Mobile Extends Holiday Season Shopping

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Adobe Digital Index, reported an increase of 12.7 percent, with online sales at USD 83 billion for the holiday Season, making the season better than expected, where the online sales were expected to grow at 11 percent Year-Over-Year. As reported by Adobe Digital Index,  “It wasn’t until the very end of the season that we saw a significant surge in sales, which drove the 12.7 percent year-over-year growth. Phone traffic exceeding desktop traffic some days was one of the drivers of that growth.”

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The online sales during December were propelled by “buy online, pick up in-store” option offered by  retailers. With the service, the concerns around product availability were mitigated, extending the shopping season until the very end.

“During the last couple of years, there was a lot of talk about retailers trying to spread out the holiday season,” White said. “This year, they really weren’t able to get the buying started that much earlier, but they were able to keep it going longer into the Christmas week.”

Mobile Phones were at 39 percent of visits and 17 percent of sales during holiday 2015, which is more than the share of sales and traffic driven by tablets. However, share of sales from tablets at 44 percent from mobile devices in comparison with share of visits at 24 percent reveals a higher conversion rate for tablet users.

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ADI reveals that search and referral sources were the key drivers of traffic at nearly 57 percent, for holiday season with email and display advertising gaining momentum.

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The most buzzed brands among Big Box retail and eCommerce, maintained the velocity of social mentions, however Social Media was not an important source of online traffic. Social Media buzz is seen important for audience engagement and generating awareness,however, search and affiliate sources are the critical channels for driving online traffic, making for an approximate 60 percent of online traffic. Email and Display advertising are the fastest growing channels for online traffic.

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Thanksgiving Day was the fastest growing Sales Day with Cyber Monday being the biggest for Online sales. Limited time Deals were the highlight of Retail sales strategy as product view rates for Out of stock products were high. The Deals available for different categories varied throughout the season, with discounts on electronics being the highest during Thanksgiving, while for Apparel discounts were available throughout the season.

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Amazon Trumps The Holiday Season 2015 and Key Advertising Trends

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Adobe reports mobile devices accounted for about 25 percent of sales and 45 percent of visits to retail websites from Nov. 1-Dec. 22. Adobe also reports that conversion rates have hovered between 3 percent and 3.5 percent since Thanksgiving, when it peaked at 5 percent. Out-of-stock rates are 10-15 percent higher than last year, indicating that retailers appear to be shifting more sales and inventory toward the start of the shopping season Adobe says.

The highest out-of-stock days were Green Monday (16 percent), Dec. 7 (15 percent) and Dec. 21 (14 percent), Adobe reports. Top-grossing products through Dec. 22 are Samsung 4K TV sets, Xbox, iPad mini, PlayStation 4, gift cards and iPad Air 2 Adobe says. Free Shipping Day accounted for USD 1.48 billion in Online Sales, and Cyber Monday on Nov. 30, The Monday after Thanksgiving was the largest U.S. online sales day in history with USD 3.07 billion in sales, followed by Black Friday, the day after Thanksgiving, at USD 2.74 billion spent online, according to the Adobe Digital Index, which bases its estimates on the sales of Adobe’s online retailer clients.

According to Internet Retailer, Data from e-commerce analytics provider Slice Intelligence shows that the online spending surge peaked on Monday Dec. 21, with revenues up 27 percent year-over-year. Slice bases its estimates by tracking receipts shoppers receive via email. According to Bloomberg, After getting online shoppers accustomed to two-day deliveries, the Web retailer is pushing to grab a bigger chunk of sales from brick-and-mortar stores. Amazon upped the ante this year by expanding its one-hour Prime Now delivery service to big cities. Total online shopping is on track to climb 11 percent in November and December to $95.5 billion, according to Forrester Research.

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Amazon Inc. was the most dominant retailer on what Slice calls Manic Monday with 55 percent of what Slice calls “relative market share,” the percentage of a retailer’s sales versus those of direct competitors. However, apparel retailers experienced the most growth, Slice reports. Carters Inc.  grew the most of any apparel retailer, seeing a year-over-year sales spike of 273 percent. Home goods e-retailer Wayfair LLC saw sales skyrocket by 158 percent, according to Slice. ChannelAdvisor clients selling on Amazon grew sales 18.1 percent from Dec. 15 through Dec. 21, down from the previous week’s 19.5 percent growth.

According to Marin Software report the key trends in Search and Mobile advertising are :

  • Between Black Friday and Cyber Monday, smartphone clicks grew by 87 percent YOY almost equaling desktop clicks. This reflects a dramatic increase compared to 2014, when smartphone clicks accounted for only 28 percent of all clicks.
  • Clicks grew across smartphones, tablets, and desktops, with the large increase in smartphone click share being attributed to growing smartphone adoption. The increase in tablet and desktop clicks YoY shows that people are using their smartphones in addition to desktop and tablet devices, not instead of them.
  • Marin saw similar trends across spend, with the ad spend share for mobile growing by 66 percent  YoY.
  • Overall ad spend for mobile was up 101 percent with spend doubling on both Google and Bing YoY.
  • Cyber Monday beat Black Friday in terms of clicks and ad spend for both 2014 and 2015 with cost per click (CPC) prices markedly higher than any other day over the weekend.

However according to comScore the key takeaways indicate that mobile and Desktop have different trends for site visits for retail with Mobile peaking on Black Friday and Desktop on Cyber Monday.

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  • Mobile traffic significantly outpaces desktop traffic every single day, including Cyber Monday.
  • Mobile traffic peaks on Black Friday, while desktop traffic peaks on Cyber Monday.
  • Cyber Monday is the peak day for overall multi-platform web traffic, but Black Friday is not far behind.
  • Desktop traffic has a distinct weekly pattern with troughs occurring during the weekends, while mobile traffic is much more consistent across different days of the week.

 

 

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Online Sales Predicted to Grow by Over 14 Percent

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Mobile IBM predicts online sales will grow by more than 14.5 percent over 2014. Led by mobile shopping, consumers indicate the Apple Watch, Samsung, Sony and LG TVs, Microsoft Surface Pro 4 and more are at the top of their shopping lists, according to the IBM Watson Trend App.

Traffic from Mobile Devices exceeds the 54 percent mark for early Black Friday deals with Average Order Value exceeding USD 141 in the early morning hours of Black Friday . Smartphones are the more popular devices with iOS being the preferred operating system among the online shoppers, according to IBM Live Benchmark data. Mobile traffic in 2014 accounted for 52 percent of all online traffic, an increase of 22.4 percent year-over-year, and mobile sales were 32.3 percent of all online sales, an increase of 25.4 percent, according to the IBM Digital Analytics Benchmark report. Apple iOS is leading the way in mobile shopping this holiday season, outpacing Android in online sales.
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ConversionAccording to Internet Retailer, Online sales were up 24 percent on Thanksgiving morning, reaching the half-billion-dollar mark, as shoppers jumped on early holiday deals, even though the discounts weren’t as steep as last year’s, according to data from Adobe Digital Index.

Shoppers on smartphones and tablets drove 52 percent of the traffic, with the smartphone share of mobile purchases growing 30 percentage, to 17 percent this Thanksgiving from 13 percent during the same period in 2014, according to the Adobe Inc. data that tracks visits to more than 4,500 U.S. retail websites. The share of sales coming from shoppers using tablets stood at 14%, down from 16% in 2014, the Adobe data shows.

Between midnight and 10 a.m. Central Time, U.S. consumers purchased USD 500 million online, or USD 100 million more than during the same period last year, Adobe says.

Scot Wingo, executive chairman of ChannelAdvisor, an e-commerce services provider that helps retailers sell through online marketplaces. “To put this in perspective, last year we saw 19% growth for mid-day Thanksgiving and we ended Thanksgiving up 20%.”

The e-commerce trend is staying strong after IBM reported online sales up 35 percent Wednesday over the same day last year and up 21 percent Tuesday over the prior year

According to IBM Watson, Live Predictions, the top-selling products for Black Friday are likely to be:

  • Beats by Dre: Beats headphones, earbuds, and speakers have been wildly popular since first appearing in 2008. Watson finds growing chatter around the Beats Solo2 Wired On-Ear headphones as well as the release of Dr. Dre’s unheard tracks on Apple’s Beats 1 streaming music channel. Additional trending headphones include Sennheiser, Bose, Skullcandy and Sure.
  • Jordan Shoes: Known best for its original Air Jordan line of basketball sneakers, Jordan Brand has released a new line of performance running shoes. Watson finds that the line is being lauded for both their aesthetics and foot support and is gaining popularity among consumers who sported the original sneakers in the 1990s.
  • Nintendo Super Smash Bros: Nintendo’s Super Smash Bros for Wii U is generating significant buzz and Watson knows why. While the game features popular Nintendo characters such as Mario, Donkey Kong and Pokémon, it’s the “unprecedented” addition of Final Fantasy’s Cloud Strife that has gamers buzzing with excitement.
  • MeccaNoid Personal Robots: Personal robots including those from Star Wars are popular this year but many parents are also looking to more “edutainment” focused gifts. Watson reports that many parents are looking at MeccaNoid, which teaches kids from ages 8 to 12 how to create, learn and code so they can ultimately build their own robot.

 

IBM has also identified the fastest trending products. These are based on the impact (size of the conversation) and the momentum (the rate of growth of the conversation):

  • Toshiba Satellite Laptops
  • Disney Princess Legos
  • NordicTrack Treadmills
  • Klipsch Speakers
  • Asus Zenbook Laptop