Internet Travel Monitor - Marketing, Research & Tech

April 5, 2017

The Cost of Milliseconds in the Digital Marketplace

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According to a new study from Soasta, The State of Online Retail Performance, describing the cost of a few seconds in the digital marketplace, 53% of mobile site visitors will leave a page that takes longer than three seconds to load. Online retailers face enormous challenges in delivering the fast, reliable, 24x7 omnichannel experience, across multiple devices, that shoppers demand.

Understanding the impact of page load speed on metrics like conversions and engagement is a critical component in staying competitive in the age of Amazon, says the report. The study gathered data from 10+ billion online retail user experiences, then analyzed performance metrics from three different perspectives: IT, business, and user experience.

The response to three key questions were eye-opening, says the report. Those questions asked...
  • What is the “magic number” for page load time that yields the highest conversion rate?

  • What is the impact of 1 second of performance improvement (or slowdown) on conversion rate/ bounce rate/session length?

  • How are high-performance pages different in terms of size, complexity, and resources, from pages that perform poorly?
47% Of All Consumers Shop Via Their Phones, But Only 1 In 5 Complete Transactions On Mobile
  Desktop Mobile Tablet
All visits 42.15% 47.42% 10.43%
All visits that ended in conversion 68.46% 21.8% 9.67%
Source: Soasta, March 2017

Next, optimal load times for peak conversions ranged from 1.8 to 2.7 seconds
across device types.
Device Conversion rate (%)
Desktop 1.8 sec.
Mobile 2.7 sec.
Tablet 1.9 sec.
Source: Soasta, March 2017

Finally, online retail and the sophistication of digital marketing are evolving rapidly, and only the brands that shift their current approaches can survive, says the report. Digital performance has never mattered more than it does now, creating an urgent need for solutions that deliver digital performance intelligence you can take immediate action on.

Just a 100-millisecond delay in load time can hurt conversion rates by up to 7%, says the report. A 2-second delay can decrease conversion rates by up to 37%. These impacts were felt even on tablets and phones.

Impact On Conversion Rate
  Desktop Mobile Tablet
Impact of 100ms slowdown on conversion rate -2.4% -7.1% -3.8%
Impact of 1s slowdown on conversion rate -21.8% 20.5% 17.8%
Impact of 2s slowdown on conversion rate -36.5% 26.2% 25.1%
Source: Soasta, March 2017

Impact On Bounce Rate
  Desktop Mobile Tablet
Impact of 100ms slowdown on bounce rate 0.4% 0.2% 0.2%
Impact of 1s slowdown on bounce rate 18.4% 49.8% 32.3%
Impact of 2s slowdown on bounce rate 62.1% 102.9% 67.6%
Source: Soasta, March 2017

The report concludes that the complexities of online retail and the sophistication of digital marketing are evolving rapidly, and only the brands that shift their current approaches can survive. Digital performance has never mattered more than it does now, creating an urgent need for solutions that deliver digital performance intelligence you can take immediate action on.


Copyright 2017 MediaPost Communications. All rights reserved. From http://www.mediapost.com. By Jack Loechner, Staff Writer.
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