Because so many conversions were latent, the report suggests that marketers need to analyze more than just short-term click-stream data to evaluate whether their search ads are having an effect. "Retailers can more accurately measure the full impact of paid search on online conversions by tracking all visits that ultimately lead to a purchase," stated the report, titled "Search and the Engaged Customer: An Apparel Study."

For the report, Compete analyzed the online shopping behavior of its panel of two million Internet users--and also conducted a survey of over 400 apparel shoppers who used search, visited one of 49 apparel retailer or manufacturer sites, and subsequently purchased apparel offline. The study observed both Web search and sponsored search activity across Yahoo!, Google, Ask Jeeves, MSN, Lycos, and Hotbot. The study also found that consumers who used search engines were more likely to make purchases than consumers who went to retailers' sites without first using search. In a 60-day period, the online conversion rate for searchers was 21 percent, compared to 18 percent for non-searchers.

Seventy-eight percent of those who purchased apparel at a brick-and-mortar store after using Internet search reported that search influenced their store visit and purchase, and almost half--47 percent--of these buyers also purchased apparel online. Also, searchers reported spending 26 percent more on apparel annually than those who did not use search.

The study, which tracked Web search and transaction activity only related to retail apparel sites from July 2004 to July 2005, found that the number of consumers searching for apparel online jumped 30 percent year-over-year.

The study found that over a 60-day shopping period, apparel searchers spent over 30 percent more time when visiting retail sites than non-search visitors, and were more likely to engage in site activities such as customizing a product image, viewing shipping methods or return policies, and submitting an e-mail name. Notably, nearly 90 percent of online apparel searchers interact with retail sites' features.

Consumers use search throughout the buying cycle, Compete found. Consumers conduct multiple searches and use search throughout their purchase decision: 21 percent report using search to find out about new styles and brands; 27 percent use search to find out about sales and deals; and more than 50 percent report using search to find a store address, phone number, or Web site.

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