The Emerging Online-Offline Paradigm

Event: Kelsey Group Drilling Down on Local Search 2005

Session Title: The Emerging Online-Offline Paradigm

Session Date: April 19, 2005

Session Time: 8:15 am – 8:45 am

Session Description:
Notwithstanding the big gain in online holiday shopping, e-commerce remains a tiny fraction of offline consumer spending. But that fact does not reveal the degree to which consumers are increasingly using the Internet to conduct research and shop for products and services, especially in their local markets. Indeed, one hypothetical definition of “local search” is Web-influenced offline transactions. The Kelsey Group will present new consumer research findings about changing media use and how the Internet is affecting traditional media and offline commerce.

Session Participants:
Greg Sterling, Program Director, Interactive Local Media, The Kelsey Group

Related Posts: buzzhit!’s Drilling Down on Local Search 2005 Index Page

Session Details[*]:

– 2004 Q4 ecommerce was $21.4B (22% YOY increase)
– Still only 2.2% of total retail
– $70B or 1.9% for all of 2004

Online Influence:
– 39% of US consumers made a local purchase after Web research
– 92% influced by Search Engine usage in Consumer Elects/Compus were made offline
– 74% research online buy offline
– 62% of US consumers prefer to buy offline

Local Internet Growing
– Internet => Newspaers and Yellow Pages for local shopping research
– Internet rated higher on 10-pt excellence scale than NP or YP
– Purchases over $500, 34% started online, 90% transacted offline

[Ed: Narration of a failed attempt to purchase a photo printer online that ends up in the consumer purchasing the product offline, at a premium price, in order to get the convenience and confidence he requires in a transaction. Included online coupon search and usage.]

– Internet being integrated heavily into consumer resaerch/buying behavior; notable as 98% of purchases are local
– Broadband users rely on Internet as a powerful and often primary shopping tool (depending on category)
– Local consumer behaviors are now more complex, creating new complexity for marketers – esp local SMEs
– The question becomes, where do you put your ad dollars to engage consumers at strategic points in the buying cycle

* These are raw, unproofed notes taken in real-time. Nothing attributed to any speaker should be assumed to be an exact quote. Rather, my goal was to capture and communicate the essence of what was said. If there is a significant mistake, please post a comment or email me; I will make a correction at my earliest opportunity.

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