Changing Buying Behaviors: Clues from Thanksgiving Weekend 2017

If there was any doubt that we’re in the midst of fundamental changes in consumer buying behaviors, the results from the opening days of the 2017 holiday season have put such questions to rest.

Movable Ink, a firm that enables content personalization within e-mails, has just published some insightful statistics it compiled from Thanksgiving weekend last month.  Movable Ink logged nearly 438 million e-mail opens between the Wednesday before Thanksgiving and the following Cyber Monday. What did it find?

To start with, it found that recipients engaged with them.

Of the e-mails sent on Black Friday, nearly 50% achieved read lengths of at least 15 seconds. On Cyber Monday, the results were nearly the same (~46%).

Fifteen seconds may not seem like a long time to engage with an e-mail, but it’s light years compared to what is often experienced in consumer e-retail.

Movable Ink also found that the majority of the e-mails were opened on smartphones — far outstripping desktops and tablets:

  • Smartphones: ~53% of e-mail opens
  • Desktop computers: ~25%
  • Tablet opens: ~16%

An equal 53% of conversion actions happened on smartphones … but desktop conversions proved to be higher than their open stats, and e-mails opened on tablets were much less likely to experience conversions:

  • Smartphone: ~53% of e-mail conversions
  • Desktop computers: ~38%
  • Tablets: ~8%

Consumers were certainly in a buying mood over the holiday weekend, with purchases averaging between $120 and $140 on each of the four days of the long weekend:

  • Black Friday: An average of $124 spent
  • Saturday: $120
  • Sunday: $119
  • Cyber Monday: $141

However, while smartphones led in terms of e-mail engagement, when it comes to actual dollar sales smartphones come in last – by a country mile:

  • Desktop computers: ~$162 average holiday weekend total spend
  • Tablets: ~$107
  • Smartphones: ~$85

We can acknowledge that smartphones have become the most important method for reaching consumers with product content, coupons and special offers.  And yet, significantly more purchasing continues to happen on desktops.

One takeaway is that for all of the convenience smartphones purport to provide, the purchasing experience on mobile devices doesn’t yet match the experience on desktop computers.

It would also help if there was more similarity between the purchasing process sellers are delivering across all platforms. That continues to be a missing ingredient with some sellers, and it’s likely explaining at least some of the dampening effect on mobile sales revenues.

Smartphones go mainstream with all age groups.

Today, behaviors across the board are far more “similar” than they are “different.”

Over the past few years, smartphones have clawed their way into becoming a pervasive presence among consumers in all age groups.

That’s one key takeaway message from Deloitte’s 2017 Mobile Consumer Survey covering U.S. adults.

According to the recently-released results from this year’s research, ~82% of American adults age 18 or older own a smartphone or have ready access to one. It’s a significant jump from the ~70% who reported the same thing just two years ago.

While smartphone penetration is highest among consumers age 18-44, the biggest increases in adoption are coming in older demographic categories.  To illustrate, ~67% of Deloitte survey respondents in the age 55-75 category own or have ready access to smartphones, which is big increase from the ~53% who reported so in 2015.

It represents an annual rate of around 8% for this age category.

The Deloitte research also found that three’s little if any difference in the behaviors of age groups in terms of how they interact with their smartphones. Daily smartphone usage is reported by 9 in 10 respondents regardless of the age bracket.

Similarly-consistent across all age groups is the frequency that users check their phones during any given day. For the typical consumer, it happens 47 times daily on average.  Fully 9 in 10 report looking at their phones within an hour of getting up, while 8 in 10 do the same just before going to sleep.

At other times during the day, the incidence of smartphone usage quite high in numerous circumstances, the survey research found:

  • ~92% of respondents use smartphones when out shopping
  • ~89% while watching TV
  • ~85% while talking to friends or family members
  • ~81% while eating at restaurants
  • ~78% while eating at home
  • ~54% during meetings at work

As for the “legacy” use of cellphones, a smaller percentage of respondent’s report using their smartphones for making voice calls. More than 90% use their smartphone to send and receive text messages, whereas a somewhat smaller ~86% make voice calls.

As for other smartphone activities, ~81% are sending and receiving e-mail messages via their smartphone, ~72% are accessing social networks on their smartphones at least sometimes during the week, and ~30% report making video calls via their smartphones – which is nearly double the incidence Deloitte found in its survey two years ago.

As for the respondents in the survey who use smartwatches, daily usage among the oldest age cohort is the highest of all: Three-quarters of respondents age 55-75 reported using their smartwatches daily, while daily usage for younger consumers was 60% or even a little below.  So, in this one particular category, older Americans are actually ahead of their younger counterparts in adoption and usage.

The Deloitte survey shows pretty definitively that it’s no longer very valid to segregate older and younger generations. While there may be some slight variations among younger vs. older consumers, the reality is that market behaviors are far more the same than they are different.  That’s the first time we’ve seen this dynamic playing out in the mobile communications segment.

Additional findings from the Deloitte research can be found in an executive summary available here.

The disappearing attention spans of consumers.

Today I was talking with one of my company’s longtime clients about how much of a challenge it is to attract the attention of people in target marketing campaigns.

Her view is that it’s become progressively more difficult over the past dozen years or so.

Empirical research bears this out, too. Using data from a variety of sources including Twitter, Google+, Pinterest, Facebook and Google, Statistic Brain Research Institute‘s Attention Span Statistics show that the average attention span for an “event” on one of these platforms was 8.25 seconds in 2015.

Compare that to 15 years earlier, when the average attention span for similar events was 12.0 seconds.

That’s a reduction in attention span time of nearly one-third.

Considering Internet browsing statistics more specifically, an analysis of ~60,000 web page views found these behaviors:

  • Percent of page views that lasted more than 10 minutes: ~4%
  • % of page views that lasted fewer than 4 seconds: ~17%
  • % of words read on web pages that contain ~100 words or less: ~49%
  • % of words read on an average web page (around ~600 words): ~28%

The same study discovered what surely must be an important reason why attention spans have been contracting. How’s this tidy statistic:  The average number of times per hour that an office worker checks his or her e-mail inbox is … 30 times.

Stats like the ones above help explain why my client – and so many others just like her – are finding it harder than ever to attract and engage their prospects.

Fortunately, factors like good content and good design can help surmount these difficulties. It’s just that marketers have to try harder than ever to achieve a level of engagement that used to come so easily.

More results from the Statistic Brain Research Institute study can be found here.

Consumers continue to grapple with what to do about spam e-mail.

Over the past decade or so, consumers have been faced with basically two options regarding unwanted e-mail that comes into their often-groaning inboxes. And neither one seems particularly effective.

One option is to unsubscribe to unwanted e-mails. But many experts caution against doing this, claiming that it risks getting even more spam e-mail instead of stopping the delivery of unwanted mail.  Or it could be even worse, in that clicking on the unsubscribe box might risk something even more nefarious happening on their computer.

On the other hand, ignoring junk e-mail or sending it to the spam folder doesn’t seem to be a very effective response, either. Both Google and Microsoft are famously ineffective in determining which e-mails actually constitute “spam.”  It isn’t uncommon that e-mail replies to the personal who originated the discussion get sent to the spam folder.

How can that be? Google and Microsoft might not even know the answer (and even if they did, they’re not saying a whole lot about how those determinations are made).

Even more irritating – at least for me personally – are finding that far too many e-mails from colleagues in my own company are being sent to spam – and the e-mails in question don’t even contain attachments.

How are consumers handling the crossed signals being telegraphed about how to handle spam e-mail? A recent survey conducted by digital marketing firm Adestra has found that nearly three-fourths of consumers are using the unsubscribe button – and that figure has increased from two-thirds of respondents in the 2016 survey.

What this result tells us is that the unsubscribe button may be working more times than not. If that means that the unwanted e-mails stop arriving, then that’s a small victory for the consumer.

[To access the a summary report of Adestra’s 2017 field research, click here.]

What’s been your personal experience with employing “ignore” versus “unsubscribe” strategies? Please share your thoughts with other readers.

This LinkedIn sayonara message says it all.

Over the past several years, it’s been painfully evident to me as well as many other people that LinkedIn has become a sort of Potemkin Village regarding its professional groups.

While many groups boast enviable membership levels, there’s been precious little going on with them.

It’s almost as if the vast majority of people who signed up for membership in these groups did so only to be “seen” as being active in them – without really caring at all about actually interacting with other members.

And if any more proof were needed, try advertising your product or brand on LinkedIn.

Crickets.

Today I received the following message from Alex Clarke, digital content manager and moderator of the B2B Marketing LinkedIn group. You know them:  publishers of B2B Marketing, one of the most well-respected media properties in the marketing field.

We’ll let the Alex Clarke memo speak for itself:

What ever happened to LinkedIn Groups? What was once a bustling metropolis, teeming with valuable discussion and like-minded peers sharing success and insight has now become a desolate, post-apocalyptic wasteland – home only to spammers and tumbleweed. 

We’re sad, because, like many other groups, our 70,000+ strong LinkedIn community has become a stagnant place, despite constant love and attention and our best efforts to breathe life into its lonely corridors. 

That’s why we’re moving to a new home … Facebook: bit.ly/B2BGroupFB. 

We’re aiming to build a similar – and ultimately, better – community on this platform, with an eye on providing B2B marketers with a place to seek advice, share success, and connect with like-minded professionals in a well-moderated environment. 

We’ll still drop in to keep an eye on the LinkedIn Group, continuing to moderate discussions and approve new members, but much of our effort will be invested in building a brand-new community on Facebook. Many of you will already know each other, but please feel free to say hello!  We’re really excited to see where this goes, thanks for coming along with us.

So, while B2B Marketing will maintain a default presence on LinkedIn, what’s clear is that it’s abandoning that social platform in favor of one where it feels it will find more success.

Who knows if Facebook will ultimately prove the better fit for professional interaction. On the face of it, LinkedIn would seem better-aligned for the professional world as compared to than the “friends / family / hobbies / virulent politics / cat videos” orientation of Facebook.

Time will tell, of course.

Either way, this is a huge indictment of LinkedIn and its failure to build a presence in the cyberworld that goes beyond being a shingle for newly minted “business consultants,” or a place for people to park their resumes until the time comes when they’re ready to seek a new job.

It’s quite a disappointment, actually.

“I’m just so busy!” becomes the new social status signal.

In an era of almost constant “disruption” both socially and politically, it’s always interesting to hear the perspectives of people who devote their energies to thinking about the “larger implications.”

Author and MarComm über-thought leader Gord Hotchkiss is one of those individuals whose writings about the intersection of technology and human behavior are invariably interesting and thought-provoking.

His latest theory is no exception.

In a recent column published in MediaPost, Hotchkiss posits that the social status hierarchy of people may be moving away from “conspicuous consumption” and more towards the notion of “time” as the status symbol.

Hotchkiss writes:

“‘More stuff’ has been how we’ve determined social status for hundreds of years. In sociology, it’s called conspicuous consumption — a term coined by sociologist Thorstein Veblen.  It’s a signaling strategy that evolved in humans over our recorded history. 

 The more stuff we had — and the less we had to do to get that stuff — the more status we had. Just over 100 years ago, Veblen called those who significantly fulfilled these criteria the Leisure Class.”

Gord Hotchkiss

Looking at how social dynamics and social status are playing out today — at least in North America — Hotchkiss paints picture that is quite different from before:

“A recent study seems to indicate that we now associate ‘busy-ness’ with status. Here, it’s time, not stuff, that is the scarce commodity.  Social status signaling is more apt to involve complaining about how we never go on a vacation than about our ‘summer on the continent.'”

Interestingly, the very same research methodology that uncovered this set of attitudes in the United States was conducted in Italy as well. And there, the findings were exactly the opposite.

Perhaps it shouldn’t surprise us that in Italy, every employee is entitled to at least 32 days of PTO per year, whereas in the United States the minimum number of legally required paid holidays is … zero.

Looked at from another perspective, perhaps today’s social status indicators in North America are merely the Protestant Work Ethic in action, but updated to the 21st century.

Either way, the residents of Italy probably see it as a heck of a way to live …

Programmatic ad buying takes a hit.

There are some interesting new trends we’re now seeing in programmatic ad buying. For years, purchasing online ads programmatically instead of directly with specific publishers or media companies has been on a steady increase.  No more.

MediaRadar has just released its latest Consumer Advertising Report covering ad spending, formats and buying patterns. The new report states that programmatic ad buying declined ~12% when comparing the first quarter of 2017 to the same period in 2016.

More specifically, whereas ~45,000 advertisers purchased advertising programmatically in Q1 2016, that figure has dropped to around ~39,500 for the same quarter this year.

This change in fortunes may come as a surprise to some. The market has generally been bullish on programmatic ad buying because it is far less labor-intensive to administrator those types of programs compared to direct advertising programs.

There have been ongoing concerns about the potential of fraud, the lack of transparency on ad pricing, and control over where advertisers’ placements actually appear, but up until now, these concerns weren’t strong enough to reverse the steady migration to programmatic buying.

Todd Krizelman, CEO of MediaRadar, had this to say about the new findings:

“For many years, the transition of dollars from direct ad buying to programmatic seemed inevitable, and impossible to roll back. But the near-constant drumbeat of concern over brand safety and fraud in the first six months of 2017 has slowed the tide.  There’s more buying of direct advertising, especially sponsored editorial, and programmatically there is a ‘flight to quality’.”

Krizelman touches on another major new finding from the MediaRadar report: how much better native advertising performs over traditional ad units. Audiences tend to look at advertorials more frequently than display ads, and the clickthrough rates on mobile native advertising, in particular, are running four times higher than what mobile display ads garner.

Not surprisingly, the top market categories for native advertising are ones which lend themselves well to short, pithy stories. Travel, entertainment, home, food and apparel categories score well, as do financial and real estate stories.

The MediaRadar report is based on some pretty exhaustive statistics, with data analyzed from more than 265,000 advertisers covering the buying of digital, native, mobile, video, e-mail and print advertising. For more detailed findings, follow this link.