Shopping Blog

Can online search ads impact offline store sales? The connection seems counterintuitive, but the answer is a firm "yes." A milestone meta-analysis of experiments with 13 top U.S. retailers, conducted by Applied Predictive Technologies, proves that search ads drive incremental offline sales. Results vary by industry and advertiser, but the research offers guidance for multi-channel retailers: Create a seamless connection between your channels and use digital to efficiently drive sales across the board.

 To read the full article visit Google Think Insights.

 Posted by Nina Thatcher, The Google Technology Team

It's no secret: the continuing rise of web commerce, combined with the rapid evolution of smartphones, gives shoppers the option to do extensive research and make decisions based on price, location or just plain preference. In fact, 2 out of 3 moms shops with a smartphone in hand! And while this offers retailers numerous opportunities to reach their customers, it also means that moving units requires more differentiation than ever to stand out from the well-researched pack.

But department stores are responding to the evolving landscape by signing exclusive deals with brand names, famous designers, and of-the-moment celebs, in the hopes that stocking unique products will give consumers an incentive to visit specific stores, while simultaneously providing retailers with a selection of merchandise safe from the info-fueled wars.

Such changes are happening fast and wide: according to the recent New York Times piece linked above, major retailers like J.C. Penney and Kohl's already see such exclusives driving up to 50% of their sales, while many other major stores are scrambling to follow suit.

The exclusives vary from entire collections focused on budget consumers, to stores that offer their own special versions of the highest-end products. For example, J. Lo and Marc Anthony just launched a line of affordable apparel and home decor exclusive to Kohl's, while Neiman Marcus is the only place you'll find this rather amazing Christian Louboutin sandal.

Such an array of exclusives offers a wide variety of choices, but often leaves consumers confused as they try to figure out where to go for which products. Sure, it's easy enough to remember that the Kardashian Collection is only available at Sears - but it's a bit harder to keep straight that the Kardashian-endorsed Skechers Shape-Ups are actually available at multiple stores. And what's the difference between Martha Stewart Living (only available at Home Depot), and the Martha Stewart Collection (only available at Macy's)?

When the ever-increasing myriad of options overwhelms consumers, they turn to the web to help sort things out - and it's imperative that stores with exclusive offerings establish an online presence around them. This includes:

• Running specially-tailored Creatives that emphasize exclusive brand offerings

• Investing on Search terms related to designers/celebs whose lines they carry

• Staying alert for Display and/or Video opportunities on related content, especially for lines driven by celebrity endorsement or design (after all, if someone can't stop rocking out to "Party In The USA", it's a decent bet she'll also want to rock Miley's Fringed Suede Boots, available only at Wal-Mart...)

• Establishing a Mobile Search campaign to reach those smartphone-using shoppers out at the mall trying to figure out which store carries which exclusive brand

• Coordinating promotions between web and brick-and-mortar stores so that consumers can access their favorite exclusive brands from every angle, and get consistent messaging/pricing as they do so

Posted by Brian Crocker, The Google Retail Team

The end of the year has always been an exciting time for retailers across both online and offline channels. This year, the game will change with a likely uptick in mobile usage during the holiday shopping season.

In Q4 2010, we witnessed the impact mobile had on shopping behavior as 59% of smartphone users used their phones while holiday shopping.* Some people used their smartphones to shop on the go, and even more used them to research products while in a retail store.

This trend is looking to continue in 2011; in fact, research indicates that 70% of those using their smartphones for holiday shopping are using them in-store, where purchases are being influenced on the spot.* As such, retailers need to engage consumers in meaningful ways on the mobile channel. Some are leveraging the mobile platform via wishlists and shopping apps, ensuring that consumers buy from them regardless of the purchase channel. Some other good options include making mobile product research and price comparisons easy.

It's not all happening in-store, though. Mobile commerce enabled sites are still a must for consumers seeking instant gratification, or a break from long in-store lines. The key to mobile commerce holiday success is making your site easy to find and even easier to purchase a product. Site loading times should be instantaneous as, “47% of consumers say they expect a page to load within two seconds, and 40% will wait no longer than three seconds before moving on, according to web performance monitoring service Akamai Technologies Inc.”**

As you continue your holiday planning, remember that consumers are connected across multiple devices and have higher expectations than ever before. They are seeking the best deal, want to know what products they can get where and how quickly they can buy them. Ensure that you’re fully covered across smartphones, tablets, and desktop so that consumers can not only discover and engage with your brand but also transact when they’re ready.

Posted by Keri Overman, The Google Retail Team

*Google/OTX Holiday shopping survey, Comscore July 2011, State of economy
**Internet Retailer, “Prepare Today for Online Holiday Sales”, August 18, 2011

I recently was in the market for the infamous ‘little black dress.’ My first stop was Google - just like millions of other shoppers. After clicking through to one of my favorite dress retailers and browsing the options, I decided to stop by their store on the way home from work. I needed the dress for an event that weekend and also wasn’t sure on size, so ordering online really wasn’t an option.

There are lots of reasons shoppers research purchases online and then buy at a brick and mortar. What’s important for retailers to recognize, however, is that having an online presence is becoming more and more important to overall sales.

According to an Ipsos study, 93% of sales occur offline. However, 80% of consumers research a product online before purchasing in-store. This illustrates the value consumers place on the Internet as a trusted research resource for their purchases.

As consumers increasingly shop across multiple channels, retailers must shift their thinking around ROI to properly account for how and where consumers shop.

Google’s online to store experiments can help retailers better understand the impact their online marketing dollars are having on in-store sales. We use a test vs. control methodology to measure this impact.

The basics include looking at similar DMAs and increasing online advertising in the test markets, while maintaining or eliminating online advertising in the control markets.





In preliminary studies, advertisers are getting more insight into their in-store ROAS, as well as in-store sales uplift. Having this information can help you better align your attribution models - which can help you make more informed decisions when determining where marketing dollars should be spent to drive optimal sales.

If you have brick and mortar locations and are interested in learning more about the impact your AdWords advertising is having on in-store sales, please reach out to your Google account team regarding online-to-store testing.


Posted by Rachel Perrone, The Google Retail Team

As we shared last month, Google’s Online to Store research shows that online marketing campaigns are effective in significantly increasing in-store sales. In other words, digital ads influence shopping decisions made in physical store aisles as well as those made in front of computer screens.

This week, we’ll take a closer look at the individual Online to Store study results of technology company Hewlett-Packard (HP). HP collaborated with Google and Applied Predictive Technologies (APT) to quantify the impact of online search ads on in-store purchases. They conducted a four-week long study in which users were exposed to HP search ads co-branded with a leading national electronics retailer. Would a significant number of users who clicked on a co-branded HP/retailer ad after searching on keywords such as “hp laptop” and “laptop computer” then purchase a product at the physical retail location, generating incremental in-store sales?

The answer, the study showed, was yes. The online campaign resulted in a 530% overall return on advertising spend (ROAS) for computers, with a 1,090% ROAS in the top 25% of markets based on specific store attributes for the computing category. Furthermore, HP found that ads for higher-end models and ads in more prominent positions on the searchresults page were correlated with an even higher increase in physical store sales. This suggests that some users who conduct research online may be more comfortable purchasing higher-end items at a local store, and also highlights the importance of ad rank in influencing users.

To learn more about this and other studies, visit Google’s new Think Insights site.

Posted by Emily Parker, The Google Tech Team

Think it’s too late to launch an online campaign to drive sales this Memorial Day weekend? Think again! With Memorial Day less than two weeks away, now is the time to really hunker down and make sure your campaigns are ready for the first long weekend of the summer! Here are a few points to consider:

Online-to-Store
While this could easily be the topic of another post entirely, it’s worth pointing out that on big holiday weekends, consumers are looking to take advantage of the extra time off and do some shopping. If your business is offering Memorial Day weekend promotions, it’s never too late to get the word out about those deals! Don’t have time to create new ad copy? Consider leveraging sitelinks within your campaigns to highlight Memorial Day sales, printable coupons or even special online-to-store pickup and return policies! Using Google Insights for Search, we can see that the search volume for [printable coupons] experienced a bump around Memorial Day in 2010, and is expected to do the same again this year:














Big Ticket Items
Big ticket items, such as furniture, mattresses, and appliances aren’t usually purchased on a whim. Due to the large financial commitment, these purchases are often the result of a joint decision making process. With routinely busy schedules, what better time to plan a family shopping trip than a long weekend? Google search trends back this up. Take the term [mattress sales], for instance. In 2010 this term experienced the greatest search volume in the days leading up to Memorial Day weekend, Labor Day weekend and Black Friday, as illustrated here:














The same holds true for [furniture sales]:














If you’re a retailer in this space, make sure to capitalize on this opportunity! Whether or not you have brick and mortar locations, now is the time to get your deals in front of potential customers!

After you’ve spruced up your campaigns for the long weekend, sit back, relax and have a cold glass of lemonade in honor of our soldiers past and present. Happy Memorial Day!

Posted by Erin Maddens, The Google Retail Team

Do online search campaigns lead to in-store sales? Controlled studies we call ‘Online to Store’ experiments prove time and again that they do! Check out this video for results from large advertisers that tested the effects of keyword targeted products and categories, generic keywords and online coupons. Highlights include in-store sales lift, return on ad spend (15:1 in some cases) and halo effects on overall sales. Understanding the effect of search ads on offline sales is a large part of accurately defining the full value of search campaigns, beyond direct conversion. Consider these results and your own online to store testing.




Posted by Susan Billingsley, US Large Advertiser Marketing Team

Do you know “The Smart Shopper"? The Smart Shopper is constantly connected and always mobile. The Smart Shopper values on-line information, researches on-line then shops in-store, and uses a smartphone while shopping.

You can see the smart shopper in action by watching the first two videos in our Smart Shopper series.

The Smart Shopper: Constantly Connected
An exclusive look into consumers’ research and purchase process.



The Smart Shopper: Always Mobile

A clear snapshot of how smartphones are changing the way consumers research and shop.




Use these Smart Shopper insights to help formulate your 2011 marketing plan. Engage the smart shopper by creating compelling video and display ads, developing a cohesive mobile strategy, and using an integrated multi-channel marketing campaign.


Posted by Heidi Spector, Google Retail Team

In our latest Google/Ipsos OTX research from September 2010, we learned that almost 9 out of 10 consumers will research online during their holiday shopping. Consumers are using online in their purchase process in a variety of ways. They might do research online, go to a store, research products more on their mobile phone in the store, then go back home and buy online. Over 40% of consumers plan to research online and buy online, and an even bigger group, plan to research online then buy in a store.


There is no such thing as an “online shopper” anymore or an offline vs. online marketing strategy. In consumers' minds, all channels are created equal, and the same shopper buys online and in-store. Make sure you are getting your holiday messages to consumers where they’re doing their research: online!

Posted by Heidi Spector, Google Retail Team

When we announced Google’s local shopping mobile alpha this past March, we started with a simple goal of making it as easy to search for products in nearby stores as it is to shop online. Our vision was simple: partner with retailers to organize all of the world’s local product information. The mobile alpha began with a small group of innovative retail partners. Over the past six months, we have been excited with the reception of local availability on mobile and in product extension ads.

Today, we are pleased to announce the launch of local availability results in Google Product Search on desktop. Search for a product and click on the “nearby stores” label, and you can easily find a list of stores to call to check availability, and in many cases, information about whether the product is in stock nearby.

The sixth installment of our multi-channel video series (Part 1, 2, 3, 4, 5) brings us Bernardo Hernandez, Director of Global Consumer Marketing, who shares his view on Google's approach to multi-channel marketing.

Watch some highlights from this session:

54% of users who researched online but bought offline used their mobile device to conduct their search. Such impressive engagement is evidence that mobile devices are changing the very way in which we shop. As a continuation of our multi-channel video series (Part 1, 2, 3, 4), Alex Barza, Mobile Ad Sales Lead, and Surojit Chatterjee, Product Manager, present their perspective on why mobile is the next 'big bet.'

Watch the recap video of this session:

Beyond multi-channel tactics, research, and best practices, we at Google recognize the need to build better products to connect retailers with shop-savvy, local customers. At the "Think with Google: Future of Multi-Channel Summit," Sameer Samat, Director of Product Management at Google, and Paul Lee, Business Product Manager at Google, emphasized these customers who are actively using the Internet and their mobile devices to inform and enhance their in-store experience.

In this short 2-min recap video, Sameer and Paul shared an exciting product launch around the ability to show real-time, in-stock nearby items from retailers:



Check out more information here to find out how to use this feature when you're shopping locally, and how to show your locally available products on Google.

Posted by Julia Tang, the Google Retail Team

We have discussed in previous posts how marketers can independently better measure and understand their cross-channel activities, but increasingly retailers are recognizing the importance and benefit of leveraging partnerships with other retailers, manufacturers and merchandisers. We have solicited advice from two industry experts, Tom Bartley, President of TAB Consulting and Tyler Murray, Global Digital Practice Lead at Saatchi & Saatchi X -- both of whom have lived and breathed cooperative marketing through working with a variety of brands.

In this 4-min recap video, Tyler and Tom discuss the unique opportunities and challenges that online co-op brings:

As a continuation of our multi-channel video series (Part 1, Part 2), today we will share brand new research findings on how digital impacts in-store sales and activities across several industries. According to Matt McAuliffe from the Channel Solutions Team at Google, the aggregated results from the multiple online-to-store tests we have done to date show an in-store sales lift of up to 3%. Kevin Kells, the National Industry Director of CPG at Google, added that there is actually a "Zero Moment of Truth" which happens with brands online, which precedes even the point of sale interaction with consumers in-store.

Watch the 4-min recap video on this session:

Last week we saw highlights from the "Think with Google: Future of Multi-Channel" summit. Today we learn from Avinash Kaushik, Analytics Evangelist at Google, about measuring offline marketing impact online and measuring online impact offline. Watch the short 5-min video on non-line driven analytics.

Today, we bring you the first in a series of videos from our inaugural "Think with Google: Future of Multi-Channel" summit, at which we discussed ways to leverage cross-channel shopping and drive innovation around the customer shopping experience.

Google speakers in this video series include Avinash Kaushik (Analytics Evangelist), John McAteer (National Sales Director), Stephanie Tilenius (VP of eCommerce), among many others, who discussed the latest and greatest in mobile, local inventory, analytics and measurement, co-op advertising and brand new research on the online-offline impact.

Check out our 1-minute highlights video on the GoogleBusiness YouTube channel, and check back with us frequently - we'll be sharing more!



Posted by Julia Tang, the Google Retail Team

Last but not least, our final learning for the rest of 2010: the evolution of multi-channel behavior.

With searches for "buy online, pick up in store" up by as much as 100% this past December, multi-channel shopping has evolved as the new face of commerce, the norm rather than the exception. In fact, when asked, 34% of consumers researched online before buying offline and 21% researched online and offline, before purchasing online.


As we see, consumers leverage both the online and offline worlds in making their final purchase decisions so retailers must also integrate their strategies to reach the "nonline" consumer.

Source: Google/OTX Post-Holiday Consumer Study, January 2010. Q12 Thinking about your recent Holiday shopping experience, in which of the following ways did you approach your Holiday shopping? Select all that apply. n= 1850.

Posted by Eric Lopez, the Google Retail Team

For the first 36 days of the November-December Holiday Season*, comScore reports online holiday sales up 4% year over year, with last week's sales up 5% year over year. Better yet, historical buying behavior dictates that the most important shopping weeks are yet to come; during the last few years, the three weeks prior to Christmas represented approximately 45% of total online holiday sales.

Our posts this week have focused primarily on retailers' considerable opportunities in e-commerce sales during the final weeks of the Holiday Season, but it's also worth noting an additional avenue for success among those merchants whose sales span across channels.The increasing frequency with which consumers are researching online before purchasing offline offers additional possibilities for stimulating sales in physical stores through the use of web-based marketing and promotions.

Using Google Insights for Search to do a year over year analysis of search volume for terms such as “store locator”, “store locations” and “printable coupons”, we can see that consumer interest in conducting web research prior to making an in-store purchase is growing rapidly. The visual below also depicts two periods in which annual demand for information about physical stores typically peaks - the first occurs over Thanksgiving Weekend and the second during those days immediately preceding Christmas.



Given both that search volume for the term "store locator" over Thanksgiving Weekend 2009 increased by 342% when compared to the same period in 2007, and that the second expected surge in demand (occurring just before Christmas) has historically been even more dramatic then the first, retailers will want to ensure that they are well-prepared; regardless of where the ultimate transaction occurs, consumers are increasingly viewing shopping as a cross-channel experience.

Source: Google Insights for Search, comScore 2009

Posted by Yael Davidowitz-Neu, the Google Retail Team

Could POS (Point of Sale) and O2S (Online to Store) be related? Absolutely!

Remember ‘back in the day’ prior to 1978 when there was no Point Of Sale data. Retailers would spend millions of dollars on advertising with no link to what was selling at the cash register. There were no bar codes, scanners or the like to help understand inventory levels, what sold, what day, how many, and from what medium. Well, when bar codes and scanners debuted, it changed business as we knew it - creating accountability as it relates to what products were selling, when they were selling, and if advertising had an effect on how many were sold. This led to increased investments in research from the POS data and shifting media spend to higher performing channels once the advertising results could be measured at the store level.

Sound familiar? It should, some day you may be talking to someone in marketing and saying- remember back in the day when we didn’t have O2S data? When advertisers weren’t aware of what effect their online marketing programs were having on their in-store sales, but instead were only optimizing and taking credit for sales on their website. Online To Store research is transforming retail today based on the ability to test digital marketing during a specified period of time and measure exactly what happens to sales not only online through eCommerce, but possibly more importantly- in-store in the test markets. Test and control has never led to greater clarity of online efficacy.

This is the Holy Grail of advertising and marketing funding if you think about it. You have read on this blog before about Google partnering with Retailers to learn exactly what a dollar spent online can do for in-store sales, well now a number of the tests have been completed and the results are in! Online advertising drives in-store sales!

Just take the publicly distributed Pier 1 O2S Case Study as an example from October of last year, when Google and Applied Predictive Technologies (APT), a data analysis and software firm, teamed up with Pier 1 Imports and their search marketing agency, Resolution Media. During one of the most turbulent periods in retailing history, Pier 1 saw a 3:1 return on investment in-store from their online expenditures in Search and Content. Not only 3:1 ROI, but an overall 2% sales lift, even more impressive when you factor in the times and economic conditions. Like bar codes & scanners in the past, these tests helped Pier 1 Imports understand their online-influenced in-store sales today: what sold, what day, how many.

So now what? Can you imagine hearing someone say that today’s POS data is good and all but they’re still just going to apply traditional media mix modeling without regard to the data the POS scanners are providing? NO WAY! We’re talking about data driven marketing decisions dating back to 1978 when newspapers were providing huge spikes in sales for retailers- measurable through POS.

So today, my challenge for you, Mr. or Mrs. Retailer is to take the data that O2S case studies or in-house tests are providing and put them to work and put your marketing money where the results are - using the wisdom of the testing crowds! Just like back in 1978…

Posted by Jay Bowden, the Google Retail Team