Here are some key takeaways for online retailers to strongly consider as they plan for the Holiday Shopping season and into the future:

• “81 percent of consumers begin their product searches with Google and 11 percent begin with Yahoo”
• “Consumers are using more sophisticated, specific searches to seek out the exact products and deals they want. As a sign of this trend, Google recently reported an eight percent increase in searches comprised of three words or more.“
• “Free shipping, peer reviews/ratings, free returns and the ability to view products from multiple angles are the most influential purchase drivers on
  a retailer’s storefront”
  
• Advertisers are using a diversified mix of shopping comparison engines to help promote their brands and other primary traffic sources such as Google, Yahoo, Bing, Email marketing, etc.  Below is a breakdown of where CA customers are investing in comparison engines:
  

As this study indicates, search engines continue to lead the way for online retailers as a source of traffic, product research & comparison, finding deals and finding new brands.  Of that source, search optimization should continue to be a focal point for retailers as it’s the greatest area for improvement, yields the best ROI and provides the longest term impact.  It is important that eTailers consider ways to sell more through a multi-channel approach such as shopping comparison engines, affiliate marketing, email marketing, etc.  Use some of this proven information as outlined above to plan your efforts for the holidays & going into 2010.

Actually Bing does have some nice usability features and is quite an improvement over it’s predecessor, Live.com. Will be interesting to see if MSFT’s advertising and branding campaigns can keep Bing more top-of-mind for searchers in an attempt to swipe some marketshare from Google & Yahoo! Surprising that they have not added in a sound component when you “Bing!” — like a bell at a front desk.

PIP Survey Highlights

Generation X (Internet users ages 33-44) continues to lead in online shopping. Fully 80% of Generation X Internet users buy products online, compared with 71% of Internet users ages 18-32. Interest in online shopping is significantly lower among the youngest and oldest groups; 38% of online teens buy products online, as do 56% of Internet users ages 64-72 and 47% of Internet users age 73 and older.

This dynamic is somewhat predictable but should reinforce confidence to online advertisers for the simple fact that on average, higher income families fall within both the Generation X and Baby Boomer age groups.  Due the frequency of online activity amongst Teens and Generation Y (see report for full details), their adoption to online shopping could be a higher percentage than Gen X within the next 5-7 years; once their disposable income increases then they will more likely spend money using the technology they’ve been raised on: the Internet.

In 2005, half (50%) of Generation Y Internet users had booked travel arrangements online, and, in 2008, that number rose to 65%. During the same time, the percentages of Generation X and older generations to make online travel reservations remained about the same.

Generation X internet users have also maintained their edge in online banking, as they are significantly more likely than any other generation to do their banking online (67%). As Generation Y users get older, however, they have grown much more likely to bank online as well: the percentage of online Generation Y to do their banking online is up from 38% in 2005 to 57% in 2008. There has been no significant growth among older generations when it comes to banking online.

Finally, below are a couple of other key highlights where online marketers should take note — in particular with total usage, videos and the potential reach of viral blog marketing:

Online Activities by Age Group