Shop 'Til You Drop: Digital Influence on Retail Sales Hits $2.2 Trillion

Published on
May 21, 2015
Contributors
Megan Malone
megan@vicimediainc.com

Megan Malone is a Founding Partner with Vici, and leads our Operations division.  Megan has both a radio and digital marketing background working for the Philadelphia Eagles, Beasley Broadcast Group, and Cox Media Group. In her career she has helped plan and implement thousands of digital media campaigns.   She holds a certification from Disney Institute’s People Management, Google Analytics, and was awarded the top 10 advertisers in Louisville from the American Advertisers Federation.  In her free time Megan is relaxing in Phoenix, Arizona with her husband Dave and toddler Zoey.

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Could this be the end of coupon mailers and Sunday ads

The year 2015 has shown an immense positive correlation between digital advertising and in-store retail sales. Digital advertising is expected to influence 64 cents of every dollar spent in retail stores, or $2.2 trillion, by the end of this year

Shop Til You Srop

This figure has grown considerably since 2012, where digital advertising accounted for only 14 cents of every dollar spent

So how does your business increase its digital influence? Digital influence is defined as the relationship between in-store sales and shoppers’ use of digital devices. Mobile devices have directly impacted more than ¼ of in-store sales in 2014, which translates to 57% of digitals total impact on retail sales. As consumers grow more dependent on digital devices to provide convenience to their everyday lifestyles, retailer’s become responsible to deliver to their customer’s needs

Digital Influence on Retail Sales

Despite market volatility, the retail sector has remained strong thanks to the adaptation of digital marketing. In the last five years, the top 25 established retailers have lost 2% of their combined market share, but smaller retailers who entered the market with digital as one of their strategies have multiplied their revenue

Consumers are even using digital while they shop and those who do are 20% more likely to convert. And it doesn’t stop there. Consumers who access social media while shopping are four times more likely to spend more during a shopping trip

Shopping is now a process of researching, exploring and making decisions based on how the products appeal to you. Rarely do shoppers aimlessly wander through stores looking for a product to purchase. Customers walk into stores knowing what they want and need based on the research they have conducted on their digital devices beforehand

Businesses face the responsibility of designing experiences that play to how their customers shop for their products. Instead of pointing directly to their product or service, businesses can integrate digital strategies like reputation management, SEO, and keyword targeting to give potential customers the inspiration and research points they are looking for.

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