Carriers, OEMs search for holiday shoppers

As the holidays approach with an array of new mobile handsets, shoppers increasingly will turn to the Internet to find gifts. According to a recent study by Compete and Google on the research behavior of cell phone buyers, both carriers and original equipment manufacturers have opportunities to influence online shopping.

“Consumers head into the shopping process undecided,” said Sarah Kleinberg, head of marketing for technology for Google, during a Webinar. “Almost 40% didn't know which carrier and almost 80% didn't know what handset brand they would choose, so there really is an opportunity to win customers. About half decide what to buy based on the carrier, but almost half do it based on the phone. This will be a growing influence in the holidays, so information must be easy to find.”

While the network exerts the most influence, OEMs win when it comes to search. Search referrals drive 25% of consumers to sites, with 30% made up of carrier terms, 43% OEM terms and 23% generic terms. Still, 40% of consumers end up at the carrier's site. This means those sites must be a go-to, navigable resource for consumers. For OEMs, it means they should bolster their online presence and drive consumers to their sites. Karen Parker, managing director of telecom and media for Compete, suggested adding a recommendation engine for user-generated reviews and feedback and capitalizing on undecided buyers through the search process.

“Shoppers who search on non-branded terms are clearly hungry for information and likely haven't decided yet what to buy,” Parker said. “Search plays an integral role in the shopping process.”

Both carriers and OEMs have an interest in this because online searchers are proving to be valuable. According to Google, they tend to be high-end customers who are willing to pay not only for handsets but also for services such as data plans and applications. While economic conditions remain a prevailing factor in the purchase decision, they won't stop this type of consumer from buying — but they will affect the process.

“Smartphones are still highly desired; they are the most requested gift,” Kleinberg said. “We do have confidence that from all the research we've done, when people are ready to make a purchase, they will get there. They just have to seek out more information than in previous years.”

Sources: Compete, Google