Overview of the q4 trading period in the UK market £6.8bn (€7.8bn) spent online during December 2010 (source) Up 7% on November; up 25% on December 2009 (source) 20% of the UK’s retail sales are generated in November and December (source) 62% of online consumers shopped online on Christmas Day or Boxing Day (source) 22% of online consumers used their mobile device (source) BUT… 45% of those who shopped online encountered website problems while doing their Christmas shopping (source) 32% abandoned purchases as a result (source) 26% of those who did ordered before the last delivery date did not receive their goods in time (source)
Q4 Growth on the Affiliate Window network +29% +49% +27%
Monday 22nd November : Amazon commences five days of ‘Lightning Deals’.
Friday 26thNovember: Amazon brings ‘Black Friday’, a US-tradition following Thanksgiving, to the UK for the first time.
Monday 29thNovember: ‘Manic Monday’, expected to be the biggest pre-Christmas sales day
Week peaked on Wednesday 1st December ‘Manic Monday’ actually second quietest day of the week for commissions
Monday 6thDecember: The first Monday in December is the traditional peak for online trading in the UK Monday 6thDecember: The first Monday in December is the traditional peak for online trading in the UK
Monday 6th December biggest Christmas trading day for Affiliate Window, with 20% more sales than the previous Monday Post-Christmas sales traditionally start on Boxing Day, causing second sales wave
Tuesday 4thJanuary: VAT (sales tax in the UK) increases from 17.5% to 20%
Transactions drop but sales revenue up 63% on Christmas average, and double the 6th December pre-Christmas peak No post-Christmas peak as retailers vary the start of their sales
Conversions better after Christmas than before it AOVs reach a Christmas peak of £122 ahead of VAT increase. Electrical, home appliance, computing and furniture retailers fare best
By advertiser sector:Mon 6th December – tues 4th January Berlin | 04.04.2011 | zanox | Presentation title
By Publisher Promotional Method:Mon 6th December – tues 4th January 13 Berlin | 04.04.2011 | zanox | Presentation title
Peak is Monday 6th December, in line with network as a whole
Peak on Mon 13th, but general pattern follows traditional Christmas sales trajectory closely
Peak for content on 13th; close alignment to the patterns for loyalty, reward & cashback
Peak is Monday 13th, after which efficacy seems to drop
Peak is Thursday 16th, close to last order day
What can we learn from Christmas 2010? Vital to start early Treat Christmas as two-stage event: before and after A clear pre-Christmas peak in sales – 6th December – but no clear post-Christmas peak due to staggered sales Mondays pre-Christmas always see sales spikes Focus on vouchers, downloads and advertisers with mobile tracking when last order date passes Expect the unexpected!
Pitfalls Over Incentivisation What is likely to be the natural uplift in sales over this period? Understanding the actual cost of promotions– looking beyond the sale Publishers over incentivising customers 25
Pitfalls Neglecting the longtail Pareto 80/20 rule Longtail a top affiliate in their own right Christmas incentives should be inclusive of the longtail 26
Red Letter days – engaging the longtail Christmas promotion was all inclusive Promotions tend to focus on volume drivers/neglect longtail Prizes awarded for best promotion of the campaign Guaranteed prizes for hitting certain sales volumes 27
How mobile is driving the trends 5% of Affiliate Window’s sales now come from mobile devices Some advertisers drive up to 12% of their affiliate sales through mobile iPad overtook iPhone in sales for the first time on Christmas Day 2010 The iPad outstrips other devices and the network in general on click to sale conversions Affiliate mobile applications becoming mainstream as affiliates build brands