Which New Zealand Online Groceries are maximising their market share online?
Find out which online groceries are taking the lead in organic search and how they’re doing it.
FIRST has investigated the organic search engine rankings for NZ consumer searches focused on buying groceries online, utilising FIRST’s Ranking Based Reach (RBR) analysis framework. In addition, a consumer survey was carried out to discover which supermarkets are popular with Kiwis wishing to buy groceries online.
Analysed groceries online websites include:
In this Online Grocery Industry Report we discovered:
- Rankings for grocery-related searches in New Zealand are dominated by Countdown, New World and Pak’nSave. And all three of these have also invested in paid search for incremental clicks.
- Most grocery retailers, including Countdown, New World and Pak’nSave, have a very low organic RBR score, below 1%. This represents an opportunity for all of them to compete by optimising for highly relevant and popular search phrases.
- Online grocery shopping in NZ has been on a steady rise over the last decade as consumers are more engaged than ever in buying online. Moreover, the average transaction size is much larger for food and beverages as online shopping offers a greater mix of package sizes and categories (AC Nielsen, 2011).
- 79% of global respondents indicated that they actively make dietary choices to prevent health conditions. Two-year sales trends support and reveal that healthy food purchases are on the rise. With consumers’ strong interest to be healthy and recent purchasing trends, healthy or good-for-you products are positioned for continued growth (AC Nielsen, 2015). Online supermarkets can take advantage of this trend most especially, Farro Fresh and Nosh Food Market, which are known for their fresh and healthy offerings.
- Popular search phrases are missing from most sites and very little is being done with organic search.
- A comprehensive digital search strategy that integrates both organic and paid search, is a key customer acquisition channel for supermarkets, driving revenue and growing the supermarket’s share of digital spend.
FIRST uses its bespoke metric called RBR (Ranking Based Reach) to estimate how well each company is ranking in search engines. 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.