Shopping Blog

The government’s Cash for Clunkers program taught us that when incented, consumers will buy.

The program generated nearly 700,000 new car sales, and dealers turned in vouchers totaling $2.88 Billion. Prepare yourselves to take advantage of the Cash for Appliances program!

Congress has authorized $300M in rebates for energy efficient appliances. Rebates will range between $50 and $200 and will vary by state.

Consumers have already started searching! Using Google Insights for Search, we see that search interest in 'cash for appliances' and 'appliance rebate' have upticked over the last weeks.



The appliances rebates will be available in late fall. Now is the time to incorporate this program into your marketing and position yourself to capture the sales.

Cash for Appliances Online Marketing Tips:

1. Get in the game early. Consumers are already searching for Cash for Appliances. Other advertisers will be there in time for the program’s launch.

2. Create a Cash for Appliances Search campaign to capture consumer interest. Add Cash for Appliances keywords. Add “cash for” and “rebate” terms to all product lines.

3. Create relevant ad text. Start now with “coming soon” copy. Adjust copy as the program is launched and continue with post-event special offers.

4. Take users to a landing page with Energy Star Appliances. Provide details on the Cash for Appliances process. Call out Energy Star approval. Allow users to search for qualifying appliances

5. Contextually target Display ads to reach users who are researching the program.

Consumers are still cautious, but are responsive to incentives. Act now to reap the benefits of the Cash for Appliances program!

Posted by Sara Kleinberg, the Google Retail Team

Ouch. Fading bling sure does sting. In yet another indication of hard times, the Wall Street Journal reports that the age-old tradition of rap stars bedazzling themselves in diamonds and gold, reflecting status and a lifestyle of opulence and fabulousness, isn’t sparkling as bright as it used to. Word on the street is that a number of hip hop artists are opting for less precious stones and even imitation ice to go with their Cristal. [1]

Consumers aren’t completely following suit with bogus baubles. As WWD explains, the bright side is in spending for special occasions, such as Mother's Day, when a slight rise in sales pleasantly surprised retailers. [2] And like some of these recessionista rappers, American brides- and grooms-to-be are still keepin’ it real by downsizing their engagement bands to smaller carat diamonds, according to the National Jeweler. [3]

As we noted in this post a few weeks ago, marketers have been employing creative recessionary messaging to appeal to consumers keeping their minds on their money and their money on their minds. While the focus has been placed mostly on compassion-based communication to be aligned with money-saving trends, is it just all about saving the Benjamins?

In addition to messaging around coupons, discounts and lower price-point items, some marketers have been focusing on the long-term value of their products. 69% of US adults surveyed by Mediamark Research Inc. say that they buy based on quality, not price, and 74% would buy products by a company they trust, regardless of price. [4] And according to an April 2009 “Word of Mouth and Viral Marketing” report by Mintel, 55% of Internet users surveyed said that they recommend products or services based on quality. [5]

Here are a few examples of Retailers emphasizing high-quality artistry, durability and wearability, and the customer experience as attributes of investments that will stand the test of time.

The David Yurman and GUESS Watch search copy both look to the future and underscore that quality craftsmanship will make these investments last.


Like the GUESS example before it, this Tory Burch ad hones in on the value-trend that is, in fact, anti-trend. Its focus is on the classic, not the frivolous or cutting-edge, highlighting a collection of substance that will never go out of style.

This Tacori ad offers a unique premium buying experience and thoughtful customer service for the uneducated engagement ring shopper.

These are just some of the ways retailers are leading consumers to look at investment in their products as gifts of sentimental value--heirlooms, not just meaningless indulgences. How have you encouraged your customers to get their investment on?

Sources:
[1] Bustillo, Miguel. The Wall Street Journal: "The Culture of Bling Clangs to Earth as the Recession Melts Rappers' Ice," May 26, 2009
[2] Graff, Michelle, The National Jeweler: "Even in tough economy, bridal still booming," April 22, 2009.
[3] Chabbot, Sophia. WWD: "Jewelers Adapt to New Priorities," June 9 2009.
[4] Mediamark Research Inc, Doublebase 2008.
[5] Mintel: "Word of Mouth and Viral Marketing" report, April 2009.
[6] David Yurman, Tory Burch, GUESS and Tacori Search Ads: Google.com.

Posted by Camille Valdes, the Google Retail Team

You may remember a time in the not-so-distant past when compelling messaging and an attractive product mix was all you needed to increase sales volume and build your business. In today's economy, your job has gotten considerably more difficult; because consumers' values have evolved, not just their buying behavior, retailers are facing unprecedented challenges.

How do you reach a consumer base for whom skinny wallets have become trendier than skinny jeans?

Psychological Segmentation:

In the April 2009 edition of The Harvard Business Review (HBR), John A. Quelch and Katherine E. Joez published an article titled "How to Market In A Downturn" in which they discuss the need for marketers to rethink their current attitudinal and behavioral marketing segmentation schemes in order to carefully balance scaling costs, growing short-term sales and investing in long-term brand health.

The article asserts that while marketers typically segment according to demographics or lifestyle, this may not be the most effective strategy in a recessionary economy. Instead, smart marketers may choose to leverage psychological segmentation, which enables them to target consumer segments based on each groups' emotional response to the recession.

Psychological segmentation works because it enables marketers to operate based on an understanding of the way their consumers prioritize purchases. This is especially valuable during a recession, as costs are being cut at a time when marketing is more of a necessity than ever. Marketing is a “good cost,” essential to bringing in revenue from both existing customers and potential new ones; for best results, a retailer must ensure that they are crafting their messaging by segment, and focusing on those consumers most likely to invest in their product or service.

For example, while nearly all consumers consider basic levels of food, shelter, and clothing to be essentials, beyond that, consumers' perception of there own financial situations can sharply alter their views on whether they see a given expenditure as a want or a need. Likewise, determining whether a given product or service is an immediate or future need, or whether a treat is justifiable, tends to be highly subjective, and often varies during multiple points in the life of a buyer.

Note, however, that while some brands may cater to all segments the authors provide, most will not. The goal should be to first identify your key consumer segments below and then consider marketing accordingly.

Tailoring Marketing Strategy by Segment:

The slam-on-the-brakes segment is the most vulnerable and price sensitive of all groups. They reduce all spending by sharply limiting unnecessary purchases, postponing necessary expenditures, and, whenever possible, substituting the things they continue to buy with lower cost alternatives. Although lower-income consumers typically fall into this segment, anxious higher-income consumers can as well, particularly if they have been disproportionally impacted by the recession.

Targeting Tactics:

• Consider highlighting discount prices and offering lower priced alternatives to your current product line.
• If your product is not a necessity, you may want to consider offering it in a smaller size for a lower cost - this group is less considered about gaining value and more focused on conserving funds.
• When selling a potentially postphonable product or service to this group, financing or layaway plans may help overcome their immediate financial concerns.
• Marketing messaging might discourage postponing services, such as an oil change, because they will cost consumers substantially more in the long run if not handled immediately.
• Expendables, or purchases consumers view as unjustifiable, will be a difficult sell for this group. To overcome these challenges, consider providing do it yourself alternatives to pricey services.

Pained-but-patient consumers tend to be optimistic about the long term but less confident about the prospects for recovery in the near term. They reduce spend in all areas, but are more flexible than the slam-on-the-brakes segment. They are the largest consumer segment and include most of the households where the primary breadwinner is still employed. As such, they represent a wide range of income levels.

Targeting Tactics:

• Appeal to these consumers practical side by offering better pricing at higher volume - this can take the form of a loyalty club to foster repeat visits or discounts on bulk purchases.
• Market non-necessities as affordable alternatives to luxury purchases.
• Focus on promoting repair services - with their eyes on an optimistic future, this group is likely to prefer repairing a current item to purchasing a new one.
• Build longer term brand awareness now, while you face reduced competition in the market place. Expect that the investment may not pay off until this consumer is feeling less financially constrained, but that it may pay off big in the future.

Comfortably well-off consumers feel secure about their ability to ride out current and future bumps in the economy. Their actual consumption has altered only slightly, but they are feeling more cautious about spending, and a bit guilty for indulging when others are struggling. The segment consists primarily of people in the top 5% income bracket as well as those who feel particularly confident about the stability of their finances.

Targeting Tactics:

• Focus on selling online or other places where you can offer discreet purchasing opportunities to enable the wealthy to shop in secret.
• Highlight any applicable charitable or green initiatives associated with your company - guilt about spending can be reduced if this group believes they are helping others simultaneously.
• Showcase long-term value and quality - make it clear your product is an investment, not a mere babble.
• Create a sense of urgency that helps consumers understand that they can save by buying immediately.

The live-for-today segment tends to be the least emotionally impacted by the recession. Typically urban and younger, they are more likely to rent than to own, and spend on experiences rather than products. They’re unlikely to change their consumption behavior unless, of course, they become unemployed.

Targeting Tactics:

• Use social networking to generate buzz around your product and let consumers know what they may be 'missing out' on.
• Promote exciting new products as 'must-haves'. This group has a profound appreciation for all things novel.
• Remind them of the quality of life benefits to buying now, for example, "Buy it now, before someone else does".
• Challenge these consumers to 'seize the moment' - they tend to enjoy seeing themselves as a bit impulsive.

While timing remains uncertain, in all likelihood the current recession will eventually end, and consumers’ attitudes and behaviors will likely shift yet again. To prepare for these times, retailers should be focused on consumer needs, their core brands, and a careful balance between long term and short term goals. Marketing methods must allow for targeting, accountability and the flexibility to make rapid changes in response to shifts in consumers' needs.

And, ultimately, those who consider consumer responses to the recession when crafting their marketing strategy and making decisions about where to invest, are likely to flourish - both in the present and long into the future.

Can you say the same for skinny jeans?

Posted by Yael Davidowitz-neu, the Google Retail Team

During a recession, there is usually one group that can be counted on to keep spending…Teens!

Necessities are often coming out of the parent’s pockets, leaving teens to spend their hard earned money from after school jobs, summer internships and birthday savings on themselves. Despite the recession, teens want to look good and they are going to spend their savings to make sure they look their best. 75% of teens are receiving the same or more spending money this year than they were last year. 40% of teens say they have "not been affected" by the recession. (1)

Teens want to look good regardless of what is going on with the economy and are therefore willing to sacrifice entertainment for apparel. 75% would choose a new pair of shoes over 50 new MP3 downloads, and 63% would choose a new pair of jeans over tickets to a concert. According to one study, nearly three-quarters are spending the same or more this year on cosmetics (70%), clothing (72%), hair products (71%) or skin care (74%). (1)

Now we aren’t saying that teens are completely oblivious to what is going on in the US, but it isn’t affecting their desire to shop. They are not shopping less, but are shopping smarter. Fifty-five percent of teens surveyed said they are waiting for things to go on sale prior to purchase; 50% said they are making fewer impulse purchase; 42% said they are doing more comparison shopping. Thirty-five percent said they are staying with their favorite brands and 31% of survey respondents said they are shopping at less expensive stores (1).

So, now that we know they are still shopping, how do we reach them? Teens live online, they buy online and they play online, so naturally the best place to reach them is online! 94% of teens are currently online (2) and they spend an average of 11.5 hours in front of the computer weekly! More than 70% of online teens actively use social networking sites (3). 16 million teens (nearly two-thirds of the population) own a mobile phone. Over one quarter of teen mobile phone owners (28%) access the Internet via their phone, compared with 17% of all mobile subscribers (4).

Talk to teens on their level and speak their language. Everything you do should be with your core audience in mind. Find the right message for your audience and use targeted placements to reach them. Create a buzz…using ads and promotions that leverage the viral capabilities of the Web are fabulous for reaching teens. Lastly, offer incentives such as “buy three, get one free” or free shipping to get their attention. Retailers such as American Eagle and Old Navy have been running ad copy with value messages like “Buy One, Get One 50% Off” and “Find Secret InStore Coupons at OldNavyWeekly.com” respectively. Regardless of age, everyone loves to feel like they’ve gotten a good deal.

Sources:
1. Online Teen survey from Seventeen Magazine, April 2009
2. Pew Internet and American Life Project, Teens and the Internet, January 9, 2009
3. Research from OTX and Intelligence Group Looks at Teens’ Online Behavior, June 2008
4. Multimedia Intelligence; Harris Interactive/CTIA – the Wireless Association; Nielsen Mobile

Posted by Maureen Stanley, the Google Retail Team

Fans of progressive British rock might recognize the question that Pink Floyd asked over 25 years ago in their critically acclaimed album, The Wall. Today in the retail industry, it has new meaning. At times over the past six months, the economic climate we've been subjected to has seemed as apocalyptic and outlandish as anything Pink experienced on his journey towards isolation. Some marketers may be asking, what has happened? Where are our consumers? Why aren't people buying the things I'm selling? Or put more simply, and to quote another seminal British rock band, "where have all the good times gone?" (The Kinks, for anyone playing at home.)

But here's the thing: no matter how bad the economy might seem, people still need the things you're selling. And if they don't actually need them, they still want them. Only now, with portfolios crumbling, layoffs pervasive, and personal budgets tighter than ever, consumers are being much more selective and discerning with their money. I know I am...aren't you? I still need what I need, and I want what I want, but I'm going to make sure I'm getting exactly the right thing before I shell out any of my hard earned money. And I'm going to make sure I get it at exactly the right price. In short, I'm going to do my research.

For a discerning shopper, the Internet offers unfettered ability to do all the research necessary before pulling the trigger on any purchase, big or small. Search, in particular, puts all the information a shopper needs to make a decision right at his/her fingertips. And for the half of all sales affected by web research , shoppers are making the most of their access to this information.

Compete, Inc. and Google recently released a study that shows just this -- what they term the "latency of online conversions". In short, online purchases thus far in 2009 are not declining compared to 2008. Across almost all Retail sub-categories, in fact, they are on par, if not up slightly. What has changed, however, is the time it takes someone to purchase. Compete's research shows that in 2009, the amount of time between a shopper's first click and their actual purchase has increased, and that the number of conversions occurring within the first 24 hours is declining. Their research also shows the timeline of search-driven conversions , confirming what other research supports in that as many as half all search conversions occur after the first 24 hours.

So studies are good, but how about a real life example? I'll give you mine, but think about how you shop these days and how your consumers might be shopping. In my home we desperately need a new color printer/copier. Other things have been calling our paychecks over the past 6 months, so we've been putting up with the old printer for a while now, ignoring its interesting choice of colors. But now it's time, so I begin my quest for a new printer. I think I want one with lots of bells and whistles, but I'm not certain which features I need, what they all cost, and which brand makes the best all around printer. So I search.

I type "color printer" into Google. Lots of results. Lots of choices. I click on a few of the more interesting ads and links, but quickly realize I need some advice. So I search again, this time for "color printer reviews". More results, including a few paid links. After more clicks and more research, I'm thinking I'd like a laser printer/copier, want something that does photos really well, and don't care about a fax machine. So I try again, this time "multifunction laser printer". Lots of results again, but I'm smarter now and have a better idea of what I want. After a few more clicks it's down to 3 different brands. Hmmm... I'll probably take a day or two to think about it, and in my spare time I'll also check to see which stores/sites might offer the best price on those brands. I'll do a search for a specific model number and see what is on offer. Anyone offering free shipping? How about order online and pick up in store for free? Any sales? Any deals that include free ink or something extra? Where am I going to get the most for my money?

Ultimately, I'm definitely going to buy a printer. But you get the point - it's going to take me longer, and I'm going to do my research before I buy. So what can you as an advertiser do about this? How should you react to this evolving consumer behavior, and how can you use search marketing to continue to drive purchases of your products both online and offline?

Here's a short list:

• Choose the right keywords. Expand your reach with keywords, remaining relevant to your products but getting into the upper funnel of a consumer's purchase consideration. Include more generic and research based keywords to make sure you connect with a user from the very start of their process. Using the "printers" example, consider keywords like "color printer", "laser printer", "multi-function printer", etc.
• Make your ads compelling. Call out the things that matter most to consumers, and the things that set you apart from your competition. Getting them to click on your ad takes more than just appearing when they search. Give them a reason to visit your site and come back. Going back to the printers example, use statements like "affordable color printers", "get $100 off quality laser printers", or even just "get great deals on high quality printers".
• Expand your conversion cookie. Take into account the longer consideration cycle of buyers today. Make sure you are regularly employing your Web Analytics data to make sarter choices. Monitor your website traffic as consumers visit and move through your site to see how they behave and interact with your site, and ultimately convert. Check out Avinash Kaushik's blog "Occam's Razor" for more information about the importance of using web analytics.
• Be there the next time. And remember, one visit is likely not enough for them to decide to buy. If they come back it might be through another search, so be there again the next time they're looking. Ensure your keyword selection is complete, top to bottom, for all the products you offer. If you have what a shopper needs/wants, then the more you appear for relevant searches the more trust you will build with them.

Things will get better, but this evolution in consumer behavior may be here to stay (or at least for a while...we have short memories, after all). Don't ignore it. Change your behaviors and tactics in order to work best in this new landscape, and find ways to reach your customers every time they're looking for what you offer.

Posted by Seth van der Swaagh, the Google Retail Team

It seems that everywhere I look, I am reminded that we are battling tough economic times. Whether watching the news or my favorite TV programs, reading content on the web, at the bus stop, or while reading magazines…I am bombarded with advertisements on how I can afford products and services in an economic time that rivals the Great Depression. Most advertisers seem to recognize that in order to keep sales up in a time when many are cutting “unnecessary” purchases, they must appeal to consumers where it counts the most – their pocket books.

While the degree to which consumers are becoming price sensitive to meet their spending budgets differs, experts throughout the industry agree that marketers' behavior must change to accommodate all ranges of sensitivity. Recently, The Economist ran an article From buy, buy to bye-bye, where John Gerzema of Young & Rubicam echoed this shift, saying, “there will need to be a move from passion to compassion in marketing.” Advertisers are employing a compassion-based message that lets consumers know brands understand their financial concerns. Experimenting with recession messaging to address customer concerns, while enticing them to continue spending, is a key survival tactic during the slowdown.

Additionally, The Economist details how consumer shopping behavior has normalized from projected “affluence” to saving and buying within one’s means. This new consumer behavior is expected to outlive the recession; therefore, it is prudent to assess the benefits of advertising coverage of deal terms and recession-themed advertising to retain lifetime customers.

Finally, in this new value-driven economy, consumers are increasing their reliance on social media as a “word of mouth” vehicle. More than ever consumers want to know that what they are purchasing is worth it and will look to their friends for recommendations. It is important to be active in the social network communities representing your brand and promoting your value proposition, to retain customers.

I have included some samples of advertisers that are adjusting their marketing strategy to the shift in consumer behavior. The first is an example of how Target is leveraging the keyword “coupon” to reach deal-seekers and keep competitive in the tough market.



Second, Domino's Pizza Chief Executive Officer David Brandon, center, offers a "big-taste bailout" aimed at "hardworking people on Main Street," not "fat cats on Wall Street.”


Another savvy advertiser, Trojan condoms leverages clever recession messaging to keep sales strong. The ad states, "To help America cope with these tough economic times, we put forth our own stimulus package: The Trojan Pleasure Pack."


The final example demonstrates how Jamba Juice has incorporated a combination of recession vocabulary and a fun play on words (i.e. "stimulate" and "buck the economy") with a value deal (oatmeal for $1) in a catchy way to spark consumer interest and leverage today's consumer trends.

We visit once again with Les Moeller from Booz & Co in the final installment of our video interview series.

In the past segments Les offered insight and advice around the changing consumer landscape and consumer behavior as a reaction the the new economy. Today Les will tackle the issue of "marketing in a down economy" - how aggressive should you be?



If you missed Part I or Part II - just search the blog for "moeller".

Posted by, Emma Weisberg, Google Retail Team

In part I of our video interview series with Les Moeller we learned about the phenomenon of trading up, trading down and trading across. This consumer behavior has been sparked by the new economy that we are operating in. The next logical question is whether or not this leads to an opportunity to capture new customers?

Watch the video below of Leslie Moeller, VP Booz and Co. to hear his thoughts on using the current consumer behavior to capture new customers. Les will also address the ever important challenge of pricing products in a down economy - Is lowering your price the right strategy? And the idea of positioning yourself for success when the economy rebounds.

When I was a sophomore in high school, I fell in love for the first time.

 

Although the object of my affection, a pair of jeans, was priced far beyond my limited budget and despite the fact that even after trying on several different sizes they still somehow didn’t fit quite right, I saved three months of babysitting money to buy those jeans; I’d recently seen the same pair worn by the most popular girl in my class and believed that if I had them, I too, might magically become cool.

 

Understanding the Opportunity:

 

Of course I had placed far too much stake in the ownership of those jeans -- but for marketers trying to reach a teenage audience, it's important to note that my belief, that ownership of a specific item was directly connected to my ascent in the adolescent social hierarchy, is in fact the rule, rather than the exception, for this highly desirable consumer demographic.  

 

My story took place fifteen years ago but today, while teens are equally prone to imitation, this highly connected group has many channels beyond their high school cafeterias for keeping tabs on the latest trends and their peers’ consumption habits. Given that the US teen market is expected to swell to 208.7 billion [1] dollars by 2011, marketers have every reason to seize upon the opportunity to extend an engaging offer just when their target teen buyer is looking to make a purchase.

In addition, with 74% of Internet users aged 12-17 engaged in social networking and nearly half of them logging in twice daily[2], savvy marketing professionals will look to social networks to attract teenage consumers. After all, those social network status updates and social network profiles teens love to look at are full of information on their peers’ likes, dislikes and purchase intentions, making social networks an excellent venue for discovering new products and services as “friends” link to things that interest them, and spread the word virally.

And, with social networking becoming increasingly mainstream, teens will become that much more likely to turn to their contacts and networks, choosing peer opinions versus expert opinions.

How Google Can Help:

The Content Network: You can easily reach social teens by using Google’s Ad Planner to target social sites on Google’s Content Network by category or user demographic . Better still, instead of negotiating multiple placements, with our Content Network you can target 48 of the top 100 social sites including MySpace and 8 of the most popular applications on Facebook.

Because we value your investment and want to help you maximize its effectiveness, we’ve also developed some great tools to help you do just that:

• Demographic Bidding . Control how frequently certain age and gender groups see your ad by adjusting how much you're willing to pay for them. 
  
• Language/Geo-Targeting: Pick where in the world your ad will appear by region, country, postal code, or language. 
  
• Ad Scheduling: Control what time of day your ads appear so you reach potential customers exactly when they're online. 
  
• Site and Category Exclusion: Use our tools to prevent your ads from appearing on specific sites, categories and pages. 
  

 

Social Search:

 

I recently read an excellent article on the value of social search. The premise of this article was that in addition to using content to reach social teens, if you have social features on your own website or are aware of third party sites where your brand is reviewed, you then have the opportunity to reach teen social media users across multiple touch-points and engage them with your brand by directing users to your social media content, using keyword-targeted search campaigns.

 

Make Your Site Social:

 

If you haven't seen our free new tool, Google Friend Connect, I strongly recommend checking it out. Consider upping your audience’s level of engagement with your website by using engaging social features that are easy to add to your site - no programming skills needed. 

 

Sticky Messaging:  

Focus on the Offline World: Teens are very aware of the world around them and naturally turn to online to seek information about the offline world. Both multi-channel and pureplay retailers can capitalize on this trend by keeping ad text themed to upcoming events. 

From March through June, you'll want to consider targeting the following seasonal events that are apt to pique teens' interests: St. Patrick's Day, prom season, spring break, spring skiing and snowboarding, bikini/summer clothing season, Easter, graduation, Cinco De Mayo, Mother's Day, Father's Day, NHL peak season, NCAA tournament, NBA playoffs, summer jobs and camps, BBQs, Memorial Day Weekend, camping, summer vacations and "staycations", and final exam period. 

 

Lighten up: Teenagers also relate to humor, silliness, and irreverence, and since teens are frequent media multi-tuskers they are often bombarded by media messages. To cut through the noise and reach this group, you may want to appeal to their silly side to ensure you stand out from the crowd.  

 

Find your Niche: Known for constantly changing their tastes and seeking out novel products, teens are fickle. Businesses can use this knowledge to their advantage in discovering large, lucrative niches by orienting themselves toward a particular teen lifestyle – gothic, hipster, urban, and so forth. With niche teen retailers like Aeropostale Inc. and Hot Topic beating analysts’ estimates, we are seeing that differentiated teen retailers are continuing to achieve results even in the midst of a recession. If you are looking to benefit from this trend in your own business, you may want to highlight your brand’s point of differentiation and showcase your newest products in your messaging.

 

Looking for a hot new trend? Believe it or not, it's modest dress. Whether it’s more of a fiscal or moral shift, understated girls’ clothing may indeed be making a comeback. When consumer insights firm BIGresearch polled 5,000 consumers last fall, 64 percent agreed or strongly agreed with the statement, ”Fashions for young people have gotten too provocative.” As teens shift toward wanting to be more comfortable and more covered, brands should be rising to meet these needs.

 

Keep it Real: Today’s teenagers share an inveterate cynicism about corporate messages - to reach them, keep your messaging honest and sincere. If you followed the recent news about Bike Hero being fake, it’s a great reminder that teens have extremely fine-tuned internal lie detectors. For brands trying to reach teens, the key factor is, and has always been, sincerity.

 

Do Good:  A national telephone survey released this February by the Federal Way-based charity World Vision found that more teens volunteer to support a charitable cause — 56 percent — than have a part-time job, at 39 percent. Today’s socially conscious teens are well aware of global warming, the importance of recycling, carbon offsets and our global footprint. They respond well to companies that share in their quest to leave the world a better place - so craft your messaging accordingly.  

 

 

 

---

[1] “The Teens Market in the US” report from Packaged Facts.

[2] eMarketer; Social Networks: Five Consumer Trends for 2009.

Posted by Yael Davidowitz-neu, Google Retail Team

Despite the current economic conditions facing the world, one could argue that we should always be striving to “Do More With Less”. So what does this mean? As a Retail analyst at Google I decided to figure it out for myself. On a daily basis all decisions that I make need to be timely, data-driven and scalable. So, in the process of eating my own dog food I thought I would review a portion of the Google “Do More With Less” web site to see if the juice was “worth the squeeze”.

The tool I will be reviewing today is called “Insights for Search” . This product allows marketers to examine what consumers are searching for over time, across categories, and within certain geographies. Let's say you are a department store or apparel retailer trying to better understand when people start searching for terms related to bathing suits. According to the graph below, it appears that search traffic patterns are consistent over time. Looking at past years helps you anticipate increased demand. Searches for swimwear start in mid-December over the holiday period (perhaps for warm winter get-aways or gifts). Interest in swimwear continues to climb in the beginning of the year and peaks in mid-winter, when people are taking warm weather vacations.

Marketers can time when to increase budget as interest level increases so that your advertisement is there when people are searching for you. It might not be obvious that swimwear searches are increasing right now, in February (although given the cold weather, I can see why people are dreaming about the beach). If we type bathing suits into Google, we see that Victoria’s Secret, JC Penney, and Newport News are doing a good job of attracting the consumer interest.

If we look at the bottom of the page, we see the fastest rising search terms for this category. One search term, “monokini” rose 700% over the past two years.

Refining the parameters of your report may help provide insights to Retailers on how to take advantage of trends and make informed, merchandising decisions. In addition, marketers can use this information to better time promotions and advertising to meet consumer demand. So the real question for retailers is… Are “monokinis” back after a ten-year hiatus?

Interesting trends aside, here is what I found while playing around with Google Insights as well as the other free products on Google’s “Do More With Less” web site: a plethora of easy-to-use, insightful tools which could help me perform my daily job, better. A wise man once said data is free but the effort and imagination required to use it is expensive. At the end of the day, it is not about which tools you use, but rather that you use free data to make effective decisions, letting you “Do More With Less”.

Posted by David Kaul, the Google Retail Team

Where is Dear Abby when you need her most? Dear Abby, the ubiquitous advice column launched in 1956 and now published in over 1,400 newspapers, always has the right answer to life's most perplexing situations. Not sure how to deal with pushy in-laws? Wondering how to write a condolence letter? Dear Abby always has a simple, uncomplicated answer.

As retailers deal with one of the most challenging quarters in recent times, what might Dear Abby advise? Is there some simple, straightforward advice that might help all retailers navigate today’s challenges?

Dear Abby,

I am so confused by the sales on my website (which sells a unique assortment of this and that.) This quarter, everything seems to have stopped! Earlier this quarter, lots of shoppers were coming to the site, looking around, spending more time than ever…but just not buying. I have to admit my traffic and sales increased between Black Friday and Cyber Monday….but now I’m seeing a slowdown again.

My products haven’t changed. My marketing is the same. It all used to work so well! Why aren’t people buying these days? What is this nonsense of “trading down and across?” I’m so confused - should I quit spending on search and banners? Can I just turn off the site, bunker down at home and flip the switch on again next spring?

Signed,

Perplexed

We believe that Dear Abby would offer some basic, no-nonsense recommendations that any retailer could follow.

Dear Perplexed – This is certainly not the time to shy away from the challenge! You need to maintain your focus and work through the remainder of this quarter. Your efforts today will not only help you weather today’s troubling economy, but will help build a stronger foundation for the future.

Want to continue to drive sales? This is the time to continually test and optimize. One of the benefits of digital marketing is the ability to test different messages quickly and relatively inexpensively. Consider A/B testing to find those tactics that lead to an online sale. Try offering free or reduced shipping to a select group of consumers and watch the impact on sales. Continually refine your offers, landing pages and promotions. Pay attention to what your consumers are reacting to – and stop wasting time (and money) on those that aren’t.

Ted Vaughan, from the Retail and Consumer Product Practice at BDO Seidman, reminded us in a recent article "the Internet makes it so easy to browse; they (consumers) will be able to find other products they may not have had in mind”

Greg Thomas, the Director of research and programs at The Emory Marketing Institute agrees, recently advising retailers to “…shift assortments and promotions toward a value focus.” So listen to these experts - be creative, suggest cross sells, accessories and upsells to your site visitors – make it easier for your consumers to find new and unexpected items to add to their shopping cart.

While you’re testing offers, don’t lose site of the value of your brand. Ensure consistency across your channels so that every touchpoint with the consumer works to reinforce your brand. Don’t confuse them with different colors or offers on your site. Snowflakes in your store? Then make sure they’re on the site. Circuit City’s “One Price Promise” is the latest example of brand consistency across channels…can you say the same about yours?

This is not the time to lose market share to your competitors. Although it’s tempting to reduce spend, the competition is still spending. Maintain those marketing expenses that provide the strongest return. Make sure you continue being top of mind and part of the consideration set for your existing customers. Those same messages reinforcing your brand to existing customers will introduce your brand to new customers, giving you an opportunity to increase your customer base for future growth.

The Internet may be an accepted channel for those of us in the business, but many Americans have yet to discover the convenience and ease of online shopping. Use this time to learn more about your customers, test your marketing and reinforce your brand so that you’re even stronger for future opportunities.

- Abby

Posted by Kathy Daly-Jennings, the Google Retail Team

Unemployment is up, Consumer confidence is down, is this really the season to be jolly?! If ever we needed retail therapy its now! And shoppers have gone to the couch in huge numbers…with laptops in hand. Google search driven traffic is up nearly 30% over last year in categories like Home Furnishings, Home Improvement, Consumer Electronics and Jewelry and Watches. Even Apparel and Office Supply search driven traffic is up almost 25% year over year.

If predictions by the National Retail Federation ring true the forecasted holiday sales growth in Retail overall will be hovering around 2%. But for online retail the outlook is a bit more festive with Forrester Research predicting retail sales this holiday season will grow 12%. Online will play a role in 86% of the upcoming holiday shopping season both as a research tool and to make purchases; beating out "in-store" (54%) 2008 Google/OTX Holiday Shopping Intentions Study . According to the latest Internet Retailer survey, 81% of retailers believe their holiday web sales will grow this season. Shop.org reports, in their 2008 eHoliday Study conducted by Shopzilla, that 56% of online retailers expect their holiday sales will grow at least 15% year over year.

So what can retailers do to channel Dr. Phil? Shoppers are beginning their holiday research and shopping earlier this year so make sure your sites are ready to accommodate the increased traffic. Free shipping and promotions are already in full swing. To ensure you are there when and where shoppers are looking for you don't cap your search budgets (would you close your doors at 2pm because there were too many people trying to enter your store -- we know Dr. Ruth wouldn't). Consumers are expected to spend more time researching this holiday season, so give these info hungry shoppers everything they need. According to Shop.org, 33% of retailers have added reviews and 43% have added video to their sites. If you have product videos load them up on YouTube, its free and a great way to reach consumers. Lastly, if you are reading this post you are probably already know all about search but don't ignore the power of display advertising. Search is great and Display is great but together they are like Frasier and Niles.

Posted by Paulita David, the Google Retail Team