Comscore q2 2010 2nd Q Internet statistics
description
Transcript of Comscore q2 2010 2nd Q Internet statistics
State of the U.S. Online Retail Economy in Q2 2010
Gian Fulgoni, Chairman, comScore, Inc.
Note: A copy of this presentation will be sent to all attendees within 24 hours of today’s webinar
Data sourced from comScore’s global panel of 2 mill ion Internet users
� E-commerce data includes all worldwide buying on U. S. sites
� Unless explicitly stated otherwise, the term e-comm erce refers to online retail spending, which excludes travel, autos and auctions
� Behavioral activity through July 2010
360°°°°View of Consumer Behavior Analysis Parameters
2© comScore, Inc. Proprietary and Confidential.
� Behavioral activity through July 2010
� Survey issued in July 2010, n=1086
� Consumer Measurements:
– Site Visitation
– Online Buying
– Video Viewing
– Attitudes and Intentions
– Behavioral Segments
� Retailer Views:
– Large vs. Small Retailers
– Multi-Channel vs. Pure-Play Retailers
Validation of comScore Sales Data:Comparison of comScore data to U.S. Department of C ommerce
Bill
ions
($)
Dept. of Commerce (DOC) comScore Estimate of DOC
Quarterly U.S. e-Commerce Sales* ($ Billions)Source: comScore & U.S. Department of Commerce (DOC )
Quarterly U.S. e-Commerce Growth* vs. YASource: comScore & U.S. Department of Commerce (DOC )
% G
row
th v
s. Y
A
Dept. of Commerce (DOC) comScore Estimate of DOC
30
35
40
45
50
20.0%
25.0%
30.0%
35.0%
Correlation: 0.96
3© comScore, Inc. Proprietary and Confidential.
Bill
ions
($)
% G
row
th v
s. Y
A
0
5
10
15
20
25
30
2005
-Q
120
05 -
Q2
2005
-Q
320
05 -
Q4
2006
-Q
120
06 -
Q2
2006
-Q
320
06 -
Q4
2007
-Q
120
07 -
Q2
2007
-Q
320
07 -
Q4
2008
-Q
120
08 -
Q2
2008
-Q
320
08 -
Q4
2009
-Q
120
09 -
Q2
2009
-Q
320
09 -
Q4
2010
-Q
120
10 -
Q2 -10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
2005
-Q
120
05 -
Q2
2005
-Q
320
05 -
Q4
2006
-Q
120
06 -
Q2
2006
-Q
320
06 -
Q4
2007
-Q
120
07 -
Q2
2007
-Q
320
07 -
Q4
2008
-Q
120
08 -
Q2
2008
-Q
320
08 -
Q4
2009
-Q
120
09 -
Q2
2009
-Q
320
09 -
Q4
2010
-Q
120
10 -
Q2
*Note: To be consistent with DOC, comScore estimate excludes travel and event tickets but includes auction fees and autos.
$77 $84 $80$143+29%
+26%
+22%
+19%
$171$200
+17%
+12%+9%
+7%
Following a soft 2009, total e-commerce sales throu gh Q2 2010 were up 7% versus year ago. Travel and non-travel up 5% and 9%, respectively.
$214
-5%
$209-2%
e-Commerce Dollar Sales Growth ($ Billions)Source: comScore e-Commerce Measurement
+7%
4© comScore, Inc. Proprietary and Confidential.
$42 $53 $67 $82 $102$123 $130 $130
$67 $30
$40$51
$61$69
$77
$44
2002 2003 2004 2005 2006 2007 2008 2009 2010 YTD
$72$93
$117$143
Non-Travel
Travel
+29%
+26%
+33%
+26%
+28%
+20%
+24%+24%
+13%
+20%+6%
0%
+9%
+5%
YTD2010
$111
Monthly e-Commerce Sales Growth vs. YASource: comScore e-Commerce Measurement
Positive growth returned in 2010, with notably stro ng growth rates in March & April, a possible result of heavier promoti on activity in Spring of 2010
Month Growth Rate vs. YA
January 2010 +7%
February 2010 +4%
March 2010* +17% 300
350
4002009 2010
ShopLocal Index of Weekly Offers Per StoreSource: ShopLocal
5© comScore, Inc. Proprietary and Confidential.
April 2010 +12%
May 2010 +8%
June 2010 +7%
July 2010 +9%*March saw an additional bump in activity due to timing of Easter in 2010
For January through July 2010, non-US residents acc ounted for 6.6% of ecommerce sales at U.S. sites
Note: International contribution is defined as the percent of e-commerce sales made on U.S. sites by consumers residing outside of the U.S. It excludes U.S. sites with non-U.S. addresses (e.g. amazon.co.uk).
150
200
250
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31Week
After two quarters of accelerating sales, e-commerc e growth plateaued in Q2
Quarterly e-Commerce Sales Growth vs. YASource: comScore e-Commerce Measurement
17%23%
19%
11% 13%
6%
-3% 0% -1% -2%
23%
3%
0%
5%
10%
15%
20%
25%
Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10
10% 9%
6© comScore, Inc. Proprietary and Confidential.
Quarterly Retail & Food Services Sales Growth* vs. YASource: U.S. Department of Commerce (DOC)
4%4% 5%4%3%
-8%
1%2%
-9%-10%
-7%
2%
7%6%
-15%
-10%
-5%
0%
5%
10%
Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10
-5%Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10
When excluding autos, gas and food/beverage, Q2
retail sales growth was marginally softer at +6%
*Note: The U.S. Department of Commerce calculation includes total retail and food service sales, which also includes motor vehicles and parts dealers.
e-Commerce continues to gain share of retail spendi ng on an apples-to-apples basis
e-Commerce Share of Corresponding Retail Spending*Source: comScore for e-Commerce & U.S. Department o f Commerce (DOC) for Retail
Com
mer
ceS
hare
5.1%
5.3%
5.9%
5.3%
6.4%
6.7%
5.9%
6.3%
7.4% 7.3%
6.5% 6.6%
7.6% 7.7%
6.8%6.9%
7.7%8.1%
7.1%
5.0%
6.0%
7.0%
8.0%
9.0%
7© comScore, Inc. Proprietary and Confidential.
*Note: e-Commerce share is shown as a percent of DOC’s Total Retail Sales excluding Food Service & Drinking, Food & Bev. Stores, Motor Vehicles & Parts, Gasoline Stations and Health & Personal Care Stores.
e-C
omm
erce
e-Commerce share peaks in colder seasons (Q4 & Q1)
4.3%
3.7%4.0%
4.6%4.3%
4.5%
5.3%5.0%
5.3%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
Lower -and-upper income segments are drivers of online growth in Q2 2010, but the large mid-income segment shows no growth an d is down versus pre-recession periods two years ago
Income SegmentOnline Retail
Online Retail
Spending
Under $50,000 +14% +22%
Income Segment Online Retail Spending Online Retail Spending Growth in Q2 ‘10 vs. Q2 ‘08 Growth in Q2 ‘10 vs. YA
Income Segment Online Retail Spending Online Retail Spending Growth in Q2 ‘10 vs. Q2 ‘08 Growth in Q2 ‘10 vs. YA
$50,000 - $99,999 -8% -2%
e-Commerce Sales vs. YA by Income SegmentSource: comScore e-Commerce Measurement
Contribution of Total e-Commerce Growth
for Q2 ‘10
Contribution of Total e-Commerce Growth
for Q2 ‘10
+5%
-1%
Bracket Share of
Spending in Q2 ‘10
Bracket Share of
Spending in Q2 ‘10
22%
41%
8© comScore, Inc. Proprietary and Confidential.
Total +8%
$100,000 or more +28% +17%
+9%
+6%
+9%
37%
100%
Worries of double-dip recession are mounting, stoki ng fear among consumers
“The recovery just isn’t looking
that great. The job market has lost
some positive momentum. This
suggests another weak reading on
consumer spending in the third
quarter.” – Julia Coronado, Sr. Economist at BNP
Paribas, August 13, 2010
9© comScore, Inc. Proprietary and Confidential.
“With unemployment at 9.5%, people in
the U.S. are worried about the recovery.
And a record string of 22 straight
federal government budget deficits has
raised fears of higher taxes. Caution by
Americans over their finances means
higher saving, which restrains
spending.”
– Wall Street Journal, August 12, 2010
The ‘Scariest Jobs Chart Ever’ is beginning to look even scarier
% Job Losses Relative to Peak Employment Month in P ost WWII RecessionsSource: CalculatedRiskBlog.com
10© comScore, Inc. Proprietary and Confidential.
Number of Months After Peak Employment
An increase in pessimism regarding the unemployment rate coincides with findings from the Pew Research Cente r showing the surge in long-term unemployment
63%
Q. When do you think the unemployment rate will begin to improve?
Source: comScore Surveys - April & July 2010
+10% vs. April 2010
11© comScore, Inc. Proprietary and Confidential.
1%4%
10%
22%
Next Month
Next 2-3 Months
Next 4-6 Months
Next 7-12 Months
More Than 12 Months From Now
The typical unemployed worker today has been out of work for nearly six months or 23.2 weeks. This i s almost double the previous post-World War II peak
for this measure –12.3 weeks – in 1982/83. – Pew Research Center
Unemployment remains the top concern among consumer s; financial-market concerns have risen, especially among the up per-income segment
Rising Prices
Unemployment/ Job Security
FinancialMarkets
Real Estate/ Home Values
Oct09
Jan10
April10
July 10
Oct09
Jan10
April10
July10
Oct09
Jan10
April10
July10
Oct09
Jan10
April10
July 10
Q. Based on your current situation, which one of the following economic conditions most concerns you?
Source: comScore Surveys - October 2009 & January, April & July 2010
Percent of Respondents Citing Their One Most Import ant Issue
12© comScore, Inc. Proprietary and Confidential.
09 10 10 10 09 10 10 10 09 10 10 10 09 10 10 10
Total 32% 29% 33% 30% 42% 50% 42% 44% 13% 9% 10% 13% 8% 7% 9% 8%
Household Income
$100K or more 19% 22% 23% 13% 34% 44% 34% 45% 27% 13% 17% 26% 15% 17% 18% 13%
$50K-$99,999 28% 23% 26% 22% 43% 50% 49% 46% 13% 12% 11% 16% 12% 10% 11% 11%
Under $50K 39% 36% 41% 40% 42% 50% 39% 42% 9% 6% 7% 9% 4% 4% 5% 6%
Lifestyle Changes Based on Recession
76% of consumers have changed how they spend money based on the recession and 43% of them say these changes are permanent
Q. Have you changed how you spend money based on the recession? Q. In what ways have you changed how you spend mone y, based on the recession?
Source: comScore Survey July 2010
80%
69%
67%
54%
Eating at home instead of eating out
Only making planned purchases
Reducing entertainment expenses
Using cash/debit card/checks instead of credit
76%
13© comScore, Inc. Proprietary and Confidential.
54%
48%
42%
33%
23%
21%
14%
2%
0%
Using cash/debit card/checks instead of credit cards
Sticking to a personal budget
Changing travel plans
Changing driving habits
Reducing or canceling cable/Internet plans
Reducing or canceling cell phone plans
Changing living arrangements
Other
None of these
% of those who changed how they spend money based o n the recession
24%
Yes No
43% of these consumers say these changes are permanent
and will be continued even when the economy recovers
Consumer Agreement with Economic Statements
76% hold a pessimistic view of current economic con ditions; 3 in 10 predict conditions will worsen in the futur e
29%
21%
“We haven’t hit bottom yet; the worst is still to come.”
“We’ve turned the corner, but I would not be surprised if the economy dropped again before it
fully recovers.”
Q. Which statement best describes how you feel about the current economic conditions?Source: comScore Survey July 2010
Pessimistic 76%
14© comScore, Inc. Proprietary and Confidential.
21%
26%
16%
8%
fully recovers.”
“We might be headed in the right direction but the signs of improvement are hard to see.”
“The economy is stagnant, not going up or down.”
“We’ve turned the corner and are beginning to see signs of improvement.”
% of All Respondents
Pessimistic 76%
Neutral/Positive 24%
Chg from Q1 (+3%)
Chg from Q1 (-3%)
Who is Today’s Online Consumer?
15© comScore, Inc. Proprietary and Confidential.
The average heavy online buyer spent $615 in Q2 201 0, nearly 5X more than medium buyers and 20X more than light buy ers
Heavy Medium Light
% of Buyers 20% 30% 50%
% of e-Commerce Dollars 69% 22% 8%
% of Transactions 40% 30% 30%
Dollars per Buyer $615 $133 $30
Key Shopping Metrics for Heavy/Medium/Light Buyer i n Q2 2010Source: comScore e-Commerce Measurement
16© comScore, Inc. Proprietary and Confidential.
Amazon Attracts a Higher Proportion of Heavy Online Buyers
H/M/L Definition:Heavy = Top 20% of buyers based on dollars spent in Q2 2010Medium = Next 30% of buyers based on dollars spent in Q2 2010Light = Bottom 50% of buyers based on dollars spent in Q2 2010
Dollars per Buyer $615 $133 $30
Transactions per Buyer 4.7 2.4 1.4
Segment
Amazon Buyer Reach
Within Segment
% CHG in Reach vs. Q1 2010
%Composition
Amazon Buyers
Heavy 34% +3 points 28%
Medium 25% 0 points 31%
Light 20% 0 points 41%
Amazon reaches a third of heavy
online buyers, up 3 percentage points
from Q1 2010
The leading ten retailers within the heavy e -commerce buyer segment are split between multi-channel and pure-play retai lers, but Amazon leads the pack with 10% share
Top 20 Selected Retailers by Share of Heavy Buyers’ Dollar Spending in Q2 2010Source: comScore e-Commerce Measurement
Top RetailersShare of Heavy Buyers
Dollar SpendingAmazon 10%
Dell 8%Staples 4%Costco 4%
Walmart 3%Ticketmaster 3%
17© comScore, Inc. Proprietary and Confidential.
Ticketmaster 3%QVC 3%Apple 3%
Office Depot 2%HSN 2%
JCPenney 2%Quill 2%
Best Buy 2%Sears 2%
Tiger Direct 2%Victoria’s Secret 2%
Stub Hub 1%Home Depot 1%
Target 1%Gap 1%
Six in ten consumers say the Internet has become im portant when making buying decisions and 59% of them say it has increased in the past year
Importance of the Internet in Making Purchasing Dec isions
Q. In the past 3 months, how important has the Inte rnet become in providing you with information to help you make buying decisi ons?
Q. How has this changed versus a year ago? Source: comScore Survey – July 2010
31%
18© comScore, Inc. Proprietary and Confidential.
43%
16%
% of those who found the Internet important
Significantly Increased
Somewhat Increased
59%
10%
31%
Slightly/very important
Slightly/very unimportant
Neither important nor unimportant
59%
How Consumers Are Cutting Shopping Expenses
Consumer loyalty to specific retailers and brands h as steadily decreased over the past two years, while likelihood to shop online for deals has risen
Q. Please indicate how you are cutting your shopping expensesSource: comScore Surveys – July & October 2008, Apr il 2009, April & July 2010
July 2008
Oct2008
April 2009
April 2010
July 2010
% Chg(07/08 to 07/10)
Reducing gift spending 41% 51% 59% 57% 56% +15%
Shopping at different retailers 20% 25% 30% 33% 32% +12%
Buying different brands (including generic brands) 52% 51% 58% 57% 62% +10%
19© comScore, Inc. Proprietary and Confidential.
Buying different brands (including generic brands) 52% 51% 58% 57% 62% +10%
Shopping online for deals 24% 25% 33% 32% 32% +8%Signing up for retail point programs or customer loyalty programs 22% 22% 27% 29% 29% +7%
Using coupons more often when making purchases 59% 62% 68% 64% 66% +7%
Shopping only when there are sales (i.e. one day sales) 40% 43% 41% 43% 44% +4%
Shopping at secondhand stores, garage sales, etc. 30% 33% 30% 31% 33% +3%
Shopping less frequently 68% 71% 70% 72% 69% +1%
Buying in bulk at warehouse/discount retailers like Costco, Sam`s Club, BJ`s etc. 27% 28% 31% 28% 28% +1%
Shopping at auction sites such as ebay.com 13% 14% 14% 13% 13% 0%
Only shopping for basic necessities 66% 67% 60% 62% 65% -1%
Amazon has the largest audience with 76 million UVs in Q2 2010; it’s one of the fastest growing sites in the category, s econd only to Netflix
Average Monthly Unique Visitors (MM) and % Growth v s. YA on Selected Retail Sites in Q2 2010
Source: comScore Media Metrix
+13%
+21%
+15%
+5%
168.7
76.2
40.2
34.9
Retail Sites
Amazon Sites
Apple.com Sites
Walmart
20© comScore, Inc. Proprietary and Confidential.
-3%
+34%
+8%
+6%
+8%
-3%
+1%
26.1
19.0
16.7
14.8
13.1
12.0
11.0
Target Corporation
Netflix.com
Best Buy Sites
Hewlett Packard
The Home Depot, Inc.
JC Penny Sites
Sears.com
Pure-play retailers have gained market share over t he past two years. Multi-channel retailers have lost share
47.2% 51.1%44.3%
48.6% 44.8% 44.6% 42.5% 40.1% 36.0%41.3%
60%
70%
80%
90%
100%
Multi-channel vs. Pure-play: Share of Quarterly U.S . e-Commerce SalesSource: comScore
21© comScore, Inc. Proprietary and Confidential.
52.8% 48.9%55.7%
51.4% 55.2% 55.4% 57.5% 59.9% 64.0% 58.7%
0%
10%
20%
30%
40%
50%
60%
Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010
Multi-Channel
Pure-Play
Larger retailers continue to benefit from leveragin g deeper discounts, free shipping incentives and inventory, garnering a n additional 5.6 share points from Q2 2009
Sales Share Q2 2009 Q2 2010Point Change
vs. YAQ2 2010
Total E-Commerce 100.0% 100.0% N/A
Largest 25 Retailers 59.8% 65.4% +5.6 pts
Share of Sales for Top 25 Retailers in Q2 2010 vs. YASource: comScore e-Commerce Measurement
22© comScore, Inc. Proprietary and Confidential.
All Other Retailers 40.2% 34.6% -5.6 pts
Q2 2010 vs. YA Q1 2010 vs. YA Q4 2009 vs. YA
Largest 25 Retailers +5.6 pts +3.6 pts 4.2 pts
All Other Retailers -5.6 pts -3.6 pts -4.2 pts
Share Shifts
Women are more avid online buyers than men, making up 58% of total dollars spent and 61% of online transactions
In the U.S., 12.5% of female
Internet users made an online purchase in February 2010,
61.1%58.2%
23© comScore, Inc. Proprietary and Confidential.
U.S. Consumers, Non-Travel Internet Purchases, February 2010Source: comScore e-Commerce Report
in February 2010, compared to 9.3%
of men.
38.9%41.8%
TransactionsDollars
WomenMen
60% of buying on multi-channel sites is attributabl e to women, whereas the distribution on pure-play sites is more evenly split
Women Men
Age <34 19% 14%
Age 35-54 28% 19%
Propensity to Buy on Multi-Channel vs. Pure-Play Re tailer Sites by Age and Gender% of Total Dollars Spent by Segment in June 2010
Source: comScore e-Commerce Measurement
Multi-Channel Retailers
Women Men
Age <34 12% 14%
Age 35-54 24% 22%
Pure-Play Retailers
24© comScore, Inc. Proprietary and Confidential.
Age 35-54 28% 19%
Age 55+ 13% 7%
Total 60% 40%
Multi-Channel: Utilizes more than one channel to conduct business (e.g. Best Buy)
Pure-Play: Utilizes a single channel to conduct business (e.g. Amazon)
Age 35-54 24% 22%
Age 55+ 17% 11%
Total 53% 47%
Most product categories showed sales growth versus year ago. Consumer electronics and computers have shown stren gth throughout 2010
Q2 2010 e-Commerce Sales Growth vs. YA by Retail Ca tegorySource: comScore e-Commerce Measurement
Category Change vs. YA
CONSUMER ELECTRONICS (x PC PERIPHERALS)Strong
COMPUTERS / PERIPHERALS / PDAsStrong
BOOKS & MAGAZINESStrong
VIDEO GAMES, CONSOLES & ACCESSORIESStrong
JEWELRY & WATCHESModerate
HOME & GARDENModerate
Out-Performing Total Internet(Growth rates of 9% or higher)
25© comScore, Inc. Proprietary and Confidential.
HOME & GARDENModerate
FURNITURE, APPLIANCES & EQUIPMENTModerate
CONSUMER PACKAGED GOODSModerate
FLOWERS, GREETINGS & MISC GIFTSModerate
OFFICE SUPPLIESModerate
EVENT TICKETSModerate
APPAREL & ACCESSORIESFlat
SPORT & FITNESSWeak
Under-Performing Total Internet(Growth rates of 1%-8%)
Flat/Negative Growth
The Impact of Promotions & Price Incentives on Internet Behavior
26© comScore, Inc. Proprietary and Confidential.
Internet Behavior
50,00055,00060,00065,00070,00075,00080,00085,00090,000
Unique Visitors (000) to Comparison Shopping SitesSource: comScore Media Metrix
Comparison Shopping sites, such as Nextag and Shopp ing.com, have gained visitors and increased time spent on th eir sites
85.5 Million in Jul ‘10+30% vs. Jul ‘08
27© comScore, Inc. Proprietary and Confidential.
200250300350400450500550600
Total Minutes (MM) Spent on Comparison Shopping Sit esSource: comScore Media Metrix
440 Million in Jul ‘10+51% vs. Jul ‘08
0
20,000
40,000
60,000
80,000
100,000
120,000
Jul -2008 Sep-2008 Nov-2008 Jan-2009 Mar-2009 May-2009 Jul -2009 Sep-2009 Nov-2009 Jan-2010 Mar-2010 May-2010 Jul -2010
Total Unique Visitors (000) and Total Visits (000) to Coupon SitesSource: comScore Media Metrix
Coupon sites continue to grow in importance; catego ry visitors tend to skew slightly older and female
34.5 million UVs+34% vs. Jul ‘08
101.1 million visits+56% vs. Jul ‘08
28© comScore, Inc. Proprietary and Confidential.
Jul -2008 Sep-2008 Nov-2008 Jan-2009 Mar-2009 May-2009 Jul -2009 Sep-2009 Nov-2009 Jan-2010 Mar-2010 May-2010 Jul -2010
Total Unique Visitors (000) Total Visits (000)
UV Composition Index by Income UV Composition Index by Gender
Females
Males
114
86
97
104
101
104
Under $60K
$60K -$74,999
$75K -$99,999
$100K or more
4.4
5.3
6.8
7.2
RetailMeNot.com
Groupon.com
LivingSocial*
Coupons, Inc.
Top Coupon Sites by Unique Visitors (MM)July 2010
Source: comScore Media Metrix
Coupons.com, which leads the Coupon category in ter ms of UVs, reports $1 billion in redemption value in first hal f of 2010
“[Coupons.com] said savings from coupons printed out or loaded to a loyalty card from its online properties doubled to more than $1 billion from $529 million a year ago. The value of savings in June
alone hit $110 million, the highest total to date for any single month via
Coupons.com.” (MediaPost, July 2010)
29© comScore, Inc. Proprietary and Confidential.
1.4
1.6
2.2
2.2
2.4
4.0
4.4
CouponCabin.com
CouponMountain.com
MyPoints Sites
RebateGiant.com
eBayCoupon.US
EverSave.com
RetailMeNot.com
With only 2.2 million UVs, MyPoints Sites generated 14.5 million visits or an average
of 6.6 visits per visitor in July 2010.
*Note: LivingSocial is currently included in the Social Networking category within comScore Media Metrix. For the purpose of this analysis, it has been included in the above Coupon ranking.
1000
1200
1400
1600
1800
2000
Flash Sale sites continue to gain traction with hig h growth rates versus year ago, although we’re seeing a slight slo wdown during the summer months
HauteLook+12% vs. July ‘09
U.S. Unique Visitors to Flash Sale SitesSource: comScore Media Metrix
30© comScore, Inc. Proprietary and Confidential.
0
200
400
600
800
1000
HAUTELOOK.COM IDEELI.COM GILT.COM RUELALA.COM
Ideeli+382% vs. July ‘09
Gilt+46% vs. July ‘09
RueLaLa+15% vs. July ‘09
Group buying is surging. Groupon.com and LivingSoci al continue to execute against strategies that enhance the user ex perience and entice consumers from across the Web
U.S. Unique Visitors (000)Source: comScore Media Metrix
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
Groupon.com+3300+% vs. YA
LivingSocial.com+8300+% vs. YA
31© comScore, Inc. Proprietary and Confidential.
19% of UVs to Living Social are sourced from Evite and
15% from Facebook. Source: comScore Media Metrix, July 2010
LIVINGSOCIAL.COM GROUPON.COM
Half of consumers say they’ll abandon their shoppin g cart if free shipping isn’t offered, a quarter will only buy whe n free shipping is an option and 90% won’t pay more than $10
Q. In general, how much are you willing to pay for shipping on a purchase made online?Source: comScore Survey – July 2010
23%
47%
I only purchase items with free shipping
Between $0.01 and $4.99
51% of consumers are at least ‘somewhat likely’ to cancel their entire purchase if free shipping is not offered.*
32© comScore, Inc. Proprietary and Confidential.
47%
20%
4%
1%
0%
0%
4%
Between $0.01 and $4.99
Between $6 and $9.99
Between $10 and $14.99
Between $15 and $19.99
Between $20 and $49.99
More than $50
Shipping charges do not matter to me
% of All Respondents
*Q. If you reached the end of your online checkout and found that free shipping was not offered, how likely would you be to cancel your purchase? (comScore Survey, July 2010)
Free Shipping Alternatives
Special pricing, future discounts and rewards/incen tives are appealing alternatives to free shipping for consume rs
54%
31%
Special pricing on items
Discounts on future purchases and/or Reward Points/ Incentives
Q. If free shipping was not offered on an order, which of the following would m ake you more likely to continue with your purchase anyway?
Source: comScore Survey July 2010
33© comScore, Inc. Proprietary and Confidential.
31%
16%
11%
13%
16%
Discounts on future purchases and/or Reward Points/ Incentives
Faster shipping
Money back through branded credit card offers
Not sure
None of these % of All Respondents
66% would be more likely to continue their purchase if
special pricing or discounts/rewards on future
purchases were offered
Other Digital Trends Retailers Can’t Afford to Igno re
34© comScore, Inc. Proprietary and Confidential.
130,000
150,000
Facebook monthly UVs now over 145 million in the U. S. while MySpace still reaches 60 million – more people than any single multi-channel retailer site
Uni
que
Vis
itors
(000
)
Number of Unique U.S. Visitors (000) to Facebook.co m and MySpace.com Source: comScore Media Metrix
+66% in July 2010 vs. YA
35© comScore, Inc. Proprietary and Confidential.
50,000
70,000
90,000
110,000
Uni
que
Vis
itors
(000
)
-11% in July 2010vs. YA
In May 2009, Facebook surpassed MySpace for the fir st time in terms of total U.S. UVs, and the site is continuing to experience explosive growth, now with more than 2X the monthly UVs of MySpace.
On fixed Internet, Retail sites and Search have a c omparable reach, however, with Smartphones and Mobile, Search’s reac h is about 3X and 5X greater than Retail sites, respectively
78.3%88.8%
51.2%
% Reach for Search and Retail On Fixed Internet, Sm artphone & MobileSource: Media Metrix + MobiLens, June 2010
36© comScore, Inc. Proprietary and Confidential.
15.8%5.6%
19.6%
Internet Smartphone Mobile
Retail Search
Among Smartphone users, only 10% have purchased phy sical items via their phones. On average, these users spent $121 in the last 3 months
Q. Do you own or use a smart phone or digital media device, such as an iPhone, iPad, Droid,
Blackberry, Kindle or similar device?
Source: comScore Survey July 2010
In the past 3 months, approximately how much money have you spent on each of the following types of digital content via a mobile device, Smartphone or other wireless device?
Average dollars spent (among
those who purchased)
% of Smartphone users who purchased
Movies/videos/TV shows $28 13%
Games $24 17%
Music $19 17%
Kindle books $15 9%
Applications $10 14%
Other type of e-book $10 7%
Ringtones $7 9%
Wallpapers/graphics $7 6%
37© comScore, Inc. Proprietary and Confidential.
Wallpapers/graphics $7 6%
Other digital content $5 5%
In the past 3 months, approximately how much money have you spent on each of the following via a mobile device or Smartphone?
Average dollars spent (among
those who purchased)
% of Smartphone users who purchased
Physical items purchased from a retail site $121 10%
Physical items purchased from an auction site $52 7%
‘Deal of the day’ sites $48 8%
Renewing or recurring website expenses $23 9%
Renewing subscriptions to online services $22 9%
Other physical/subscription purchase $2 2%
22%
78%
Yes No
Twitter experienced explosive growth in early 2009, which has since leveled off at about 20+ million monthly UVs. API usage likely means that actual monthly users are somewhat higher
Total Unique Visitors (000) to Twitter.comSource: comScore Media Metrix Media
Uni
que
Vis
itors
(00
0)
20,000
25,000
30,00024.8 million UVs
+17% vs. July ‘09 & +3066% vs. July ‘08
38© comScore, Inc. Proprietary and Confidential.
Uni
que
Vis
itors
(00
0)
0
5,000
10,000
15,000
44%33%
24%22%
Reading tweets from users I follow
Posting my own tweets
Conversations with other users
Following businesses to find sales/deals/special pr ices/promotions
Consumer Usage of Twitter
22% of Twitter users follow businesses to find spec ial deals, promotions or sales
Q. For which have you used Twitter?Source: comScore Survey July 2010
39© comScore, Inc. Proprietary and Confidential.
22%21%20%
17%15%
14%11%
9%4%
16%
Following businesses to find sales/deals/special pr ices/promotions
Finding breaking news
‘Retweeting’ other users’ tweets
Following celebrities
Finding political news
Finding product reviews/opinions
Following my favorite sports teams
Asking for help/advice from other users
Other
None of the above
% of Twitter users
29% of Twitter users in total use the
service for retail-related purposes
The Use of Video in Retail
40© comScore, Inc. Proprietary and Confidential.
Retail video – a quick overview
July 2009
July 2010
% Chg vs. YA
Number of people who watch video on retail sites each month
41MM 58MM +40%
% of retail site visitors who also viewed video 28% 34% +18%
YOY growth in retail video viewers (40%) significantlyoutpaced growth
41© comScore, Inc. Proprietary and Confidential.
who also viewed video onsite
28% 34% +18%
Total # of viewed videos
174MM 311MM +79%
Viewing time per person
11mins 20mins +82%
% reach total US population
14% 20% +43%
outpaced growth in total video viewers (17%)
Source: comScore Video Metrix
Adding video to retail sites is extremely powerful
150
200
250
137
201
Retail site visitors who also view video are 64% more likely to purchase
Retail site visitors who also
Buying Power IndexSource: comScore Video Metrix 2.0, June 2010
42© comScore, Inc. Proprietary and Confidential.
TotalInternet
Total Internet w/ Video
Retail Site Visitors
Retail Site Visitors w/
Video Viewing
0
50
100 100115
137view video spend 2 minutes longer onsite per visit
Nearly 100% of online spenders are video viewers
Non-Video Viewers
4%
43© comScore, Inc. Proprietary and Confidential.
Video Viewers96%
Source: comScore Video Metrix 2.0, June 2010
Video advertising is significant in terms of online audience reach
63% of the online audience is currently reached by video advertising each month
83% of all online
44© comScore, Inc. Proprietary and Confidential. Source: comScore Video Metrix 2.0, June 2010
83% of all online spending comes from them
Video advertising is increasingly important in term s of impact
83% of all online spending comes from these video viewers who have seen a video ad
45© comScore, Inc. Proprietary and Confidential. Source: comScore Video Metrix 2.0, June 2010
Not all video audiences are created equal when it c omes to video advertising and retail spending at a category level
100120140160180
170
145136115
Buying Power IndexSource: comScore Video Metrix 2.0, June 2010
46© comScore, Inc. Proprietary and Confidential.
Total Video Sites Video Ad Network Category
Earned Media & Social Video
Long Format TV0
20406080
100
Tips for Retailers Considering Video
� For key products with important and detailed benefi ts, adding video to your site can encourage people to spend more time on you r site and ultimately to make a purchase
– Remember, almost all online spenders are video viewers and retail site visitors who view video are 64% more likely to make a purchase
� When adding video to your site or on sites like You Tube, ensure your videos are easy to find and have detailed metadata tags for search visibility
47© comScore, Inc. Proprietary and Confidential.
– this will help your video cut through the clutter to reach your target audience
� Video advertising on premium and social video sites like Hulu and YouTube can help you reach people who are much more likely than typical Web visitors
– It’s definitely worth considering for high value products, branding or important launches
comScore Holiday Season Retailer Report
Track the performance of your site versus your comp etitors’ during the holiday season and get answers to important questio ns such as:
� How does my audience size and that of my competitors’ vary day to day throughout the holiday season?
� What are my peak traffic days? What retailers are leading in terms of audience size?
� To what extent are retailers leveraging free shipping?
� How effective is my site compared to the competition at converting visits into
48© comScore, Inc. Proprietary and Confidential.
� How effective is my site compared to the competition at converting visits into transactions and how does that compare with site averages across the Internet?
� How qualified is the traffic at each of the competitive domains as well as my own?
� To what extent is my site and my competitors’ sites penetrating the online buyers and how does that compare to last holiday season?
For more information:Jenn Vlahavas
For more information:Jenn Vlahavas
QUESTIONS?
49© comScore, Inc. Proprietary and Confidential.
Please contact us at [email protected] if you have anyadditional questions or comments.
Thank You!Note: A copy of this presentation will be sent to a ll attendees within 24 hours of today’s webinar.
Want more insights? Follow us on Twitter!http://twitter.com/gfulgonihttp://twitter.com/comscore