Weekly Digital Digest

Highlighted below are some of this week’s emerging trends and insights. As trends emerge and change, you will see that the topics covered each week may also vary.

United States

Channel Insights

Mobile

  • eMarketer: 2014 US Mobile Ad Spending Forecast: Robust Growth Despite Persistent Challenges
    • eMarketer projects the amount spent on mobile advertising in the US will total $14.9 billion in 2014, roughly half the amount spent on desktop ads.
    • By 2016, mobile ad spending will top $28 billion, and spending on the big and small screens will be nearly equal.
    • eMarketer expects the largest share of US mobile ad dollars will be spent on mobile search, estimating that investments in mobile paid search will more than double, rising from $4.9 billion this year to $7.6 billion in 2014, and will reach $10.6 billion come 2015.
    • Performics employees can access the full report here.
  • Millward Brown Study: People Shopping on Mobile Devices Visit More Sites Than Those on a PC
    • Shoppers doing research visit approximately 6.2 sites for on mobile devices compared to 2.9 visits on a PC.
    • Mobile shoppers are more active on the weekends and at night when they’re out or in bed, with 36% of smartphone users and 68% of tablets users going online to shop while at home.
    • Mobile shoppers have a greater affinity for brand (79%) and coupon (74%) sites, while 80% PCs users prefer review sites.

Search

  • Kenshoo Study: Paid Search Ads Paired with Facebook Ads Yield 30% More Return
    • Kenshoo found that when a person was exposed to a brand’s Facebook ads and paid search ads together, there was a 30% more return on ad spend than when a person was exposed to paid search ads alone.
    • The study showed a positive lift in average order value as well when the two ad channels were paired together, with a 24% boost, suggesting that “consumers who were exposed to social advertising became higher value customers.”
    • Paid search ads saw a 7% increase in CTRs when a person was exposed to both Facebook ads and PPC ads, indicating that social advertising was able to positively impact consumer awareness and perception of the brand.
  • VentureBeat: Consumers pay up to 67% more for products on Google Shopping
    • Consumer Watchdog found that consumers would have paid more for eight out of 14 items if they’d used Google Shopping rather than a competing Comparison Shopping Engine (CSE).
    • Consumer Watchdog said that since merchants and retailers have to pay to have their products featured on Google Shopping, they have to raise their prices to consumers to cover the added cost.
    • “Google is able to increase its revenue and cause higher prices for consumers because of its monopoly position in search and the way it favors its own services over those of its rivals in search results.”
    • The organization also suggested that to “remedy the damage” that has already been done, competing services should be listed ahead of Google services in search results for the next five years.

Social

  • eMarketer: Marketers Find Success on Social Through Customer Engagement
    • 38% of US Facebook and 43% of Twitter marketers were more concerned with the quality of audience members added via social efforts than with the number of followers gained.
    • When setting social media objectives, an overwhelming majority of respondents-77% of Facebook and 70% of Twitter marketers-cited brand awareness as their top goal.
    • Only 27% of marketers on Twitter and 34% on Facebook said they publicly answered customer service questions on the social platforms, yet 60% and 69% of respondents, respectively, reported this as effective.
  • TechCrunch: Twitter Is About To Officially Launch Retargeted Ads
    • Twitter’s retargeting benefits is the use of user accounts as a cross-device identity layer, allowing it to target ads on mobile based on where users have been on the web.
    • Retargeted Promoted Tweet ads will most likely become available for purchase, though it’s unclear if Promoted Accounts will, too.
    • Historically retargeting hasn’t worked on mobile, because mobile doesn’t have cookies. However, Twitter can tie the identity of a mobile user to what they do on the computer, enabling them to retarget.

Participant Insights

US Hispanics

  • MediaPost: Hispanics More Likely to Use Digital Coupons
    • Some 84.2% of U.S. Hispanic consumers said they have searched for an online coupon based on a recommendation, compared to 70.6% of all U.S. consumers.
    • Turning to social media, 69.6% of U.S. Hispanics said they have used coupons found on social media sites, compared to 53.9% of the population at large.
    • 61.2% said they have shared coupons via social media, compared to 39.4% of all consumers.

Seasonal Insights

Holidays

  • NRF: Black Friday Weekend Recap
    • 70% of retailers were more promotional this Black Friday with the biggest changes witnessed at Gap, Old Navy, Urban, and Vera (Vera Bradley).
    • According to the National Retail Federation, the Thanksgiving pull-forward caused Friday traffic to be down over 11%, but combined Thursday-Friday traffic was up 1.2%.
    • Black Friday Traffic Winners: LTD (L Brands), VRA (Vera Bradley), KORS (Michael Kors), Gap Brand, AEO (American Eagle Outfitters), Loft.
    • Black Friday Traffic Losers: COH (Coach), Lucky Brand, FOSL (Fossil Group).
  • NRF: Black Friday weekend spending down 2.8%
    •  Black Friday was the biggest day: more than 92 million people shopped (65.2%) for apparel, electronics and more, up from nearly 89 million last year.
    • One-quarter (25.4%) of holiday shoppers were at stores by 8 p.m. on Thanksgiving night; nearly four-in-10 (37.3%) were at stores by midnight, up from 28.0% last year. Early hours aren’t for everyone however; more than one-third (35.8%) didn’t arrive at stores until 10 a.m. or later.
    • Nearly six-in-10 (57.5%) bought clothing and clothing accessories, 37.7% bought electronics, 34.5% bought toys, and 36.1% bought books, CDs, DVDs and video games. Additionally, 29.6% bought gift cards and 16.9% purchased jewelry items.
  • IBM: Cyber Monday sales increase 21% year-over-year (YOY).
    • Online Sales Set New Record: Cyber Monday online sales grew by 20.6% over 2012. Average order value was $128.77, down 1% year-over-year.
    • Top Five Cities for Cyber Sales: New York took the top spot for total online retail sales on Cyber Monday. Rounding out the top five were Washington D.C., Los Angeles, Chicago and Atlanta
    • Mobile Shopping Soars: Mobile traffic grew to 31.7% of all online traffic, increasing by 45% over 2012. Mobile sales were also very strong, exceeding 17% of total online sales, an increase of 55.4% year-over-year.
    • Smartphones Browse, Tablets Buy: Smartphones drove 19.7% of all online traffic compared to tablets at 11.5%, making it the browsing device of choice. When it comes to making the sale, tablets drove 11.7% of all online sales, more than double that of smartphones, which accounted for 5.5%. On average, tablet users spent $126.30 per order compared to smartphone users who spent $106.49
    • The Social Influence – Facebook vs. Pinterest:  On average, holiday shoppers referred from Facebook spent 6% more per order than shoppers referred from Pinterest. Facebook average order value was $97.81 versus Pinterest average order value which was $92.40.  Facebook referrals converted sales at a rate 38% higher than Pinterest.

Thanks for your time!

Planning & Strategy Team

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