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Page 1: Long and Winding Road - Gamesmanship of Shopping Study

1Yahoo! Presentation, ConfidentialYahoo! Presentation, Confidential

Page 2: Long and Winding Road - Gamesmanship of Shopping Study

2Yahoo! Presentation, Confidential

What we learned last time Internet is much more than a point of purchase

The purchase process is more tumbler than funnel

Different purchase paths offer unique marketing opportunities

Media and in-store cues are still critical

Page 3: Long and Winding Road - Gamesmanship of Shopping Study

3Yahoo! Presentation, Confidential

The purchase process used to be simpler for both marketers and consumers

AWARENESS

GATHER INFOPREFERENCE

OLD SHOPPING PROCESS

= LOYALTY + PURCHASE

Page 4: Long and Winding Road - Gamesmanship of Shopping Study

4Yahoo! Presentation, Confidential

3TO DISTRUBITORS VIA SOCIAL NETWORKS, REVIEW SITES, EMAIL, TEXT, IM

2TO PRODUCERS

AND PARTICIPANTS

1FROM PASSIVE RECIPIENTS OF INFORMATION

A lot has changed: Consumers communicate about brands and distribute it to their networksTHERE’S A NEW PATH TO THINKING AND DOING WHEN MAKING PURCHASE DECISIONS

Page 5: Long and Winding Road - Gamesmanship of Shopping Study

5Yahoo! Presentation, Confidential

Today’s shopping landscape provides a wealth of opportunities, but the road is more complicated

AWARENESS

GATHER INFO

MAKING A PURCHASE DECISION

NEW SHOPPING PROCESS

= PURCHASE + LOYALTY

Page 6: Long and Winding Road - Gamesmanship of Shopping Study

6Yahoo! Presentation, Confidential

To understand more about the evolution of shopping, we created a new study to examine:

How do consumers approach their shopping today?

What does the purchase path look like now, given greater and immediate access to more information?

How has the proliferation of new digital tools affected how consumers shop today?

What are the implications for marketers?

Page 7: Long and Winding Road - Gamesmanship of Shopping Study

7Yahoo! Presentation, Confidential

3 phase methodology: Qualitative + Quantitative

ELECTRONICS AUTOMOBILE PERSONAL CARE RETAILERS FINANCE OTC MEDICINE

6 CATEGORIES:

QUALITATIVE EXPLORATION QUANTITATIVE VALIDATIONWe spoke to marketers in each category to better understand their digital marketing needs and pressing questions

We spoke with 45 tech-savvy consumers across the us who are using digital tools and resources in recent purchase processes 33 consumers from across the U.S.

participated in online bulletin board discussions

12 consumers in NY and LA invited us into their homes for in-depth ethnographic interviews

2,485 online interviews

Qualifications Age 18+ Use the internet to shop Recently purchased or intending to

purchase an item in relevant category 50/50 loyalists & switchers

Survey length: 30+minutes

Page 8: Long and Winding Road - Gamesmanship of Shopping Study

8Yahoo! Presentation, Confidential

Qualitative: We spoke to real life consumers

Page 9: Long and Winding Road - Gamesmanship of Shopping Study

9Yahoo! Presentation, Confidential

AGENDASETTING UP THE GAME

HOW TO PLAY THE GAME

WHAT IT MEANS FOR MARKETERS

WHAT ARE WE RACING TOWARD?

1

2

3

4

Page 10: Long and Winding Road - Gamesmanship of Shopping Study

10Yahoo! Presentation, Confidential

1Chapter SETTING UP THE GAME

Page 11: Long and Winding Road - Gamesmanship of Shopping Study

11Yahoo! Presentation, Confidential

Introducing the players:Equal players: consumer and brands

BRANDS

AUTOMOTIVE 82%

CONSUMER ELECTRONICS 80%

RETAIL 78%

PERSONAL CARE 75%

OTC DRUGS 68%

FINANCE 64%

“I'M OPEN TO SWITCHING BRANDS"

CONSUMERS

Page 12: Long and Winding Road - Gamesmanship of Shopping Study

12Yahoo! Presentation, Confidential

Planning how to get what you want - what resources to employ and when

Collaborating and competing with other consumers and brands

Making the wrong move can cost you, so you must figure out who and what to trust

It’s social, and you can collect “rewards” along the way

The elation of being a smart consumer

The consumer has gotten a lot smarter about shopping and, like a game, shopping involves these elements

Page 13: Long and Winding Road - Gamesmanship of Shopping Study

13Yahoo! Presentation, Confidential

Despite being more complicated, there’s a restored energy to shopping that is good for consumers and brands

MORE SOCIAL

MORE ENGAGING

MORE FUN

MORE EXCITING

Page 14: Long and Winding Road - Gamesmanship of Shopping Study

14Yahoo! Presentation, Confidential

Consumers now collaborate and compete against each other and brands

COLLABORATION COMPETITION

With other consumers Access to user opinions via user groups,

online social networks, and posted reviews

Activate online coupon by getting enough people to sign up (e.g., Groupon)

With brands Via email newsletter and dialogue with

brand on social networks/forums

With other consumers Thrill of discovering a “hidden” deal that not

everyone knows about (e.g., promo codes) Take advantage of an online coupon/deal

before it sells out (e.g., Groupon)

With brands Trying to “outwit” brand’s overly positive

communication by getting “experiential” feedback from users

Search for the best price

Page 15: Long and Winding Road - Gamesmanship of Shopping Study

15Yahoo! Presentation, Confidential

Shoppers are wary of which sources to trust

Advertising: brands at their best - trust

but verify

Trust other people most: No ulterior

motive

Unfamiliar brands/sites: Extreme

caution!

TRUST IN SOURCES

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16Yahoo! Presentation, Confidential

But they trust opinion of friends/family and advertising

“I PUT THE HIGHEST WEIGHT ON THE OPINION OF MY FRIENDS BECAUSE THEY ARE CONSUMERS LIKE ME. THEY WOULDN’T EXAGGERATE THE BENEFITS OR ATTEMPT TO COVER UP ITS FLAWS. THEY PRESENT A MORE REALISTIC PICTURE OF WHAT USING THE PRODUCT WOULD BE LIKE.”

-FEMALE, 26 Y.O.

“I DON’T THINK THE COMPANY IS GOING TO TELL ME WHAT’S WRONG WITH A PRODUCT. IT’S ONLY ONE SIDE OF THE STORY.”

-FEMALE, 31 Y.O.

“SOMETIMES I SEE AN ONLINE AD THAT I WANT TO CHECK OUT BUT I’M ALWAYS AFRAID TO CLICK, WHAT IF IT’S A VIRUS OR SOMETHING. AND THOSE ADS ON THE RIGHT SIDE OF SEARCH FEEL LIKE A SCAM .”

-FEMALE, 37 Y.O.

Trust other people most: No ulterior

motive

Unfamiliar brands/sites:

Extreme caution!

Advertising: brands at their best - trust but verify

Page 17: Long and Winding Road - Gamesmanship of Shopping Study

17Yahoo! Presentation, Confidential

In addition to persons closest to you, trusted Internet sources inform consumers

2 in 3 people are already using new digital tools to research purchases

69%INTERNET

43%MAGAZINES

35%TV

Shoppers trust the Internet most for information on

products and services

Page 18: Long and Winding Road - Gamesmanship of Shopping Study

18Yahoo! Presentation, Confidential

0% 5% 10% 15% 20% 25% 30% 35% 40%0%

10%

20%

30%

40%

50%

60%

51%49%49%

44%43%

40%

39%38%

37%WoM Social Networking Technology report site

32%

31%31%

Company's Facebook

page

Consumer Videos

30%30%

27%

26% 25%

11%

10%

Reviews and manufacturer/retailer content generate the most trustDIGITAL SOURCES MADE ME TRUST BRAND IN THE PURCHASE PROCESS

VERY TRUSTWORTHY

NOTVERY

TRUSTWORTHY

IMPA

CT T

O T

RUST

OVERALL USAGE IN SHOPPING PROCESS

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19Yahoo! Presentation, Confidential

As a result of these shifts, shoppers are more in control and less impulsiveQ: How has the Internet changed the way you shop?

LESS IMPULSIVE

NO CHANGE

MORE IMPULSIVE

55%

28%

17%

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20Yahoo! Presentation, Confidential

50% 60% 70% 80%

Strategy and Risk: The more research consumers do, the greater advantage they feel they have

FEEL THEY HAVE AN ADVANTAGE OVER MARKET

ON

LIN

E RE

SEAR

CH

DO LITTLE RESEARCH

DO A LOT OF RESEARCH

Page 21: Long and Winding Road - Gamesmanship of Shopping Study

21Yahoo! Presentation, Confidential

While price is always a factor for the consumer, other triggers help them feel like they’ve wonQ: what is the most important in creating a “wow experience” while shopping?

FINDING A GREAT PRICE/DEAL ON A PRODUCT I WANT

GETTING A BETTER PRICE THAN OTHER PEOPLE

FINDING A RARE OR “HARD TO FIND” ITEM

I REALLY WANTED

DISCOVERING A GREAT NEW PRODUCT

82%60% 53% 47%

COMPETITIVE ASPECT OF THE WIN APPEALS

MORE TO YOUNGER FEMALES

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22Yahoo! Presentation, Confidential

Chapter HOW TO PLAY THE GAME

2

Page 23: Long and Winding Road - Gamesmanship of Shopping Study

23Yahoo! Presentation, Confidential

SOCIAL NETWORKS

MICROBLOGGING

WORD OF MOUTH

3RD PARTY VENDORS

PACKAGING

MOBILE SERVICES

ADVERTISING

BRAND WEBSITES

COUPONS/DEALS

DIRECT MAIL

EMAIL NEWSLETTER

RETAIL STORE

USER GROUPS SEARCH FORUMS

PRICE COMPARISON SITES

CONSUMER REVIEWS

BLOGS

CITIZEN GENERGATED VIDEOS

BRANDS CAN CONTROL BRANDS CAN INFLUENCE BRANDS CANNOT CONTROL

Consumers and marketers alike have an abundance of tools to influence purchase

Page 24: Long and Winding Road - Gamesmanship of Shopping Study

24Yahoo! Presentation, Confidential

Consumer and marketer tool sets have evolved

LONG-STANDING TOOLS NEW TOOLS

TV/Radio Online Videos by Consumers

Print (e.g., Newspapers, Magazines, etc.) Consumer reviews

Direct Mail Blogs

Print Circulars/Coupons WoM via Social Networking

Search Engines Company’s Facebook Page

Consumer Portals Mobile

Brand/Manufacturer/Retailer Sites Deal/Coupon/Flash Deal Sites

Expert reviews

Page 25: Long and Winding Road - Gamesmanship of Shopping Study

25Yahoo! Presentation, Confidential

Page 26: Long and Winding Road - Gamesmanship of Shopping Study

26Yahoo! Presentation, Confidential

Tools empower users across their purchase path to discover, evaluate and socialize

OFFLINE DIGITAL• TV/Print Stories• Salesperson

• Search Engines• Consumer Portal Site• Digital Articles• Video by Manufacturer/Experts• Reviews on a Brand Site• Enthusiast/Consumer Report Site• Brand /Retailer Site• Podcasts

• Print Circulars and Coupons• Physical Store

• Mobile Coupons• Barcode Reader• Deal Collection emails• Digital Coupon Sites• Auction Sites

• Word of Mouth – With those who own or do not own product

• Used/Tested Out Product

• Videos generated by Consumers• Consumer Reviews• Chat Rooms/Message Boards• Blogs• Discussed via Social Net Sites• Company’s Facebook Fan Page

Page 27: Long and Winding Road - Gamesmanship of Shopping Study

27Yahoo! Presentation, Confidential

Tools are used across shopping process in varying degrees with discover tools used the most

TOOLS USED THROUGHOUT SHOPPING PROCESS (Among Total – Net of All Categories)

AWARENESS

GATHER INFO & NARROWING DOWN

POST PURCHASE

MAKING A PURCHASE DECISION

31% 19% 17%

54% 36% 34%

38% 29% 19% 8% 4% 4%

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28Yahoo! Presentation, Confidential

Discover: Shoppers use the discover card in their tool kit to understand their options…

THE BEST HELP WAS READING PRODUCT REVIEWS, BLOGS AND DISCUSSION BOARDS. IT MADE ME AWARE OF ANY PROS AND CONS, AND HELPED ME SELECT THE BEST MODEL FOR US, SINCE THERE WERE NUMEROUS MODELS AND CONFIGURATIONS

-FEMALE, 35, BUYING A COMPUTER

Advertising Awareness and surface information

Digital content Deeper understanding

Learn about product features and find the best product for you

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29Yahoo! Presentation, Confidential

“BUILDING MY CAR ONLINE WAS EXCITING, THE THRILL OF ANTICIPATING IT. THE OTHER CAR SITES DIDN’T HAVE THAT FEATURE.”

- FEMALE, 28, ON BUYING A CAR

… but those options don’t need to be purely rational, it can and should delight emotionally

“NOW, BEING SMARTER IS COOL VS. BEING THE FIRST”

-MALE, 39 ON BUYING ELECTRONICS

Information can have an emotional payoffMatch shoppers’ values, style

Reduce fear for higher risk purchases

Information can engage the imaginationThe beginning of the dream, builds anticipation

Page 30: Long and Winding Road - Gamesmanship of Shopping Study

30Yahoo! Presentation, Confidential

OFFLINE RESEARCH (NET)

IN-STORE (NET)MANUFACTURER CONTENT (NET)

USED A SEARCH ENGINE (NET)

THIRD PARTY CONTENT (NET)

0%

20%

40%

60%

80%

100%

Auto and electronics shoppers use a variety of touch points to discoverDISCOVER: What sources did you use?

Series1

ELECTRONICS AUTO PERSONAL CARE RETAIL FINANCE OTC HIGH TOUCHPOINTS

Page 31: Long and Winding Road - Gamesmanship of Shopping Study

31Yahoo! Presentation, Confidential

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%30%

40%

50%

60%

70%

80%

90%

100%

Consumer Site (AOL,Yahoo!)Company’s Facebook

Department Store Site

Podcast

Search Engine

Retail Site

Consumer Report Site

Brand Site

Dealership Site

Expert Reviews on Website

Reviews on Brand Site

Read Digital Articles

Watch Video, Expert Created

Watch Video, Manufacturer

Enthusiast Site

Salesperson

Print Stories

TV Stories

Online sources have the greatest reach and are considered as influential as in-store sale associatesDISCOVER: Influence to Purchase by Overall Usage

INFL

UEN

CE O

N P

URC

HAS

E

OVERALL USAGE IN SHOPPING PROCESS

VERY INFLUENTIAL KEY

COMPARE DIGITAL OFFLINE

NOTVERY

INFLUENTIAL

Page 32: Long and Winding Road - Gamesmanship of Shopping Study

32Yahoo! Presentation, Confidential

Evaluation ensures shoppers get the best value

“YAHOO SHOPPING ENABLES ME TO QUICKLY FIND THE BEST PRICE, FROM HUNDREDS OF SITES SELLING AN ITEM. I JUST USED IT LAST WEEK TO FIND A GREAT PRICE ON HEARTWORM PILLS FOR MY DOG.”

-MALE, 40 Y.O.

69% of shoppers now seek more deals & coupons online because of the Internet

49% of shoppers use more coupons now because of the Internet

Find the best value for your money

Page 33: Long and Winding Road - Gamesmanship of Shopping Study

33Yahoo! Presentation, Confidential

0%

10%

20%

30%

40%

Online allows shoppers to do more evaluation for auto and electronicsEVALUATE: What sources did you use?

VISITED A PRODUCT COMPARISON

WEBSITE

VISITED AN AUCTION SITE

VISITED A DIGITAL COUPON SITE

USE LOCATION-BASED CHECK IN

SERVICES TO GET A DEAL-COUPON

USE A BARCODE READER TO FIND

DEALS AND OFFERS

DEAL COLLECTION E-MAIL

Series1

ELECTRONICS AUTO PERSONAL CARE RETAIL FINANCE OTC HIGH TOUCHPOINTS

Page 34: Long and Winding Road - Gamesmanship of Shopping Study

34Yahoo! Presentation, Confidential

-5% 0% 5% 10% 15% 20% 25% 30% 35%30%

40%

50%

60%

70%

80%

90%

100%

Deal Collection Email

Digital Coupon Site

Auction Sites

Mobile Location

Based Coupons

Mobile Barcode Reader

Physical Store

Circular & Coupons

Consumer usage of digital and mobile couponing is still relatively low but fairly influentialEVALUATE: Influence to Purchase by Overall Usage

INFL

UEN

CE O

N P

URC

HAS

E

OVERALL USAGE IN SHOPPING PROCESS

KEY

COMPARE DIGITAL OFFLINE

VERY INFLUENTIAL

NOTVERY

INFLUENTIAL

Page 35: Long and Winding Road - Gamesmanship of Shopping Study

35Yahoo! Presentation, Confidential

Shoppers actively seek others’ advice to help them on their way

59% believe they had an advantage over the manufacturer/retailer because

the Internet allows them seek others opinions

of consumers give advice – motivated by a feeling of solidarity with other consumers, and standout performance of a brand

49%

Opportunity for brands: leverage reviews and ratings in digital ads

Get trustworthy feedback to make smarter decisions faster

Page 36: Long and Winding Road - Gamesmanship of Shopping Study

36Yahoo! Presentation, Confidential

Socialization occurs because of shoppers’ deep commitment to brands

“I FEEL THAT A COMPANY THAT EMPLOYS SOCIAL NETWORKING IS REALLY TRYING TO CONNECT WITH THEIR CUSTOMERS BY GETTING A FEEL FOR WHAT THEY LIKE AND DISLIKE. IT MAKES THE COMPANY SEEM MORE ACCESSIBLE AND TANGIBLE TO ME.”

-FEMALE, 26 Y.O.

People seek deeper involvement with brands they care about

Because of the Internet…

38% feel more connected to the brands they like

27% spend more time talking with others about products and brands than they used to

25% are more likely to seek others' opinions now that social networking/online communities are available

Page 37: Long and Winding Road - Gamesmanship of Shopping Study

37Yahoo! Presentation, Confidential

Shoppers are more apt to look for consumer-generated sources in most categories vs. manufacturersTYPE OF INFORMATION USED IN THE PURCHASE PROCESS

ELECTRONICS

AUTO

PERSONAL CARE

FINANCE

RETAIL

OTC

48%

41%

22%

19%

12%

12%

35%

46%

20%

2%

1%

1%

Manufacturer-generated digital content

Consumer-generated digital content

Page 38: Long and Winding Road - Gamesmanship of Shopping Study

38Yahoo! Presentation, Confidential

Automotive shoppers are most likely to read reviews and share their opinionsSOCIALIZE: What did you use to research your purchase?

WORD OF MOUTH (NET)

CONSUMER REVIEWS

BLOGS ANY SOCIAL NETWORKING

USED

DISCUSSED ON A SOCIAL

NETWORK

VISITED A COMPANY’S

FACEBOOK PAGE

WATCHED A VIDEO MADE BY

A CONSUMER

VISITED A CHAT ROOM AND-OR

DISCUSSION BOARDS

Series1

ELECTRONICS AUTO PERSONAL CARE RETAIL FINANCE OTC HIGH TOUCHPOINTS

0%

20%

40%

60%

80%

Page 39: Long and Winding Road - Gamesmanship of Shopping Study

39Yahoo! Presentation, Confidential

0% 5% 10% 15% 20% 25% 30% 35%30%

40%

50%

60%

70%

80%

90%

100%

Consumer Reviews on WebsiteRead Blogs

Watch Video, ConsumerGenerated

Company Facebook PageDiscussed via Social

Network

Chat room,Boards

Consumer Reviews of Store

Discussed with Family & Friends Who Don’t Own

Product

Discussed With Friends & Family Who Own Product

Used Product At Friends/Family’s House

While discussion in-person is most common, sharing is starting to take place in many digital formats

OVERALL USAGE IN SHOPPING PROCESS

INFL

UEN

CE O

N P

URC

HAS

E

SOCIALIZE: Influence to Purchase by Overall Usage

KEY

COMPARE DIGITAL OFFLINE

VERY INFLUENTIAL

NOTVERY

INFLUENTIAL

Page 40: Long and Winding Road - Gamesmanship of Shopping Study

40Yahoo! Presentation, Confidential

KEY

BECOMING AWARE GATHERING INFO MAKING FINAL DECISIONS POST PURCHASE0%

10%

20%

30%

40%

50%

60%

70%

80%

DISCOVER TOOLS EVALUATE TOOLS SOCIALIZE TOOLS

Discover and evaluate tools play a greater role throughout the processTOOLS USED THROUGHOUT PURCHASE PATH – Among Users of Those Tools

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41Yahoo! Presentation, Confidential

Chapter WHAT DOES IT MEAN FOR MARKETERS?

3

Page 42: Long and Winding Road - Gamesmanship of Shopping Study

42Yahoo! Presentation, Confidential

Marketers need to get in the game

Enable instant access to

increasingly valuable

information (e.g., expert

reviews, videos, etc.)

Be honest with consumers and advertise in trusted digital

spaces

Make it easier and more fun than ever to shop and find

good deals

Page 43: Long and Winding Road - Gamesmanship of Shopping Study

43Yahoo! Presentation, Confidential

Greater access to digital information makes it easier for new brands to break through

of consumers feel that they are aware of more brands than prior to the Internet

68% feel the Internet

makes it easier to figure out which

brands to consider

72%

MORE BRANDS GREAT SPEED & CONFIDENCE

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44Yahoo! Presentation, Confidential

And consumer filter sources to get to what’s relevantNAVIGATING INFORMATION TO QUICKLY FIND WHAT’S MOST HELPFUL, RELEVANT

“OFTEN TIMES THERE ARE ADS ALONG THE SIDE OF THIS SITE, HYPEBEAST.COM, FOR CLOTHING. THERE’S A LOT OF STUFF HERE THAT I’VE NOT HEARD OF BEFORE, BUT I’M LIKELY TO LOOK AT IT BECAUSE IT’S AROUND THIS OVERALL CULTURE – SKATEBOARD, HIP HOP CULTURE, STYLE.”

-MALE, 39 Y.O.

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45Yahoo! Presentation, Confidential

0% 5% 10% 15% 20% 25% 30% 35% 40%10%

15%

20%

25%

30%

35%

40%

45%

41%41%

38%38%

37%37% 36%36%

33%32% 32%

30%30%

30% 30%29%

Reviews on Manufacturer Site

26%

24%21%

21%

17%

13%

Q: What digital touch points make you feel close to a brand (i.e., it fit my style/tastes, it's for someone like me)?

Brand and third-party content, reviews and digital advertising can foster greater connections

KEY

COMPARE DIGITAL OFFLINE

NOTVERY

CLOSE TO BRAND

FEEL

CLO

SE T

O B

RAN

D

OVERALL USAGE IN SHOPPING PROCESS

VERY CLOSE TO BRAND

Page 46: Long and Winding Road - Gamesmanship of Shopping Study

46Yahoo! Presentation, Confidential

Personal relevance and context matters in digital advertising

Positive emotional response Long fixation time Solid cognitive engagement

But… Slow to draw attention

Draws attention very fast Long fixation time Positive strong emotional response Positive strong cognitive processing

Noticed

But… Negative emotional response Short fixation time Slow to draw attention Low cognition

Draws attention fast Strong emotional response

But… Shorter fixation time Potential for some negative

emotional response.

RELATEDNOT RELATED

HIG

HLO

W

CONTEXT (CONTENT)

PERS

ON

AL R

ELEV

ANCE

OF

AD

*SOURCE: YAHOO!/INNERSCOPE POWER OR RELEVANCE STUDY (2011)

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47Yahoo! Presentation, Confidential

DIGITAL ADVERTISING TAUGHT ME THE FOLLOWING

Digital advertising facilitates the shopping process by spreading info on features, price and place

I FOUND OUT ABOUT FEATURES (E.G.

PRODUCT SPECS)

I FOUND OUT THE PRICE I FOUND OUT HOW OR WHERE TO BUY IT

IT MADE ME FEEL CLOSE TO A BRAND

(E.G. IT FIT MY STYLE/TASTES, IT'S FOR SOMEONE LIKE

ME)

IT MADE ME TRUST A BRAND/IT SHOWED A

BRAND HAD INTEGRITY

40%36% 34% 31% 28%

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48Yahoo! Presentation, Confidential

0% 5% 10% 15% 20% 25%20%

30%

40%

50%

60%

70%

80%

Saw Ad on Category

Site

Saw Ad on Non-category Site

DigitalVideo ad

Mobile App

Barcode Reader

Mobile Ad

Email/newsletter

Clicked Digital Ad

Saw Search Engine Ad

Radio ads

Ads in theater

TV Ads

OOH

Print Ads

Loyalty club

While the scale of digital ads is not large, its influence is on par with the likes of TV and print ads

OVERALL USAGE IN SHOPPING PROCESS

INFL

UEN

CE O

N P

URC

HAS

E

ADVERTISING: Influence to Purchase by Overall Usage

KEY

COMPARE DIGITAL OFFLINE

VERY INFLUENTIAL

NOTVERY

INFLUENTIAL

Page 49: Long and Winding Road - Gamesmanship of Shopping Study

49Yahoo! Presentation, Confidential

And off-line and digital advertising play similar roles throughout the shopping processTOOLS USED THROUGHOUT PURCHASE PATH – Among Users of Those Tools

BECOMING AWARE GATHERING INFO MAKING FINAL DECISION POST PURCHASE 0%

10%

20%

30%

40%

50%

60%

70%

DIGITAL ADVERTISING (ONLINE, MOBILE, ETC) TRADITIONAL ADVERTISING (TV, PRINT, ETC.) KEY

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50Yahoo! Presentation, Confidential

Chapter WHAT ARE WE RACING TOWARD?

4

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51Yahoo! Presentation, Confidential

YESTERDAY’S THINKING TODAY’S REALITY

Shopping is an individual process Shoppers collaborate with other “players” (consumers and brands)

Shopping/decision-making is a chore, a mere means to an end

Consumers are intrigued by the paths they discover to being smart and savvy shoppers

The decision-making process is rational and takes time to make the right decision

A vast network is employed to steer shoppers toward the right decision

The Internet overwhelms people with too much information

The Internet helps consumers navigate their choices, resulting in faster, less impulsive decision-making

Only cost-conscious people look for deals, and it’s not discussed

Everyone looks for deals because it shows they are technically savvy and smart,

which also becomes news worth sharing

Page 52: Long and Winding Road - Gamesmanship of Shopping Study

52Yahoo! Presentation, Confidential

ImplicationsMarketers should be contributors to the social ecosystem by identifying the most trusted sources for consumers and becoming part of the conversation.

Create reward systems that deliver the “consumer win” by making the consumer feel special – such as tailoring deals to their expressed interests and encourages viral sharing

Marketers don’t necessarily need to be considered a consumer’s “friend,” but should leverage the right media to aid consumers – like expert reviews.

Online sources influence purchases just as much, if not more, as offline sources so it’s important to make sure your brand is part of the online dialogue

Leveraging brands as contributing members of 3rd party communities (e.g., fan pages, microsites, etc.) is a novel way for brands to offer a more personal and authentic view

Consumers use discover tools most often when gathering information and narrowing down options, but your presence doesn’t need to be purely rational. It can and should delight emotionally.

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53Yahoo! Presentation, Confidential

YAHOO!Ashmeed AliIra AmilhussinLauren WeinbergEdwin H. Wong

UMMike HaggertyGraeme HuttonKaren Ring

HALL & PARTNERSBeth WallDenise CalfoDevon BellKristin KwanSuzanne Carbonell

DESIGNERDiana Young