User recommendations ‘influence nearly half of online purchases’
- Added:
- Nov 30, 2007
The ability to influence and guide Christmas purchases has dramatically shifted from the traditional retailer to the internet according to research launched today by Microsoft Digital Advertising Solutions.
The research finds that only 2% of UK consumers are influenced by the retailer experience when choosing gifts for Christmas; instead almost 90% are led by online sources and make decisions before leaving home.
Almost half seek recommendations via social networks and nearly 40% from independent advice and reviews.
For around a third of consumers (31%) the ability to try before they buy by sampling digital information such as video downloads or sample film trailers is a key influencer.
The research conducted by ICM on behalf of Microsoft Digital Advertising Solutions also reveals over half (54%) of consumers are influenced by top search results and one in five (21%) will choose Christmas gifts after seeing a display advert on their favourite website.
Interestingly, social recommendation has as much influence over which gifts to buy for Christmas as price comparison sites, with over half of consumers using both to decide on which presents for Christmas. Although traditional forms of digital advertising still impact on consumer decisions, the wider trend of digital recommendation plays a increasingly significant role in the decision making process.
The research also shows nearly a third (31%) of consumers confess to finding it difficult to buy for others, with nearly 40% of men disliking buying Christmas gifts all together.
To ease this burden, consumers are turning to the internet to provide them with the factors they need to decide on Christmas gifts.
Chris Ward, Commercial Director Director, Microsoft Digital Advertising Solutions said: “Whilst point-of-purchase advertising is important for retailers, the research shows that the vast majority of consumers are already influenced by the time they walk through the shop door.
“Our findings show users have an increasingly rich and complex relationship with brands over the Internet through multiple digital channels – it isn’t as simple as TV or billboard advertising. It is therefore imperative that brands develop more integrated strategies that harness this new reality and create an interactive user experience to ensure the consumer has all the information they need at the click of a mouse.”
Microsoft Digital Advertising Solutions has created the following tips for advertisers to ensure they are incorporating key influencing elements into their digital campaigns:
· Search - with over half (54%) saying top results influence their purchasing decisions, search is an essential part of the marketing mix
· Display Ads - one in five (21%) choose Christmas gifts after seeing advertising on their favourite websites
· Social Networking – with over half (50%) referring to personal recommendations from friends and peers in social networks
· Independent advice/reviews online – nearly a quarter (40%) of consumers refer to independent sites, therefore linking reviews to digital campaigns is essential
· Digital Sampling - almost a third (30%) say access to online tools, such as video downloads which allow them to try before they buy, make them more likely to purchase a product
· In-game Ads - one in 10 (10%) male online gamers are influenced to buy something they’ve seen advertised in a video, online or PC game. Extending the campaign to other digital platforms will create a more integrated experience
The research was conducted by ICM, between 26th October and 4th November. 1,000 people polled during an online survey.