Christmas Unwrapped 2017 - Webinar Key learnings from consumer online behaviour during - Hitwise

 
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Christmas Unwrapped 2017 - Webinar Key learnings from consumer online behaviour during - Hitwise
Christmas
Unwrapped 2017
Webinar
Key learnings from consumer online behaviour during
the holidays and key sale periods
Christmas Unwrapped 2017 - Webinar Key learnings from consumer online behaviour during - Hitwise
About Us
        Hitwise is the online measurement and audience targeting service that enables
             businesses to reach, acquire and retain profitable customer segments.

     SAMPLE SIZE                       DATA DEPTH                   DATA FREQUENCY
 1M+ AU Online Panelists               3.7 M Websites              Bespoke Hourly Insights
 170+ Industry Categories               45 M Searches                   Through To
Across Mobile and Desktop          20K Respondent surveys              Yearly Trends

                                                                               Christmas Unwrapped Webinar
Christmas Unwrapped 2017 - Webinar Key learnings from consumer online behaviour during - Hitwise
About the Speakers

ANDREW BARTON
 Research Analyst

                    Christmas Unwrapped Webinar
Christmas Unwrapped 2017 - Webinar Key learnings from consumer online behaviour during - Hitwise
Agenda

1. What happened in online retail overall?
 •    Weekly retail foot traffic year on year (Shoppertrak)
 •    Shopping & Classifieds industry visits, overall and by sub-industry
 •    Daily total Shopping & Classifieds visits across the key sales events of 2017
 •    Key sale day visitation compared 2017 vs 2016

2. How did brands perform in key sales?
 •    Black Friday & Cyber Monday hourly visitation for key online retailers
 •    Top retailer visit growth Nov-17 to Dec-17 in key sub-industries
 •    Amazon AU launch – products viewed, purchase rate & retailer comparison
 •    Boxing Day – retailers leveraging traffic and key search concepts

3. Summary
  •   An optimised e-commerce experience on your site is more key than ever

                                                                       Christmas Unwrapped Webinar
Christmas Unwrapped 2017 - Webinar Key learnings from consumer online behaviour during - Hitwise
1.
What happened in
online retail overall?
Whilst Boxing Day remains the
largest sale day, Click Frenzy &
Black Friday are far outpacing its
growth in visitation
Christmas Unwrapped 2017 - Webinar Key learnings from consumer online behaviour during - Hitwise
Cumulative retail foot traffic was down from 2016 to 2017

 In-Store Traffic – Shoppertrak Index

 The Shoppertrak Index gauges foot traffic across
 Australian retail stores, and cumulatively across the year
 there was a 3.8% decline for 2017 as compared to 2016.

 Whilst retail footfall was up in December 2017 compared
 to 2016, it didn’t reach anywhere near the level seen in
 2015.

 Source: Weekly in-store foot traffic provided by Shoppertrak, www.shoppertrak.com

                                                                                     Christmas Unwrapped Webinar
Christmas Unwrapped 2017 - Webinar Key learnings from consumer online behaviour during - Hitwise
Each holiday period has seen YoY online retail visits growth
                    Online Retail Visits: 2017, 2016 and 2015 by Month                                                 Shopping & Classifieds Visits Growth YoY - Q4
                                                                                                               1,100,000,000
                                                                                                   Q4                                                                           9.25%
1,100,000,000                                                                                                                                                              4.15%
                                                                                                               1,000,000,000                           11.15%
1,000,000,000                                                                                                                      8.79%
                                                                                                                900,000,000                        9.74%
                                                                                                                               8.17%
 900,000,000
                                                                                                                800,000,000
 800,000,000

                                                                                                                700,000,000
 700,000,000

 600,000,000                                                                                                    600,000,000
                  Jan     Feb      Mar      Apr    May      Jun       Jul   Aug   Sep    Oct       Nov   Dec                           Oct                   Nov                   Dec

                      Total Visits - 2015          Total Visits - 2016       Total Visits - 2017                          Total Visits - 2015   Total Visits - 2016   Total Visits - 2017

 Visitation in Q4 2017 was up 10% from 2016

 November in particular saw strong growth from 2016 to 2017, with over 11% more                                The visitation ramp up through Q4 towards Christmas is
 total visits – this was partially driven by Amazon visitation surge in the midst of                           lengthening – rather than a significant surge going into
 significant launch speculation towards the end of November.                                                   December only (as seen in 2015), 2017 saw a more steady (but
                                                                                                               still significant) growth across October, November and
                                                                                                               December

 Source: Hitwise, Monthly Visits to Shopping & Classifieds industry

                                                                                                                                                     Christmas Unwrapped Webinar
Department stores & electronics saw significant growth

                                                                                       Monthly Total Visits - Shopping & Classifieds Sub-Industries - Dec-16 vs Dec-17
Average % change YoY                                                    160,000,000                                                                                                      29%                         30%
across all sub-industries                                               140,000,000
                                                                                      21%              21%        20%        21%                                                                                     20%
was 10% uplift                                                          120,000,000                                                15%         16%
                                                                                                                                                     18%
                                                                                                                                                                                               15%
                                                                                                                                                                                                     17%
                                                                                                                                                                              14%
                                                                                                             9%                                            9%                                                        10%
With the launch of Amazon AU, the                                                                                       9%

                                                                                                                                                                                                                            % Change YoY
                                                                        100,000,000
                                                                                                  6%                                                                                5%                          6%

                                                         Total Visits
Department Stores sub-industry saw
more total visits than Auctions in 2017.                                 80,000,000                                                                                                                        0%        0%
                                                                                            -4%
House & Garden also performed                                            60,000,000
exceptionally well, overtaking the                                                                                                       -9%                    -10%                                                 -10%
                                                                                                                                                                       -13%
Rewards & Directories sub-industry.                                      40,000,000
                                                                                                                                                                                                                     -20%
Whilst not double digit growth, the 6%                                   20,000,000
rise in Apparel total visits is significant                                      0                                                                                                                                   -30%
given the sub-industry’s size.

                                                                                                       Total Visits - Dec-16             Total Visits - Dec-17                % Change

Source: Hitwise, December visits to Shopping & Classifieds sub-industries 2017 vs 2017

                                                                                                                                                                                    Christmas Unwrapped Webinar
Click Frenzy outperformed Black Friday & Cyber Monday

Boxing Day remains the
most well-known sale day,                                                                                   Shopping & Classifieds - Daily Total Visits
seeing over 54 million visits                                       60,000,000
                                                                                                 Click Frenzy                                    Boxing Day
Australians are definitely sitting up and taking                                             1st day: 41.1M Visits                               54.1M Visits
                                                                    50,000,000               2nd day: 37.2M Visits
notice of Click Frenzy, which saw the second
highest visits surge in Q4 behind the Boxing
Day surge.                                                          40,000,000

Beyond this, Black Friday was the only other
period in Q4 to see total visitation peak                           30,000,000
above 40 million – this sale day is fast gaining
traction in Australia.
                                                                    20,000,000                                  Black Friday
                                                                                                                40.6M Visits
Cyber Monday was much less prominent,
being the slowest of the key sale periods to                                                                                   Cyber Monday
                                                                    10,000,000                                                  39.2M Visits
catch on with Australian consumers.

                                                                              0
                                                                            02/11/2017 09/11/2017 16/11/2017 23/11/2017 30/11/2017 07/12/2017 14/12/2017 21/12/2017 28/12/2017

Source: Hitwise, daily total visits to Shopping & Classifieds industry, November & December 2017

                                                                                                                                                Christmas Unwrapped Webinar
Click Frenzy & Black Friday are growing substantially

                                                                                                                     Shopping & Classifieds Total Visits - Key Sale Days
                                                                                                                                       2016 vs 2017
 Boxing Day saw only single                                                                             60,000,000                                                                               25%
 digit growth
                                                                                                        50,000,000                              21%                                              20%
 Whilst Boxing Day remains the largest sale day                                                                          20%
 overall, Click Frenzy & Black Friday seem to be
 growing twice as quickly year on year, with over                                                       40,000,000

                                                                                                                                                                                                        % Change YoY
 20% growth.                                                                                                                                                                                     15%

                                                                                         Total Visits
 Cyber Monday was much less prominent                                                                   30,000,000
 amongst Australian consumers, seeing much
 smaller growth and lower total visits (despite the                                                                                                                 10%                          10%
 fact that Mondays naturally see higher visitation                                                                                                                                  9%
                                                                                                        20,000,000
 than other days in the week).
                                                                                                                                                                                                 5%
                                                                                                        10,000,000

                                                                                                                0                                                                                0%
                                                                                                                      Click Frenzy           Black Friday     Cyber Monday      Boxing Day
                                                                                                                       Total Visits - 2016          Total Visits - 2017   % Change YoY

Source: Hitwise, daily total visits to Shopping & Classifieds industry, key sale dates 2017

                                                                                                                                                                          Christmas Unwrapped Webinar
2.
How did brands
perform in key sales?
Hourly visitation, top product
searches, December visits growth -
Black Friday, Amazon AU, Boxing
Day
Black Friday was a morning AND evening affair

Kogan enjoyed a distinct
visits surge around lunch                                                                                                          Black Friday Hourly Visitation
                                                                                                                   (from users who searched for Black Friday terms) Top Retailers
time                                                                                                       7,000                                                                               50,000
                                                                                                                                                                                               45,000

                                                                     Total Visits – Individual Retailers
                                                                                                           6,000
JB Hi Fi peaked very early in the day at                                                                                                                                                       40,000
10AM, surpassing even the likes of eBay &                                                                  5,000

                                                                                                                                                                                                        Total Visits - Top 15
                                                                                                                                                                                               35,000
Amazon for total visits in that hour.
                                                                                                                                                                                               30,000
                                                                                                           4,000
Contrasting this, eBay instead peaked later                                                                                                                                                    25,000
that night at 9PM, seeing the highest hourly                                                               3,000
visitation of the day.                                                                                                                                                                         20,000

                                                                                                           2,000                                                                               15,000
Looking at the overall total visits to the top
15 Black Friday retailers, there seem to be                                                                                                                                                    10,000
                                                                                                           1,000
three distinct peaks across the day: Early-                                                                                                                                                    5,000
mid morning, late afternoon (just after work)
                                                                                                              0                                                                                0
and then later evening (after dinner).

                                                                                                              Top 15   www.ebay.com.au    www.amazon.com      www.jbhifi.com.au     www.kogan.com.au

 Source: Hitwise, hourly total visits to selected retailer websites, 24 November 2017

                                                                                                                                                                        Christmas Unwrapped Webinar
Cyber Monday was much more volatile than Black Friday

                                                                                                                          Cyber Monday Hourly Visitation (from users who searched for Cyber
Mid morning was again key,
                                                                                                                                          Monday terms) - Top Retailers
but delayed compared to                                                                                        2,000                                                                                9,000
Black Friday                                                                                                   1,800                                                                                8,000

                                                                         Total Visits – Individual Retailers
                                                                                                               1,600
                                                                                                                                                                                                    7,000
eBay capitalised on both the morning AND                                                                       1,400

                                                                                                                                                                                                            Total Visits – Top 15
evening surges this time, and overall enjoyed                                                                                                                                                       6,000
the most visits across the day.                                                                                1,200
                                                                                                                                                                                                    5,000
Where Kogan punched above its weight on                                                                        1,000
                                                                                                                                                                                                    4,000
Black Friday, Catch of the Day did so on Cyber                                                                  800
Monday, even outperforming eBay, Amazon                                                                                                                                                             3,000
and JB Hi Fi at the 10PM hour mark.                                                                             600
                                                                                                                                                                                                    2,000
On the whole though, Australian’s interest in                                                                   400
Cyber Monday was much less significant than                                                                     200                                                                                 1,000
Black Friday and much more fickle, resulting in
more volatile and inconsistent visitation across                                                                  0                                                                                 0
the day.

                                                                                                                 Top 15     www.ebay.com.au   www.amazon.com    www.jbhifi.com.au    catchoftheday.com.au

 Source: Hitwise, hourly total visits to selected retailer websites, 24 November 2017

                                                                                                                                                                           Christmas Unwrapped Webinar
Tech deals were the key focus, and more so on Amazon than eBay
                                                                      Top Products Searched In Amazon – Black Friday   Top Products Searched In eBay – Black Friday

                                                                                Search Term          Search Share         Search Term           Search Share
                                                                                tv                          0.682%        xbox one                        0.161%
Gaming consoles were                                                            headphones                  0.385%        bbq                             0.158%
dominant for product                                                            ps4                         0.349%        laptop                          0.127%
                                                                                coffee machine              0.268%        lego                            0.108%
searches on Black Friday
                                                                                ipad                        0.253%        ps4 controller                  0.096%
                                                                                playstation 4               0.243%        ozito                           0.093%
The top searched product list on Amazon was
almost entirely tech dominated, with the only                                   lego                        0.241%        mobile phones                   0.091%
exceptions being ‘coffee machine’, ‘lego’ and                                   tablet                      0.240%        google home                     0.087%
‘mighty mug mini’.                                                              iphone                      0.213%        ps4                             0.080%
Whilst still heavily tech focused, eBay product                                 gtx 1080 ti                 0.212%        xbox one s                      0.077%
searches saw more variety with household goods                                  mighty mug mini             0.206%        pool filter                     0.072%
like ‘pool filter’ and ‘dyson’ appearing, or even
                                                                                bluetooth speakers          0.201%        dash cam                        0.063%
the likes of Auto related products with ‘dash
cam’ and ‘trailer’.                                                             8tb                         0.194%        gtx 1060                        0.060%
                                                                                samsung gear s3             0.188%        dash camera                     0.060%
eBay seems to remain the go-to marketplace for
more varied lifestyle goods, whilst Amazon has                                  gtx 1060                    0.185%        ipad 2017                       0.060%
become tech Mecca.                                                              raspberry pi 3              0.183%        note 8 case                     0.058%
                                                                                earphones                   0.183%        trailer                         0.057%
                                                                                switch                      0.177%        sound bar                       0.057%
                                                                                gtx 1060 3gb                0.173%        dyson                           0.057%
                                                                                mobile phone                0.170%        ue boom                         0.057%

 Source: Hitwise, search terms used within key marketplaces, 24 November 2017

                                                                                                                                        Christmas Unwrapped Webinar
Top Visits Growth Nov to Dec 2017 – Electronics
                 Website                                 Nov-17 Visits                      Dec-17 Visits                % Growth

                                                               312,815                            551,720                  76%

                                                               791,770                           1,352,458                 71%

                                                             16,444,944                         23,442,193                 43%

                                                               415,917                            592,642                  42%

                                                              6,763,662                          9,570,411                 41%

                                                              9,326,644                         12,829,168                 38%

                                                               620,841                            832,315                  34%

                                                              1,599,399                          2,124,133                 33%

                                                              1,505,302                          1,996,666                 33%

                                                               427,416                            543,504                  27%

                 Source: Hitwise, monthly visits to selected Appliances/Electronics websites, November & December 2017
Top Visits Growth Nov to Dec 2017 – Apparel/Accessories
                Website                                 Nov-17 Visits                     Dec-17 Visits               % Growth

                                                              47,877                            145,429                 204%

                                                              73,745                            187,345                 154%

                                                              74,704                            143,484                 92%

                                                              613,080                          1,075,911                75%

                                                              154,676                           261,883                 69%

                                                            2,898,461                          4,681,349                62%

                                                              151,091                           240,859                 59%

                                                              586,819                           926,082                 58%

                                                              766,078                          1,198,168                56%

                                                              66,735                            102,373                 53%

                 Source: Hitwise, monthly visits to selected Apparel/Accessories websites, November & December 2017
Top Visits Growth Nov to Dec 2017 – Department Stores
                Website                               Nov-17 Visits                      Dec-17 Visits               % Growth

                                                           7,184,811                         15,333,435                113%

                                                           2,325,739                          4,204,247                81%

                                                           3,793,849                          5,968,499                57%

                                                           5,674,991                          8,099,646                43%

                                                            395,490                            524,993                 33%

                                                            893,495                           1,181,342                32%

                                                            955,439                           1,212,730                27%

                                                          11,550,242                         14,650,197                27%

                                                          10,871,184                         13,415,173                23%

                                                          16,268,949                         19,311,887                19%

                  Source: Hitwise, monthly visits to selected Department Stores websites, November & December 2017
Amazon AU Snapshot – What happened during launch week?

         Top Products Viewed In Amazon AU – Launch Week                                                                  Australian Audience - Amazon AU vs Amazon US -
                                                                                                                                        Daily Purchase Rate
Total Page Views Product                                   Price (at 13/12/2017)
           66,085 Amazon Fire TV Stick (Basic)                            $69.00                                  7%       Launch Day
           34,519 Sennheiser Bluetooth Headphones                        $198.97
                                                                                                                  6%
           31,537 Nintendo Switch - Neon Blue                            $399.00
           25,278 Kindle Paperwhite (Black)                              $154.00                                  5%

                                                                                                  Purchase Rate
           22,222 PlayStation 4 500GB - White                            $399.00
                                                                                                                  4%
           22,012 Nintendo Switch - Gray                                 $399.00
           18,513 Playstation 4 Pro 1TB - Black                          $469.00                                  3%
           18,480 Xbox One S 1TB Minecraft Limited Edition               $318.00
                                                                                                                  2%
           16,490 Kindle E-Reader (Black)                                $109.00
           13,348 Bluetooth Wireless Sports Earphones                     $21.99                                  1%
           13,320 Huggies Ultimate Nappies - Unisex, Newborn              $65.00
                                                                                                                  0%
           13,064 FI FA 18 (PS4)                                          $49.00
                                                                                                                       7/12/2017    8/12/2017       9/12/2017    10/12/2017      11/12/2017
           12,567 Star Wars Battlefront I I (PS4)                         $49.00
                                                                                                                                        Amazon US        Amazon AU
           10,628 Huggies Ultra Dry Nappies - Boys, Size 2                $65.00
           10,502 Call of Duty: WW2 (PS4)                                 $49.00

 Source: Hitwise, product pages viewed on Amazon AU & overall purchase rate, 7 days ending 12 December 2017

                                                                                                                                                          Christmas Unwrapped Webinar
Amazon AU Snapshot – What happened during launch week?
                                 Amazon AU vs Other Retail Sites - Total Visits, Visit Time & Page Views Per Visit

                                                                                                Page Views Per Visit
                                                                                                     14

                                                                       High Pages per Visit                                    High Pages per Visit           Amazon AU
                                                                       Low Visit Time                                          High Visit Time
                                                                                                     12

                      Bubble Size = Total Visits
                                                                                   David Jones       10                                  Myer
                      Axes intercept represents average values

                                                                                                                                                 Catch.com.au
                                                                                                       8    Target
                                                                    Amazon US

          0:02:00                             0:03:00                         0:04:00                                0:05:00         0:06:00                           0:07:00
                                                                                                                                                                    Visit Time
                                                                                        Big W          6             Kmart

                                Westfield                                                              4

                                                                       Low Pages per Visit                                     Low Pages per Visit
                     Target
                                                                       Low Visit Time                                          High Visit Time
                                                                                                       2

Source: Hitwise, visitation engagement metrics to selected retail websites, 1 week ending 9 December 2017

                                                                                                                                                      Christmas Unwrapped Webinar
Boxing Day news & deal aggregators saw high search traffic

 Finder captured more than                                                                    Top Websites Receiving Traffic From Boxing Day Search Terms
 10% of the overall Boxing
                                                                                         Finder.com.au
 Day related search traffic                                                                                 0.89%                                   9.38%

                                                                                          news.com.au 0.06%                           6.95%
 Amazon AU performed strongly ahead of
 Myer & Kogan, however this was thanks to an                                           JB Hi-Fi Australia      1.84%                    4.03%
 aggressive paid search spend.

 OzSale was the other of these top sites to see                                       Amazon.com.au                  2.77%           0.98%
 a high paid search rate, with nearly 80% of
 their traffic being paid clicks.                                                                    Myer   1.04%            2.70%

 There appear to be two distinct strategies
 here: capture the search traffic directly via                                                      Kogan      1.67%          1.80%
 extensive paid search efforts, or work with
 aggregators/news sites like Finder &                                                   The Good Guys       0.59%       2.69%
 News.com.au to feature deals prominently in
 the eyes of those visiting those sites via                                             OZsale.com.au               2.48%       0.65%
 organic search looking for information on the
 best deals.
                                                                           Harvey Norman - Australia        0.30%    1.64%

                                                                                   EB Games Australia          1.76%

                                                                                                                    Paid Clicks Share         Organic Clicks Share

  Source: Hitwise, Boxing Day search traffic to selected websites, 1 week ending 30 December 2017

                                                                                                                                                            Christmas Unwrapped Webinar
Boxing Day Searches
                             Excluding 'Sale' - Top Boxing Day Search Related Keywords                                                                           Top Boxing Day Search Related Keywords - Non-
                                                                                                                                                                                Retailer Branded
                      2.5%                                                                                                    35%
                                                                                                                                                           35%                                                                     30%
Search Clicks Share

                      2.0%
                                                                                         30%                                  30%

                                                                                                                                     Search Clicks Share

                                                                                                                                                                                                                                         Average Paid Rate
                             25%                                                                                              25%                          30%                              25%                                    25%
                                                    22%
                                                                        24%
                                                                                                                                                           25%
                                                                                                                                                                    23%
                      1.5%                                                                                                    20%                                                20%                                               20%
                                                          18%                 19%              18%                      18%                                20%
                      1.0%
                                         16%                                                                                  15%                                                                                      16%         15%
                                                                                                                                                           15%
                                   11%
                                                                                                                  9%          10%                                                                          11%                     10%
                                               8%                                                                                                          10%
                      0.5%                                      7% 7%                                6% 6%
                                                                                    5%                                        5%
                                                                                                                                                           5%                                                                      5%
                      0.0%                                                                                   0%               0%                           0%                                                                      0%
                                                                                                                                                                    sale         sales      online        sydney        best

                                                                                                                                                                           Search Clicks Share       Average Paid Rate

                                                Search Clicks Share           Average Paid Rate

                      ‘Sale’/’sales’ were of course the most prominent keywords, with average                                       Both ‘deals’ and ‘specials’ as keywords saw paid rates in line with that
                      paid rates over 20% and high search share                                                                     of ‘sales’, suggesting search targeting is already well across all
                                                                                                                                    variations of the ‘sale’
                      The strong performance of ‘online’ as a keyword highlights the continued
                      transition of Australian consumers to online retail                                                           The spread of city names likely reflects the portion of the audience
                                                                                                                                    researching ahead of a day of actual in-store shopping
                      Interestingly, given how prevalent the term ‘best’ was, it had a somewhat
                      low average paid rate – this term is potentially under-targeted                                               For the few actual product keywords appearing in the top 20, there
                                                                                                                                    was a distinct skew in paid rates, with ‘tv’ and ‘apple’ attracting much
                                                                                                                                    higher paid rates than ‘Nintendo’ and ‘switch’

                      Source: Hitwise, Boxing Day search traffic to selected websites, 1 week ending 30 December 2017

                                                                                                                                                                                                     Christmas Unwrapped Webinar
3.
Key presentation points
Online retail visitation grew 10% for
Q4 2017 - an optimised e-commerce
experience on your site is more key
than ever
Summary

           What happened in online retail overall?                                  How did brands perform in key sales?

•   2017 retail footfall was down, but online retail visitation          •   Mid-morning, late afternoon, and late evening were the key
    continues to grow (10% for Q4 2017 year on year) - ensuring an           visit surges during Black Friday, though Kogan managed to
    optimised e-commerce experience on your site is more key                 capitalise on a significant lunchtime visits spike
    than ever

                                                                         •   Black Friday is dominated by tech product searches (especially
•   Key visit growth areas year on year included Department Stores           on Amazon), but household goods were also top of mind in
    (21% - propelled by the Amazon AU launch), Electronics (20%),            eBay searches
    House/Garden (21%) and Apparel (6%)

                                                                         •   Amazon AU's launch week saw mostly tech and gaming
•   Whilst Boxing Day remains the largest sale day, Click Frenzy &           products leading the way, and whilst generally considered a
    Black Friday are far outgrowing it in visitation (>20% growth YoY)       lacklustre launch, the site saw strong page views per visit and
    - implementing offerings on these days will become more and              average visit time figures
    more lucrative over the next years

                                                                         •   Finder & News.com.au captured a significant portion of Boxing
                                                                             Day sale search traffic - leveraging this indirect Boxing Day
                                                                             traffic (via display ads on these sites, for instance) could lend a
                                                                             valuable edge during the most important sale period

                                                                                                                         Christmas Unwrapped Webinar
Thank you!
contact-au@hitwise.com
www.hitwise.com
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