The marriage between e-commerce and mobile platform technology seems to be well underway. According to a study carried out by investment banking firm Petsky Prunier LLC, a major acquisition spree in the e-commerce and digital media sphere has started. Between January and June 2012, $13.5 billion worth of social media and mobile app deals exchanged hands. In total, more than 515 mergers took place. These statistics show businesses want to tap into the growing consumer appetite for mobile and e-commerce platforms. While this shift is not an entirely new phenomenon, the following factors have contributed to this change.
Improved Tablet Conversions
Many online retailers have stuck to PC shoppers due to the high rate of conversion. While this was true in the past, the tables have turned in favor of tablet shoppers. Data published by order management provider Shopatron shows that orders originating from iPads account for 6 percent of all sales. In addition, click-through conversions for iPads stood at 51 percent more than on PCs. To make the icing on the cake even sweeter, the cost is 7% less than PC advertising. Retailers have made note of these statistics and taken the necessary steps to get a piece of the pie.
The Rise of Online Shoppers
According to a survey carried out by Deloitte LLP, 20% of participants plan to shop online this year. As a result, US e-commerce sales will top $327 billion by the year 2016. This represents a growth of 62% since 2011. In comparison, traditional mortar and brick retailers are losing consumers every day. Supermarkets, thrift shops, and warehouses continue to report lower figures. The Deloitte survey shows numbers at these shopping alternatives stand at 11 percent, 11 percent and 19 percent respectively. Goldman Sachs reports that global e-commerce sales will grow by 19 percent every year.
The Rising Efficiency of Paid Search
There was a time when reputable businesses would not dream of using paid search to increase sales. Not only was such a practice frowned upon, good old SEO dominated the landscape. However, recent events show this is no longer the case. The paid search index published by PM Digital shows paid ads account for a 32 percent increase in second quarter sales this year. In return, advertisers have increased advertising budgets by 14 percent year-over-year. These statistics show the click through rates attributed to paid search ads have gone up. If you are missing this party, it is time to get in on the act.
Business owners and upcoming entrepreneurs cannot ignore the efficiencies brought on by adopting technology. Today’s consumer is well informed and can choose from a wide range products and services. To gain brand recognition and visibility, businesses must reach out to consumers adept at using more than one gadget. If your brand does not have an application for mobile devices, your development team should be hard at work. There is no doubt shoppers will continue to adopt shopping channels and platforms that are easy to access.