Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Adobe Digital Insights Holiday Recap 2018

1,746 views

Published on

Adobe Digital Insights has released its 2018 online Holiday shopping recap report. From record breaking revenue numbers on mobile devices, exponential B.O.P.I.S. (Buy Online Pick-Up In Store) growth, to the hottest products sold throughout the season, this report has everything you need to analyze and understand the busiest time of year for retailers.

Published in: Retail
  • Be the first to comment

Adobe Digital Insights Holiday Recap 2018

  1. 1. 1
  2. 2. HOLIDAY RECAP | 2018 METHODOLOGY Visit our website: adobe.ly/AdobeInsights Sign up for email alerts: http://www.cmo.com/adiregister.html Follow us: @adobeinsights Most comprehensive report of its kind in industry Based on analysis of aggregate and anonymous data via: • Daily revenue model based on analysis of more than 1 trillion visits to the U.S.-based retail websites • Product and pricing insights based on analysis of sales of more than 55 million unique products • Adobe Analytics measures transactions at 80 of the top 100** retailers on the web in the U.S. Adobe Advertising Cloud ** Source: Adobe Analysis of Internet Retailer 2018 Adobe Experience Cloud Adobe Analytics Cloud 2
  3. 3. HOLIDAY RECAP | 2018 Key Findings Online Holiday Retail Spending Finished up 16.5% YoY: $126.0B • Average daily online revenue exceeded $2B for first time; 26 days of the 61-day season exceeded that mark • Faster growth between Thanksgiving and Cyber Monday continued to concentrated sales on those five days; pushing the $100B mark 11 days earlier this year. • Pre-Black Friday Deals lifted spending in the days before Thanksgiving Lessons for Us All • Smartphones drove half the traffic for the first time and nearly a third of the revenue (average daily visits/revenue: 51.4%/31.0%) • Pickup in store showed strong YoY growth (+50%) • Last step on customer journey equally split between marketing-aided and consumer-defined channels 3
  4. 4. HOLIDAY RECAP | 2018 Online Holiday Shopping Season Reached $126 Billion Methodology * The National Retail Federation estimates overall holiday retail will increase between 4.3% and 4.8% **The NRF Estimates ~$720B in total holiday spending this year, online and offline. 4 Online holiday shopping (Nov-Dec) revenue in the U.S. was $126.0B in 2018, 16.5% more than 2017. • Since 2016, online holiday season revenue growth has been increasing, attributed to strong consumer confidence. • Online revenue growth during holiday continues to outpace overall retail growth (16.5% online vs. 4.5% overall*). Just how much money is $126B? You could buy nearly 80K homes in San Francisco.
  5. 5. HOLIDAY RECAP | 2018 Holiday Sales Spiked on Key Days then Continued to Rise Until Dec 17th Online sales trend matched expectations of how consumers shop during the Holiday. • The time between Thanksgiving and Cyber Monday accounted for $1 in $5 (19.2%) of total online retail revenue. • Consumers spent an average 40% more per day during the three- weeks after Cyber Monday than the first three weeks of the season. • Sales continued to grow until the Monday 8-days out from Christmas • The rising revenue due to a steady increase in conversion until Dec. 16th as opposed to consumers spending more per order. Glossary Pre Cyber-Week: Nov 1st – Nov 17th. Post Cyber-Week: Nov 28th – Dec 31st 5
  6. 6. HOLIDAY RECAP | 2018 Daily Sales Averaged $2.1B Across the Whole Season Holiday Season is the 61 days between Nov 1st and New Years Eve • Averaged $2.1B per day, up from $1.8B last year. (+16.5%) • 26 $2B days, up from 15 last year • Every day exceeded $1B day, except for Dec 22nd, 23rd, 24th and 25th. • Least revenue in the Season was Christmas Eve: $880M • $100B mark hit 11 days earlier: Dec 15th vs. Dec 26th. 6
  7. 7. HOLIDAY RECAP | 2018 Buy-Online-Pick-Up-In-Store Up Throughout the Season BOPIS orders • Increased 47% YoY from November 1st to December 19th. • Increased 50% YoY during the 5-day Holiday weekend Retailers need to up-sell-in-store as AOV is smaller • BOPIS baskets tend to contain few items (1.9 vs 2.7 units). • Comprising of less expensive items ($38 vs. $42). Glossary †Brick-and-click: retailers that have an online store, and physical locations. 7 +50%
  8. 8. HOLIDAY RECAP | 2018 Pure-Play Retailers See More Desktop Traffic and thus Cart Completion Use of Desktop • Shoppers at Pure-Play retailers are 30% more likely than those visiting an omni-channel retailer to use a desktop to shop during the holiday season. Cart Conversion • Given the prevalence of desktop shoppers, cart conversion is 40% higher among Pure-Play retailers. Glossary †Brick-and-click: retailers that have an online store, and physical locations. 8
  9. 9. HOLIDAY RECAP | 2018 For the First Time Smartphones Accounted for Half of all Visits Share of revenue and visits rose slowly during the season. • Average daily figures: 51..0% visits; 31.0% revenue up 25% and 34% YoY, respectively • Christmas Day continues to be most phone-centric (61% visits and 42% revenue) • Typical pattern of strong phone usage on the weekends where share of visits and revenue increase 6% and 8% respectively 9 51%Share of visits from smartphone
  10. 10. HOLIDAY RECAP | 2018 5-Day Weekend* Drove Season Growth, With Some Early Shopping Record Breaking Sales Online by Day: • Thanksgiving - $3.7B (+27.9%) • Black Friday - $6.2B (+23.6%) • Cyber Monday - $7.9B (+19.3%) $24.2B 5-day weekend sales +23% YoY 10 • The run up to Thanksgiving saw some days with large growth over last year • The Sunday Before and Wednesday preceding Thanksgiving saw an incremental $1B over last year. • Wednesday is as big as Small Business Saturday last year ($2.4B) • Wednesday grew 32% YoY Note: 5 days from Thanksgiving thru Cyber Monday.
  11. 11. HOLIDAY RECAP | 2018 Smartphones Contributed $1 of $3 During Weekend 32%/52% Share of Revenue and Visits from smartphones. (+29%/+20% YoY, respectively) $2.1B/$2.2B Smartphone revenue on Black Friday/Cyber Monday 11
  12. 12. HOLIDAY RECAP | 2018 Prices Dropped for Key Categories on Thanksgiving Holiday Weekend remains best time to get good deals.. • Prices of Toys dropped this year as retailers fought to capture Toys R Us consumers; 31% vs. 19% last year. • Televisions showed similar discounts the last two years; • Computers showed a more steady decrease through out the season ahead of the Thanksgiving drop. Thanksgiving Nintendo Switch Beats Hot Wheels Red Dead Redemption 2 HatchiBabies Black Friday Laptops (Lenovo and Dell) L.O.L. Surprise Fingerlings Let’s Go Pikachu/Eevee God of War Cyber Monday Fingerlings L.O.L. Surprise Nintendo Switch Laptops (Dell and Apple) LG TVs Discount from 1 Oct to Cyber Monday Top Selling Products 12 2018 2017 -18% -14% -19% -21% -31% -19%
  13. 13. Four hours on Cyber Monday (7pm – 11pm PST) were the most active period of the year • These four hours recorded over $2B in sales. • Conversion rose sharply through the evening, ending at twice the average for the day as consumers hurried to take advantage of deals. HOLIDAY RECAP | 2018 Consumers Waited to Take Advantage of Cyber Monday Deals Revenue peaked because consumers committed to ordering late in the day. 13
  14. 14. HOLIDAY RECAP | 2018 Consumers Shopped a Little Differently Across Markets Across the top 50 US markets, there is a $22 difference in average order value during the Holiday Season • Two West Coast cities topped the list this season: Los Angeles $156, San Francisco/San Jose $154 • Top 10 averaged $152.73 • Grand Rapids recorded the lowest at $134 just below three tied at $136 – Hartford & New Haven, Harrisburg/Lancaster, PA, and Oklahoma City • Bottom 10 averaged $137.23 Technical Note: Based on Nov 1 to Dec 15 14 • Basket size driven primarily by more items as opposed to more expensive items. • Selecting higher-priced items accounts for 39% of the difference • Number of items in the cart accounts for 61% of the difference
  15. 15. HOLIDAY RECAP | 2018 Thanksgiving More Mobile than Black Friday or Cyber Monday Consumers used their smartphones 10% more than expected when likely at home or shopping. • Thanksgiving revenue (actual share vs. predicted share) • 38% vs. 35% smartphone, 52% vs. 53% desktop • Black Friday revenue: • 33% vs. 30% smartphone , 57% vs. 60% desktop • Cyber Monday revenue: • 28% vs. 25% smartphone, 64% vs. 66% desktop • Share of revenue up ~30% YoY each day. 15
  16. 16. Smartphone Cart to Order conversion dipped 9% during the holiday season compared to the first eight months of the year as shoppers are less intent on completing their purchases. • Desktops held steady at year end. • Cart conversion happens over 30% less often on smartphones compared to desktop. • That gap is potentially stifling Holiday Season revenue by $15B HOLIDAY RECAP | 2018 Smartphone Cart Conversion Declines During Holiday Season 16
  17. 17. HOLIDAY RECAP | 2018 Revenue Equally Divided Between Aided and Unaided Journeys 50% of holiday weekend revenue associated with tactics where marketing directly involved in the journey. • Marketing Aided Tactics: Paid Search, Email/Newsletter, Social Networks, Display 50% of weekend revenue associated with more unaided paths to purchase • Marketing Unaided Tactics: Direct Traffic, Natural Search, Referring Domains Patterns very similar to last year for major four tactics; none saw a share change of more than 10%. • Paid Search +6%, Email/Newsletter –2% • Direct Traffic +3%, Natural Search -3% Glossary Referring Domains: shopper helper sites like RetailMeNot 17
  18. 18. Appendix Additional data 18
  19. 19. HOLIDAY RECAP | 2018 Top/Bottom Ten Markets (DMA) Based on Average Order Value 19 Top 10 Markets (DMA) AOV # of Homes Los Angeles $155.53 151,000 San Francisco-Oak-San Jose $154.47 80,000 Denver $153.20 273,000 Miami-Ft. Lauderdale $153.14 343.000 New York $153.01 271,000 Houston $152.36 570,000 Washington DC (Hagrstwn) $152.07 217,000 Salt Lake City $151.96 321,000 Seattle-Tacoma $151.64 227,000 San Diego $149.92 171,000 Bottom 10 Markets (DMA) AOV # of Homes Birmingham (Ann and Tusc) $139.43 737,000 Milwaukee $139.17 460,000 Pittsburgh $138.23 808,000 St. Louis $138.02 571,000 Greenvll-Spart-Ashevll-And $137.94 750,000 Cincinnati $136.70 724,000 Oklahoma City $136.47 872,000 Harrisburg-Lncstr-Leb-York $136.13 586,000 Hartford & New Haven $135.96 490,000 Grand Rapids-Kalmzoo-B.crk $134.19 710,000 # of Homes: The number of homes $126B could buy in the market according to Zillow Housing Index Nov. 2018.
  20. 20. HOLIDAY RECAP | 2018 Thanksgiving – Cyber Monday 2018 Recap • Spend from Thanksgiving – Cyber Monday topped $24.2B, growing 23.3% YoY • Revenue Device Share: • 58.2% - Desktop ($14.1B) • 32.3% - Smartphone ($7.8B) • 9.5% - Tablet ($2.3B) • Visits Device Share: • 39.2% - Desktop • 52.2% - Smartphone • 8.63% - Tablet • Conversion Rates: • 6.1% - Desktop • 3.2% - Smartphone • 5.5% - Tablet • Overall AOV • 2018 - $138.39 • 2017 - $130.72 • Smartphone Revenue Records: • Black Friday - $2.1B • Cyber Monday - $2.2B • Top Products: • Nintendo Switch • LoL Surprise & Fingerlings • Red Dead Redemption 2 (Video Game) • Streaming Devices • Laptops (Dell & Apple) 20
  21. 21. HOLIDAY RECAP | 2018 Holiday Season 2018 Summary • Spend from 1 Nov to 31 Dec. $126.0; 16.5% YoY • Revenue Device Share: • 60.3% - Desktop ($76.0B) • 30.8% - Smartphone ($38.8B) • 8.9% - Tablet ($11.2B) • Visits Device Share: • 40.7% - Desktop • 51.0% - Smartphone • 8.3% - Tablet • Conversion Rates: • 4.7% - Desktop • 2.3% - Smartphone • 4.5% - Tablet • Overall AOV • Total - $131.71 21

×