResearchStudy Methodology: Represent Total Internet Search

• Search behavior for 10 specific products – aggregated to represent CE/C

• Time-aligned 3 months – tracked each searcher for 12 weeks

• All searches must be relevant to specific product in order to be tracked.

• Performics study additional details: Analysis across four categories – travel, apparel, sports & fitness, and consumer electronics

• Time-aligned from the online purchase and worked backwards for 3-months

Header: Broad product terms, highest volume, e.g. Camera, Computer

General: Broad product terms, less volume, e.g. Computer Memory, PDA Phone

Specific: Detailed product queries often with manufacturer or model number, e.g. HP Notebook ZX 5000, Epson Printer

Trademark: Merchant name present e.g. Circuit City, Best Buy, Dell, SonyStyle.com Local ties to Trademark terms (retailers and merchants).

comScore ResearchcomScore Methodology

• Global panel of more than 2 million consumers who have given comScore explicit permission to confidentially capture their online browsing and transaction behavior

• Proprietary technology collects all Internet activity including eCommerce and search activity

• Key advantages of our approach• Fully passive approach

• Proper use of surveys with passive screening

• Data capture on discreet events

• eCommerce activity

• Search activity

comScore Panelist

comScore Servers

World Wide Web

comScore ResearchMulti-Channel Conversion

Same Session Online

Conversion1%

Latent Online Conversion

7%

Offline Conversion

92%

An estimated 90% or more of conversion activity occurs offline –

This dynamic speaks to an interesting play for local search

comScore/Yahoo! Search Study - Total U.S. Consumer Electronic Searchers, Q1 2004

Total Conversion – 25.2%(2.1% online & 23.1% offline)

15%

50%

17%

18%

0%

20%

40%

60%

80%

100%

Same Session Latent 30 Day Latent 60 Day Latent 90 Day

85% of all online search transactions are latent:

• 35% are post 30 days• 18% are post 60 days

comScore ResearchSearch-to-Conversion Timing Online

Latent Conversions have a huge impact on ROI, so marketing messages and effectiveness measurement is

critical


Occurrence of Last Search Prior to PurchaseApparel

17%

8%6%8%7%8%

7%6%4%

1%2%1%

26%

SS123456789101112

Weeks Prior to PurchasecomScore/Performics Search Study - Total U.S. Q2/Q3 2004

comScore ResearchFinal Search to Conversion: Apparel Category

Findings are consistent – 43% of buyers made their search at least one week prior and 72% at least 5 weeks prior to

purchase.

comScore ResearchTotal Share of Searches: Full Buy Cycle

Across both the total search and starting terms, broad terms dominate;

challenging the long held belief that consumers start broad and end specific.

Term Category

Share of Start

Share of Total

Header 18.3% 14.0%

General 65.0% 56.8%

Specific 13.6% 11.7%

Trademark 3.2% 17.5%

Trademark Terms17.5%

Header Terms14.0%

General

Terms

56.8%

Specific Terms11.7%


4.3

5.1

5.2

11.9

14.1

All Searchers

Trademark Product

Specific

Header

General

Average Number of Searches Prior to PurchaseStart Term Type

*Includes converters and non-converters

Avg. Product Searches Over 12-Week Cycle. Marketers have over 4 opportunities to communicate during the buy cycle. Among buyers, that opportunity increases

dramatically to about 12 searches.

comScore ResearchCE/C Buyers Based On Start Term:


0%

20%

40%

60%

80%

100%

General Header Specific TrademarkProduct

Refine General Refine Header Refine Specific Refine Trademark

*Includes converters and non-converters

All shoppers tend to refine within their start category. When they do move beyond their original term type, it’s generally to trademark.

Trademark searchers are closest to the retailer.

comScore ResearchSearch Refinement Summary by Start Term


Refinement Activity by Start Term Type

16%37% 17%

Refinement: Describes any search activity occurring after the initial term and related to the same product.

62%

comScore ResearchConclusions & Findings

• Search offers access to a fantastic target – 25% of all searchers in the study purchased, mostly offline (92%).

• Buy cycle is long, even for offline and local conversions, though local is closer to the transaction.

• 84% of all trademark conversions were influenced by broad terms during their first search. Linking standard search with Local.

• Holistic, multi-channel marketing analysis to best integrate the overall product/purchase search and research cycle with the local hook.

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