e commerceexpo hitwise presentation
TRANSCRIPT
UK Online Retail:
Does Christmas come earlier every year?
Robin GoadResearch DirectorHitwise
About Hitwise
Online competitive intelligence service
Collect anonymised internet usage data on over
25 million people globally
8.43 million UK internet users
Report on over 1 million websites
Provide daily delivery of information
Founded in 1997. Profitable operations in the UK, US, Australia, New Zealand, Hong Kong and Singapore
1,200+ clients worldwide, 400+ in the UK
Used for online customer acquisition:
Search marketing
Affiliate marketing
Online advertising
Christmas is not coming earlier each year…• Decline in share is due to
growth in other categories: News and Media, Entertainment, Social Networks
• Christmas peak:
• 2005: w/e 10th Dec
• 2006: w/e 9th Dec
• ‘January’ sales peak:
• 2005: w/e 31st Dec
• 2006: w/e 30th Dec
…Although the January sales are over sooner
Pre- and post-Christmas retail traffic
-102030405060708090
100
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k -7
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Ind
ex 2005
2006
• Pre-Christmas trend is almost identical
• More rapid decline in post-Christmas traffic in 2006
Prediction: More Last-Minute Shopping
• High street retailers gain more traffic than pure-play online retailers
• High street retailers do better out of the January sales
• Strong brands have the most successful sales – e.g. during the summer sale season, there were more searches for ‘next sale’ than ‘houses for sale’, ‘cars for sale’, etc.
High street vs. pure play
Social networks driving traffic to retailers• The top 25 social networks
now account for 1 in 20 UK Internet visits
• Facebook, Bebo and MySpace are all in the top 10 most visited websites in the UK
• ‘Bebo’ is the most searched for term in the UK, ovetaking ‘ebay’
• Proportion of visitors aged 55+ has increased by 63%, while the proportion coming from the 18 –24 age group has decreased by 19%.
How do the social networks differ?Retail category by social network
0% 5% 10% 15% 20% 25% 30% 35% 40%
Sport and Fitness
Appliances and Electronics
Computers
Video and Games
Music
Department Stores
Apparel and Accessories
Auctions
Percentage of downstream retail traffic from social network
Myspace
Bebo
• Facebook: strong in Auctions, Department stores - GENERALISTS
• Bebo: strong in Apparel, Music, Video and games - YOUTH
• Myspace: Strong in Computers, Appliances, Sport and Fitness - SPECIALISTS
Uses for Facebook
Almost 100,000 members
International expansion
Market research
Advocacy
Viral activity
The importance of search
• A third of retail traffic comes from search engines
• Branded search terms dominate
• Paid search is important – e.g. eBay UK: 33% Amazon UK: 18%
19% clicked the sponsored result.
Paid search in action
Hot Gadgets this Christmas
Rank GadgetShare of all gadget
searches1 Mobile phones 45.5%2 Computers 17.5%3 Games consoles 15.0%4 MP3 players 9.3%5 Sat Nav 4.7%6 Televisions 3.1%7 Printers 1.0%8 Cameras 1.0%9 Home Cinema / Hi Fi 0.6%10 Digital photo frames 0.4%
Rank BrandShare of all gadget
searches1 Apple 34.2%2 Nintendo 17.9%3 TomTom 7.4%4 HP 6.9%5 Sony 5.8%6 Microsoft 5.3%7 Dell 5.3%8 Nokia 5.0%9 Sony Ericsson 4.8%10 Samsung 4.2%
Rank Phone modelShare of all phone model
searches1 Apple iPhone 11.4%2 Nokia N95 7.7%3 Sony Ericsson w580i 7.6%4 Samsung u600 5.9%5 Nokia 6300 5.6%6 Samsung g600 5.2%7 Nokia 6500 4.2%8 Sony Ericsson k850i 3.3%9 Sony Ericsson w910i 3.0%10 Sony Ericsson k800i 2.9%
Rank BandShare of all phone model
searches1 Nokia 30.7%2 Sony Ericsson 30.6%3 Samsung 22.2%4 Apple 11.4%5 LG 3.8%
Hot entertainment
Rank ConsoleShare of all console
searches1 Nintendo Wii 53.3%2 Microsoft Xbox 360 19.0%3 Sony PS3 12.7%4 Nintendo DS 10.2%5 Sony PSP 4.0%6 Sony Playstation 2 0.9%
Rank MP3 playerShare of all MP3 player
model searches1 Apple iPod 63.0%2 Apple iPod Nano 23.2%3 Apple iPod Touch 8.2%4 Apple iPod Shuffle 2.4%5 Apple iPod Classic 2.3%6 Creative Zen 0.9%
• Xmas doesn’t comes earlier every year – but the sales finish earlier
• High street retailers have a larger share than pure-play online – especially during the sales
• Social networks are driving more and more traffic to retailers
• Different social networks have closer affinities with particular sectors
• A third of retail traffic comes from search – both paid and organic have a role to play
• Hot Christmas products:
• Nintendo Wii
• Apple iPhone
• Bratz
• High School Musical
Summary
Robin GoadE-mail: [email protected]: www.hitwise.co.ukAnalyst Weblog: www.ilovedata.com