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

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

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

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”.

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
Proportionofclicks

0%
5%
10%
15%
20%
25%
30%
RankingsBasedReach
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

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.

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

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.

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%

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.

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

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

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.

Contact us
Contact FIRST to find out more.
Phone +64 (9) 920 1740
Email info@firstdigital.co.nz
Web http://www.firstdigital.co.nz
http://www.linkedin.com/company/first-digital
http://www.firstdigital.co.nz/blog
Copyright © FIRST., part of the BeyondD Pty Ltd Group. http://www.firstdigital.co.nz
Our Vision
To be highly sought after for
making a measurable
difference
Our Mission
We’re a team focused on
transforming businesses and
creating market leaders
through digital marketing.
We innovate, test and
optimise to create a
competitive advantage to
dominate the digital channel.
Our data-driven approach
will keep things simple and
make a measurable
difference.
Our Focus
As a Google Certified
Analytics Partner (GACP),
we focus on smart customer
acquisition using search and
performance media,
maximising conversion
using best practice CRO and
helping NZ businesses
making the best possible
decisions based on
accurate, actionable web
analytics.
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Consumer Electronic Stores Online - NZ SEO Reach 2014

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