• by Laurie Sullivan  @lauriesullivan, March 14, 2010

Searches for smartphones rose 35% between January and March 2010, compared with the same time last year, according to Sara Kleinberg, head of marketing for technology for Google's technology group, which studies how consumers use the Internet to search and shop.

The internal data provided by Kleinberg confirms a joint study between Google and Compete released today, but conducted between July and October 2009. The study also makes it clear that consumer shopping habits have changed as a result of smartphone technology. Not only do people rely on search engines to research products they know about, but they also look for information on products from brands they have yet to discover.

"We found that people are increasingly searching on Google for terms such as 'new phone' or 'cool phone,'" says Kleinberg. "We think of Google search as a bit of a barometer for trends."

Apparently, consumers do too. The 2,961 online consumers who identified themselves as purchasing a wireless phone in the past three months prior to participating in the study revealed little loyalty to telecom carriers or handset makers. Those who participated were 20% more concerned this year, compared with those who participated in the prior year, about getting a phone with features and functions.

But buying a smartphone has become a more complicated purchase because they have more sophisticated features. Twenty-nine percent of consumers increased the number of online resources used in research. Sixty-three percent of people who bought phones in stores researched their purchase online first. Comparing features and price were the No. 1 and No. 2 top research conducted online at 58% and 56%, respectively.

The study finds that on average, consumers conducted 13 queries on search engines when shopping for wireless items. The study looked at searches across Google, Bing and Yahoo. Slightly more than half the consumers -- 51% -- conducted six or more searches; followed by 6%, 5 searches; 8%, 4 searches; 9%, 3 searches; 12%, 2 searches; and 15%, 1 search.

Nearly half -- 49% of buyers -- searched on non-branded terms. Some of the top 10 non-branded terms include cell phones, prepaid cell phones, cell phone plans, and cell phone companies. The non-branded terms drove sales with 30% of search-driven conversions to some major carriers, such as AT&T and Verizon, and 67% of search-driven visitors to store locate pages.

All this means little without converting searches and clicks into conversions. While consumers did about 13 searches on average, they clicked three times before making a purchase. The high volume of searches during the research phases of the consumer buying cycle provides marketers with an opportunity to increase conversions online for non-branded terms, according to Kleinberg. The study suggests that minor tweaks to a marketing strategy can bridge the gap between queries, clicks and conversions.

And while wireless carrier Web sites are influential in the decision-making process for consumers, retail stores have grown in popularity as a place for consumers to find product reviews and information about specific features. In fact, 18% said they rely on retail Web sites in 2009, compared with a mere 9% in 2008. This year, 45% of consumers participating in the study said retailer sites were influential in making the purchase decision, versus 35% last year.

"There's an opportunity for retailers and carriers to improve Web sites and make the information comprehensive," Kleinberg says. "And if consumers are making 13 search terms before making a purchase, it's important for them to buy the correct paid-search terms."