The Future of Online Holiday Shopping

What 2010 Trends Mean por THE FUTURE OF ONLINE HOLIDAY SHOPPING Online commerce has played a bigger role in the holiday shopping season virtually every year since its inception. But as Internet marketing becomes more sophisticated (and consumers become more web-savvyl, holiday shopping is undergoing some profound transformations. Below are key trends from the 2010 shopping season that shed light on how online holiday commerce is changing. ACROSS-THE-BOARD GROWTH IN ONLINE HOLIDAY SHOPPING ACTIVITY Consumers and retailers both placed a higher emphasis on web-based shopping during the 2010 holiday season. Around 5.6 percent of Black Friday traffic came from mobile phones in 2010- a 26.7 percent year-over-year increase. Retailers increased their search engine advertising budgets 31 percent year-over-year. Shoppers completed 83 percent more online transactions. Retailers enjoyed a 60 percent increase in total online sales revenue. THE RISE OF DIVERSIFIED SHOPPING FROM MULTIPLE WEBSITES 2010 demonstrated that shoppers are not just visiting the websites of big-name retailers like Best Buy and reflexively doing all their shopping there. More than ever, shoppers are being drawn into sales funnels by search engine advertising, as shown by rising click-through rates year-over-year. 2009 Click-Thru Rate (CTRI 2010 Click-Thru Rate ICTRI 5.0% 4.5% 4.0% 3.7% 3.6% 4.0% 3.5% 3.0% 2.6% 3.0% 2.5% 2.5% 2.49% 2.5% 2.0% 1.65% 2.0% 1.5% 1.5% 1.5% 1.0% 0.5% 0% 21 DAYS THANKSGIVING DAY BLACK FRIDAY CYBER MONDAY HOLIDAY WEEKEND (SAT/SUNI TOTAL HOLIDAY SEASON BEFORE THANKSGIVING Interestingly, the number of online transactions rose 83 percent in 2010, while the average order size fell 7.95 percent. This suggests, again, that shoppers are spreading their purchases across multiple websites instead of just one or two. HUGE BUYING ACTIVITY AND COMPETITION DURING SHOPPING HOLIDAYS Consumers and retailers both placed a higher emphasis on web-based shopping during the 2010 holiday season. MONDAY 470% +24.3% $194.89 FREE! YAHOO! Affluent buyers drove sales of luxury goods up 24.3 percent over 2009 during Cyber Monday. According to Yahoo! Shopping's holiday survey "the majority of holiday shoppers are interested in offers and promotions, with free shipping being the key Yahoo! searches for 64 percent of Black Friday searches during Online Cyber Monday sales rose 19.4 percent from 2009 to 2010 and average order size on Cyber Monday rose 8.3 percent, from $180.03 to $194.89. "holiday gift ideas" rose 470 percent in November the week of November versus October, while 22, 2010, were made Black Friday searches by women. started as early as September last year. POPULAR ITEMS FROM 2010'S HOLIDAY SEASON Marketing data firm BlueKai uncovered some popular items during last year's holiday season. Below are the top electronic and holiday gift purchases based on search and shopping activities on top e-commerce sites across the Internet. Holiday Gipts 2 CELLPHONES, PDAS, & SMARTPHONES 3 VIDED GAMES 5 MEN'S AND WOMEN'S CLOTHING | 4 BOOKS & MAGAZINES JEWELRY& WATCHES 6 CAMERAS |DVDS AND MOVIES A LAPTOPS 9 SPORTS CARDS 10 DOLLS AND TEDOY BEARS & MEMORABILIA Top Electronics in 2010 1 2 DIGITAL PHOTO FRAMES 3 LCD TVS 4 PLASMA TVS 5 BLU-RAY PLAYERS E-BOOK READERS 6 IPOD TOUCH 8 DVD PLAYERS 9 DIGITAL CAMERAS 10 DJ TURNTABLES IPOD NANOS IF 2010 TAUGHT US ANYTHING, IT'S THAT MORE SHOPPERS ARE BUYING ONLINE, FROM A WIDER SELECTION OF RETAILERS, WITH AN INCREASING FOCUS ON SHOPPING HOLIDAYS, STARTING EARLIER, AND USING THEIR MOBILE PHONES MORE THAN EVER. SOURCES: KENSHOO | YAHOOI SHOPPING | IBM | BLUEKAI