• by Jack Loechner , Staff Writer @mp_research, January 14, 2005

Most Search Influenced Buying Occurs Offline

comScore Networks recently released the findings of a study revealing the impact of search engine usage on the online and offline buying process. Among the other findings, the study revealed that 25 percent of searchers ultimately purchased a consumer electronics or computer (CE/C) product and that an estimated 92 percent of these purchases occurred offline. Among the 8 percent of post-search purchases that were made online, the vast majority occurred in subsequent user sessions (not directly after a search click-through).

The comScore study tracked online buying behavior for 90 days following a CE/C search. This longitudinal analysis of consumer behavior revealed that only 15 percent of online purchases following a CE/C search occurred in the same user session as the search itself, with 85 percent of conversions occurring in a latent (or non-search) session. Additionally, nearly 40 percent of all purchases occurred 5 to 12 weeks after the initial CE/C search was conducted.

James Lamberti, vice president of comScore Networks, said "These findings reinforce the importance of considering the latent impact of search engine usage when evaluating search engine marketing investments. Search cannot be thought of as solely a direct response marketing tool, especially in highly considered product categories where search activity can precede a purchase by as much as 60 to 90 days."

Generic product search terms (camera, plasma television or PDA phone) accounted for more than 70 percent of total search volume. Trademarked retailer terms (Best Buy, Gateway.com) accounted for 20 percent , and specific product terms (Canon digital camcorder, HP notebook nx9010) accounted for 10 percent. The study also found that while generic terms accounted for the majority of purchase conversion (61 percent), branded terms (either retailer or product terms) were approximately 30 percent more likely to result in an online purchase.

The results of the study challenge a widely held belief that most consumers begin the product search process by using a generic search term and then later refine their search activity to product-specific terms. Operating under this assumption, many retailers and manufacturers believed that investing only in product-specific terms allowed them to reach the majority of in-market consumers closer to their purchase decision. In reality, by taking this approach, marketers are missing the vast majority of their addressable market, since most consumers never use these types of terms.

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