Digital shopping-the-topline-on-online

DIGITAL SHOPPING
The Topline on Online

Nikhil Sharma
Vice President, Shopper Insights

Josh Goldman
Global Leader, Digital Measurement

Today's presenters

Nikhil Sharma Josh Goldman
Vice President, Global Leader,
Shopper Insights Digital Measurement
2

Digital Shopping
Copyright © 2012 Nielsen. Confidential and proprietary.

Digital Shopping: The Topline on Online

1 Digital influence on shopping

2 Considerations for marketers

3 Guidelines for success

3

Digital Shopping

Digital
influence on
shopping

4

Digital Shopping

'Digital' is widely pervasive in the United
States today
ONLINE MOBILE SOCIAL

Americans
People with with Mobile People On
Internet Access(1) Phones(2) Facebook(3)

Average Online
Time Per Month(1) Minutes Spent on
of Mobile Subscribers Social Networks
with Smart Phones / or Blogs(1)
5
Tablets(2)
Source:
(1) Nielsen Netview, Oct 2011 Digital Shopping
(2) Mobile Insights, Q4 2011
(3) Facebook S1 Filing, Feb 2012

While shoppers continue to interact with traditional forms of
marketing, many are also digitally engaged while shopping
% of shoppers accessing sources ‘Weekly’ while shopping
0 10 20 30 40 50 60 70

Mailed Paper Home
Newspaper
Nearly twice as many
Paper in-store
shoppers read a
Retail e-mail retailers' email than
Store site w/computer paper circulars in-store

Social More than 30% of
shoppers researching
Store site w/tablet
online while shopping
Smartphone
Kiosk
In store TV
c
6
Print Digital Other

Source: Nielsen Digital Circulars Survey, Q2 2011
Digital Shopping

Shoppers are digitally engaged to varying degrees
depending on the products that they buy

31%
of ALL purchase
Non-CPG Categories
67% Consumer Electronics & Technology
decisions involve some
38% Entertainment Items & Content
online or mobile
activity
34% Health Supplements and Choices

25%
of all CPG purchase
CPG Food Categories
34% Non-Alcoholic Beverages
CPG Non-Food Categories
38% Baby & Child Care
decisions are 19% Packaged Food 26% Beauty & Personal Care
influenced by some
online or mobile
18% Fresh Food 18% HH Cleaning & Detergents
activity
7

Source: Nielsen Shopper Benchmark Survey – Q2 2011 Digital Shopping

Digital usage in shopping will increase: 70%+ shoppers
want to shop with digital engagement in the future
% of shoppers accessing sources ‘A Lot’ or ‘Somewhat’ in Future

Direct Mail 87

Newspaper 86

In-store 86

Store Website using Computer 75
~60% today
Emails from retailers 72 Millennials Index = 114
Store Website using Tablet 59

Social media site 37
~10% today
Smart phone or mobile phone 31 Millennials Index =176

In-store kiosks 43

Televisions in the store 42

8
Print Digital Other

Source: Nielsen Digital Circulars Survey, Q2 2011
Digital Shopping

Mobile shopping is also increasing, and shopping apps
are among the fastest growing categories of mobile apps
Number of People Engaged Fastest Growing App Categories
In Mobile Shopping (Q3 2010 – Q3 2011)

23 Million
Smart Phone 147%
Users

13 Million
100% Scanning App
users in Dec ’11

5 Million
Tablet Users
82%

9

Source: Nielsen Mobile Insights – M:Shopping 30 Day Activity,Q3 2011 Digital Shopping
Source: Nielsen Mobile NetView, December 2011. Mobile scanning apps included are Barcode
Scanner, ShopSavvy, QR Droid, RedLaser, Price Check by Amazon, ScanLife, QR Reader,
and Consumer Reports Mobile Shopper

Is impulse purchasing declining? No…but new
tactics required to influence shoppers
Q: What are top ways you use information?
Shop Their List Impulse
Compare
‘My’ ‘My’ New item
Coupons Any sale Browse Store Other
items Sales item info info
Prices
Newspaper   
Paper at
home
  
Retailer email   
Store site
(computer)
  
Store site
(tablet)
  
Social   
Kiosk   

10

Source: Nielsen Digital Circulars Survey, Q2 2011 Digital Shopping
Source: Nielsen Homescan

What services are expected; where can you
stand apart?
Online Circular 93%
Expected
Site Product
81%
Filters
Shopping List
81%
& Recipes
Active Twitter
78%
Feed
Circular #1
74%
Search Result
YouTube w/
63%
Content
Mobile-friendly
56%
site
Circular Email
44%
Subscription
Circular
44%
Search Ads
Circular via
Facebook
41% Differentiate
Circular Item
22%
Search Ads 11

Source: Nielsen analysis Digital Shopping

To develop an effective digital strategy, marketers must
influence decisions along the entire ‘path to
purchase’

12

Digital Shopping

Considerations
for Marketers

13

Digital Shopping

Shopper marketing tactics changing

CUSTOMIZATION AUTHENTIC
ENGAGEMENT

PRECISE LOWER COST
SEGMENTATION 14

Digital Shopping

Retailers like Safeway are personalizing and integrating
value-added content leveraging their ‘just for u’
platform
It's all about me

15

Source: Safeway
Digital Shopping

Brands can add value to existing purchase journeys and
drive pre-store choices in their favor by leveraging digital

Search
Engine

Shopping Text
List Ad

Landing
Circular
Page
16

Source: MyWebGrocer Digital Shopping

Brands can also trigger new purchase journeys

+50% higher
click-through rate for
brand search
campaigns using
‘on sale’ messaging
in their ad.

1 out of 7
Shoppers who
reached the Lightbox
added a brand
product to their online
shopping list

17

Source: MyWebGrocer Digital Shopping

Mobile devices enable personalization by delivering
digital content consistent with shoppers’
preferences
Likelihood Top 10% Redeemed Demographics of Pilot Participants
Over Bottom 10% Index of Pilot App Downloaders to US iPhone Overall, 2011
Nielsen Mobile Coupon Pilot, 2011
135
123
95
71
100
Age:

18-35 36-49 50-65 66+
143
Children in 68 100
Household:

Yes No

18

Note: Redemption results are preliminary and will be updated at
Digital Shopping
the pilot’ is finalized

Social media and consumer reviews ‘level
the field’ for smaller brands
Impact of Ratings
& Friends

Brand
Advocacy

19

Source: Amazon.com Digital Shopping

Marketers need to focus on the ‘right shoppers’
Shopper Segments
Based On Attitudes Toward Experimentation

SATISFIED & TRENDSETTERS
SEDENTARY Love to keep ahead of what's
happening…Love trying new
Don't generally waste their time
trying to keep up with new things…Often tell others about them
things…Know what they like, and
Demographic Skews
don't have to keep trying everything
• 25-49
new • Children/Teenagers in
Demographic Skews
Household
• 60+
• More Affluent
• Live Alone
• Less Affluent

OCCASIONAL TRIALISTS
Usually keep up with what's happening…
Don’t go out of their way to try every new thing

Demographic Skews
• 50-59
• Live With Spouse/Partner
• Middle Class 20

Source: Nielsen Category Shopping Fundamentals Research, Q4 2011 Digital Shopping

… engage shoppers with the ‘right message’

Diapers Coffee Laundry Detergent

Trendsetters Trendsetters Trendsetters
23% 22%

74% 45%
Digitally
43%
Digitally Digitally
Engage Engaged Engaged
d

Searching for Browsing Searching for
1 Coupons 1 Online 1 Coupons
Reading a Looking for Comparing
2 Flyer/Circular
2 Deals 2 Prices
Looking for Searching for Reading a
3 Deals
3 Coupons 3 Circular/Flyer
21

Source: Nielsen Category Shopping Fundamentals Research, Q4 2011 Digital Shopping

…via the ‘right medium’
An increasing complex landscape provides
consumers with a wide array of choices
ONLINE MOBILE SOCIAL IN-STORE

Website E- Emails Printable Digital Search/ Mobile Text Mobile Reviews Social Kiosks QR /
Circular Coupons Maga- Display Coupon Message Apps Media Bar
zines Ads Codes

        
Searching
1 for
Coupons

2 Reading a
Flyer/     
Circular

3
Looking
for Deals          

Weigh IMPACT vs. FEASIBILITY of above tactics to optimize digital platform
22

Digital Shopping

Digitally engaged shoppers can be very rewarding -
both for manufacturers and retailers

Average Category Average Trip
Spending Spending
(Per Household - $) (Per Household - $)

+27% $263
$41 $207
+36%

$30

(1) (1)

23

Source: Nielsen Analysis of Homescan Online Data, Q4 2011
(1) Define based on actual visitation to baby care websites (e.g. diapers.com)
Digital Shopping

Guidelines
for success

24

Digital Shopping

Winning principles for digital
shopper marketing

1 Discriminating tastes

2 The digital ‘new math’… 1 + 1 = 3

3 A new ‘digital shelf’ emerges

4 Create advocates, not mercenaries

25

Digital Shopping

Roadmap for success

BUILD
ORGANIZE TO COLLABORATE MEASURE
FOUNDATIONAL
SUCCEED & ACTIVATE IMPACT
INSIGHTS

Choose Where to
Build a Dedicated Proactively Tackle Clearly Define
Win and Understand
Shopper Insights Retailers’ Most Success Metrics and
Decisions on ‘Path to
Team Difficult Issues KPIs
Purchase’

Measure
Learn From Add Category Depth
Develop Flexible and Effectiveness with
Shoppers at Every to Retailers’ Broad
Efficient Frameworks Shoppers and Retail
Opportunity Knowledge
Partners

26

Digital Shopping

What now?
1 Action over perfection

2 Find your shopper first

3 Identify a decision to influence

4 Experiment across platforms

27
27

Digital Shopping
MOBILE & ONLINE: INSIGHTS INTO CROSS PLATFORM BEHAVIOUR | FEB 2012
Copyright © 2010 © 2012 The© 2012 Nielsen. Confidential andproprietary.
Copyright The Nielsen Company. Confidential and proprietary.
Copyright Nielsen Company. Confidential and proprietary.

Q&A
Thank you for attending
•If you have follow-up questions or want more information, please
contact your Nielsen Professional Services Representative.
•If you are not a current Nielsen client, please contact us by phone
or email:
Phone: 800-553-3727
email: CPGSolutions@nielsen.com
OR if you have any questions regarding the content of this webinar,
you can also contact:
Nikhil Sharma, email: nikhil.sharma@nielsen.com
Josh Goldman, email: josh.goldman@nielsen.com
28

Digital Shopping

Digital shopping-the-topline-on-online

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