State of Online Shopping 2010Sara Kleinberg, Google’s Group Product MarketingManager: Retail & Tech
Content1 What we learned from Holiday 20092 What’s the same?3 What’s new?4 Recommendations for Holiday 2010 Google Confidential and Proprietary 2
Holiday 2009 1. Shopping starts early and ends late 2. Coupons still reign 3. Holiday search volume is rising Google Confidential and Proprietary 3
Shopping starts early and ends late As of August, 30, 2009… As of December 20, 2009…44% 14% Had already started Had yet to start holiday shopping. holiday shopping. Google Confidential and Proprietary 4Source: Google/OTX Consumer Pulse Check, 8/09-12/09. Base: Those who plan to shop/research or purchase this holiday season (Nearly 9 out of 10plan to shop/research or purchase.)  Have you started your 2009 Holiday shopping/researching?  Have you started your 2009 Holiday purchasing?Please think of any gifts that you may shop for or purchase during the Holiday Season, as well as those you may shop for or purchase after the holidays..
Coupons still reign Average Monthly Coupon Searches on Google: coupons bed bath and beyond coupons best buy coupons victoria’s secret coupons lowes coupon jcpenney coupons coupons bed bath and beyond coupons best buy coupons victoria’s dominos coupons pizza hut secret coupons lowes coupon coupons enterprise rental car jcpenney coupons coupons pizza hut dominos coupons enterprise rental car coupons home coupons home depot coupons printable coupons macy’s 38% depot coupons printable coupons macy’s coupons target coupons coupons target coupons kohls kohls coupons michaels coupon coupons michaels coupon old Non-Holiday Months Holiday Months Google Confidential and Proprietary 5Source: Google Internal. Average monthly search volume on top 100 coupon-related terms on Google for February through September 2009compared against the average monthly for October through January.
Holiday search volume is risingSearches on key dates increased substantially in 2009. Data from google.com/insights/search “Black Friday” +20% Searches for ‘black friday’ increased 20% last holiday season. “Cyber Monday” +60% Searches for ‘cyber monday’ increased 60% last holiday season. Google Confidential and Proprietary 6Source: Google Insights for Search, 2009; comScore Press Release, 12/09.
What’s the same? 1. Shoppers like hot products 2. Holiday is in full swing 3. Key shopping dates Google Confidential and Proprietary 7
Consumers want electronics, apparel & travel Google Confidential and Proprietary 8Source: Google/OTX State of Shopping research, May 2010. Q: What is one item that you are most excited about shopping for this year?
Products to watch: 3D TVs300%growthin 3D TV searchessince the beginningof 2010. Google Confidential and Proprietary 9 Source: Google Internal data. Search volume reflects weekly averages from January 2010-July 2010.
Products to watch: Tablets & eReaders An estimated 11 million tablet PCs and 10 million eReaders will ship this year worldwide. Google Confidential and Proprietary 10Source: ABI research (July 2010) and Digitimes research (March 2010).
Rising product searches: Retail Data from google.com/insights/search Silly bandz crocs Apparel, Mens wallets swimsuits Clothing sandals Bathing suits Labels & Flip flops shorts T-Shirts Golf shoes Halter dress Summer dresses Free weezy shirt Super soaker Ben 10 hammock Harry potter lego Toys & Video Water table kites Games sandbox Little tikes Hammock stand Mario galaxy 2 Toys r us Mario galaxy Mothers rings Turquoise ring Gems & Mood rings Indian jewelry Jewelry Tiffany engagement rings Opal rings & Chrome hearts Sapphire engagement rings Watches Platinum engagement rings Michael kors watch Swarovski crystals Ceramic watch Google Confidential and Proprietary 11Source: Google insights, rising product searches Apr – Jul 2010. Apparel, Clothing Labels, T-Shirts, Toys, Video Games, Gems & Jewelry, Watchescategories.
Rising product searches: Tech Data from google.com/insights/search lcd tv 1080p 3d tv Consumer home projector ipod touch Electronics ipad kindle reader & blu ray player bose sounddock portable Accessories klipsch image s4 nook flip outdoor speakers dell streak sony vaio z Computers sony tx5 hp dv2000 toshiba nb305 macbook pro sleeve & sony vaio notebook dell mini 10 Accessories hp tablet macbook pro lenovo tablet dell latitude iphone 4 htc aria Mobile htc evo 4g iphone 4 cases Phones samsung vibrant nokia 5230 & htv incredible samsung galaxy Accessories nokia nuron htc droid motorola i1 nokia x6 Google Confidential and Proprietary 12Source: Google insights, rising product searches Apr – Jul 2010. Consumer electronics, laptops and mobile phones.
By the end of summer, 1 in 3 consumers will have started shopping Start of holiday shopping/research 21% 35% 18% 21% 14% 12% Nov 9% Already Oct Started by 5% May Sept June- Dec August Xmas/ Holiday Season Google Confidential and Proprietary 13Source: Google/OTX State of Shopping research, May 2010. Q: When do you plan to start your 2010 Holiday shopping/researching?
2009 Online Holiday Sales Holiday 2009 Key E-Commerce Days ($ Millions), % Growth (YoY) Mon Tue Wed Thu Fri Sat Sun Nov 23 24 25 26 27 28 29 Thanksgiving Black Thanksgiving Weekend $318, +10% Friday $805, +5% $595, +11% 30 Dec 1 2 3 4 5 6CyberMonday $886 $797 $803$887, +5% 7 8 9 10 11 12 13 $828 $852 14 15 16 Free 17 18 19 20Green Green ShippingMonday Tuesday $874 Weekend Before Christmas Day $767, +13%$854, -1% $913, +21% $809, +6% 21 22 23 24 25 26 27 Google Confidential and Proprietary 14 Source: comScore Press Release, 2009.
What’s new?1. Thrill of the hunt2. Rise of the personal shopper3. We’ve made new friends Google Confidential and Proprietary 15
Thrill of the hunt Private Sales Sites Group Buying Sites +2x site visits YoY +72x site visits YoY $900M in 2010 revenue $350M in 2010 revenue Google Confidential and Proprietary 16Source: Assorted company press releases, Google/Compete State of Shopping, May 2010 and Hitwise Blog, April 23, 2010.Note: Group buying site estimated revenue includes Groupon, Woot, Living Social and Tippr..
Rise of the “personal” shopper Use a mobile Mobile device to . . . Shoppers Compare prices/ products 22% Look up product information 21% Browse for products 19% Check product availability 13% Look for a coupon 13% Purchase a product 13% Google Confidential and Proprietary 17Source: Compete, “Understanding Smart Phone Owners,” June 14, 2010
Friends: Half become pals Average number of brands US users are fans of on Facebook one or two three or four 18% five to nine 11% 10% ten or more zero 6% 55% Google Confidential and Proprietary 18Source: Chadwick Martin Bailey and iModerate Reach Technologies as cited in press release, March 10, 2010. Ages 18+...
Friends with benefits Why I became a “fan” of a brand on Facebook: 25% To receive 18% To show others I discounts support the brand and promotions 110% 1 18% It’s fun & entertaining To hear new info first Google Confidential and Proprietary 19Source: Chadwick Martin Bailey and iModerate Research Technologies as cited in press release, noted in eMarketer, March 10, 2010. Ages 18+.Note: Respondents are fans of at least one brand..
Friends are engaging % of new brand followers to visit brand site +34% +24% Pre- Post- Pre- Post- Friending Friending Friending Friending Google Confidential and Proprietary 20Source: Google/Compete State of Shopping, May 2010.
Friends: Mere acquaintances 2% Pose a question on Twitter 3% Use social network sites 18% Research at a retailer 20% View a brand’s site 57% Start with a search engine Sources used to begin a product search Google Confidential and Proprietary 21Source: PowerReviews and the e-tailing group, “2010 Social Shopping Study,” provided to eMarketer, May 3, 2010.
Search: stocking stuffer % of all shopping conversions indexed to % of total site traffic Search Social Media Social Media Google Confidential and Proprietary 22Source: Google/Compete State of Shopping, May 2010.
Recommendations1. Game on! Start early, end late2. Incentivize shoppers with promotions3. Integrate marketing channels Google Confidential and Proprietary 23
Game on! Start early, end late 123 Days days until Google Confidential and Proprietary 24
Promote sales, coupons & free shipping Offers/Promotions that are Effective in Encouraging Purchase Google Confidential and Proprietary 25Source: Google/OTX State of Shopping, May 2010. Q: Which of the following offers or promotions would persuade you or help makeup your mind to purchase a product when shopping? Select all that apply.
Provide value options Google Confidential and Proprietary 26
Coordinate Search with catalog drops June 2010 Catalog +55% in online orders Google Confidential and Proprietary 27
Integrate across channels Google Confidential and Proprietary
Feed what works Search campaigns drive to twitter pages… … user tweets reveal trends & inform future search campaigns. Google Confidential and Proprietary 29
Marketing Recommendations for Holiday 2010 1 Start early, end late Holiday starts now. Capture procrastinators. Target key dates. 2 Offer value Consumers are trained. Do what’s expected. 3 Make it fun! Squelch lingering economic concerns. Play to suspense. Make it social. 4 Integrate marketing channels Use Search to boost other promotions. Pay attention and be nimble. 5 Focus on proven channels Shopping starts and ends with Search. Google Confidential and Proprietary 30
Thank Yougoogleretail.blogspot.com Google Confidential and Proprietary 31