Posts Tagged ‘Consumer Behavior’

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Wednesday, July 23rd, 2008

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J.C. Penney saw 8.7% growth in online traffic for the first quarter of 2008, while same store sales saw a 7.4% drop. Gap saw a 21% increase in online sales compared with an 11% decline in same store sales.

Looking for a way to get shoppers to buy from your site? Free or discounted shipping is a popular strategy. Makes sense, doesn’t it? If people are looking to save on gas, then reduced/free shipping is all the more reason to buy online. Or try couponing, which is up 56%.

The Times also points out that deals on shipping are a stark contrast to businesses who raise fees to cover their costs due to increasing gas prices (yeah, we’re talking about you, airline industry!).

Are you noticing a change in consumer behavior due to rising gas prices? Let us know in the comments.

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Thursday, July 17th, 2008

has an excellent Q&A with Google’s Tim Armstrong. Here are some choice excerpts that show where Google’s headed and why.

Canadian Business: What are some other emerging trends you’re seeing in Internet advertising?

Tim Armstrong: Social networking will be a big part of online advertising in the future. There’s also going to be a lot more analytics beneath Internet advertising. It’s still hard to measure how different types of online ads and targeting techniques affect a consumer’s perception of a brand. We’re also excited about mobile opportunities.

CB: How big could mobile advertising become for Google?

TA: It will vary depending on the country. For example, in some developing countries, the infrastructure is being built more for cellphone access than stationary computer connections, and some people are skipping the computer generation altogether. We’ve done a lot of mobile testing in Japan, which has done a nice job of building high bandwidth access for cellphone users. I don’t think one mobile search will eliminate one computer search or interaction on the web. Consumers have different needs when they’re using those devices.

CB: How will the advertising industry change in the future?

TA: Advertising over the last 50 years has been about coming up with a big idea, planning around it for a year, then launching a six-month or year-long campaign for a product or service. In the future, advertisers will come up with 10, 100 or 1,000 creative messages for their products and services, then run, test and optimize them in real time. Campaigns won’t be based on a time schedule, but on consumer behavior patterns.


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