IAB Ecommerce Report Warns Marketers Must Assess Strategies
The Australian Ecommerce Report 2022 released today by IAB Australia and Pureprofile (ASX: PPL) has found that while shoppers have been able to get back into physical stores, regular online purchasing for both groceries and retail products have increased since last year with 83 per cent of online shoppers buying every month.
Convenience was named as the number one reason for purchasing online by 77 per cent of respondents, while value for money was identified as the most compelling feature for online brand purchases by 84 per cent of respondents. Fast shipping declined as a driver of purchases.
The Australian Ecommerce Report 2022 found that seamless omnichannel shopping experiences that deliver convenience and value for money will present the biggest opportunity for brands this year as shoppers return instore.
However, it also issued a warning to retail marketers to assess their marketing strategies more regularly into 2023 to ensure they can adjust activities to respond to economic changes, navigate the continuing influence of covid, optimise shoppers omnichannel experiences and bolster confidence among hesitant shoppers.
The Report, which is based on research conducted with 1,000 Australian online shoppers examining the consumer attitudes, behaviours and influences driving ecommerce in Australia, identified clothing, shoes, and fashion as the most popular online purchases in the last year at 74 per cent, up slightly from 72 per cent in 2021. The largest online shopping growth area was the purchase of groceries, increasing from 54 per cent in 2021 to 64 per cent in 2022.
30 to 39-year-olds were identified as more likely than any other age group to purchase a range of different products online, while 18 to 29-year-olds were most likely to purchase jewellery, handbags, and accessories online; and 40 to 49-year-old were interested in electronics, technology, and mobile phone purchases online.
Two thirds of online shoppers were reported as saying cost of living pressures mean they don’t have as much to spend on less essential retail shopping this year, while 65 per cent reported the potential for further interest rate rises means they are more cautious about spending, particularly young families.
Those currently experiencing cost of living pressures are more attracted to online shopping for price comparisons and for finding specific products. They are more likely to be looking for value in programs such as store loyalty cards.
The research explored consumer engagement with retail media channels, with 58 per cent of online shoppers regularly reading retailer content. However, it also reinforced that retailers need to be clear and transparent about their usage of shopper data provided via their transactions, with 55 per cent of online shoppers somewhat or very concerned.
A further 11 per cent of online shoppers note that their level of concern depends on how much they trust the retailer they are providing data to. Most online shoppers do understand that their data is used for targeting advertising and marketing, however 24 per cent don’t know whether retailers share their data with other companies.
Online search remained as the key to discovering brands when shopping online, however word of mouth has strengthened as a source of inspiration. 59 per cent of 18-29’s use social media for product inspiration, while 30-39’s rely more heavily on friends and family or shopping events and over 50’s were most heavily influenced by online search and emails from retailers.
Gai Le Roy (pictured), CEO of IAB Australia said: “Since the onset of COVID in 2020, consumer online habits have changed, and retailers have made investments in digital transformation which has resulted in a huge growth in ecommerce expenditure. This growth has continued into 2022 but with the expectation of future economic downturn, retailers will need to service customers who have embraced the convenience of home delivery as well as click and collect but are increasingly price sensitive.”
Martin Filz, CEO of Pureprofile added: “After a challenging period where retailers were forced to pivot to online and many flourished, those retailers now find themselves at an interesting juncture – needing to maintain their growth while also being aware of the economic environment. Through this year it will be especially important for retailers to keep close to their consumers and examine changing sentiment swiftly.”
Other research findings include:
- 47 per cent of online shoppers have purchased from a direct (to consumer) brand, while 31 per cent have purchased multiple direct brands. Direct brand shoppers tend to be younger and more frequent online shoppers and they maintain strong customer loyalty with 64 per cent of online shoppers purchasing from their favourite direct brand on multiple occasions and 61 per cent reporting they would rarely or never buy their favourite direct brand product from a different business. 39 per cent of direct brand shoppers are subscribed to a product delivery service.
- 48 per cent of online shoppers are aware of shoppable advertising, with 21 per cent of 18-29’s and 25 per cent of 30-39’s having made an online purchase this way.
- While value for money stands out as the most compelling feature of brands purchased online, hygiene factors such as being simple to buy and having quick and easy returns are also important.
- Digital touch points which also provide rich behavioural data for retail marketers are dominating retailer communications. 58 per cent of online shoppers often read content produced by retailers, with websites and emails topping the list, while physical catalogues and free reading magazines have both declined year on year.
- Rewards programs continue to thrive with nine in ten shoppers signed up to at least one shopper reward program. 40 per cent of those signed up to rewards program have four or more cards (down from 45 per cent in 2021).
- Nearly half of online shopper’s report that purchasing from ethical brands is important to them, while 29 per cent of shoppers said that if they trust a brand, they will buy without looking at the price. Community connections built during COVID being maintained, with the Report finding 47 per cent of respondents indicated they are now more likely to buy from companies they feel behaved well during the COVID crisis and 48 per cent buying more things from online from local retailers.
Latest News
Sydney Comedy Festival: Taking The City & Social Media By Storm
Sydney Comedy Festival 2024 is live and ready to rumble, showing the best of international and homegrown talent at a host of venues around town. As usual, it’s hot on the heels of its big sister, the giant that is the Melbourne International Comedy Festival, picking up some acts as they continue on their own […]
Global Marketers Descend For AANA’s RESET For Growth
The Australian Association of National Advertisers (AANA) has announced the final epic lineup of local and global marketing powerhouses for RESET for Growth 2024. Lead image: Josh Faulks, chief executive officer, AANA Back in 2000, a woman with no business experience opened her first juice bar in Adelaide. The idea was brilliantly simple: make healthy […]
Is Meta’s New AI Chatbot Too Left-Wing?
Meta's chatbot accused of being left-wing after being caught wearing a Che Guevara T-shirt & listening to Billy Bragg.
TV Ratings (23/04/2024): Why Did No One Tell Angela That Farmer Wants A Wife Is Set On A Farm?
As wonderful as this headline is, let's face it, we all know an 'Angela', don't we?
PubMatic Unveils New AI Partnership To Turn Social Posts Into Ads For Any Digital Channel
Here's some nifty tech for turning social posts into ads. Assuming said posts aren't one-star character assassinations.
Intuit Mailchimp Makes A Splash With Its First Australian Brand Campaign
Ever laugh along at a gag you didn't get so as not to appear dumb? Get ready for more feigning with this new work.
GumGum’s Rob Hall: Advertisers Can No Longer “Rely On Binary Descriptions” Of Consumers
If anyone's got their finger on adtech's pulse, it's Rob Hall. He also avoids using the good paper in the office printer
Mastercard Nabs Florencia Aimo From Marriott International
Marriott International's Florencia Aimo jumps from the hotel business to the exploitative credit card one.
Bastion Agency Appoints Cheuk Chiang As New ANZ CEO
Cheuk Chiang takes the reins over at Bastion Agency. But not the rains down in Africa.
Spotlight On Sponsors: Major Sponsorship Wins After A Disappointing Week In Sport
B&T continuing our deep dive into local sport sponsorships & that's despite not a single offer of a free ticket as yet.
Macca’s Marketing Director, Samantha McLeod On Big Mac Chant: “What Was Once Old Is Now Cool Again”
Macca's using the power of nostalgia in latest Big Mac campaign. Well, only for those who've ever eaten one sober.
World Premiere Of Midnight Oil: The Hardest Line To Open Sydney Film Festival 2024
Oil's biopic to open Sydney Film Festival. Here's hoping Molly Meldrum will take his pants down at the premiere.
Entries Are Now Open For The 2024 Brandies, IntelligenceBank’s Annual Brand Marketing Awards
The Brandies are, of course, a prestigious marketing gong and not the mystery tipple favoured by nannas everywhere.
The Fred Hollows Foundation Appoints Ardent For PR
Yes, we all like to have a joke at PR's expense. But sometimes it does important work, like this.
AI, eCommerce & Marketing Specialists Are In Increased Demand By Businesses, New Data From Fiverr Shows
Has your philosophy & anthropology degree left you with nothing but a huge HECS debt? Here's what you should've studied.
Perth’s First 3D Anamorphic Billboard Arrives Courtesy Of oOh!media
Do you love a buzzword? Now you can add anamorphic to the list as it relates to billboards, not a colleague's ears.
MasterChef Australia & Crown Resorts Launch Unique Dining Experience With ALUMNI
A pop-up restaurant staffed by MasterChef contestants! That's fine dining prices for first-year apprentice chef cuisine!
Amanda Laing Announces Resignation From Foxtel Group
Foxtel's chief commercial & content officer heads for the exits. Read nice things the bosses said about her right here.
The Lost Letters From Our Diggers: News Corp Unveils ANZAC Day Special
It's nice when brands respectfully acknowledge ANZAC Day.
Howatson+Company Acquires Akkomplice
Large indie acquires a slightly smaller indie. Much like a shark eating a tuna, just with less thrashing and blood.
Google Delays Third-Party Cookie Deprecation Again
In good news for the sale of picture library biscuit photos, Google continues to tease over the end of cookies.
Education A Low Priority For Aussies More Concerned With Cost Of Living Forethought Study Reveals
Study finds Aussies cutting back on education due to cost of living. Booze & Uber Eats sales remain largely unaffected.
“I’m Still The Same Person That I Was”: Rikki Stern Says “Fucc It” To Cancer Stereotypes
B&T always happy to promote the anti-cancer cause. Even brands that massively overdo it with the hot pink.
The Unapproved Climate Certification Allegedly Causing Mass Greenwashing
Are you left flummoxed in the canned tuna & free range eggs aisle? Just wait till this green certification gets up.
TV Ratings (22/04/2024): Fans Mock “Over The Top” Reaction To New MasterChef Judges
MasterChef returns for its 2024 season. B&T stands by putting peppercorns in Gravox & no one will be any the wiser.
Dentsu Restructure: Muddle, Harvey & Johnston Take Leadership Baton As Bass & Yurisich Exit
A large broom has swept through Dentsu's local ops this morning, taking with it some big names & the air con's cobwebs.
Industry Shares Trends Shaping The Industry This International Creators Day
B&T's asking adland creators to reveal their top trends. And it's not good news for your Jenny Kee cardigan collection.
Mable Extends HOYTS Sensory Screenings Partnership
Mable has extended its HOYTS sensory screening partnership. Vigorously defends its two-star Oppenheimer review.
Orphan Launches ‘They Need Our Help. We Need Yours’ For Children’s Cancer Institute
Anything to do with childhood cancers has B&T's 110% support. That said, we do ignore the red meat & alcohol warnings.
Smile Team Orthodontics & Keep Left Collaborate On Smile-Inducing Campaign
As parents would attest, given the cost of orthodontics you'd expect this campaign to be a lavish production indeed.
Opinion: How Video Calls Neglect Learning Diversity
Need an excuse to duck out of a video call this arvo? Show this to your boss.
DoubleVerify Achieves First-Of-Its-Kind Responsible AI Certification From TrustArc
DoubleVerify receives responsible AI certification. However, not its robotic vacuum that's been seen menacing the cat.
Smile For A Good Cause: The Social Media Campaign Giving Back To The Community
Are you known as the office Austin Powers? More for you teeth than shagability? Get snappy new fangs with this news.
Elon Musk Mocks Albo After ESafety Wins Court Injunction Against X
Albo's 2024 from hell continues - Rabbitohs in crisis, down in the polls and now feuding with world's richest man.
Real Estate Developer In Hot Water Over “Sexually Exploitative” OOH Campaign
Real estate agents again tops in the 'least trusted profession' polls, nudging used car salesmen & ad creatives.
Epsilon’s Shane Hanby: Post-Cookie Era Relies On “Teamwork” Between Brands, Marketers & Tech
This pro predicts more "teamwork" in a post-cookie era. Which spells bad news for the uncooperative or plain stubborn.