Plush Search: Invitation Only Deal Sites and Impact of Search Marketing
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www.compete.com Confidential Information. Do not distribute. Plush Search: Invitation Only Deals Sites And Impact of Search Marketing March 23, 2011 chael Perlman, Managing Director Online Media [email protected]
Transcript of Plush Search: Invitation Only Deal Sites and Impact of Search Marketing
w w w . c o m p e t e . c o m Confidential Information. Do not distribute.
Plush Search: Invitation Only Deals Sites And Impact of Search Marketing
March 23, 2011
Michael Perlman, Managing Director Online Media [email protected]
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Introduction to Compete
• Founded in 2000, joined WPP/Kantar in 2008
• Passionate about understanding consumers to inspire great marketing
• Fastest-growing operating company within Kantar in terms of revenue and new customer growth
• World-class advertiser, agency and media clients
• Strategic partnerships to enable marketing optimization and provide holistic view of consumers
• Leading the creation of a global, multi-screen, single-source consumer-panel with Lightspeed Research for WPP
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What is a “Flash Sale” Site?
• Membership only communities that provide daily sales on branded inventory
• Sales last 30 to 72 hours• Incentives offered ($10 to $25) to refer new members
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Flash Sale Sites Are Becoming Major Players in Online Retail…
• Increase in average unique visitors from 322K in Feb 2009 to 1.05M in Feb 2011 – 226% growth!!!!
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…And Consumers Are Hooked On These Sites
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Average Monthly Visitation to Flash Sale Sites
Average Monthly Visitation to High End Retailer Sites
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Visitation to Flash Sale Sites And High End Retailer Sites Is Intertwined
14% of all visits to Flash Sale Sites Result in Consumer Visiting a High End Retailer Site in Same Session
4% of Visits to High End Retailer Sites Result in Consumer Visiting a Flash Sale Site in Same Session >200% growth over past two years
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Flash Sale Site Visitors – High Earning Women
28%24% 26% 26%
17%
60% 60% 62% 61%
50%
0%
10%
20%
30%
40%
50%
60%
70%
Gilt HauteLook ideeli Rue La La Internet Browser
Population
% Household income 100k+ % Female
Demographic Profile Of Site Visitors
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Significant Cross-Shop Activity In Category
Top Referring Sites To Ruelala.com
(February 2011)
Referring Site Share of Totalgoogle.com 14.60%yahoo.com 8.33%facebook.com 6.98%ideeli.com 3.39%paypal.com 3.24%hautelook.com 2.89%aol.com 2.61%gilt.com 1.97%beyondtherack.com 1.47%bing.com 1.14%
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How Do Flash Sale Sites Generate Traffic?
17% 13%18% 16%
7%
13%15%
10% 16% 30%
10%9% 11%
12%11%7%
8%12%
7%7%
0%
10%
20%
30%
40%
50%
60%
Gilt HauteLook ideeli Rue La La Apparel Industry
Email Portals & Search Direct Social
Top Referring Categories
(February 2011)
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Competitive Brand Terms Drive Search Traffic
4th largest referring site from term “gilt.com” and 9th largest referring site from term “ruelala”
15th largest referring site from term “hautelook”
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Flash Sale Providers Vary In Reliance On Paid Search As Traffic Acquisition Source
65%
52%
39%
20%
0%
10%
20%
30%
40%
50%
60%
70%
HauteLook Rue La La Gilt ideeli
Paid Search Referrals As % of Total Search Referrals
(February 2011)
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5.8%
3.6% 3.6%2.9% 2.6% 2.3% 2.2% 2.1% 2.0%
0%
1%
2%
3%
4%
5%
6%
7%
HauteLook Drives Traffic From High Value Generic Terms
Top Destination Sites For Search Term “Designer Jeans”
(% of Traffic From Term Dec-Feb 2011)
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Big Takeaway…
• Flash Sale sites are certainly using search marketing, but it does not appear to be as critical to their customer acquisition strategies as it is to other online apparel retailers
• Flash Sale sites can increasingly leverage search to grow overall user base, but might diminish “exclusivity” branding that has been core to growth
