By Rob Kramer, General Manager of Mobile, OpenX
It often takes as many as seven points of contact to convert a sale. Because so many consumers use multiple devices, data management is also becoming essential to digital advertising. Information from one channel can provide insights into consumer behavior in others, and it can also offer ways to improve ad timing. If someone has reviewed product information on his or her smartphone, they may be more likely to click on an ad while using their desktop.
The National Retail Federation estimates that $602.1 billion will be spent in the months of November and December. This marks a 3.9 percent increase over 2012, and higher than the 10-year average sales growth of 3.3 percent. NRF President and CEO Matthew Shay commented: “Online and mobile continue to be a leading area of growth for retailers.
In this economy savvy, cost-conscious consumers go to the web to do their research and get the best bang for their buck,” continued Shay. “In addition to researching what their peers are saying online about products and gifts this holiday season, consumers will use the buy online pick-up in store option, retailers’ apps and mobile websites to find something special for their loved ones.”
Consumers using their smartphones to research and shop this holiday season is a big trend – this year bigger than any other previous. Deloitte’s 28th annual survey of holiday spending intentions and trends found that nearly seven in 10 (68 percent) smartphone owners will use their devices for holiday shopping.
Even with its expanding popularity, mobile advertising does present some challenges to advertisers. AdAge pointed out that consumers typically buy fewer items during each mobile transaction than they do on desktops. The site suggested that this could be due to the use of multiple devices, with consumers completing their purchases on other channels. This theory is supported by a CMSWire survey which showed 91 percent of shoppers use one or more devices to conduct product research. This means that consumers could see an ad for a product on their smartphone and buy it later on their desktop.
Share data across channels
Tracking conversions and correctly attributing spending can help businesses improve their overall marketing strategies. The ability to correctly allocate impressions also lets publishers determine the true value of their inventory, making conversions one of the more closely watched metrics this holiday season.
“The most important metric in e-commerce is the buyer conversion rate, and that’s something else we’ll be closely monitoring during the holidays,” ChannelAdvisor CEO Scot Wingo told International Business Times. “Generally, desktop converts at a rate of 2.5 percent, tablet converts at 2 percent, and phone is really small at just 0.8 percent. … We’ll be watching to see if these conversion rates stay consistent.”