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ADI Retail Industry Report -- Q2 2017

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Adobe’s new Retail Industry Report for Q2 2017 is based on aggregated and anonymized consumer data from online retailer websites. It analyzes over 50+ billion visits since January 2015. Learn the latest trends for online retailers with some specific insights into the Consumer Electronics and Apparel sub-verticals.

Published in: Retail

ADI Retail Industry Report -- Q2 2017

  1. 1. RETAIL INDUSTRY REPORT ADOBE DIGITAL INSIGHTS | Q2 2017
  2. 2. RETAIL INDUSTRY REPORT | Q2 2017 TABLE OF CONTENTS Overview 03 Key Findings 20 Glossary 21 Methodology 22-33 Tables Key Industry Metrics 04 Quarterly Visits Trend 05 Quarterly Visits Growth Since Q2 2015 06 Visit Share by Device 07 Revenue Share by Device 08 Device Visit Share by Segment (Q2 2017) 09 Revenue vs Visit Share by Device (Q2 2017) 10 Conversion Trend by Device 11 Indexed Revenue per Visit by Device 12 Stickiness by Device by Category 13 Visit Duration Change YoY (Q2 2017) 14 Visit Share by Marketing Channel 15 Q2 Visit Share Growth by Marketing Channel 16 Revenue Share by Hour by Marketing Channel 18 Conversion by Time of Day by Marketing Channel One-off Insights 17 Revenue Share by Hour: Email vs Others
  3. 3. RETAIL INDUSTRY REPORT | Q2 2017 KEY FINDINGS 1. Online retail visits have been experiencing slow growth in the past two years. However, certain segments, like Apparel and Consumer Electronics retailers, have been growing faster. 2. While mobile visit share has almost caught up to desktop, revenue is still driven primarily by desktop. 3. Paid Search has been taking up visit share from Organic traffic. Social is still behind, but it’s experiencing significant growth. 4. Search channels convert best in the afternoon, while more impulse prone channels, Social and Display, convert best in the late pm, early am.
  4. 4. RETAIL INDUSTRY REPORT | Q2 2017 Quarterly Visits Trend • Visits have been growing slowly for the average online retailer. • There’s a strong seasonality pattern with peaks in Q4 and dips in Q3.
  5. 5. RETAIL INDUSTRY REPORT | Q2 2017 Quarterly Visits Growth Since Q2 2015 • Consumer Electronics retailers are gaining visits much faster than apparel or the retail average. • Overall retail visits are stagnant and with only about 4% growth in Q2 2017 compared to Q2 2016.
  6. 6. RETAIL INDUSTRY REPORT | Q2 2017 Visit Share by Device • Smartphone visits are about to overtake desktop in visit share for the average retailer. • This “Smartphone Moment” is going to happen by the end of 2017 for online retailers. • Tablet visit share continues to decline.
  7. 7. RETAIL INDUSTRY REPORT | Q2 2017 Revenue Share by Device While visits on smartphones are rising, revenue is still lagging behind severely as desktop remains the primary revenue driver for most online retailers.
  8. 8. RETAIL INDUSTRY REPORT | Q2 2017 Device Visit Share by Segment (Q2 2017) • Apparel retailers have higher smartphone visit share than the retail industry average. • Consumer Electronics retailers are lagging behind in terms of mobile visits.
  9. 9. RETAIL INDUSTRY REPORT | Q2 2017 Revenue vs Visit Share by Device (Q2 2017) While smartphone has gained a significant amount of visit share, it’s still a small a part of the revenue for the average retailer.
  10. 10. RETAIL INDUSTRY REPORT | Q2 2017 Conversion Trend by Device • The conversion trends for mobile explain the lag in mobile-driven revenue. • Conversion is improving across the board for retailers. • The slight decline in visits might indicate that retailers have become more efficient in their marketing efforts. • Quality over quantity is the key strategy.
  11. 11. RETAIL INDUSTRY REPORT | Q2 2017 Indexed Revenue per Visit by Device • Decreased revenue and conversion for smartphone visitors is reflected in the overall RPV. • Every desktop visit is worth about 4x as much as a smartphone visit.
  12. 12. RETAIL INDUSTRY REPORT | Q2 2017 Stickiness by Device by Category (Q2 2017) • The apparel retailers are the best at enticing people to browse around their website across all devices. • The consumer electronics sector is struggling with smartphone stickiness. • YoY stickiness has not improved for retailers. There was a 1% stickiness decrease for tablet and smartphone.
  13. 13. RETAIL INDUSTRY REPORT | Q2 2017 Visit Duration Change YoY (Q2 2017) • Overall visit duration is trending up for Retail. • However, visits to apparel online retailers have become shorter.
  14. 14. RETAIL INDUSTRY REPORT | Q2 2017 Visit Share by Marketing Channel • Social is still low in share. However, it has more than doubled in volume since Jan 2015. • Paid Search is taking away from Natural Search for Retailers. • Email channel has been on a downward trend over the past two years, but this trend has reversed recently. • Paid Search peaks around the holiday season taking away from Natural Search. *Share of tracked marketing channel traffic
  15. 15. RETAIL INDUSTRY REPORT | Q2 2017 Q2 Visit Share Growth by Marketing Channel • While Social remains a small part of the visit share, it has experienced significant growth in the last two years. • Paid Search is also experiencing significant growth.
  16. 16. RETAIL INDUSTRY REPORT | Q2 2017 Revenue Share by Hour By Marketing Channel • Most channels align in terms of revenue distribution by hour. • Social and Display are more evenly distributed into the late night.
  17. 17. RETAIL INDUSTRY REPORT | Q2 2017 Revenue Share by Hour: Email vs Others The Email channel stands out as a morning focused marketing channel.
  18. 18. RETAIL INDUSTRY REPORT | Q2 2017 Conversion by Time of Day by Marketing Channel • While most revenue from the Email channel comes during the morning, late night seems to be the time when a visit is most likely to convert. • Social and Display conversion also seems to spike up after 11 pm, suggesting impulse purchases. • Both Paid and Organic Search channels are less prone to the impulse and peak in conversion during the afternoon.
  19. 19. RETAIL INDUSTRY REPORT | Q2 2017 TAKE-AWAYS 1. While desktop is still the main driver of revenue, smartphone visits are crucial now. Retailers should focus on converting their smartphone traffic. 2. Social is becoming essential. To be a successful online retailer you will need a strong Social strategy to capitalize on this growing channel. 3. Visits from email campaigns see a higher conversion in the evening, suggesting that people come back to their morning emails in the pm. Making this experience seamless could give retailers an edge. 4. Late night Social and Display visits convert better. Don’t limit your ad schedule to the day time, and instead take advantage of those impulse buys.
  20. 20. RETAIL INDUSTRY REPORT | Q2 2017 GLOSSARY Metrics and Definitions 01 Average Visit Growth: trend in visits computed over two time periods averaged out across the retailers sample. 02 Stickiness %: percentage of visits that last more than one page. 03 Marketing Channel: visits sourced from a marketing channel (as opposed to direct traffic/entering the URL). Industries 01 Retail: sale of consumer products to consumers online. 02 Apparel Retail: retailers focused on sale of apparel and accessories. 03 Consumer Electronics: retailers focused on sale of consumer electronics products.
  21. 21. RETAIL INDUSTRY REPORT | Q2 2017 METHODOLOGY Visit our website: adobe.ly/AdobeInsights Sign up for email alerts: http://www.cmo.com/adiregister.html Follow us: @adobeinsights Based on aggregate and anonymized consumer data comprised of over 50+ billion visits to over 250 retail websites between January 2015 and June 2017 in the United States The retail subsets analyzed include retailers focused on consumers electronics and ones focused on apparel and accessories. Data from different Adobe Experience Cloud Solutions: Adobe Analytics Cloud Adobe Analytics
  22. 22. RETAIL INDUSTRY REPORT | Q2 2017 Tables: Visits Growth Trend Avg Visit Trend 2015 Q1 0.0% Q2 -6.2% Q3 -5.7% Q4 14.8% 2016 Q1 4.2% Q2 0.5% Q3 1.0% Q4 21.7% 2017 Q1 6.3% Q2 4.3%
  23. 23. RETAIL INDUSTRY REPORT | Q2 2017 Tables: Quarterly Visits Growth Apparel Consumer Electronics All Retailers Q2 2016 10.8% 16.8% 7.2% Q2 2017 15.3% 34.5% 11.2%
  24. 24. RETAIL INDUSTRY REPORT | Q2 2017 Tables: Visit Share by Device Desktop Smartphone Tablet 2015 Q1 58% 28% 14% Q2 57% 30% 13% Q3 55% 32% 13% Q4 55% 33% 12% 2016 Q1 54% 34% 12% Q2 53% 36% 11% Q3 50% 39% 11% Q4 49% 40% 11% 2017 Q1 49% 41% 10% Q2 47% 43% 10%
  25. 25. RETAIL INDUSTRY REPORT | Q2 2017 Tables: Revenue Share by Device Desktop Smartphone Tablet 2015 Q1 77% 10% 13% Q2 77% 11% 12% Q3 76% 12% 11% Q4 75% 14% 11% 2016 Q1 73% 16% 11% Q2 72% 17% 11% Q3 71% 18% 11% Q4 70% 19% 11% 2017 Q1 69% 21% 10% Q2 69% 21% 10%
  26. 26. RETAIL INDUSTRY REPORT | Q2 2017 Tables: Device Visit Share by Segment Desktop Smartphone Tablet 2016 All 53% 36% 11% Apparel 46% 42% 12% Consumer Electronics 62% 31% 7% 2017 All 48% 42% 10% Apparel 40% 49% 11% Consumer Electronics 56% 38% 6%
  27. 27. RETAIL INDUSTRY REPORT | Q2 2017 Tables: Conversion By Device Total Desktop Smartphone Tablet 2015 Q1 2.4% 3.2% 0.9% 2.1% Q2 2.5% 3.4% 1.0% 2.3% Q3 2.5% 3.4% 1.0% 2.2% Q4 2.9% 3.9% 1.3% 2.8% 2016 Q1 2.4% 3.2% 1.2% 2.4% Q2 2.5% 3.4% 1.2% 2.5% Q3 2.5% 3.5% 1.2% 2.5% Q4 3.0% 4.3% 1.5% 3.1% 2017 Q1 2.6% 3.6% 1.3% 2.5% Q2 2.7% 3.9% 1.4% 2.7%
  28. 28. RETAIL INDUSTRY REPORT | Q2 2017 Tables: Revenue Per Visit By Device Desktop Smartphone Tablet Indexed RPV 100% 28% 63%
  29. 29. RETAIL INDUSTRY REPORT | Q2 2017 Tables: Stickiness by Device by Category Desktop Smartphone Tablet 2016 All 64% 56% 63% Apparel 70% 61% 68% Consumer Electronics 60% 48% 55% 2017 All 67% 56% 63% Apparel 71% 60% 67% Consumer Electronics 60% 45% 53%
  30. 30. RETAIL INDUSTRY REPORT | Q2 2017 Tables: Visit Duration Change Retail Subcategory YoY change All 1.2% Consumer Electronics 2.2% Apparel -2.2%
  31. 31. RETAIL INDUSTRY REPORT | Q2 2017 Tables: Visits Growth By Marketing Channel Natural Search Display Email/Newsletter Paid Search Social Networks Q2 2016 -4% -3% 3% 24% 51% Q2 2017 -6% 7% 11% 45% 146%
  32. 32. RETAIL INDUSTRY REPORT | Q2 2017 Tables: Revenue Share By Hour 12am 1am 2am 3am 4am 5am 6am 7am 8am 9am 10am 11am 12pm 1pm 2pm 3pm 4pm 5pm 6pm 7pm 8pm 9pm 10pm 11pm Email 2.3% 1.6% 1.2% 1.0% 1.1% 1.5% 2.4% 3.6% 4.9% 6.0% 6.8% 6.8% 6.6% 6.1% 5.8% 5.6% 5.3% 5.0% 4.9% 4.9% 4.8% 4.6% 4.0% 3.1% Social 3.2% 2.4% 2.2% 2.0% 2.1% 2.4% 3.1% 3.8% 4.1% 4.8% 5.2% 5.2% 5.3% 5.4% 5.2% 5.0% 4.9% 4.8% 5.0% 5.1% 5.1% 5.0% 4.7% 4.0% Display 2.6% 1.9% 1.8% 1.6% 1.8% 2.0% 2.6% 3.6% 4.7% 5.3% 5.5% 5.9% 5.7% 5.7% 5.7% 5.6% 5.3% 5.1% 4.8% 5.0% 4.9% 4.8% 4.4% 3.7% Natural Search 2.3% 1.6% 1.2% 1.0% 1.1% 1.5% 2.2% 3.1% 4.3% 5.3% 5.9% 6.2% 6.2% 6.2% 6.1% 5.9% 5.7% 5.4% 5.3% 5.3% 5.3% 5.0% 4.3% 3.3% Paid Search 2.3% 1.6% 1.1% 0.9% 1.0% 1.4% 2.0% 3.0% 4.1% 5.1% 5.8% 6.1% 6.3% 6.3% 6.3% 6.1% 5.8% 5.7% 5.5% 5.5% 5.4% 5.1% 4.3% 3.3%
  33. 33. RETAIL INDUSTRY REPORT | Q2 2017 Conversion By Hour - Table 12am 1am 2am 3am 4am 5am 6am 7am 8am 9am 10am 11am 12pm 1pm 2pm 3pm 4pm 5pm 6pm 7pm 8pm 9pm 10pm 11pm Email 3.4% 3.2% 3.0% 2.6% 2.4% 2.3% 2.2% 2.3% 2.5% 2.7% 2.9% 3.0% 3.1% 3.1% 3.1% 3.0% 3.0% 3.0% 3.0% 3.1% 3.2% 3.3% 3.5% 3.6% Social 1.4% 1.4% 1.5% 1.5% 1.4% 1.3% 1.3% 1.3% 1.3% 1.3% 1.4% 1.4% 1.3% 1.3% 1.3% 1.2% 1.2% 1.2% 1.2% 1.2% 1.2% 1.2% 1.2% 1.4% Display 1.9% 2.0% 2.1% 2.1% 1.9% 1.7% 1.6% 1.6% 1.7% 1.7% 1.8% 1.9% 1.8% 1.8% 1.8% 1.7% 1.7% 1.7% 1.6% 1.6% 1.6% 1.6% 1.7% 1.9% Natural Search 1.7% 1.6% 1.5% 1.4% 1.4% 1.5% 1.6% 1.7% 1.8% 1.9% 2.0% 2.0% 2.0% 2.0% 2.0% 1.9% 1.9% 1.9% 1.9% 1.9% 1.9% 1.9% 1.9% 1.8% Paid Search 2.3% 2.3% 2.3% 2.2% 2.2% 2.2% 2.3% 2.4% 2.5% 2.6% 2.6% 2.6% 2.6% 2.6% 2.6% 2.5% 2.5% 2.5% 2.4% 2.4% 2.4% 2.4% 2.4% 2.4%

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