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    • 09/10/15
    • Retail
    • Consumer Goods
    • FMCG
    • Digital Market Intelligence
    • Global
    • English

    How online is paving the path to purchase

    Regardless of whether consumers are clicking “buy” at the virtual checkout, online remains a major sales channel and an irrefutable part of today’s purchase journey. Fact: from cosmetics to TVs, online is where brands and consumers hook up – whether that’s to find information about a product or service, or to complete a transaction. Either way, it’s a pivotal point in the purchase journey and one that brands need to understand.

    Today, the role online plays as a sales channel varies greatly by category. We know from our consumer and retail panels that 42% of travel purchases are made online at one end of the scale compared to just 1% of FMCG sales at the other. And that all other categories can be found somewhere in between.

    Given these findings, FMCG companies could be forgiven for focusing on engaging customers offline, but to do so would be to miss the point. Although very few transactions are made online within the FMCG category, our Crossmedia Link panel – a study which tracks cross-media consumption and purchase activity – shows us that an astonishing amount of research is carried out online prior to purchases being made offline. Who knew that consumers were so fond of researching baby food online before buying it in-store? And that FMCG companies experience a 44% uplift in sales share where customers have visited the brand’s site prior to purchase. Examples such as these underscore the importance of understanding how brands need to meet consumers online and why we need to acknowledge the whole purchase journey instead of just focusing on where and when an individual purchase is made.

    So what are consumers doing online and how can brands meet their needs? Understanding consumers’ motives is one of the most fundamental challenges. Yet what motivates consumers in one category may be radically different in another. For instance, a consumer looking for a new TV may go online to find granular level detail that will enable them to compare models before making a purchase decision. In contrast, someone looking to buy hair color might visit a particular brand’s website, after seeing an ad for its product on TV, before taking the plunge and making a purchase in their local supermarket or pharmacy. In both examples, the consumer’s interaction with the brand online is critical and will have a direct impact on their purchase decision irrespective of whether that transaction is eventually carried out on or offline.

    While brands in all categories need to be ready for online’s relevance to grow even more as part of the purchase journey, this is an area where one size does not fit all. That said, through our cross-category work, we have identified key insights that brands must gain for their category as they seek to optimize their interactions online as part of the purchase journey:

    1)    Brands must have insight into the structure of the purchase journey, i.e. its length, the number of domains/websites visited and the role of search engines throughout the purchase journey.

    2)    They need to know which types of website are visited along the purchase journey to ensure they partner with the right retailers and publishers, and have an online presence in the right place.

    3)    They need to understand how offline media interacts with and drives traffic online to ensure they offer a cross-media brand experience that is seamless.

     

    It is only by understanding all three areas that brands can understand what it is that their consumers want from them online and that they can take the necessary steps to deliver it. We advocate taking a category-specific approach that treats both brands and consumers as individuals, and acknowledges that understanding the purchase journey, in its truest sense, is an art as much as it is a science.

    Join Robert Wucher, Head of Digital Client Solutions, GfK for his session, “Where consumers meet brands: Customer journey in the digital age”, on September 16, 2015 at Dmexco to discover more about the importance of an online brand presence and how brands can optimize online interactions as part of the purchase journey. Find out more and register for the GfK Expert Talks.

     

    • 09/08/15
    • Digital Market Intelligence
    • United States
    • English

    GfK Market Research Competition for Undergraduates Will Focus on Mobile Marketing, Brands

    In its fifth Next Generation (NextGen) Competition, GfK is urging undergraduates to submit proposals for innovative market research projects studying the interactions among consumers, mobile technology, and brands.

    • 09/07/15
    • Technology
    • Digital Market Intelligence
    • Global
    • English

    Why mobile is the new web

    The mobile revolution: it’s one of the most talked about phenomena in consumer technology. Yet advertising spend on mobile is still far behind use and the number of eyeballs that might see it – and we all know that advertising needs to follow the users to be effective. So what’s causing this lag and how can we help address it?

    In March 2015, almost two thirds (63%) of connected Germans were accessing the web from their smartphones1. In fact, with, according to our Crossmedia Link panel-based solution, 67% share of time spent online based on people using both devices in Germany on smartphones and the remaining portion on desktop, it’s true to say that the internet is mobile. And that statement is especially true for younger people aged 14-29. Three quarters (74%) of their time online is spent on mobile phones, compared to 52% of the time spent online by those aged 55 and over. And they aren’t just using web browsers when online – 87% of mobile use is app-based. Yet, despite this, the lion’s share of ad spend, a whopping 1.58bn Euros, went on online display. Only a fraction of this, a comparatively paltry 134m Euros, went on mobile advertising2. So what is the reason for this huge mismatch in advertising spend?

    One explanation is that effective ad planning is dependent on being able to evaluate and accurately measure advertising’s impact, and that, until now, this has been a challenge. At GfK, however, we have devised tools and techniques to measure both browser and app-based web activity on mobile phones. The panel-based solution GfK Crossmedia Link has enabled us to understand what sites people are visiting from their mobile phones and how long they are spending on different activities.

     

    For instance, we know the top three smartphone “killer apps” in Germany are WhatsApp, Facebook and YouTube – and we know their net reach and the average number of visits per person per month. We can also see the long tail of other apps that are used and begin to understand the ecosystem for apps in Germany.

    Our IAB prize-winning approach, “GfK Facebook Data Link”, will be shared in our session at Dmexco on 17th September at 11am. It has allowed us to delve even further into mobile ad effectiveness and to establish the impact mobile ads have on key metrics including sales uplift. For this project we worked with the Facebook specific ID which is identified in GfK Crossmedia Link. Objective is to analyze the exposure to ad impressions on Facebook across all devices. When we combined their Facebook ad exposure with their purchase data we achieved a true view of the impact of Facebook paid media campaigns. Using a number of FMCG campaigns, the approach allowed us to show that mobile advertising is driving sales – both online and offline.

    In our session we’ll also explain more about the Facebook project and how a combination of desktop and mobile cookie panels can help advertisers assess also brand uplift. Our case study, “Talk to Google”, illustrates our three-step process to analyzing media channel effect perfectly.

    We hope our approaches and case studies will reveal the true impact of mobile on reach, brand awareness and sales.

    For more information contact Jens Barczewski, Head of Digital Market Intelligence for Germany and Switzerland, at jens.barczewski@gfk.com or Florian Renz, Senior Manager of Advanced Business Solutions florian.renz@gfk.com.

    1 Source: Bitkom, March 2015

    2 Source: GfK Crossmedia Link Panel Germany

  • Decoding the German fashion social network
    • 09/07/15
    • Fashion and Lifestyle
    • Digital Market Intelligence
    • Connected Consumer
    • Global
    • English

    Decoding the German fashion social network

    Equipped with insights from Social Media Network Analysis, brands can effectively segment and target groups, create highly-nuanced campaigns and ultimately have more impact.

  • Decoding the German fashion social network
    • 09/07/15
    • Fashion and Lifestyle
    • Digital Market Intelligence
    • Belgium
    • English

    Decoding the German fashion social network

    Social Media Network Analysis goes far beyond semantics and content – it analyzes the relationships between brands and users as well as audience segments and interest clusters. For this particular study, we created a sample of 50,000 Twitter users who showed an active interest in fashion by contributing to the debate on social media. We analyzed their shared interests and segmented them into five clusters: Haute Couture, Make-up Artist, Casual Dressers, Celebrity Groupies and Video Kiddies.

  • Demonstrating the effectiveness of a native ad campaign
    • 09/02/15
    • Media and Entertainment
    • Digital Market Intelligence
    • Global
    • English

    Demonstrating the effectiveness of a native ad campaign

    By partnering with GfK RealTime Effects, our customer were able not only to prove the effectiveness of our custom content - beyond the standard metrics - but also provide our brand partner with valuable insights for their own future marketing efforts.

  • Building better relationships with young pharmacists
    • 09/01/15
    • Health
    • Digital Market Intelligence
    • Connected Consumer
    • Global
    • English

    Building better relationships with young pharmacists

    We provided insights into young pharmacists’ online behavior to help a Russian pharmaceuticals company target this audience more efficiently.

  • Building better relationships with young pharmacists
    • 09/01/15
    • Health
    • Digital Market Intelligence
    • Belgium
    • English

    Building better relationships with young pharmacists

    We provided insights into young pharmacists’ online behavior to help a Russian pharmaceuticals company target this audience more efficiently.

  • Building better relationships with young pharmacists
    • 09/01/15
    • Health
    • Digital Market Intelligence
    • United Kingdom
    • English

    Building better relationships with young pharmacists

    We provided insights into young pharmacists’ online behavior to help a Russian pharmaceuticals company target this audience more efficiently.

  • Research improves digital campaigns
    • 08/30/15
    • Technology
    • Digital Market Intelligence
    • Global
    • English

    Research improves digital campaigns

    GfK’s innovative research approach and its understanding of the industry and Nokia's specific business challenges were critical to deriving concrete and decision-ready recommendations for optimization of its digital communication strategy.

  • Research improves digital campaigns
    • 08/30/15
    • Technology
    • Digital Market Intelligence
    • Belgium
    • English

    Research improves digital campaigns

    With the launch of its flagship Lumia range, Nokia was eager to position itself as a leader in digital marketing. The company wanted to measure the impact of exposure to online product information on consumers’ purchasing decisions, including their choice of smartphone brand.

  • Research improves digital campaigns
    • 08/30/15
    • Technology
    • Digital Market Intelligence
    • United Kingdom
    • English

    Research improves digital campaigns

    With the launch of its flagship Lumia range, Nokia was eager to position itself as a leader in digital marketing. The company wanted to measure the impact of exposure to online product information on consumers’ purchasing decisions, including their choice of smartphone brand.

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