Facebook Advertising, Online Reviews Lead 2011 Holiday Marketing Strategies for Retail

Mike Hanbery - 10.27.2011 5:00 PM

According to recent studies by BIA/Kelsey and ConStat, 97 percent of all purchases have an Internet component. 90 percent of all purchases are researched, at some level, on search engines. The average American uses 7.9 media sources to research a purchase…and most purchase at a local business.

Combine those facts with the growing use of social media, especially Facebook, among demographics with purchasing power and the time for retailers to push social media to the marketing fore is right now.

Online Advertising is Effective for Driving Offline Sales
•    Online ads do, on average, succeed in influencing brand engagement and opinion, particularly for ad recall and message association. However, the degree of positive brand impact largely depends on the strength of the ad itself.
•    Campaigns in which consumers reported an increase in purchase intent after viewing an online ad also showed a boost in offline product sales

Facebook Pages Can Impact the Customer Experience
•    57 percent of active Facebook users discuss products and services with friends on the network.
•    Nearly 70 percent say a positive referral from a friend would positively influence their purchase.
•    88 percent of all Facebook users “like” at least one retailer page.
•    If a retailer’s page is easy to navigate, informative, interactive, provides coupons and discounts, and is fun, customers will not only become fans, but the likelihood they will recommend the page to friends may increase.

What Social Followers Want


•    Users described as “max connectors”—those with at least 500 social connections—were less interested than average in getting deals. Instead, they cared about new products and company culture, demonstrating the deeper engagement expected by social media power users.
•    Customers who follow retailers are really the best, most engaged and brand committed.
•    61 percent of people who follow retailers follow less than five retailers.
•    80 percent of shoppers who use social media list Facebook as a site they use regularly.

How to Use This Information
The holiday buying season is upon us. Leveraging the most effective and cost-effective marketing and sales avenues is critical—and the game has changed, even in the last twelve months. Understanding the current nature of consumer purchase behavior, especially the use of the Internet for research and referrals, will be a principal differentiating factor in successful retail selling this holiday season.
 

Sources: Nielsen, 10/3/11; Morpace Omnibus, 4/28/10; eMarketer 1/22/2010

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