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BizReport : Ecommerce archives : August 19, 2013

Audience costs, frustrations impacting how brands perform

The cost to acquire certain audience members is high for retailers, but did you know that faulty infrastructure could cost more? According to one report, POS downtime can cost brands upwards of $5,000 per minute.

by Kristina Knight

Back to school and new cars are pushing impression costs this summer. That according to the new Audience Cost Calendar from ChoiceStream. While the cost to engage Travel and Career audience segments continues to be in the top echelon, Automotive customers from brands including Mercury, Suzuki and Buick pushed into the top 100.

Education audience costs also pushed into the top 100 - rising from 251 early in the summer to 45 in the August Calendar.

"Perhaps most interesting in this month's results is that the spread in the average cost index has risen 255 points from June when the cost index ranged between 57 - 170. The July range was from a low of 45 to a high of nearly 300,"said Bill Guild, vice president, product management and marketing at ChoiceStream. "That shows things are heating up in the programmatic media space and that is impacting the relative costs being paid to reach the right audience through our clients' digital ad campaigns."

The Audience Cost Calendar highlights trends in the online ad space, helping brands identify the costs of certain audience segments.

Meanwhile, new data out from RetailCustomerExperience and CradlePoint indicates that the cost of acquiring and audience can be lost in an instant if customers cannot check out efficiently. According to the data 68% of businesses experienced 'downtime' - in which POS or other infrastructure were down. More than 40% experienced downtime of up to 4 hours. POS downtime cost retailers nearly $5,000 for every minute the system was down (average).

The report also indicates that half of customers who must wait more than 5 minutes will avoid that retailer/brand in the future.

Image via Shutterstock

Tags: audience cost acquisition, consumer preferences, ecommerce trends, POS downtime, RetailCustomerExperience, retailer tips

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