Getting Insights into the Canadian Marketplace

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hbc_logo_4017Earlier this week, Google launched Think Insights Canada, an online service that offers case studies and insights to marketers, tailor made for the Canadian Marketplace. After being launched in the US since 2011, Google’s Canadian Insights launched this week with a case study on The Hudson’s Bay Company, showing how their in-store sales have been driven by their online marketing efforts.

The study reveals how with an investment in online search advertising resulted in a 2.6% increase in in-store sales. Being one of the oldest and most established companies in Canada, Hudson’s Bay has over 90 retail stores in Canada, and a huge online store.

Canada is a huge market for online retailers, and has a very high rate of site visits per visitor, however, those numbers didn’t necessarily translate into purchases from an online store. Instead, it was assumed that most of these visitors were people researching a product, and then making the purchase offline at a retail outlet. To quantify this theory, HBC was interest in quantifying the impact that digital marketing would have on in-store purchases.

HBC began it’s testing in the fall of last year, and saturated it’s test groups and control groups with defined product categories, and analyzed the sales. The results were quite impressive.

They found that $1 of online search ad spend yielded $14.40 worth of in-store sales, representing a 2.6% sales lift. Says Christina Callas, HBC’s Senior Vice-President of eCommerce and Digital Marketing, “This proves that Google paid search is not only an effective online acquisition vehicle, but also an important in-store driver.” She goes on to say, “I think this further proves that Google paid search is not only an effective online acquisition vehicle, but also an important in-store driver,” Christina says.“We need to be there where our customers are looking and researching the products we sell. As a marketer, paid search is one of the most qualified digital marketing buys you can make.”

You can read Google Insights’ complete case study here.