Retailers see marketplaces as new customer bases - survey

Moreover, and 32% of the surveyed retailers are spending more on this marketing tactic in 2015 than in 2014, according to `The State of Retailing Online 2015` survey issued by Shop.org online platform, ecommercebytes.com reports.

On average, retailers surveyed allocated their digital marketing budgets as follows: search engine marketing (33%), search engine optimization (16%), online marketplace initiatives and operations (16%), e-mail marketing (14%), remarketing (13%), social (11%) and affiliate (11%).

Paid search and email marketing remain among retailers top effective customer acquisition channels. However, social media has moved up the ranks to become an important tool for engaging with and attracting new customers.

Of the retailers surveyed, 25% cited Facebook as a top acquisition platform and 58% are increasing their year-over-year spend on social media marketing, second only to the number of companies who are spending more on search engine marketing (63%). When it comes to paid social media specifically, half of retailers surveyed said they are spending more in 2015 than in 2014 on paid Facebook options, such as promoted posts and paid ads.

YouTube came in second with 29% saying they will spend more on paid options for the video website, followed by Pinterest (27%), Twitter (22%), Instagram (20%) and Snapchat (6%). In a chart titled, Average Cost Per Order For Types Of Marketing Channels, the study shows that paid social media costs an average of USD 28, while online marketplaces cost an average of USD 14. E-mail marketing came in lowest with an average cost per order of USD 6.

With paid social costing the highest, the report found Merchants consistently reported that social networks are able to drive traffic and awareness more than sales to their sites. The annual State of Retailing Online Report surveyed 240 companies in May and June 2015. Industries surveyed included apparel, footwear, general merchandise, home furnishings, and personal care.