Outside of CPG or ‘big’ orgs, do we pay enough attention to shopper behaviour? We have used the expression, be where your shoppers are to death, and I feel that, at times, I don’t even follow it. I allow other logic to cloud what I know to be true.
Headlines worth thinking about from the Feedvisor 2023 report into modern purchasing trends (2,000+ US shoppers surveyed) include:
- 60% of people start the search on Amazon vs Google 19% vs Walmart 11%.
- 69% of people engage with video ads (multiple platforms).
Your search spend is down to a narrower window to play.
Who is the fabled Amazon shopper – mostly, everyone. Penetration is so high. But…
- Only 30% of Amazon shoppers have an income of greater than $100K.
Consumer Sentiment
- 65% of people expect prices to continue to rise – Promotions have got to be easy to access. Do not make me think about it.
As we saw with Prime Deal Days, necessity shopping is still on the up. Consumers are getting wiser as to where discretionary spend goes. Choices of where they make those purchases is stark if this is all accurate.
Where consumers purchase
- Amazon | Walmart | Target | eBay account for 85%
- Brand Website 3%
- Search Engine 7%
- Social Media 1%
Where are you putting your ad $$ now?
How much are you willing to spend on these channels? (The average four person house spends $309 per week on groceries). I recently read a report that suggested that an unexpected monthly increase of $400 is not affordable for most households.
Social Media (Does this include TikTok?)
- 80% said they will only be spending up to $50.
- 3% said they would be spending over $500 on search engines, and the same for a brand website.
App use has been on the rise, especially among younger generations, with Gen Z and Millennials adopting app purchasing more frequently. 38% of consumers prefer to purchase through an app. This is relevant because of the approach of ‘Entertainment Platform’ TikTok.
In the span of just one year, purchases through TikTok have skyrocketed, rising 79%. This is most likely due to their new feature, TikTok Shop, which they quietly tested for months before officially launching in the US in September 2023. Consumers can now purchase directly from the app rather than leaving to follow a link. TikTok has approx 210m users in the US.
Grabbing attention – what ad formats resonate
- Video 69%
- Audio 61%
- Sponsored product & live streaming 53%
There are more there, but our phones are huge lifestyle companions. Voice search & other tools have drastically changed how we use & consume media & information now. It is far more passive than proactive. This, for me, is the most telling stat in here. Ads & media placements need to consider this fact.
