Are retailers training consumers into bad buying habits?

However, in an effort to move excess stock after Black Friday, many retailers offered huge specials online the very next Monday. This has become known as Cyber Monday. All good and well, except the recession, coupled with a more savvy shopper, has meant that shoppers now wait for Cyber Monday to make their purchases rather than buying on Black Friday.

Similarly, Commonwealth countries try to move their excess stock on 26 December, which sees a flood of specials offered online. Consumers in these countries have become aware of this and now only start gifting post Christmas.

This ‘expectation training' has shifted buying patters and retailers will need to shift their incentives accordingly.

Also, in an indictment of society, global search volumes increase significantly on the 26 December as people go online to find how much their gifts cost, with many of them then selling their holiday presents on local auction sites shortly after receiving them.

Online counter-attack

It is clear that retailers are going to have to work extra hard this year. Disposable income is way down and shoppers are going to spend more time hunting for bargains than ever before. In this environment search has become the biggest differentiator for the retail market and has led to an about-face for advertisers in developed countries.

2009 saw a significant shift in how retailers reached their target audiences. For the first time in September this year, the UK saw advertisers spending more on online advertising than on television, with paid search making up a sizeable portion of that spend.

Information from the world's search engines has also shown a significant spike in search in the weeks leading up to the holidays. Retail searches have grown by close to 80% from October through December in the past two years. Globally retailers have responded to this trend and 41% of retail outlets surveyed by the search engines said they were planning to increase their holiday online marketing budgets for that period this year.

Online outlets will have to ensure that their products are easy to find, are attractively marketed and more prominent than their competitors.

However, the level of sophistication in search has increased exponentially over the past two years. Search marketing can now be adjusted on the fly. Comparative analysis of what their competitors are doing will allow retailers to adjust their search focus to attack or counter-attack online threats. Using search terms that either make products more visible or encourage actual purchase can make all the difference.

This, however, means having access to account managers that are deeply experienced in the cut and thrust that is the retail industry. Unfortunately, many agencies still set up search accounts to allow for automation, which makes any change difficult and time consuming.

Practical advice for retailers this holiday season

1. Monitor your stock levels: Bidding on retail items that are no longer in your inventory leads to money wasted on clicks that don't translate into revenue. Choose an agency that has advanced technology linking your ads to your product database allowing you to pause ads when stock is unavailable. Not only does this protect against click-waste, but also protects your customer user experience

2. Let your ad copy reflect the season: Retailers have special deals, discounted prices and special shipping services over the season. Ad copy should highlight unique selling points you use against your competitors, allowing potential clients to quickly see your store's benefit. Choose an agency that has a retail team skilled in advising on this.

3. Raise your budgets: The positive flux in query volumes is wasted unless retailers raise their budgets to match the increase and variance in queries. With Retail searches growing by close to 80% from October through December retailers should recognise that their normal retail budgets need to grow by just as much. Choose an agency that proactively monitors the entire industry with specialist teams who can immediately advise you when spend trends are shifting.

This year retailers are going to be pressed to capture whatever money there is available in our rather gloomy economy. Making use of a few smart, forward-thinking search strategies can mean the difference between Christmas cheer or a holiday hangover.