Consumer Electronic Stores Online - NZ SEO Reach 2014

Which websites are maximising their market share?

Searching for Consumer Electronics Online

Copyright © FIRST., part of the BeyondD Pty Ltd Group. http://www.firstdigital.co.nz

2

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 sites 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

http://www.firstdigital.co.nz/



3

Selected sites

Leading New Zealand consumer electronics sites were selected for Ranking Based Reach

(RBR) performance analysis.

Sites

100percent.co.nz

dicksmith.co.nz

harveynorman.co.nz

jbhifi.co.nz

lvmartin.co.nz

mightyape.co.nz

noelleeming.co.nz

pbtech.co.nz

thegoodguys.co.nz

thewarehouse.co.nz

wiseguys.co.nz



4

What are people searching for?

Source: Google Keyword Tool, New Zealand exact match, Feb 2014

In order to investigate which websites are leading in search we researched frequently used

consumer electronics related phrases.

Search Phrase Local searches per

month Search Phrase

Local searches per

month

ipad 9900 digital camera 590

xbox 9900 ipods 480

iphone 8100 home theatre systems 390

tablets 1900 wireless router 390

laptops 1600 lcd 260

headphones 1300 hifi 210

web camera 1300 computer mouse 210

macbook 1000 plasma tv 170

mobile phones 1000 projectors 170

external hard drive 880 lenses 140

mp3 player 720 consumer electronics 30

printers 720 gps navigation systems 20

speakers 720

Total searches per month

42,100

Total searches per year

505,200



5

Google: Search engine results page 1

Noel Leeming is

ranking on position

six of the paid search.

In total there are

ranking 11

companies in the paid

search. That

represents the

maximum amount for

the 1 Page. The

consumer electronics

market is highly

competitive.

What the consumer sees: The top of the Google search results page for a search on “tablets”

Up to 3 keyword-

related Google ads

lead the Google

ranking: Only The

Good Guys rank under

the Top 3 position for

the paid search term

“tablets”.

Under the organic

search results just a

few of the analysed

companies rank on

Google’s first page

starting with Dick

Smith, followed by

Noel Leeming and

Harvey Norman for

the search term

“tablets”.



6

0%

5%

10%

15%

20%

25%

30%

35%

40%

1 2 3 4 5 6 7 8 9 10 11 12

paid organic

Source: Chikita, 2010 (Organic Search) & Accuracast 2009 (Paid Search)

35% of users click

on the top organic

search result

Almost 95% of organic

traffic goes to the top 10

results

The importance of top rankings

Search engine position

Pro

po

rtio

n o

f clic

ks



7

0%

5%

10%

15%

20%

25%

30%

Ran

kin

gs B

ased

Reach

Rankings Based Reach: Natural Search

Source of ranking data: Google New Zealand, www.google.co.nz, Mar 2014. * includes all websites under the relevant domain name (eg, including www.)

The majority of companies have a very

low RBR of 2% or less, which means that

there is still a lot of room for

improvement.

The RBR leader is Dick Smith with

a fantastic RBR of nearly 28%. The

closest competitors are JB Hi-Fi,

Noel Leeming and Harvey Norman,

which are a bit behind. All

companies need sustained search

engine optimisation if they want to

be competitive online.

Half of all analysed companies are

“not really” present within search.

Without improving their RBR reach

presence, they are missing

opportunities for potential online

sales.

MASSIVE OPPORTUNITY



8

Dick Smith and The Good Guys need sustained focus

Source: Relative total keyword performance on a normalised scale 1 to 100, Google Trends, New Zealand, Mar 2014

The chart illustrates that brand search terms like Harvey Norman, Dick Smith and The Warehouse show strong seasonal trends with peaks

in the Christmas season. The Warehouse has a strong position and is leading the way. PB Tech seems to have improved it’s search volume

since the end of 2010. The Good Guys have slightly improved their online brand reach recently.

To combat being left behind, runner-up stores (for consumer electronics) need to drive consumer brand recognition via search,

display, social and email campaigns.



9

Search trends for “macbook” still high but slowing down

0

20

40

60

80

100

120

macbook

Retail stores not ranking for “macbook” in the Google

search engine are limiting their possibilities for online

sales. The search volume has been constantly rising over

the last few years, but has remained quite steady since

mid of 2012.

Stores selling macbooks, therefore need to consider

niche consumer search behaviour, such as “macbook”

search terms, in their digital marketing strategies.

Source: Relative total keyword performance on a normalised scale 1 to 100, Google Trends, New Zealand, Mar 2014



10

Consumer Research: “Purchases” and “where consumers go first”

This representative survey was carried out by 3Di Research on

the Great Sites platform Mar 2014 (n=1,242).

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

Use Google search engine

Directly go to the known store

Directly go to website of a consumer

electronics store

Talk with a friend or family

Other

Question 1: Typically, where is the first place for you to go when researching consumer

electronics?

This result shows the high

importance of relevant search

terms rank positions within the

Google Search Engine.

In the “Other” section people

mentioned that they would also

use the consumer.org.nz page

when researching consumer

electronics such as

pricespy.co.nz and

trademe.co.nz.



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Consumer Research: Online purchases in the last 12 months

Question 2: From which of the following websites have you

purchased consumer electronics in the last 12 months? (Tick

all that apply).



Our research also showed that a significant

number of people also have purchased

consumer electronics at trademe, but also at

internet providers and phone retailers such as

Telecom, 2Degrees, Vodafone and at the Apple

Store.

More than 35% of all Kiwis have purchased

their products at Noel Leeming online,

followed by The Warehouse and Dick Smith.

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%



12

Consumer Research: Purchased Products in last 12 months

Question 3: Which electronics products have you bought

online in the last 12 months? (Tick all that apply)

0.00%

5.00%

10.00%

15.00%

20.00%

25.00% As nearly 35% of all consumers use the Google

search engine when making an online research for

consumer electronics, a consumer store should

definitely rank well for frequently purchased goods

like “mobile phones”, but also “tablets” and

“laptops” in the search engine.





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Consumer Research: What’s important when shopping Online

Question 4: What is important for you when shopping online? (Rank the following on a scale of 1-5, 1 being least

important – 5 of great importance).

Question 5 focused on 9 things that consumers think

are important when shopping online. The scale of

importance was ranked from 1 to 5.

Conclusions: Easy navigation and search, best

prices and detailed descriptions tend to play the

most important factor for consumer online buying

decisions.

User reviews seem to play the least important

factor of all, and images and delivery speed tend to

be not that important for most people.



3.00

3.50

4.00

4.50

5.00

Mean Values



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Consumer Research: Store or Online?

Question 5: Have you ever gone to a consumer

electronics store specifically to view a product with the

intention of purchasing online (either via that brands or

a competitors website)?

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

No Yes

Question 6: In the last 12 months, have you gone into an

electronics store and used your mobile device to compare

prices of competitors while in-store?

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

No Yes

More than 40% of all consumers have already

entered a consumer electronics store with the

intention of actually buying the product online. This

means that 1 in 2.5 customers entering a store

don’t even have the intention of buying a product in

the real store, but online.

Slightly more than 25% of consumers tend to make

a comparison of competitor prices while in-store.

As more and more people use their mobile phones

to surf in the internet more frequently, it’s likely that

these numbers will increase.




• The performance of the Consumer Electronics market is forecast to

increase to a value of NZD $464.2 million by the end of 2017* and

there will be a high need for online search results optimisation.

• More than half of all analysed consumer electronics retailers have

low RBRs. There is significant opportunity for these retailers to

improve their RBR – their search engine reach – for important

keywords in organic search.

• Currently Dick Smith, JB Hi Fi, Noel Leeming and Harvey Norman

stand out in the search landscape capturing big proportion of the

voice thanks to prominent organic presence.

• Due to their low RBRs, search results are broadly dispersed

among a wide range of competitors. In the competitive, margin

driven electronics market, retailers are missing out optimising on

the most cost effective marketing channel: Search.

• A considered search strategy that integrates both organic and

paid search should be a key customer acquisition channel for

consumer electronic stores, driving revenue and growing the

stores share of digital spend.

Summary &

Observations

*Source: Consumer Electronics in New Zealand, Market Line, April 2013

Consumer Electronics


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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, analytics, conversion,

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 centered around a “digitally led” sales and marketing strategy.

Our services span search (SEO and SEM), email, performance media, conversion

optimisation and advanced analytics. Most importantly, our work is underpinned by a

focus on delivering the return on investment our clients expect.



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Contact us

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Email [email protected]

Web http://www.firstdigital.co.nz

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Consumer Electronic Stores Online - NZ SEO Reach 2014