Retailers urged to boost online media mix

SYDNEY: Half of Australian consumers research products online before making an in-store purchase, a retail study has found.

According to a report commissioned by Google and conducted by the Australian Centre for Retail Studies in December 2007, 50 per cent of consumers turn to the internet to research and compare prices. Of the 1200 phone interviews conducted in metropolitan and non-metropolitan Sydney and Melbourne, 602 respondents said they used the medium as a source of product information with a further 25 per cent describing it as the "most crucial" tool over television, radio, brochures and catalogues combined.

Speaking at the 2008 Global Retail Insight Seminar, Google marketing manager Ross McDonald said the dynamic of modern consumers is changing, with more and more turning to the internet as part of their shopping cycle.

"We're not saying television, press and radio aren't important, they do draw sales. The question is how do you integrate those forms together? How can you make sure what's happening above the line in press, print and catalogue is supported by what it is you do online during the web?"

McDonald said there were a number of options for brands and retailers, including online advertising and initiatives which promote their web address. URL's printed on receipts, catalogues, store uniforms and shopping bags were all viable options, he said.

"Make sure you're there when shoppers want information," McDonald urged. "This is not you interrupting their favourite television show or sports broadcast or magazine reading with a glossy ad. This is someone who's searched for you to find out about you and your product."

McDonald said many international retailers, including US multi-category giant Wal-Mart and UK chain Argos, were moving to a "reserve online and collect in-store" format. The system allowed consumers to book products online and collect them from their nearest location, using existing distribution systems to ship items to smaller stores if necessary. This also attracted impulse sales as consumers collect the reserved goods, McDonald said.

"Shoppers still want to go to stores, they still want to pick up products, they still want to look at things, they still want to compare with their friends. People are excited by entering retail environments."