Retail ‘Ad Waste’ Costs Conversions
Digital marketers are the smartest kids in the room. Unless those e-commerce retailers are misattributing 31 percent of their transactions — which means they may be spending money in the wrong places.
“As customers continue to use multiple devices along the path to purchase, marketers need to take into account how much cross-device shopping may cost in ad waste if they do not have accurate and scalable measurement,” says a report announced today by New York-based Criteo.
The “State of Cross-Device Commerce Report” says e-commerce marketers may have cross-channel and cross-device teams, but they’re using siloed analytics that are misattributing channel and device influence on purchases. Conversions are undercounted by 40 percent, the research shows.
“It’s critical that retail marketers maximize dollars on the right channels,” reads the research announcement emailed to Target Marketing, “with a true understanding of their customer’s shopping journey across multiple devices. If not, they run the risk of miscalculating key ROI metrics — misattributing transactions, overspending and underinvesting in the wrong channels.”
Optimize Ad Spending
Track users, not channels, Criteo advises.
Consumers tend to begin their buyer journeys on smartphones, but e-commerce marketers are wrong if they think the journeys always end on another device. Not only do “smartphones, tablets and desktops now rank equally as [the] device-of-choice to complete transactions where multiple devices are used,” but “36 percent of all online purchases in the U.S. were completed on mobile, a year-over-year increase of 20 percent.” Plus, the stereotype that mobile buyers are worth less than desktop shoppers is falling apart, too. Criteo finds that tablet and desktop buyers boast about the same order values; while, surprisingly, fashion and luxury retailers have the plurality of mobile purchases at 41 percent and sports goods are seeing increasing interest.
But mobile is just one part of the story.
“Marketers not only need to adopt cross-device measurement to ensure proper attribution, but also to ensure their spend is optimized for the channels delivering the highest performance,” said Miriam Newton, Criteo’s VP of product marketing, in the research announcement.
“Cross-device measurement helps retailers to accurately identify where bottlenecks lie and optimize consumer experience and marketing spend accordingly,” reads the research.
Desktop purchases tend to dominate during the day and mobile devices rule at night, Criteo finds. But it’s likely the same user, and shopping may have started inversely. (Similarly, mobile use soars during the weekend.)
“Streamlining the path from product selection to transaction completion,” advises the study, “(think one-click ordering and smart autofill) will convert even more shoppers into buyers.”
What do you think, marketers?
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