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When it comes to people researching and finding local businesses, search trumps all alternatives, including a merchant’s own website, according to data released in October 2011 by CityGrid Media and Harris Interactive. Results of the 2011 Online Consumer Research Study show nearly six in 10 (59%) US adults say search engines are the first place they go when researching a business online.

In comparison, only 8% of adults say they first visit a merchant’s website, while 4% visit a reviews site. Furthermore, the popularity of search skyrockets with the younger set: 83% of people younger than 35 say search engines are the first place they visit when researching and finding local businesses.

Percentages Closer on Mobile Phones

Study results show consumer behavior changes when people are on the go and need to make a timely decision about where to head. When researching a local business on their mobile phone, adults are nearly as likely to base their decisions on a review site as they are a search engine.

While 17% of adults say they are most likely to base their decision on a search engine when researching a local business or restaurant from their mobile phone, a similar proportion of adults (15%) base their decisions on review sites. The same percentage of mobile users (8%) go to the merchant’s website as do PC users.

“Search has gotten incredibly adept at unearthing and showcasing content from the local reviews sites, so more and more consumers aren’t going past the search results page to get the local information they want,” said Kara Nortman, SVP Publishing at CityGrid Media. “Merchants need to take an active role in how they are being presented online, not only on their own website but within the content on reviews sites that is spidered and served up front and center in those 10 blue links.”

Consumers Don’t Like to Travel Far

When it comes to trying a new local business, study results show people like to stay close to home. The majority of respondents said they will not travel more than 30 miles to try someplace new, but many are willing to exceed the 15 mile mark.

Three out of every five adults (39%) are willing to travel between 15 and 30 miles to try a new local business. However, Only one in every five adults (20%) are willing to travel more than 30 miles; the other 80% won’t make the trek. And nearly one-third (32%) say they would travel less than 15 miles.

e-tailing group: Search Engine Top Starting Point

When asked where an online product research process usually starts, more than four in 10 (44%) start with a search engine and look for top search results relating to the product they desire, according to an August 2011 study from study from the e-tailing group and PowerReviews. Another one in three (33%) start with retailer sites.

One in five (20%) use manufacturer sites. Only a combined 3% start their online product research process with the social media methods of reaching out for Facebook recommendations or posting a question on Twitter.

About the Data: CityGrid Media commissioned Harris Interactive to field this study, which was conducted by telephone between August 24 – 28, 2011 among a nationwide cross section of 1,003 adults, age 18 and older.

Marketing Charts, “Search Top Local Biz Research Method”, October 28, 2011

Google, which recently shared some big numbers from its mobile advertising business, has some advice for marketers hoping to join in its success: make your mobile presence presentable, now.

“Businesses need to be ready for mobile as soon as they can, particularly this holiday season,” said Surojit Chatterjee, Google’s lead product manager for mobile search ads. “You need to have a mobile site irrespective of whether you think people will actually make purchases from it. How good your site looks on mobile determines how people think about your business.”

Even though mobile advertising is still in early days, he said,

Mobile search volume is growing at a rapid clip. Over the past two years, Google has seen mobile search queries grow fivefold—a growth rate he compared to the early days of desktop search.

According to research firm Forrester, while 13 percent of the U.S. population searched with a mobile device in 2010 (90 percent with Google), mobile searchers will account for 28 percent of the U.S. population by 2015.

Early experiences now can have lasting consequences, Chatterjee said. Citing analysis from Gomez, another research firm, he said that 60 percent of users indicated they would be unlikely to return to a mobile site if they had trouble accessing it once and 40 percent said they would actually visit a competitor’s site. Beyond that, 63 percent said they would be less likely to buy from the same company through other channels (online or in the store).

“Users are looking at the mobile site to make conclusions about the business as a whole,” Chatterjee said.

Given the increasing number of smartphone users, he said as the holidays approach it will be ever more likely that consumers will try to reach marketers on the go.

This holiday season, Google expects that 44 percent of total searches for last minute gifts and store locator terms will be from mobile devices.

While Google has a clear lead in search now (on mobile and desktop), some industry watchers have wondered whether the search giant can maintain its top position as more consumers transition to mobile devices.

Its earnings report earlier this month, however, gave Wall Street a reason to have some confidence in CEO Larry Page’s belief that mobile search could be as big for Google (if not bigger) than desktop search.

In a rare move, the company broke out revenue from mobile advertising and said it was on track to bank more than $2.5 billion in that category in the coming year, and grew twofold in the last year.

Chatterjee said its success comes from building specifically for the new medium and catering to user behavior on the platform. For example, leveraging research that users tend to act more quickly after a mobile search, Google recently launched new ad formats that let users download apps from a mobile ad or reach a specific destination with a mobile app they already have on their phone.

A user searching for a pair of boots from her mobile phone, for example, can now go directly from an ad to a shopping app on her phone, so that she can more easily complete a purchase.

Other mobile features capitalize on the interest in local information—according to Google, 40 percent of mobile searches on Google are related to location. Two years ago, the company released a click-to-call feature that lets smartphone users call a business directly from an ad. This month, Google announced that proximity to a business would be a factor in mobile search ads ranking.

“We are building specifically for the medium,” Chatterjee said. “We are really, as an industry, speaking to the mobile user and taking into the account the signals we have on mobile phones, the constraints on mobile phones and the user behavior trends on mobile phones.”

Adweek, Ki Mae Huessner, October 27, 2011 “Google to Markerters:  Get Better at Mobiel”

Stop & Shop is expanding its pilot of an app that enables shoppers to use their mobile phones to scan, tally and bag their groceries to an additional 42 stores.

The Scan It! Mobile app was first introduced in August by the Stop & Shop Supermarket Co. at three stores in Massachusetts for the iPhone. In addition to the geographic expansion, the app is also now available for many Android devices.

“Stop & Shop is pleased with the initial launch and the ease of use and convenience provided by the grocery industry’s first mobile shopping app,” said Judi Palmer, director of marketing and external communications at Stop & Shop New England. “The expansion to the additional 42 locations will enable the company to further quantify the value to shoppers as one of Stop & Shop’s primary goals is to help our customers save time and save money.

“The new app is being promoted to our customers via the circular, email, direct mail, in-store signs — print and digital — and greeters who will be at each store during the first two weeks of availability to assist our customers with downloading and trying Scan It! Mobile,” she said. “The interest has been extremely positive to date.”

Personalized offers
The Scan It! Mobile app replaces an in-store handheld Scan It! device currently in use across 350 Stop & Shop stores.

In addition to giving customers a way to scan, tally and bag their own groceries, the mobile app also provides personalized offers based on a shopper’s location in the store and purchase history. Users of the app receive between eight and 10 targeted coupons per shopping trip.

“This is further support for the increasing importance of mobile in shopping and especially for CPG goods at supermarkets, convenience stores and pharmacy,” said Paul Gelb, vice president of mobile at Razorfish, Seattle, WA.

The Scan It! app is step in the right direction in terms of bringing mobile solutions to grocery store shopper but the mobile shopping experience will continue to evolve over the next couple of years, per Mr. Gelb.

The question that is arising is if the best time to grab the attention of a busy mom is during the shopping experience at the shelf or at some other point during her day?

“What we’re seeing more and more in our consumer research is that the in-store consumer touchpoint is valuable but it is not the only time and place that has a significant impact on the shopper,” Mr. Gelb said.

“It will be interesting to see how marketing will be executed in a way to reach consumers at other points in the day when they might have a greater share of their attention,” he said.

Scan It! Mobile is currently available in 22 stores and is being rolled out to another 23 stores in the coming weeks. Stop & Shop expects to make the app available in a total of 45 stores in Massachusetts, Rhode Island and Connecticut by the end of the year.

Stop & Shop will roll out Scan It! Mobile to additional stores throughout 2012.

“This is really the beginning of understanding what our customers want when it comes to new mobile technology,” Stop & Shop’s Ms. Palmer said.

“Scan It! Mobile plays a key role in the shopping journey and we intend on building further enhancements to improve its overall experience.”

Mobile Commerce Daily, Chantal Todd, October 27, 2011

Retail giant Target is ramping up its Halloween strategy via mobile display and audio ads that help consumers find their ideal costume either in-store or through the company’s mobile commerce-enabled site.

The company is running the targeted banner ads within Pandora’s iPhone app. Target has run mobile ads within Pandora in the past to promote its timely deals and grocery initiative.

“It’s extremely smart for large retailers to run mobile ads that drive consumers to the mobile site, as well as in-store,” said Marci Troutman, CEO of SiteMinis, Atlanta.

“For last-minute holiday shopping, the find a store component is extremely useful, especially if the ad is geared toward last minute holiday items that are selling quickly,” she said.

“The consumers can receive the mobile landing page, see the desired product, either click to buy directly from the mobile commerce site, and have it shipped, or find a location that has the item in stock that is closest to them.”

“ROI on mobile can be quickly proven throughout the holidays this year, with just such ads being run, not only for mobile but for every marketing aspect of a large retailer, from print, to TV, and to social.”

Ms. Troutman is not affiliated with Target. She commented based on her expertise on the subject.

Mobile Marketer -By Rimma Katsm October 25, 2011

Since the launch of the first mobile Internet banking services in 1999, many financial services firms have launched mobile ad campaigns to publicize and promote their products and services.

Banks were natural first movers in the space, recognizing that they could provide a convenient anytime, anywhere extension of their Internet banking services on the mobile Web with only slightly diminished functionality. Clients could now use their phones to check account balances, manage credit cards or loans, and transfer money between accounts.

Yet over the past year, we have seen dramatic increases in the rate at which financial services companies have moved into mobile, and equally sharp increases in their levels of investment. Clearly, the mobile medium is achieving critical mass.

Thanks to:

By KF Lai, CEO of BuzzCity; Mobile Commerce Daily; Mobile Banking Reaching Critical Mass

Home Depot is one of the leading mobile retailers

In its third annual Mobile Audit, Acquity Group found that retail adoption of mobile strategies such as mobile sites and applications jumped significantly in the past year and pointed to the accomplishments of leading mobile retailers such as Amazon, Home Depot and Walmart.

According to the report, there has been a 210 percent increase in the past year in the number of top retailers with a mobile site and a 278 percent increase in the number offering mobile apps. The results show that 2011 was the year that retailers accepted mobile as a key platform for growth and customer engagement.

“For the last couple of years, everybody has said that this is going to be the year of mobile,” said Tom Nawara, vice president of digital strategy and design for Acquity Group, Chicago.

“It is obvious that mobile is here from the huge increases in adoption that we saw,” he said. “It is definitely here and it is not going away – it is a core tactic that retailers need to be addressing.

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“Consumers are really expecting retailers to have mobile optimization in one form or another.”

Device specification wanes
Acquity’s Mobile Audit analyzes the rate of mobile adoption by Internet Retailer’s Top 500 companies.

In 2011, 37 percent of retailers have a mobile optimized site compared with 12 percent in 2010 and 4 percent in 2009.

Retailers are getting behind mobile apps in a bigger way as well, with 26 percent offering such apps in 2011 compared with 7 percent in 2010.

The study also found that one in four retailers have at least one mobile app, with nearly a quarter developing for the iPhone, followed by10 percent for Android. And, 18 percent of companies had both a mobile site and an app.

One surprising finding was that the percentage of companies with a site optimized specifically for the iPhone decreased from 11 percent in 2010 to 9 percent in 2011.

However, such non-specialization is expected to continue as mobile browsers become increasingly similar.

“The overall trend will move away from device specification for the mobile Web as modern browsers become consistent across platforms,” Mr. Nawara said.

The top 10 best-in-class retailers when it comes to mobile, according to Acquity, are Amazon, Armani Exchange, Barnes & Noble, Buy.com, Cabela’s, Gilt Groupe, The Home Depot, Newegg, Walgreens and Walmart.

The retailers were singled out for their focused commitment to mobile as well as their execution of mobile tactics such as mobile optimized sites, strong transactional functionality and well-designed apps that meet customer needs.

The results also show that retailers are following industry trends in terms of how they approach smartphone platforms, with 23 percent of companies offering an iPhone app while very few had BlackBerry or WebOS apps.

Apps for Android had the highest rate of growth over last year at 20 percent for a total share of 10 percent.

The adoption rate for mobile apps varies significantly by retail sector.

Acquity Group’s analysis shows that retail segments such as health and beauty as well as food, drug and mass merchants had an average adoption rate for iPhone apps of 66 percent while groups such as flowers and gifts as well as hardware and home improvement had an adoption rate of 36 percent.

“Even with the incredible rise in the numbers that we are seeing, there is still a huge opportunity to meet customers’ expectations,” Mr. Nawara said. “Right now, 63 percent of retailers are not optimizing their site for mobile.

“Retailers need to be considering mobile apps to extend their brand and tcommerce should absolutely be considered as part of an overall mobile strategy,” he said.

Thanks to:
Mobile Commerce Daily, Amazon, Home Depot, Walmart best-in-class mobile retailers: Acquity Group; Chantal Tode is associate editor on Mobile Commerce Daily, New York