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 2019

999 views

Published on

Adobe Digital Insights just released its 2019 online Holiday shopping recap.From record breaking shopping days, to the battle between big and small retailers, this report has it all.

Published in: Marketing
  • Be the first to comment

  • Be the first to like this

Adobe Digital Insights Holiday Recap 2019

  1. 1. HOLIDAY RECAP 2019 ADOBE ANALYTICS INSIGHTS
  2. 2. The industry’s most comprehensive report Data via Adobe Analytics (aggregated, anonymized) • AI and machine learning (Adobe Sensei) used to identify retail insights Measures trillions of visits to U.S. retail sites (most in the industry) • 55 million unique products • Transaction data features 80 of top 100 US web retailers* • Companion survey: 1K+ U.S. consumers in Oct. 2019 • Covers retailers of all sizes (via Magento Commerce, 50+ merch categories) *Per Internet Retailer 2018 eGuide Adobe Experience Cloud Adobe Analytics Cloud Adobe Advertising Cloud Adobe Commerce Cloud HOLIDAY RECAP | 2019 Methodology
  3. 3. HOLIDAY RECAP | 2019 Key Findings 1. Record holiday season: online spend totaled $142.5B, up 13.1% YoY 2. Avg daily online revenue exceeded $2.3B across the holiday season, up from $2.1B last year (13% YoY growth) 3. BOPIS grew 35% YoY; in-store once again provides consumers more options in the last week before Christmas 4. Smartphones accounted for 84% of last holiday season’s ecommerce growth 5. The holiday season can lift sales by 200% during the major holiday shopping weekend (Thanksgiving – CM)
  4. 4. HOLIDAY RECAP | BASIC METRICS | 2019 Holiday Season 2019 Summary • Spend from 1 Nov to 31 Dec. $142.5B; 13% YoY • Revenue Device Share: • 59% - Desktop ($84.5B) • 36% - Smartphone ($51.1B) • Visits Device Share: • 37% - Desktop • 58% - Smartphone • Conversion Rates: • 4.3% - Desktop • 1.8% - Smartphone • Overall AOV • Total - $152.95 4 • Spend from Thanksgiving – Cyber Monday topped $28.5B, growing 18% YoY • Revenue Device Share: • 57% - Desktop ($16.2B) • 38% - Smartphone ($10.8B) • Visits Device Share: • 36% - Desktop • 59% - Smartphone • Conversion Rates: • 6.2% - Desktop • 2.7% - Smartphone • Overall AOV • 2019 - $162.03 • 2018 - $138.39 Total 61-Day Season 5-Day Holiday Weekend
  5. 5. HOLIDAY RECAP | 2019 Online Holiday Shopping Season Reached $142.5 Billion, 13.1% Growth Methodology * The National Retail Federation estimates overall holiday retail will increase between 3.8% and 4.2% **The NRF Estimates ~$730B in total holiday spending this year, online and offline. • Online holiday shopping (Nov-Dec) revenue in the U.S. was $142.5B in 2019, 13.1% more than 2018 • Online revenue growth during holiday continues to outpace overall retail growth (13.1% online vs. 4.0% overall*). • Thanksgiving to Cyber Monday accounted for $1 in $5 (20%) of total online retail revenue.
  6. 6. HOLIDAY RECAP | 2019 5-Day Weekend* And Early Shopping Drove Season Growth • Record Breaking Sales Online by Day: Thanksgiving - $4.2B (+14%) Black Friday - $7.4B (+20%) Cyber Monday - $9.4B (+20%) • The week before Thanksgiving experienced strong growth as deals started earlier • Wednesday before Thanksgiving continues to rival the previous Small Business Saturday ($2.9B vs. $3.0B) Note: 5 days from Thanksgiving thru Cyber Monday. 7 days before Thanksgiving +26% YoY Cyber Weekend sales +18% YoY
  7. 7. HOLIDAY RECAP | 2019 Daily Online Sales Averaged $2.3B Across the Season • Holiday season averaged $2.3B per day, up 13% YoY ($2.1B) • Every day exceeded $1B in online sales except for Christmas Eve ($850M) • 29 $2B days (26 in 2018) and 8 $3B days, (5 in 2018) • $100B mark hit 6 days earlier: Dec 9 vs. Dec. 15 (in 2018)
  8. 8. Online Sales topped $1.1B this year on Christmas day • Only Christmas Eve failed to reach $1B daily sales, tallying $850M Consumers used their smartphones to help Christmas Day break the barrier • 67% of all visits & 48% of all revenue came from smartphones, up 15% and 34% respectively HOLIDAY RECAP | 2019 Christmas Day Exceeds $1B for First Time
  9. 9. HOLIDAY RECAP | 2019 Consumers Continue to Shift Their Shopping Habits to Smartphones • Over $50B spent on smartphones this holiday for the first time • Smartphone share of visits up 14% YoY to 58% from 51% • Revenue from smartphones was 36% of season totals 36% Share of revenue from smartphones 58% Share of visits from smartphones
  10. 10. HOLIDAY RECAP | 2019 Smartphones Drove Nearly All Growth this Holiday Season Online sales from smartphones grew 37% YoY vs. 8% for Desktops • $13.8B or 84% of the $16.4B growth seen this year came from smartphones Smartphones More of An Information Tool than Buying One • Completing the buying process lags desktop metrics; 3.0 vs. 5.9 checkouts per 100 visits  Higher cart abandonment: 50% vs. 33% 37% vs. 8% YoY growth in online sales by device Smartphone vs. Desktop * NRF estimates of retail sales and e-commerce. 84% Percent of 2019 Online Holiday Season growth coming from smartphones
  11. 11. HOLIDAY RECAP | DAILY DEEP DIVES | 2019 Spike in BOPIS In the Run up To Christmas • BOPIS revenue up 35% YoY for the season • BOPIS revenue increases 55% over the season avg in the 7 days leading up to Christmas as consumers do last min. shopping • Retailers need to up-sell-in-store  BOPIS baskets tend to contain few items (2.4 vs 2.9 units)  Comprising of less expensive items ($46 vs. $54) Glossary †Brick-and-click: retailers that have an online store, and physical locations.
  12. 12. HOLIDAY RECAP | 2019 Ecommerce Giants Benefit More from the Holidays Than Smaller Retailers • The holiday season can easily lift sales by 40% or more over the baseline period of October and 200% during the holiday weekend • Greater increase in revenue during holiday season vs normal than in 2018  Holiday Season 2018: +65% for large retailers and + 35% for smaller ones.
  13. 13. HOLIDAY RECAP | ONLINE SPEND RESULTS | 2019 Holiday Sales Spiked on Key Days then Continued to Rise Until Dec 16th Online sales trend matched expectations of how consumers shop during the Holiday. • Consumers spent an average of 28% 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 is due to a steady increase in conversion until Dec. 16th; order value decreases 14% from beginning of season to the end 13
  14. 14. HOLIDAY RECAP | ONLINE SPEND RESULTS | 2019 Prices Bottomed Out on Sunday After Black Friday, Then Rose Slightly Holiday Weekend begins the best time to get good deals.. • Toy discounts returned to more normal levels this year; discount of 17% vs. 31% last year. • Televisions showed similar discounts the last two years; a bit more than in 2017 • Computers actually saw a small (10%) rise in early October before a steady decrease ahead of Cyber Monday Discount from 1 Oct to Cyber Monday 14 2019 2018 2017 TVs -19% -18% -14% Computers -18% -19% -21% Toys -17% -31% -19%
  15. 15. 15 50 inch range most common size and at $415 they’re less than half of US median rent for 2-bdrm apt ($1,180) 80s HOLIDAY RECAP | ONLINE SPEND RESULTS | 2019 Television Sales Focused on Upgrading Size 30s 40s 50s 60s 70s 47% $162 $336 $415 $775 $1,186 $2,275 2019 Percent of Unit Sales 1% 15% 26% 9% 2% Typical price in 2019 Holiday season thru Dec 12th. 30” TVs understated due to minimum price required of $150. TV features that matter most: 82% - Picture Quality 70% - Screen Size 50% - Audio Quality Consumers are willing to spend around $854 for their next TV experiences. But do they have the wall space?
  16. 16. HOLIDAY RECAP | ONLINE SPEND RESULTS | 2019 As TV Prices Go Down, Size Goes Up: 50-inch is No Longer A Big Step Up in Price 16 The price premium to jump from the 40 inch TVs to the 50 inch TVs has fallen from nearly double (83%) in 2017 to a mere 26% in 2019. The change in price positioning makes the 50” class of TVs clearly the largest share of unit sales during the holiday season. • Last year 50s edged 40s: 35% to 30% Holiday season by year. 30” TVs understated due to minimum price required of $150. 2017 2018 2019 40 inch Class $350 $304 $330 50 inch Class $639 $468 $415 Premium 83% 54% 26%
  17. 17. HOLIDAY RECAP | THE SHOPPING MALL IN YOUR POCKET | 2019 Smartphones More of An Information Tool than Buying One While smartphones contribute a third of all holiday spend, actual buying metrics are quite different than shoppers coming from desktops. • Starting the buying process happens two-thirds as frequently on smartphones as it does on desktops; 8.8 vs. 5.9 carts per 100 visits. • Completing the buying process also lags desktop metrics; 3.0 vs. 5.9 checkouts per 100 visits. • Resulting in a higher cart abandonment: 50% vs. 33% • If carts converted as well, the difference would be additional $16B in holiday spending 17
  18. 18. HOLIDAY RECAP | THE SHOPPING MALL IN YOUR POCKET | 2019 Smartphone Contribution to Revenue Varies By More than 2x Across Categories 18 Desktop still dominates in some categories: • Consumer Electronics has lowest share of revenue from smartphones: 18%. Also known for high order value and low conversion. Smartphone a player in more personal categories: • Much higher shares in Apparel & Footwear (45%) and Jewelry & Cosmetics (46%) Data from Nov 1 to Dec 6, 2019 – other categories fall in between these examples.
  19. 19. HOLIDAY RECAP | THE SHOPPING MALL IN YOUR POCKET | 2019 Consumers Leverage Social and Email on their Smartphones While social remains a small contributor to overall revenue (1- 2%), most of this revenue is driven from smartphones • More than two-thirds of the dollars earned from social network sales came via smartphones Email is also useful for attracting consumers via smartphone • 49% of total email revenue came from smartphones Display, and to a lesser degree Affiliates/Partners, remain a desktop oriented tactic from a revenue producing POV 19
  20. 20. HOLIDAY RECAP | THE SHOPPING MALL IN YOUR POCKET | 2019 Smartphones Contributed nearly $4 of $10 During Big Holiday Weekend 38%/59% Share of Revenue and Visits from smartphones. (+18%/+14% YoY, respectively) $2.9B/$3.0B Smartphone revenue on Black Friday/Cyber Monday 20
  21. 21. HOLIDAY RECAP | DAILY DEEP DIVES | 2019 Toy Category Topped Most Popular Purchases Over the Big Weekend 21
  22. 22. The four hours between 7pm and 11pm on Cyber Monday were the most active period of the year • These four hours recorded over $2.8B in sales, more than a typical day in the holiday season ($2.3B) • $3 in $10 came in those four hours (29%) • Conversion rises steadily from 5AM throughout the day, ending at twice the level normally seen as consumers hurried to take advantage of deals. HOLIDAY RECAP | DAILY DEEP DIVES | 2019 Consumers Shop Late on Cyber Monday to Take Advantage of Deals 22
  23. 23. HOLIDAY RECAP | DAVID VS. GOLIATH | 2019 Small Retailers Change Up Their Marketing Mix More than Large Ones Compared to October, the Holiday Weekend shows a shift in how consumers arrive at a retailer’s site • While Small Retailers still rely on Natural Search for a quarter of their traffic they see more Email visitors suggesting it may be a Holiday tactic rather than ongoing. • Large retailers still benefit from direct traffic or bookmarks; given more shopping it isn’t surprising to see Paid Search increase during the holidays 23
  24. 24. HOLIDAY RECAP | DAVID VS. GOLIATH | 2019 Shoppers Don’t Browse More Pages per Visit, They Just Spend More Due to both conversion and increased order value, revenue per visit follows total revenue trends. But that increases doesn't’ come from browsing more of a site. • Large are large in part because the generate more revenue from each and every visit. • While large retailers have a much wider assortment of items, on a per visit basis, the number of pages visited per trip is remarkedly similar between David and Goliath. 24
  25. 25. HOLIDAY RECAP | DAVID VS. GOLIATH | 2019 Revenue Per Minute Improves 30% During the Holiday Weekend Consumers devote less time browsing for every dollar they spend during the holiday weekend. Even post weekend they are more dedicated in their shopping. • Large retailers enjoy an advantage in productivity likely due to efficient shopping experiences and knowledge that can accelerate “time to money” • Time per dollar dropped 30 seconds among large retailers and a full minute among small retailers 25
  26. 26. HOLIDAY RECAP | SLICES OF LIFE | 2019 Demographics Help Explain Some Online Shopping 26 Slicing 3,000+ cities by various demographics sheds light on holiday shopping . • Big Cites vs. Smaller Cities • Coastal Cities vs. Heartland • Rural vs. More Urban Areas • High vs. Low Household Income • High vs. Medium/Low Financial Stressors • High Diversity vs. Medium/Low Diversity • Military bases are cities in their own right. . Note: Based on cities mapped to ACS or 3rd party population sources. “Financial Stress” of a city based on Unemployment Rate, % without health Ins and % Below Poverty Line Diversity or “New Americana” is based on ”One Race – White”, “Other Language” and “Native to State of Residence”.
  27. 27. HOLIDAY RECAP | SLICES OF LIFE | 2019 Big Cities vs. Small Cities: The edge goes to the smaller cities 27 . Note: Based on cities mapped to ACS or 3rd party population sources. “Big Cities” are over 100k in population; “Small Cities” are less than that Population 100k+ Population <100k Revenue per Visit $4.35 $4.88 Avg. Order Value $156 $154 Conversion 2.8% 3.2% Smartphone Share of Revenue 37% 35% Development Index 104 96 Small cities have a significant advantage in terms of conversion.
  28. 28. HOLIDAY RECAP | SLICES OF LIFE | 2019 Coastal Cities vs. The Heartland: The edge goes to the heartland 28 . Note: Based on cities mapped to ACS or 3rd party population sources. “Coastal Cities” are in counties on the ocean. “Heartland” are the 12 central states. Heartland Coastal Cities Revenue per Visit $4.71 $4.63 Avg. Order Value $154 $159 Conversion 3.1% 2.9% Smartphone Share of Revenue 37% 35% Development Index 101 96 Cities in the Heartland* have a slight edge in RPV; these shoppers offset smaller orders with better conversion.
  29. 29. HOLIDAY RECAP | SLICES OF LIFE | 2019 Rural Areas vs. More Urban: Conflicting results 29 . Note: Based on cities mapped to ACS or 3rd party population sources. “Rural 40%+” are cities located in counties that are classified as having more than 40% rural area. Rural 40%+ Rural LT 40% Revenue per Visit $5.03 $4.58 Avg. Order Value $151 $154 Conversion 3.9% 3.4% Smartphone Share of Revenue 35% 36% Development Index 71 102 While rural counties produce higher revenue per visit due to stronger conversions, they are less likely to shop in the first place.
  30. 30. HOLIDAY RECAP | SLICES OF LIFE | 2019 High Income vs. Lower Income Markets: Income suggests a clear winner 30 . Note: Based on cities mapped to ACS or 3rd party population sources. Based on median household income of a city. HH Income >$75k HH Income <$40k Revenue per Visit $4.81 $4.49 Avg. Order Value $160 $149 Conversion 3.0% 3.0% Smartphone Share of Revenue 34% 37% Development Index 134 92 Income level equates with online shopping, particularly in terms of average order value.
  31. 31. HOLIDAY RECAP | SLICES OF LIFE | 2019 More vs. Less Financial Stressors: Less stress the higher the value of a visit. 31 . Note: Based on cities mapped to ACS or 3rd party population sources. Stress based on combination of unemployment, lack of health insurance and living below poverty line. More Stressors Fewer Stressors Revenue per Visit $4.26 $4.78 Avg. Order Value $153 $156 Conversion 2.8% 3.1% Smartphone Share of Revenue 39% 34% Development Index 101 99 Uncertainty due to financial pressures doesn’t preclude online shopping, just more cautious as evident by low conversion.
  32. 32. HOLIDAY RECAP | SLICES OF LIFE | 2019 Mixed vs. Traditional Markets: Highest RPV from traditional markets. 32 . Note: Based on cities mapped to ACS or 3rd party population sources. Segment based on “Other Language at Home”, “Race – non-white” and “Not native to the state currently reside in” New Americana Traditional Revenue per Visit $4.29 $5.13 Avg. Order Value $157 $154 Conversion 2.7% 3.3% Smartphone Share of Revenue 37% 35% Development Index 111 86 While less valuable per visit, residents of more mixed cities do shop online.
  33. 33. HOLIDAY RECAP | SLICES OF LIFE | 2019 Military Base Personnel More Selective During their Holiday Shopping 33 Average Order Value during the season quite similar (just 6% different) However, converting a visit to an order is much lower (-22%) reducing the revenue per visit metric. Top three retail categories orders from military bases mimic overall online shopping with a shift in spend toward consumer electronics and away from Apparel & Footwear 1. Apparel & Footwear: 29% vs. 35% 2. Major Chains: 27% vs. 29% 3. Consumer Electronics: 17% vs. 14% Data: November 1 thru December 28th Major Chains include mass merchandisers, warehouse clubs, department stores. Military Bases Average US City RPV $2.97 $4.32 Conversion 2.9% 3.7% AOV $135 $143 Key Shopping Metrics (US Holiday Season 2019)

×