Tablet owners have the potential to reshape the online retail landscape and make a difference in brands’ results as they tend to spend more on online shopping than users of other devices, according to a report prepared by digital marketing technology specialist Kenshoo.
Owners of tablet devices, who are usually more opulent, allocate an average of £85.55 for a single online purchase, which is quite above the average order value (AOV) of £75.93 registered among those using computers. The research, which is based on comparisons of search advertising impressions, clicks and conversions from e-commerce websites available on the Kenshoo platform during the Christmas holiday season of 2012 and 2011, also found that currently tablets account for 16% of sales conversions and contribute to 17% of retailers’ revenues. The actual conversion rate is almost equal to the level seen among computer users, of nearly 5%.
About 15% of clicks on retail websites are made through tablets, with computers keeping the lion’s share of clicks, 72%, and mobile phones representing 13% of all clicks. Computers are still the major contributor to retailers’ revenues, bringing in 80% of the total, and are also responsible for 81% of sales conversions.
Kenshoo also found that this year, e-commerce websites are investing 20% more in paid search advertising on search engines such as Google, Yahoo! and Bing compared with 2011. The cost per click (CPC) rates have also gone up by 26% against the levels observed during the 2011 Christmas shopping season.