Com Score Q4 2009 Sor Webinar

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  • 1. State of the U.S. Online Retail Economy in Q4 2009 February 11, 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
  • 2. Data sourced from comScore’s global panel of 2 million Internet users 360°View of Consumer Behavior Analysis Parameters E-commerce data includes all worldwide buying on Web Visiting U.S. sites and Viewing Unless explicitly stated otherwise, the term comScore e-commerce refers to online retail spending, which excludes travel, autos and auctions Demographics Online / Offline Life Stages Transactions Behavioral activity through December 2009 Survey issued in January 2010, n=1010 Consumer Measurements: – Site Visitation – Buying – Attitudes and Intentions – Demographics Search – Mobile Video Behavior – Video – Advertising & AdEffx Measurement Media Retailer Views Exposure – Large vs. Small Retailers © comScore, Inc. Proprietary and Confidential. 2
  • 3. comScore Customer Knowledge Platform: A 360°View of 2 Million Global Internet Users WEB VISITING & VIEWING DEMOGRAPHICS • All Website/Page Click Stream • Self-reported and validated • Content Viewed • Appended Segments (e.g. Claritas, Acxiom) • Search Engine Queries • Individual & Household Level • Keyword Used ONLINE TRANSACTIONS SURVEYS • All Secure Session Activity • Email or Contextual “Pops” • Purchases and Subscriptions • Behavior-activated Surveys • Price Paid, Shipping & Handling, • Observation of All Surveys Taken Promotions Across All Suppliers • Applications/Configurations MARKETING STIMULI OFFLINE PURCHASING • Linked using Name and Address • Online Ads TV VIEWING • Client CRM Databases • Referral Links • Link to Digital Set Top TV Data Using Name & Address • Retailer Loyalty Card Data Designed to be representative of the online population Projectable to the total U.S. population TRUSTe certified for information privacy & security © comScore, Inc. Proprietary and Confidential. 3
  • 4. Validation of comScore Sales Data: Comparison of comScore data to U.S. Department of Commerce *Note: To be consistent with DOC, comScore estimate excludes travel and events tickets but includes auction © comScore, Inc. Proprietary and Confidential. 4 fees and autos.
  • 5. e-Commerce continues to gain share of retail spending E-commerce Share of Corresponding Retail Spending* Source: comScore for e-Commerce & U.S. Department of Commerce (DOC) for Retail 9.0% 8.0% 7.6% 7.7% 7.7% 7.4% 7.3% 7.0% 6.7% 6.4% 6.3% 5.9% 6.8% 6.9% 6.5% 6.6% E-Commerce Share 6.0% 5.9% 5.3% 5.3% 5.1% 5.0% 5.0% 4.6% 4.5% Commerce 4.3% 4.3% 4.0% 4.0% 3.7% e-Commerce share peaks in 3.0% colder seasons (Q4 & Q1) 2.0% 1.0% 0.0% *Note: e-Commerce share is shown as a percent of DOC’s Total Retail Sales excluding Food Service & Drinking, Food & Bev. Stores, 5 Motor Vehicles & Parts, Gasoline Stations and Health & Personal © comScore, Inc. Proprietary and Confidential. Care Stores.
  • 6. 2009 total retail e-commerce sales were down 2% versus year ago, with travel sales down 5% and non-travel flat e-Commerce Dollar Sales Growth ($ Billions) -2% Source: comScore e-Commerce Measurement +7% +17% +19% $214 $210 $200 +22% $171 +26% $84 +9% $80 -5% $143 $77 +12% +29% $117 $69 +13% $61 +20% $93 $51 +28% $72 $40 +33% 0% Travel $123 +20% $130 +6% $130 $30 $102 +24% $82 +24% Non- $67 +26% Travel $42 $53 +26% 2002 2003 2004 2005 2006 2007 2008 2009 © comScore, Inc. Proprietary and Confidential. 6
  • 7. Q4 09 marked the first sign of positive growth in the year, with both retail and e-commerce showing gains vs. YA Quarterly e-Commerce Sales Growth vs. YA Source: comScore e-Commerce Measurement 23% 23% 25% 17% 19% 20% 15% 13% 11% 10% 6% 5% 3% -3% 0% -1% -2% 0% -5% Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Quarterly Retail & Food Services Sales Growth vs. YA Source: U.S. Department of Commerce (DOC) 10% 4% 4% 5% 3% 4% 5% 2% 1% 2% 0% Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 -5% -10% -8% -7% -10% -9% -15% Note: The U.S. Department of Commerce calculation includes total retail and food service sales, which also includes motor vehicles and © comScore, Inc. Proprietary and Confidential. 7 parts dealers.
  • 8. Looking at quarterly sales and sequential changes, we see that e- commerce sales growth has been stagnant for past two years e-Commerce Dollar Sales ($ Billions) Source: comScore e-Commerce Measurement -9% -7% +4% +43% -15% -3% +5% +38% -20% -2% -1% +26% -18% -3% -2% +32% % Chg vs. Prior Quarter $45.0 $39.1 $38.1 $39.0 $40.0 $30.6 $30.2 $35.0 $33.0 $27.2 Billions ($) $31.2 $30.3 $31.0 $29.6 $30.0 $28.0 $28.4 $23.9 $23.1 $25.0 $22.2 $20.0 $15.0 $10.0 $5.0 $- Q1-06 Q2-06 Q3-06 Q4-06 Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09 Q3-09 Q4-09 © comScore, Inc. Proprietary and Confidential. 8
  • 9. We’re seeing significant variance in sales performance across retail categories Q4 2009 e-Commerce Sales Growth vs. YA by Retail Category Source: comScore e-Commerce Measurement Category Growth vs. YA Up JEWELRY & WATCHES Up CONSUMER ELECTRONICS (x PC PERIPHERALS) Up COMPUTER SOFTWARE (X PC GAMES) Up EVENT TICKETS Up BOOKS & MAGAZINES Marginally Up COMPUTERS / PERIPHERALS / PDAs Marginally Up MUSIC, MOVIES & VIDEOS Marginally Up SPORT & FITNESS Marginally Down HOME & GARDEN Marginally Down FURNITURE, APPLIANCES & EQUIPMENT Marginally Down VIDEO GAMES, CONSOLES & ACCESSORIES Marginally Down APPAREL & ACCESSORIES Marginally Down FLOWERS, GREETINGS & MISC GIFTS Down TOYS & HOBBIES © comScore, Inc. Proprietary and Confidential. 9
  • 10. 2009 Holiday E-Commerce Wrap-Up © comScore, Inc. Proprietary and Confidential. 10
  • 11. This year’s season started earlier and lasted longer than any prior year 2009 Holiday Season E-Commerce Spending vs. Corresponding Days in 2008* Source: comScore e-Commerce Measurement Millions ($) 2008 2009 % Change November 1 – December 31 $27,982 $29,084 +4% Thanksgiving Day (Nov. 26) $288 $318 +10% Black Friday (Nov. 27) $534 $595 +11% Cyber Monday (Nov. 30) $846 $887 +5% Green Monday (Dec. 14) $859 $854 -1% Green Tuesday (Dec. 15) $754 $913 21% Final Weekend Before Christmas (Dec. 19-20) $677 $767 13% *Corresponding days based on corresponding shopping days Heaviest online shopping day on record “One year after the worst holiday shopping season on record, retailers are no doubt breathing a sigh of relief as consumers loosened their purse strings somewhat this year.” – Motley Fool, January 8, 2010 © comScore, Inc. Proprietary and Confidential. 11
  • 12. 4% growth in spending was driven by a 10% increase in the number of buyers, but they spent 5% less per buyer Key e-Commerce Buyer and Transaction Measures Nov. 1 – Dec. 31 vs. YA Source: comScore e-Commerce Measurement Metric 2008 2009 % change Dollar Sales ($ Billions) $28 $29 +4% Dollars per buyer $263 $250 -5% Buyers (Millions) 81.6 91.8 +10% Average Order Value $80.93 $75.59 -7% Transactions (Millions) 175 183 +11% Transactions per Buyer 3.26 3.31 1% Buyer Penetration (Total 49% 51% +4% Internet) © comScore, Inc. Proprietary and Confidential. 12
  • 13. e-Commerce gained share of consumers’ wallets in most product categories during the holiday shopping season, but Apparel/Clothing fared better offline e-Commerce and Retail Sales Growth in Nov. & Dec. 2009 vs. YA Source: comScore for e-Commerce & U.S. Department of Commerce (DOC) for Retail e-Commerce (source: comScore) % change vs. YA Retail (source: DOC) % change vs. YA e-Commerce (non-travel) +4% Retail +2% (exc. Food Service & Drinking, Food & Bev. Stores, Motor Vehicles & Parts, Gasoline Stations and Health & Personal Care Stores) Consumer Electronics (excl. +15% Electronics Stores -2% peripherals) Sport & Fitness, Books & +5% Sporting Goods, Hobby, +2% Magazines and Music, Book & Music Stores Movies & Video Furniture, Appliances & +5% Furniture & Home Furniture -5% Equipment Stores Apparel & Accessories -4% Clothing & Clothing +4% Accessories Note: Growth rates are not adjusted for the holiday season, meaning the calculation Note: Comparisons should not be considered exact as comScore and U.S. does not compare corresponding shopping days from 2008 to 2009. Department of Commerce category definitions are not identical. © comScore, Inc. Proprietary and Confidential. 13
  • 14. The number of retail promotions in December 2009 was significantly higher than past years but discount levels were modest relative to YA Daily Offers Per Store 500 450 400 350 300 250 2006 200 2007 2008 150 2009 100 50 0 Month and Day “The retailers risk cannibalizing their 2010 sales by offering such juicy deals at Christmastime. "The question is, ‘Are we sucking the demand out of the first part of next year?’" asks Hargreaves, the Pacific Crest Securities analyst.” – Time Magazine, Dec 15, 2009 © comScore, Inc. Proprietary and Confidential. 14
  • 15. Larger retailers gained online dollar share from smaller retailers Sales ($ Millions) 2008 2009 % Change Total $27,928 $29,034 4% Top 25 Retailers $16,634 $18,538 +11% <25 Retailers $11,294 $10,496 -7% Sales Share 2008 2009 Pt Change Total 100.0% 100.0% N/A Top 25 Retailers 59.6% 63.8% 4.2 pts <25 Retailers 40.4% 36.2% -4.2 pts Source: comScore, Inc. Time Period: Nov. 1 – Dec. 31 vs. year ago The difference in performance between large and small retailers indicates a need for caution when reviewing third party claims of industry e-commerce sales trends that are based on a sample of larger retailers only © comScore, Inc. Proprietary and Confidential. 15
  • 16. Approximately 40% of largest 25 retailers showed growth rates above 10% Fastest Growing of the Top 25 Retailers Ranked by Dollar Sales Growth Source: comScore e-Commerce Measurement Amazon.com Very Strong HSN.com Very Strong Sears.com Very Strong HP.com Very Strong Costco.com Very Strong BestBuy.com Strong Apple.com Strong QVC.com Strong Walmart.com Strong Note: Growth rates based on total dollar sales from Nov. 1 – Dec. 31, 2009 vs. year ago © comScore, Inc. Proprietary and Confidential. 16
  • 17. Combined share for Amazon and Walmart grew significantly; Amazon’s share is still substantially higher than that of Walmart’s e-Commerce Dollar Share for Walmart and Amazon Source: comScore e-Commerce Measurement Nov 1 - Dec 31, 2008 Nov 1 - Dec 31, 2009 Amazon & Walmart All Others Amazon & Walmart All Others 3.2% 7.5% 2.7% 10% 9.5% 13% 89.8% 90% 87.3% 87% “In late 2009, as consumers showed their sensitivity to low prices, price wars returned to the retail landscape with Walmart and Amazon engaging in book and DVD price wars which eventually turned into an all out war to have the cheapest consumer electronics.” – WalletPop.com © comScore, Inc. Proprietary and Confidential. 17
  • 18. National Federation of Independent Businesses: December 2009 Survey of Members When asked if sales increased/decreased during Oct – Dec ‘09 vs. prior three months: – A net 25% said sales had declined – Lack of sales was the single most important problem faced by small businesses, being cited by 35% of respondents – Widespread price cutting contributed to the reports of lower nominal sales When asked if profits increased/decreased during Oct – Dec ‘09 vs. prior three months: – A net 43% said profits had declined. – Only 12% of owners reported higher earnings in most recent three months – 54% reported lower earnings with 65% citing weaker sales as the cause – Low sales volume was the number one reason cited for lack of earnings by 35% of respondents Today, the small business “job generating machine” remains in reverse. Jobs are being lost and new hiring is very weak. When asked if they were planning to create new jobs: – A seasonally-adjusted net 2% of owners reported they didn’t plan to create new jobs over the next three months. (Note: this is an improvement of one percentage point over the November survey.) – While the trend for increased employment is going in the right direction, there is no indication that job growth from small businesses will be strong enough to dramatically reduce the country’s unemployment rate © comScore, Inc. Proprietary and Confidential. 18
  • 19. In-store pick up increases in importance in the final few hectic days before Christmas Share of Transactions for In-Store Pick Up Purchases vs. All Other Purchases Share Based on Total e-Commerce Spending at Four Large Retailers that Offered In-Store Pick Up Source: comScore e-Commerce Measurement In-Store Pick Up Other 52% 64% 60% 67% 70% 73% 72% 75% 48% 36% 40% 33% 30% 27% 28% 25% Week Ending Week Ending Week Ending Week Ending Week Ending Week Ending Week Ending Week Ending Nov 8, 2009 Nov 15, 2009 Nov 22, 2009 Nov 29, 2009 Dec 6, 2009 Dec 13, 2009 Dec 20, 2009 Dec 27, 2009 © comScore, Inc. Proprietary and Confidential. 19
  • 20. Free shipping growing in importance, accounting for an incremental 6 points of all transactions in 2009. 75% of consumers would shift to another retailer at checkout if shipping not free Share of E-Commerce Transactions that Include Free Shipping Source: comScore e-Commerce Measurement 60% 50% 50% 46% 45% 44% 45% 43% 42% 41% 41% 41% 39% 40% 42% 41% 2008 39% 39% Series1 36% 37% 36% 36% 35% 2009 Series2 30% 31% 20% © comScore, Inc. Proprietary and Confidential. 20
  • 21. Big brands topped the list of heaviest retail advertisers this holiday season, with a few smaller brands like SnorgTees and Lexar Crucial making the top five Top Retail Advertisers by Sub-Category from Nov 1 – Dec 31 2009 Source: comScore Ad Metrix Apparel Total Display Ad Consumer Electronics Total Display Ad Impressions (000) Impressions (000) 1. Levi Strauss & Co. 1,238,873 1. RadioShack Corporation 1,761,644 2. Nordstrom, Inc. 1,182,057 2. Best Buy 889,128 3. L.L. Bean, Inc. 409,877 3. Samsung Group 618,914 4. Nike 369,659 4. Sony Electronics 515,528 5. SnorgTees.com 347,829 5. Buy.com 314,381 Computer Hardware Total Display Ad Department Stores Total Display Ad Impressions (000) Impressions (000) 1. Dell 2,540,019 1. Wal-Mart 3,401,226 2. Hewlett Packard 1,849,652 2. Target Corporation 2,236,785 3. Apple 726,613 3. Nordstrom, Inc. 1,182,057 4. Systemax Inc. 242,130 4. Macy’s Inc. 1,163,822 5. Lexar Crucial 121,951 5. Sears 1,134,016 © comScore, Inc. Proprietary and Confidential. 21
  • 22. Social media is an increasingly important driver of commerce How Social Media Influenced Purchase % of Holiday Shoppers Social media has influenced my holiday purchases 28% Reading a consumer-generated review about a product online (including personal 13% blogs) influenced me to purchase it Reading an expert review about a product online influenced me to purchase it 11% I have followed a company Fan Page on Facebook to take advantage of special 7% offers/deals A friend’s status update about a product on Facebook influenced me to purchase it 6% Watching a related video online influenced me to purchase a product 5% I have followed a company on Twitter to take advantage of special offers/deals 5% A tweet about a product on Twitter influenced me to purchase it 3% Other 2% Source: comScore Survey Time Period: Dec. 4-7, 2009, n=425 “Review sites like Retrevo are incorporating Twitter into their platform and retailers like BestBuy, Dell and others are taking advantage of social media to promote their deals and products. Dell reported that it rung up $6.5 million in sales thanks to Twitter promotions. Obviously, social networks can be a boon to retailers.” - TechCrunch, Dec. 8, 2009 © comScore, Inc. Proprietary and Confidential. 22
  • 23. Key Trends That Will Help to Shape 2010 © comScore, Inc. Proprietary and Confidential. 23
  • 24. 61% of consumers rate economic conditions as poor, which although far from ideal is an improvement from a year ago Perception of Economic Conditions Q. How would you rate economic conditions today? Source: comScore Surveys Poor 77% 68% 66% 61% 61% Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 © comScore, Inc. Proprietary and Confidential. 24
  • 25. 48% of consumers are pessimistic about future economic conditions; Only 9% believe we’ve turned corner without further problems Consumer Agreement with Economic Statements Q. Which statement best describes how you feel about the current economic conditions? Source: comScore Survey January 2010 “We haven’t hit bottom yet; the worst is still to come.” 25% Pessimistic 48% “We’ve turned the corner, but I would not be surprised if the economy dropped again before it 23% fully recovers.” “We might be headed in the right direction but the signs of improvement are hard to see.” 30% Neutral 43% “The economy is stagnant, not going up or down.” 13% “We’ve turned the corner and are beginning to see Positive 9% signs of improvement.” 9% % of All Respondents © comScore, Inc. Proprietary and Confidential. 25
  • 26. In these challenging economic times, consumers have turned to coupon sites; the category has seen significant growth in both UVs and Total Visits 36 Million People Visited a Coupon Site in December 2009 Growth in Unique Visitors & Total Visits to % Composition of Coupon Users on Selected Coupon Sites vs. YA Retail Sites in December 2009 Source: comScore Media Metrix Source: comScore Segment Metrix 50% 47% JCPenney Sites 12% 29% 59% 45% The Home Depot, Inc. 12% 24% 64% 40% 39% 38% 37% Overstock.com 11% 28% 61% 35% 35% Hewlett Packard 8% 24% 68% 30% 27% Target Corporation 8% 25% 67% 25% 20% Wal-Mart 8% 23% 69% 20% Netflix.com 8% 21% 71% 15% 12% 9% Best Buy Sites 7% 22% 71% 10% 8% Amazon Sites 6% 20% 74% 5% 0% Apple.com Worldwide Sites 5% 18% 77% Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Total Visits Unique Visitors % Heavy Coupon Site Visitors % Moderate + Light Coupon Site Visitors Non-Coupon Site Visitors © comScore, Inc. Proprietary and Confidential. 26
  • 27. Very high traffic levels for many retailer sites but supermarket retailers attract few visitors. Suggests supermarkets need to “fish where the fish are” with their online marketing efforts Total Unique Visitors (Millions) for Top 20 Retailers in December 2009 Source: comScore Media Metrix 85.7 54.2 47.3 41.8 29.7 28.4 23.2 21.4 20.5 19.5 17.5 17.0 17.0 16.2 15.9 15.1 14.7 14.3 14.2 14.1 Walgreens (8.1 Million UVs), Safeway (1.7) and Kroger (1.3) have lower UV levels. © comScore, Inc. Proprietary and Confidential. 27
  • 28. Twitter experienced explosive growth in early 2009, which has since leveled off at about 20 million monthly unique visitors. API usage likely means that actual monthly users are even higher Total Unique Visitors (000) to Twitter.com Source: comScore Media Metrix Media 25,000 Unique Visitors (000) 20,000 15,000 10,000 5,000 0 “Companies are using Twitter as a marketing or public relations channel, much like an extension to their corporate blogs. They will post about corporate accomplishments and distribute links that take people back to corporate web pages, press releases, and other promotional sites.” – ReadWriteWeb.com © comScore, Inc. Proprietary and Confidential. 28
  • 29. Several luxury invite-only and deal-of-the-day sites hit the scene and flourished in 2009 attracting a cross section of income groups. But are they buying? Unique Visitors and Growth vs. YA for % Composition by HH Income for December 2009 December 2009 Source: comScore Media Metrix Source: comScore Media Metrix 900 +894% Total Gilt HauteLook Ideeli RueLaLa Internet Groupe 800 Unique Visitors (000) 700 Less than +331% +185% 28% 27% 20% 29% 12% $40K 600 $40K-$74.9K 35% 31% 30% 32% 23% 500 +72% 400 $75K-$99.9K 17% 20% 25% 19% 22% 300 $100K or 200 21% 22% 25% 20% 43% more 100 0 Groupon.com – a relatively new “deal-of-the-day” site with a slightly different model and broader appeal – has grown 56% from October 2009 to December 2009. © comScore, Inc. Proprietary and Confidential. 29
  • 30. U.S. Online Video: People consuming more video content than year ago and time spent per video is up due to more long-form content U.S. Video Viewing and Engagement Metrics for Dec. ’09 Source: comScore Video Metrix Unique Viewers (000) No. of Videos (000) 180,000 +19% 35,000,000 +132% 170,000 30,000,000 25,000,000 160,000 20,000,000 150,000 15,000,000 10,000,000 140,000 5,000,000 130,000 0 Dec-2008 Dec-2009 Dec-2008 Dec-2009 Videos per Viewer Minutes per Video 5.0 200.0 +95% +26% 4.0 150.0 3.0 100.0 2.0 50.0 1.0 0.0 0.0 Dec-2008 Dec-2009 Dec-2008 Dec-2009 © comScore, Inc. Proprietary and Confidential. 30
  • 31. Online video viewers spend 13% more on e-commerce than the average Internet user E-Commerce Buying Index Video Viewers vs. Total Internet Population 25% Source: comScore Video Metrix (Dec 2009) Custom Research 113 20% Total Internet 15% Video Viewers 10% 113 113 5% 116 114 0% ALL PRODUCTS APPAREL, BOOKS, MUSIC & ELECTRONICS & HOME & LIVING ACCESSORIES & VIDEO COMPUTING JEWELRY © comScore, Inc. Proprietary and Confidential. 31
  • 32. Mobile usage to access retail-specific information has increased vs. YA in both total users and frequency of use but mobile buying still limited Access to Retail-related Sites via Mobile Phones in December 2009 % Growth vs. YA Source: comScore MobiLens # of Subscribers (Millions) and % Growth vs. YA Accessed Online Accessed Auction Accessed Shopping Retail Sites Guides Almost every day 1.7 +54% 2.1 +55% 1.6 +23% Ever in month 9.9 +56% 9.6 +33% 8.7 +48% Growth in these categories exceeds both overall growth in the market and top-level News and Info category. © comScore, Inc. Proprietary and Confidential. 32
  • 33. comScore Announces Acquisition of ARSgroup ARSgroup is a leading communications research agency specializing in the measurement of advertising persuasion for TV and multi-media campaigns and helping many of the world’s largest brands in the consumer goods, pharmaceuticals, retail and entertainment industries optimize their advertising messages. ARSgroup’s ARS Persuasion methodology is one of the world’s most widely documented and independently validated predictive measures of the persuasive effectiveness of advertising creative. © comScore, Inc. Proprietary and Confidential. 33
  • 34. ARS Findings for Retailers: Strength of advertising creative is four times as important in determining sales outcomes as the amount of media spent Frank Findley, VP Research, comScore ARS Quantify benefits. When making shopping and product decisions, people can have a hard time valuing the benefits presented. – Say “20% lower prices” instead of “lower prices.” Take advantage of multiple executions. When communicating complex or higher order messaging, multiple executions are often needed to ensure understanding and impact consumer behavior. – Use lower CPM advertising like banner ads. Take advantage of the frequency in a media plan by using multiple executions which together communicate the point. Don’t forget the emotional content. Ad campaigns that work best create both emotional and rational connections with the consumer. – When using rich media and video, use compelling emotional and rational content together, in the same execution. – If this isn’t an option for you, a combination of the two works as well…rely on rich media with sound and motion to connect emotionally and leverage lower CPM channels to reinforce rational messages. Make the brand prominent. If the creative doesn’t link back to the brand, then the impact on sales will be missed. – Be sure to prominently mention the brand verbally and visually. The best outcome is to make the brand the hero of the action. © comScore, Inc. Proprietary and Confidential. 34
  • 35. Key Takeaways © comScore, Inc. Proprietary and Confidential. 35
  • 36. Key Takeaways 2009 total retail e-commerce sales were down 2% versus year ago, with travel sales down 5% and non-travel flat – Q4 09 marked the first sign of positive growth in the year, with both retail and e-commerce showing marginal gains vs. YA – comScore expects to see growth in e-commerce in 2010 but absolute growth will be crimped by continued high unemployment, consumer deleveraging and their desire to save Holiday season saw 4% growth, slightly surpassing comScore’s forecast of 3%. This is a marked improvement over last year when sales dropped by 3% – Sales grew because of an increase in the number of online buyers, but they spent slightly less per buyer than in 2008 – The season started earlier than in previous years because of aggressive and early retailer promotions and lasted longer because of consumer confidence in the reliability of shipping – Free shipping continued to increase in importance, and social media (especially product reviews) emerged as an influence on consumer buying When it comes to the state of the economy, 61% of consumers rate economic conditions as poor, which although far from ideal is an improvement from a year ago – 48% are pessimistic about the economy’s future and only 1 in 10 think the economy will improve without further problems Couponing, social media, video and mobile are trends that flourished in 2009 and will persist as we move through 2010 © comScore, Inc. Proprietary and Confidential. 36
  • 37. QUESTIONS? Please contact us at learnmore@comscore.com if you have any additional questions or comments. To download a copy of our 2009 Digital Year in Review Whitepaper, please visit: www.comscore.com/digital09. © comScore, Inc. Proprietary and Confidential. 37
  • 38. Thank You! Note: A copy of this presentation will be sent to all attendees within 24 hours of today’s webinar.