Published on February 20, 2014
Searching for Home Appliances Online Which websites are maximising their market share?
Calculating Share of Search • Rankings Based Reach (RBR)* provides a simple way to compare a website’s search engine rankings with its competitors. • RBR is an estimate of the percentage of available search traffic a website will receive for a set of phrases – this gives the site’s share of search or reach. • It is weighted based on the popularity of each search phrase and the relative click through rate (CTR) of each ranking position. *Source: Rankings Based Reach (RBR) is a methodology developed by FIRST., http://www.firstdigital.co.nz Copyright © FIRST., part of the BeyondD Pty Ltd Group. http://www.firstdigital.co.nz 2
Selected sites The following New Zealand home appliance and whiteware sites were selected for Ranking Based Reach (RBR) organic search performance analysis. Sites 100percent.co.nz homekit.co.nz albanyextreme.co.nz lvmartin.co.nz applianceshed.co.nz magnessbenrow.co.nz bettaelectrical.co.nz mitre10mega.co.nz briscoes.co.nz noelleeming.co.nz bunnings.co.nz smithscity.co.nz farmers.co.nz thegoodguys.co.nz fisherpaykel.com/nz thewarehouse.co.nz harveynorman.co.nz Copyright © FIRST., part of the BeyondD Pty Ltd Group. http://www.firstdigital.co.nz 3
What are people searching for? In order to identify which websites are leading in organic search FIRST researched frequently used home appliances and whiteware related phrases. Search Phrase Local searches per month Search Phrase Local searches per month blender 2,400 portable air conditioner 390 heat pumps 2,400 coffee machine 320 vacuum cleaners 1,300 kettle 320 washing machine 1,300 toaster 320 dishwasher 880 whiteware 320 fridge 880 dryer 260 fan 720 steam cleaner 260 gas heaters 720 air conditioner 170 kitchen appliances 720 home appliances 110 microwave 720 kitchen scales 110 freezer 390 gas cooktops 90 homewares 390 ironing boards 20 ovens 390 Total searches per month (NZ) 15,900 Total searches per year 190,800 Source: Google Keyword Tool, New Zealand exact match, Feb 2014 Copyright © FIRST., part of the BeyondD Pty Ltd Group. http://www.firstdigital.co.nz 4
Search trends The chart below illustrates interest in key search terms “fridge” and “freezer” in New Zealand over the last 7 years. 100 90 80 The search volumes for these two search terms are constantly rising. We can see that the term “fridge” is quite a bit ahead compared to the term “freezer”. Companies selling whiteware should focus on search terms that are trending upwards, have decent search volume and 'search intent'. Targeting terms like 'fridge' and 'freezer' should be a part of a successful SEO strategy to improve market presence. 70 60 50 40 30 20 10 0 01/07 06/07 11/07 04/08 09/08 02/09 07/09 12/09 05/10 10/10 03/11 08/11 01/12 06/12 11/12 04/13 09/13 fridge freezer Source: Relative total keyword performance on a normalised scale of 1 to 100, Google Trends, New Zealand, February 2014 Copyright © FIRST., part of the BeyondD Pty Ltd Group. http://www.firstdigital.co.nz 5
Search trends for “home appliances” and “homewares” As the search trends show, there is growing online demand for people searching for home appliances and wares. 120 Companies selling homewares and home appliances can capture a lot of this search demand by increasing their online presence for related searches. 100 80 60 40 20 0 home appliances homewares Source: Relative total keyword performance on a normalised scale of 1 to 100, Google Trends, New Zealand, February 2014 Copyright © FIRST., part of the BeyondD Pty Ltd Group. http://www.firstdigital.co.nz 6
Harvey Norman beats its strongest competitors online The chart illustrates that brand search terms like Noel Leeming, Briscoes and Harvey Norman show strong seasonal trends with peaks in the Christmas season. As we can see, Briscoes seems to be catching up to Noel Leeming. Harvey Norman is leading the way. The Good Guys have improved their online brand reach recently. 100 Percent should invest in natural search optimisation if they want to catch up. To combat being left behind, runner-up stores (for home appliances and whiteware) need to drive consumer brand recognition via search, display, social and email remarketing campaigns. Source: Relative total keyword performance on a normalised scale of 1 to 100, Google Trends, New Zealand, February 2014 Copyright © FIRST., part of the BeyondD Pty Ltd Group. http://www.firstdigital.co.nz 7
Search trends for “nespresso machine” 120 100 Retail stores not ranking for “nespresso machine” in the Google search engine are limiting their possibilities for online sales as this search term is playing an increasingly important role for consumer buying decisions. The search volume has been constantly rising over the last few years. Stores selling nespresso machines, therefore need to consider niche consumer search behaviour, such as “nespresso machine” search terms, in their content marketing strategies. 80 60 40 20 0 2011-01 2011-06 2011-11 2012-04 2012-09 2013-02 2013-07 2013-12 nespresso machine Source: Relative total keyword performance on a normalised scale of 1 to 100, Google Trends, New Zealand, February 2014 Copyright © FIRST., part of the BeyondD Pty Ltd Group. http://www.firstdigital.co.nz 8
Google: Search engine results page 1 What the consumer sees: The top of the Google search results page for a search on “home appliances” Up to 3 keywords- related Google ads for paid search terms lead the Google search results page: Able Appliances and HomeKit rank at first and second position followed by RentRite for the search term “home appliances”. Able Appliances do not offer any small devices as kettle, fans or toasters and mainly offer whiteware. RentRite on third position rents whiteware items. HomeKit ranks on highest position of shops that offer whiteware and home appliances online and was recently founded in 2009. In the paid search Noel Leeming ranks at fifth position just before The Good Guys. Ranking on the paid top positions for the search term “home appliances” is highly competitive. Under the organic search results Fisher & Paykel (who is a manufacturer) ranks very good on second position. Noel Leeming ranks on 9th position followed by Betta Electrical (not seen on this slide). Copyright © FIRST., part of the BeyondD Pty Ltd Group. http://www.firstdigital.co.nz 9
The importance of top rankings 40% paid organic 35% Proportion of clicks 30% 35% of users click on the top organic search result 25% 20% 15% Almost 95% of organic traffic goes to the top 10 results 10% 5% 0% 1 2 3 4 5 6 7 8 9 10 11 12 Search engine position Source: Chikita, 2010 (Organic Search) & Accuracast 2009 (Paid Search) Copyright © FIRST., part of the BeyondD Pty Ltd Group. http://www.firstdigital.co.nz 10
Rankings Based Reach: Natural Search 50% Rankings Based Reach 40% The RBR leader is far ahead compared to it’s competitors with an excellent RBR of over 40%. Overall, only two companies have a RBR over 10%, which means that there is still a lot of room for improvement. Nearly all companies will need sustained focus on natural search optimisation should they wish to challenge Noel Leeming as the market leader online. 30% 20% 10% HomeKit is only selling home appliances and whiteware online, but is ranking low for relevant search terms in the organic search. A successful strategy should focus on improving their RBR. These websites can compete by optimising for highly relevant and popular search phrases. MASSIVE OPPORTUNITY 0% * includes all websites under the relevant domain name (eg, including www. and shop.) Copyright © FIRST., part of the BeyondD Pty Ltd Group. http://www.firstdigital.co.nz Source of ranking data: Google New Zealand, www.google.co.nz, February 2014. 11
Consumer Research: Brand Recognition Almost half of all mentioned store brand names have a market recognition of more than 90%. Starting with Harvey Norman as the market leader, followed by The Warehouse and Noel Leeming. Question 1: Which of the following store brand names do you recognise? (Tick all that apply). 100.00% 90.00% Although most Kiwis know Harvey Norman, only about 27% of all New Zealanders tend to buy home appliances and whiteware there (see next slide). 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Copyright © FIRST., part of the BeyondD Pty Ltd Group. http://www.firstdigital.co.nz This representative survey was carried out by 3Di Research on the Great Sites platform Feb 2014 (n=2,470). 12
Consumer Research: Purchasing Behaviour (Offline) 100.00% 90.00% Although the brand recognition of Noel Leeming is nearly as high as the one of The Warehouse (see previous slide), only 33% of people tend to shop there. Question 2: From which of the following stores have you purchased in the last 3 months in person (offline)? (Tick all that apply). 80.00% 70.00% 60.00% 50.00% 40.00% 82% of all Kiwis recognize Smiths City, (see previous slide) but only 1 of 14 New Zealanders is shopping there. 30.00% 20.00% 10.00% 0.00% Copyright © FIRST., part of the BeyondD Pty Ltd Group. http://www.firstdigital.co.nz This representative survey was carried out by 3Di Research on the Great Sites platform Feb 2014 (n=2,470). 13
Consumer Research: Purchasing Behaviour (Online) 14.00% 12.00% About 12% of Kiwis buy products from The Warehouse online. Briscoes and Noel Leeming are just making one fourth of online sales compared to it’s strongest competitor. Question 3: From which of the following stores have you purchased in the last 3 months online via their website ? (Tick all that apply). 10.00% 8.00% 6.00% There is large potential in selling home appliances and whiteware online and nearly all stores are making efforts of being representative. This market offers large potential but is also highly competitive. 4.00% 2.00% 0.00% Copyright © FIRST., part of the BeyondD Pty Ltd Group. http://www.firstdigital.co.nz This representative survey was carried out by 3Di Research on the Great Sites platform Feb 2014 (n=2,470). 14
Home Appliances and Whiteware Summary & Observations • The home appliances and whiteware market is highly competitive, urging players to optimise their RBR to get ahead of their competition. • Noelleeming.co.nz has set a clear course to follow, but also fisherpaykel.com/nz (who is a manufacturer), briscoes.co.nz, and harveynorman.co.nz are currently the most visible sites in the digital home appliances and whiteware landscape, achieving a dominant share of voice thanks to strong positions in organic results. • More than half of all home appliances and whiteware websites have a very low organic RBR score, under 1% (!). This represents a big opportunity for natural search optimisation. • A considered search strategy that integrates both organic and paid search should be a key customer acquisition channel for stores offering home appliances and whiteware, driving revenue and growing the stores share of digital spend. Copyright © FIRST., part of the BeyondD Pty Ltd Group. http://www.firstdigital.co.nz
About FIRST. Respected digital veterans are the foundation our agency is built upon: each team holds a core capability that feeds into a business’ digital requirements. Our expertise in digital has been built on over 14 years’ experience in digital strategy, web design and build, search marketing and digital campaigns. FIRST, our award-winning team of Internet marketers, has helped over 300 companies across 100 industries achieve digital success. We provide companies with a digital roadmap to success centred around a “digitally led” sales and marketing strategy. Our services span search (SEO and SEM), email, performance media, conversion optimisation and advanced analytics. We produce leading creative across all digital areas. And we build eCommerce sites, CMS-driven sites, mobile apps, social media initiatives and microsites. Most importantly, our work is underpinned by a focus on delivering the return on investment our clients expect. Copyright © FIRST., part of the BeyondD Pty Ltd Group. http://www.firstdigital.co.nz 16
Contact us Contact FIRST to find out more. Phone Email Web +64 (9) 920 1740 email@example.com http://www.firstdigital.co.nz http://www.linkedin.com/company/first-digital http://www.firstdigital.co.nz/blog Our Vision To be highly sought after for making a measurable difference Our Mission We’re a team focused on transforming businesses and creating market leaders through digital marketing. We innovate, test and optimise to create a competitive advantage to dominate the digital channel. Our data-driven approach will keep things simple and make a measurable difference. Our Focus As a Google Certified Analytics Partner (GACP), we focus on smart customer acquisition using search and performance media, maximising conversion using best practice CRO and helping NZ businesses making the best possible decisions based on accurate, actionable web analytics. Copyright © FIRST., part of the BeyondD Pty Ltd Group. http://www.firstdigital.co.nz 17
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