IAB Europe Leadership CouncilIAB Europe Leadership CouncilLessons from Christmas eCommerceLessons from Christmas eCommerce
Presented by/Presented by//Alex Burmaster - European Internet Analyst/Alex Burmaster - European Internet Analyst
IAB Europe’s commentsIAB Europe’s commentsThe Christmas period is always a step change in the use of the internet for shopping. We’ve seen this since the mid
nineties and clearly the panic of Christmas shopping, combined with changes in leisure time, create a new opportunity for internet behaviour to evolve quickly.
In this research presentation, Alex Burmaster, European Internet Analyst from Nielsen NetRatings explained what happened this Christmas. His research explores where advertisers fit in the ecosystem of internet marketing and the development of internet commerce.
• We’re seeing people spend 10% more in terms of sessions, 18% in terms of time and a massive 27% in terms of pages.
• Around 2000 pages per month are consumed by the average European internet users, with ‘heavy’ users clocking up more than three times this.
• More then two third of European online visited ecommerce sites at Christmas with more than half the online population visiting the large online shopping services like Amazon and EBay.
It may not be a surprise that Ecommerce is growing rapidly, but with the total internet audience only growing 9% each year in Europe, there’s a much steeper growth in the reach and intensity of the use of internet commerce sites. Shopping directories and guides are proving particularly fast in their growth, although the experience across the different countries varies greatly.
NetRatings can also reveal how display advertising has grown in the number of advertisers and the number of campaigns running across Europe. There are 8% more companies running (which in turn leads to 20% more adverts).
For me the most fundamental point is that the research also reveals deeper lessons from online shoppers and their behaviour which helps explain why firms should advertise online. In the UK 70% of internet users now claim that “the internet is the best source of product information”. 44% of people see the internet as being the place they “do their shopping research before buying online”, a statistic that helps answer the question about how internet advertising drives offline sales. We’re also seeing the more sophisticated third of online shoppers claim that they will spend as much time as possible doing their shopping on the web rather than the highstreet. And the average spend? €352 per person during December. As for why people are shopping online? Convenience and the lack of crowds are now being seen as the leading reasons compared to the discounting and price comparisons of a few years before.
Ask your national IAB team about research they may have for online audiences and spending patterns, and sign up for the IAB Europe Informer research service by emailing your details to [email protected]
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Lessons from Christmas eCommerceLessons from Christmas eCommerce• European eCommerce SectorEuropean eCommerce Sector
– Size, popularity & growthSize, popularity & growth– AdvertisingAdvertising
• Why advertise online?Why advertise online?
• Themes for online advertisingThemes for online advertising
• How effective is advertising onlineHow effective is advertising online
European eCommerce SectorEuropean eCommerce SectorSize, popularity and growthSize, popularity and growth
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Use of online media increasingUse of online media increasing
Source: Nielsen//NetRatings European Index, Home and Work Data (CH, ES home data only) November 2005 - 2006
10% 10% 18% 18% 27% 27%
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eCommerce is very popular…eCommerce is very popular…European Unique Audience (000's) + Active Reach
70,920
59,354
86,227
49,779 39%
47%
56%
68%All Multi-Category
Commerce
Mass Merchandiser
Classifieds/Auctions
Shopping Directories &Guides
Source: Nielsen//NetRatings European Index, Home and Work Data (CH, ES home data only) December 2006
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……and growing!and growing!
Source: Nielsen//NetRatings European Index EXC UK, Home and Work Data (CH, ES home data only) December 2005 - 2006
+21%
+19%
+19%
+14%
+11%
+9%
+9%
+4%
All Multi-CategoryCommerce
Mass Merchandiser
Classifieds/Auctions
Shopping Directories &Guides
Unique Audience Growth
Active Reach Growth
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eBay and Amazon still dominateeBay and Amazon still dominateRank Brand
Unique Audience (Millions)
Active Reach
1 eBay 53.6 42%
2 Amazon 32.0 25%
3 Quelle 8.5 7%
4 PIXmania 8.1 6%
5 Fnac 8.0 6%
6 Shopping.com Network 7.8 6%
7 preisvergleich 7.5 6%
8 Tchibo 6.6 5%
9 La Redoute 6.0 5%
10 Otto 6.0 5%
Source: Nielsen//NetRatings European Index, Home and Work Data (CH, ES home data only) December 2006
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European Online Advertising Activity (Dec 06) + Growth on Dec 05
+8%
+9%
+20%
45,43821,660
126,955
BannersCampaignsAdvertisers
Online advertising activity grows…Online advertising activity grows…
Source: Nielsen//NetRatings AdRelevance, all categories excluding house ads, December 2006
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……especially for CD/book retailersespecially for CD/book retailers
Source: Nielsen//NetRatings AdRelevance, ‘Specialised eCommerce’ category, excluding house ads, December 2006
European Online Advertising Specialised eCommerce Activity (Dec 06) + Growth on Dec 05
+41%
+72%
+89%
629365
2,074
BannersCampaignsAdvertisers
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eBay is most prolific online advertisereBay is most prolific online advertiser
Source: Nielsen//NetRatings AdRelevance, all categories excluding house ads, December 2006
Why advertise online?Why advertise online?Lessons from online shopper behaviourLessons from online shopper behaviour
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Q. Why advertise online?Q. Why advertise online?
Source: Nielsen//NetRatings UK MegaPanel Xmas Survey, November 2006
A. = it’s where shoppers spend their timeA. = it’s where shoppers spend their time
How much more time is spent researching and buying gifts ONLINE compared to the HIGH STREET
38%
53%57%
38% 40%
17%
33%
41%
All 16-24 25-34 35-44 45-54 55+ Male Female
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Q. Why advertise online?Q. Why advertise online?
Source: Nielsen//NetRatings UK MegaPanel Xmas Survey, November 2006
% of respondents researching most of their Christmas shopping online before buying on the High Street
44%
52% 51%45% 46%
35%
All 16-24 25-34 35-44 45-54 55+
A. = it’s where shopping research is doneA. = it’s where shopping research is done
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Q. Why advertise online?Q. Why advertise online?
Source: Nielsen//NetRatings UK MegaPanel Xmas Survey, November 2006
% of respondents believing online is the best way to find comprehensive info about products they might want to buy
70%
60%64%
72% 74% 72%
All 16-24 25-34 35-44 45-54 55+
A. = it’s the best source of product infoA. = it’s the best source of product info
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Q. Why advertise online?Q. Why advertise online?
Source: Nielsen//NetRatings UK MegaPanel Xmas Survey, November 2006
% of respondents intending to make more purchases over the Internet for Xmas 2006 compared to Xmas 2005
62%65% 65% 65%
59% 57%
All 16-24 25-34 35-44 45-54 55+
A. = purchasing online is increasingA. = purchasing online is increasing
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Q. Why advertise online?Q. Why advertise online?
Source: Nielsen//NetRatings UK MegaPanel Xmas Survey, November 2006
% of respondents intending do as much as possible of their Christmas shopping over the Internet
34% 33%36%
39%
32%28% 27%
39%
All 16-24 25-34 35-44 45-54 55+ Male Female
A. = it accounts for much of spendA. = it accounts for much of spend
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Q. Why advertise online?Q. Why advertise online?
Source: Nielsen//NetRatings UK MegaPanel Xmas Survey, November 2006
A. = people spend money there!A. = people spend money there!
Average intended spend on Xmas gifts online per person
352 €
214 €
340 €
413 €
364 €
322 €
346 €
357 €
All
16-24
25-34
35-44
45-54
55+
Male
Female
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Q. Why advertise online?Q. Why advertise online?
Source: Nielsen//NetRatings UK MegaPanel Xmas Survey, November 2006
A. = people click on ads!!!A. = people click on ads!!!
% of respondents who would click on an online advert in order to receive a discount off an online purchase
51%46%
49%54% 52% 51%
All 16-24 25-34 35-44 45-54 55+
Themes for online advertisingThemes for online advertisingWhat online shoppers tell usWhat online shoppers tell us
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Convenience still best thing about Convenience still best thing about shopping online…shopping online…
Source: Nielsen//NetRatings UK MegaPanel Xmas Survey, November 2004, 2005 and 2006
34%
23%
17%
12%
5%
0%
5%
10%
15%
20%
25%
30%
35%
2004 2005 2006Christmas
% o
f re
spo
nd
ents
cit
ing
th
is f
acto
r
Convenient
No crowds
No waiting/queue
Cheaper
Wider range tochoose from
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……for almost all consumer groupsfor almost all consumer groups
Source: Nielsen//NetRatings UK MegaPanel Xmas Survey, November 2006
Best thing about shopping online by demographic
34%
23%
17%
12%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Total 16-24 25-34 35-44 45-54 55+ Male Female
Convenience
No crowds
No waiting/queues
Cheaper
How effective is advertising online?How effective is advertising online?What online shoppers tell usWhat online shoppers tell us
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General surfing dictates which sites General surfing dictates which sites are chosen…are chosen…
Source: Nielsen//NetRatings UK MegaPanel Xmas Survey, November 2006
64%
58%
48%
46%
40%
35%
35%
30%
30%
30%
23%
General surfing
Same site buy from regularly
Search engine
Personal recommendation
Online recommendation/review
Saw special offer
Same store buy from offline
Online advertising
Shopping comparison website
Same place buy from last Xmas
Offline advertising
Most popular factors for deciding which sites to use for Xmas shopping
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Source: Nielsen//NetRatings UK MegaPanel Xmas Survey, November 2004, 2005 and 2006
64 %
48 %
30 %
46 %
30 %
23 %
15%
25%
35%
45%
55%
65%
75%
2004 2005 2006Christmas - all respondents
% o
f re
spo
nd
ents
cit
ing
th
is f
acto
r General Surfing
Search engine
Shoppingcomparison site
Personalrecommendation
Online advertising
Offline advertising
……however, ‘triggers’ are changinghowever, ‘triggers’ are changing
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……however, ‘triggers’ are changinghowever, ‘triggers’ are changing
Source: Nielsen//NetRatings UK MegaPanel Xmas Survey, November 2004, 2005 and 2006
Change in % of respondents citing this factor between Christmas 2004 & 2006
-28%-31%
+6%
+22%
+62%
-11%
-35%
-15%
5%
25%
45%
65%
Personalrecommendation
Onlineadvertising
General Surfing Offlineadvertising
Shoppingcomparison site
Search engine
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Triggers differ in importanceTriggers differ in importance
Source: Nielsen//NetRatings UK MegaPanel Xmas Survey, November 2006
Selected factors in choosing sites by demographic
20%
25%
30%
35%
40%
45%
50%
55%
60%
65%
70%
Total 16-24 25-34 35-44 45-54 55+ Male Female
General surfing
Search engine
Personalrecommendation
Onlinerecommendation/review
Saw special offer
Online advertising
Shoppingcomparisonwebsite
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Email marketing increasingly a driver…Email marketing increasingly a driver…
Source: Nielsen//NetRatings UK MegaPanel Xmas Survey, November 2004, 2005 and 2006
% of respondents who would accept emails from retailers in return for discounts on online purchases
44%
45 %
51 %
49%
53 %
60 %
48 %
46%
57 %
40%
44%
48%
52%
56%
60%
Xmas 2004 Xmas 2005 Xmas 2006
% o
f re
spo
nd
ents
Men
Women
All
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……and mobile Internet becoming a factorand mobile Internet becoming a factor
Source: Nielsen//NetRatings UK MegaPanel Xmas Survey, November 2006
11%
26%
17%
11% 11%
4%5%
13%
8%
4% 4% 3%
All 16-24 25-34 35-44 45-54 55+
% of respondents w ho'd receive info fromretailer via mobile phone to get discountoff an online purchase
% of respondents w ho'd use mobilephone internet/WAP service toshop/check prices
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Lessons from Christmas eCommerceLessons from Christmas eCommerce• Use of online media is increasing – consumers view 27% more Internet pages Use of online media is increasing – consumers view 27% more Internet pages
than a year agothan a year ago
• Over two-thirds of online Europeans visit eCommerce sites and growingOver two-thirds of online Europeans visit eCommerce sites and growing
• More companies are advertising online; their campaigns are more in-depthMore companies are advertising online; their campaigns are more in-depth
• Advertisers should be online – its where shoppers spend their time researching Advertisers should be online – its where shoppers spend their time researching and buying and it accounts for more of spend and buying and it accounts for more of spend
• People are open to receiving marketing materials in return for discounts – they People are open to receiving marketing materials in return for discounts – they will click on ads / open emails and receive info through their mobile!will click on ads / open emails and receive info through their mobile!
• People shop online mostly because its convenient but factors differ in People shop online mostly because its convenient but factors differ in importance between different groupsimportance between different groups
• General surfing dictates which sites are chosen but personal recommendations General surfing dictates which sites are chosen but personal recommendations and online ads are growing in importance – search is no longer the dominant and online ads are growing in importance – search is no longer the dominant triggertrigger
• Triggers vary in relevance between the different groups – particularly for newer Triggers vary in relevance between the different groups – particularly for newer technologies such as mobile Internettechnologies such as mobile Internet
Lessons from Christmas eCommerceLessons from Christmas eCommerceThank youThank you
Alex Burmaster/Alex Burmaster//European Internet Analyst/European Internet AnalystTel/Tel//020 7014 0590/020 7014 0590
Email/Email//[email protected]/[email protected]