Showrooming, the practice of shopping in stores and then buying cheaper online, has long vexed physical retailers that fear they’re losing sales. No doubt they are, but a countervailing trend has been building for awhile now: webrooming, which is shopping online and then buying in the physical store.
That’s potentially a much larger opportunity because the vast majority of purchases still happen in physical stores. The holiday season that just began presents a particular opportunity for retailers that will grow as Christmas approaches and the time to order online before the big day grows short. But the benefits of getting people into stores, not just tapping online buy buttons, is more important regardless of the season, said eMarketer analyst Yoram Wurmser. “People are visiting fewer stores, so they buy more with each visit,” he said.
If getting people into stores to shop is an opportunity for retailers, it’s nothing less than a mandate for companies making coin from online ads. In particular, mobile ads, revenues from which are expected to surpass those of ads shown on desktop computers this year, are key as people increasingly use their phones to find products when and where they want–meaning here and now. “Smartphones have completely changed how we do holiday shopping,” Jason Spero, Google’s vice president of performance media, explained in an interview. “It’s now quick bites and micro-moments.”
No company stands to benefit more from proving its mobile ads work–or to suffer as much if it can’t–than Google, the world’s largest seller of ads. …
Then a funny thing happened–Cyber Monday, created by the National Retail Foundation’s Shop.org online unit, became a self-fulfilling prophecy as retailers jumped on the term and began offering special sales that day after the Thanksgiving holiday. By the following year, it had turned into a real phenomenon, at least for many retailers, and last year it became the heaviest shopping day ever to date. It might even happen again this year.
But now, even as many retailers have made Cyber Monday sales a stock part of their holiday strategy, I’m betting its days are numbered. Why?
* Early sales. Smart retailers noticed that before Cyber Monday, at least (and perhaps still), the period leading up to the big day actually were even more active shopping days. And in their never-ending attempt to get a step ahead of rivals, many retailers ran not just pre-Cyber Monday sales, but pre-Black Friday sales as early as the evening before Thanksgiving. Apparently they worked. They almost certainly will cannibalize Cyber Monday sales. …