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Hudson’s Bay Company proves search advertising leads to in-store sales
Wednesday, June 5, 2013
The
Hudson’s Bay Company
may be the oldest commercial corporation in North America, but when it comes to digital, its focus is on the future. Like many savvy retailers, HBC has realized that having an online presence has become more and more important to overall sales. As consumers increasingly shop across multiple channels, retailers need to adjust how they think about ROI to properly account for how and where consumers shop.
With 93% of Canadians using online search to research products and services, yet only 1% of retails sales occurring online in Canada, many consumers are using the Internet as a trusted research tool prior to purchasing goods in a store. HBC wanted to understand the impact of online search advertising dollars on in-store sales, and worked with Google to run the first online to store experiment in Canada
Today at the
Store Conference
, we presented the results of the experiment, which were among the strongest we have seen.
For every $1 spent in online search advertising, HBC realized $14.40 in in-store sales, representing a 2.6% lift in overall store sales
. By comparison, in the more than 50 online to store experiments we have run in the U.S., we have typically seen between a 1.6% - 2% overall store sales lift.
According to Christina Callas, HBC’s Senior Vice-President of eCommerce and Digital Marketing, “This further proves that Google paid search is not only an effective online acquisition vehicle, but also an important in-store driver.” She adds, “We need to be there where our customers are looking and researching the products we sell. As a marketer, paid search is one of the most qualified digital marketing buys you can make.”
For more information on how brands are using online digital to drive sales, visit
www.google.ca/think
.
Posted by Andrew Swartz, Google Canada
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