ComScore Q2 2010 Online Retailing

8/8/2019 ComScore Q2 2010 Online Retailing

1/50


2/50

Data sourced from comScores global panel of 2 million Internetusers

E-commerce data includes all worldwide buying on U.S.sites

Unless explicitly stated otherwise, the term e-commercerefers to online retail spending, which excludestravel,autos and auctions

Behavioral activit throu h Jul 2010

360View of Consumer Behavior Analysis Parameters

2 comScore, Inc. Proprietary and Confidential.

Survey issued in July 2010, n=1086

Consumer Measurements:

Site Visitation

Online Buying

Video Viewing

Attitudes and Intentions

Behavioral Segments

Retailer Views:

Large vs. Small Retailers

Multi-Channel vs. Pure-Play Retailers


3/50

Validation of comScore Sales Data:Comparison of comScore data to U.S. Department of Commerce

Dept. of Commerce (DOC) comScore Estimate of DOC

Quarterly U.S. e-Commerce Sales* ($ Billions)Source: comScore & U.S. Department of Commerce (DOC)

Quarterly U.S. e-Commerce Growth* vs. YASource: comScore & U.S. Department of Commerce (DOC)

YA

Dept. of Commerce (DOC) comScore Estimate of DOC

30

35

40

45

50

25.0%

30.0%

35.0%

Correlation: 0.96


Billions

($

%G

rowthv

s.

0

5

10

15

2025

2005-Q

1

2005-Q

2

2005-Q

3

2005-Q

4

2006-Q

1

2006-Q

2

2006-Q

3

2006-Q

4

2007-Q

1

2007-Q

2

2007-Q

3

2007-Q

4

2008-Q

1

2008-Q

2

2008-Q

3

2008-Q

4

2009-Q

1

2009-Q

2

2009-Q

3

2009-Q

4

2010-Q

1

2010-Q

2-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

.

2005-Q

1

2005-Q

2

2005-Q

3

2005-Q

4

2006-Q

1

2006-Q

2

2006-Q

3

2006-Q

4

2007-Q

1

2007-Q

2

2007-Q

3

2007-Q

4

2008-Q

1

2008-Q

2

2008-Q

3

2008-Q

4

2009-Q

1

2009-Q

2

2009-Q

3

2009-Q

4

2010-Q

1

2010-Q

2

*Note: To be consistent with DOC, comScore estimate excludestravel and event tickets but includes auction fees and autos.


4/50

77$84 $80143+29%

+26%

+22%

+19%

$171$200

+17%

+12%+9%

+7%

Following a soft 2009, total e-commerce sales through Q2 2010 were up7% versus year ago. Travel and non-travel up 5% and 9%, respectively.

$214

-5%

$209

-2%

e-Commerce Dollar Sales Growth ($ Billions)Source: comScore e-Commerce Measurement

+7%


$42 $53 $67 $82

$102$123 $130 $130

$67

$30$40

$51$61

$69

$44

2002 2003 2004 2005 2006 2007 2008 2009 2010YTD

$72$93 $117

Non-Travel

Travel

+26%

+33%

+26%

+28%

+20%

+24%+24%

+13%

+20%

+6%0%

+9%

+5%

YTD2010

$111


5/50


6/50

After two quarters of accelerating sales, e-commerce growthplateaued in Q2

Quarterly e-Commerce Sales Growth vs. YASource: comScore e-Commerce Measurement

17%23%

19%

11% 13%

6%

-3% 0% -1% -2%

23%

3%

0%

5%

10%

15%20%

25%

10% 9%


Quarterly Retail & Food Services Sales Growth* vs. YASource: U.S. Department of Commerce (DOC)

4%4% 5%4% 3%

-8%

1%2%

-9%-10%

-7%

2%

7%

6%

-15%

-10%

-5%

0%

5%

10%

Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10

-5%

When excluding autos,gas and food/beverage, Q2

retail sales growth wasmarginally softer at +6%

*Note: The U.S. Department of Commerce calculation includes totalretail and food service sales, which also includes motor vehicles andparts dealers.


7/50

e-Commerce continues to gain share of retail spending on an apples-to-apples basis

e-Commerce Share of Corresponding Retail Spending*Source: comScore for e-Commerce & U.S. Department of Commerce (DOC) for Retail

ce

Share

5.1%

5.9% 6.4%

6.7%

5.9%

6.3%

7.4% 7.3%

6.5% 6.6%

7.6% 7.7%

6.8%6.9%

7.7%8.1%

7.1%

6.0%

7.0%

8.0%

9.0%


*Note: e-Commerce share is shown as a percent of DOCs Total

Retail Sales excluding Food Service & Drinking, Food & Bev. Stores,Motor Vehicles & Parts, Gasoline Stations and Health & PersonalCare Stores.

e-Comm

e

e-Commerce share peaks incolder seasons (Q4 & Q1)

4.3%

3.7%4.0%

4.6%4.3%

4.5%

.

5.0%

.

0.0%

1.0%

2.0%

3.0%

4.0%

.


8/50

Lower-and-upper income segments are drivers of online growth in Q2 2010,but the large mid-income segment shows no growth and is down versus pre-recession periods two years ago

Income SegmentOnline Retail

Online Retail

Spending

Under $50,000 +14% +22%

Income Segment Online Retail Spending Online Retail SpendingGrowth in Q2 10 vs. Q2 08 Growth in Q2 10 vs. YA

Income Segment Online Retail Spending Online Retail SpendingGrowth in Q2 10 vs. Q2 08 Growth in Q2 10 vs. YA

$50,000 - $99,999 -8% -2%

e-Commerce Sales vs. YA by Income SegmentSource: comScore e-Commerce Measurement

Contribution of Totale-Commerce Growth

for Q2 10

Contribution of Totale-Commerce Growth

for Q2 10

+5%

-1%

BracketShare ofSpendingin Q2 10

BracketShare ofSpendingin Q2 10

22%

41%


Total +8%

$100,000 or more +28% +17%

+9%

+6%

+9%

37%

100%


9/50

Worries of double-dip recession are mounting, stoking fear amongconsumers

The recovery just isnt looking

that great. The job market has lost

some positive momentum. This

suggests another weak reading on

consumer spending in the third

quarter. Julia Coronado, Sr. Economist at BNP

Paribas, August 13, 2010


With unemployment at 9.5%, people in

the U.S. are worried about the recovery.

And a record string of 22 straight

federal government budget deficits has

raised fears of higher taxes. Caution byAmericans over their finances means

higher saving, which restrains

spending.

Wall Street Journal, August 12, 2010


10/50

The Scariest Jobs Chart Everis beginning to look even scarier

% Job Losses Relative to Peak Employment Month in Post WWII RecessionsSource: CalculatedRiskBlog.com


Number of Months After Peak Employment


11/50

An increase in pessimism regarding the unemployment ratecoincides with findings from the Pew Research Center showing thesurge in long-term unemployment

63%

Q. When do you think the unemployment rate willbegin to improve?

Source: comScore Surveys - April & July 2010

+10% vs.April 2010


1%4%

10%

22%

NextMonth

Next 2-3Months

Next 4-6Months

Next 7-12Months

More Than12 MonthsFrom Now

The typical unemployed worker today has been outof work for nearly six months or 23.2 weeks. This isalmost double the previous post-World War II peak

for this measure 12.3 weeks in 1982/83. Pew Research Center


12/50

Unemployment remains the top concern among consumers; financial-market concerns have risen, especially among the upper-incomesegment

RisingPrices

Unemployment/Job Security

FinancialMarkets

Real Estate/Home Values

Oct09

Jan10

April10

July10

Oct09

Jan10

April10

July10

Oct09

Jan10

April10

July10

Oct09

Jan10

April10

July10

Q. Based on your current situation, which one of the following economic conditionsmost concerns you?

Source: comScore Surveys - October 2009 & January, April & July 2010

Percent of Respondents Citing Their One Most Important Issue


Total 32% 29% 33% 30% 42% 50% 42% 44% 13% 9% 10% 13% 8% 7% 9% 8%

Household Income

$100K or more 19% 22% 23% 13% 34% 44% 34% 45% 27% 13% 17% 26% 15% 17% 18% 13%

$50K-$99,999 28% 23% 26% 22% 43% 50% 49% 46% 13% 12% 11% 16% 12% 10% 11% 11%

Under $50K 39% 36% 41% 40% 42% 50% 39% 42% 9% 6% 7% 9% 4% 4% 5% 6%


13/50

Lifestyle Changes Based on Recession

76% of consumers have changed how they spend money based onthe recession and 43% of them say these changes are permanent

Q. Have you changed how you spend money based on the recession?Q. In what ways have you changed how you spend money, based on the recession?

Source: comScore Survey July 2010

80%

69%

67%

Eating at home instead of eating out

Only making planned purchases

Reducing entertainment expenses

76%


54%

48%

42%

33%

23%

21%

14%

2%

0%

cards

Sticking to a personal budget

Changing travel plans

Changing driving habits

Reducing or canceling cable/Internet plans

Reducing or canceling cell phone plans

Changing living arrangements

Other

None of these

% of those who changed how they spend money based on the recession

24%

Yes No

43% of these consumers saythese changes are permanent

and will be continued evenwhen the economy recovers


14/50

Consumer Agreement with Economic Statements

76% hold a pessimistic view of current economic conditions;3 in 10 predict conditions will worsen in the future

29%

21%

We havent hit bottom yet; the worst is still tocome.

Weve turned the corner, but I would not besurprised if the economy dropped again before it

Q. Which statement best describes how you feel about the current economic conditions?Source: comScore Survey July 2010

Pessimistic 76%


26%

16%

8%

fully recovers.

We might be headed in the right direction but thesigns of improvement are hard to see.

The economy is stagnant, not going up or down.

Weve turned the corner and are beginning to seesigns of improvement.

% of All Respondents

Neutral/Positive 24%

Chg from Q1 (+3%)

Chg from Q1 (-3%)


15/50

Who is Todays Online Consumer?



16/50

The average heavy online buyer spent $615 in Q2 2010, nearly 5Xmore than medium buyers and 20X more than light buyers

Heavy Medium Light

% of Buyers 20% 30% 50%

% of e-Commerce Dollars 69% 22% 8%

% of Transactions 40% 30% 30%

Key Shopping Metrics for Heavy/Medium/Light Buyer in Q2 2010Source: comScore e-Commerce Measurement


Amazon Attracts a Higher Proportion of Heavy Online Buyers

H/M/L Definition:

Heavy = Top 20% of buyers based on dollars spent in Q2 2010Medium = Next 30% of buyers based on dollars spent in Q2 2010Light = Bottom 50% of buyers based on dollars spent in Q2 2010

Transactions per Buyer 4.7 2.4 1.4

Segment

AmazonBuyer Reach

WithinSegment

% CHG inReach vs.

Q1 2010

%Composition

AmazonBuyers

Heavy 34% +3 points 28%

Medium 25% 0 points 31%

Light 20% 0 points 41%

Amazon reaches athird of heavy

online buyers, up 3percentage points

from Q1 2010


17/50

The leading ten retailers within the heavy e-commerce buyer segmentare split between multi-channel and pure-play retailers, but Amazonleads the pack with 10% share

Top 20 Selected Retailers by Share of Heavy Buyers Dollar Spending in Q2 2010Source: comScore e-Commerce Measurement

Top RetailersShare of Heavy Buyers

Dollar Spending

Amazon 10%

Dell 8%

Staples 4%

Costco 4%

Walmart 3%


c etmaster 3%

QVC 3%Apple 3%

Office Depot 2%

HSN 2%

JCPenney 2%

Quill 2%

Best Buy 2%

Sears 2%Tiger Direct 2%

Victorias Secret 2%

Stub Hub 1%

Home Depot 1%

Target 1%

Gap 1%


18/50

Six in ten consumers say the Internet has become important whenmaking buying decisions and 59% of them say it has increased in thepast year

Importance of the Internet in Making Purchasing Decisions

Q. In the past 3 months, how important has the Internet become in providingyou with information to help you make buying decisions?

Q. How has this changed versus a year ago?Source: comScore Survey July 2010


43%

16%

% of those who found the Internet important

Significantly Increased

Somewhat Increased

59%

10%

31%

Slightly/very important

Slightly/very unimportant

Neither important nor unimportant

59%


19/50

How Consumers Are Cutting Shopping Expenses

Consumer loyalty to specific retailers and brands has steadilydecreased over the past two years, while likelihood to shop online fordeals has risen

Q. Please indicate how you are cutting your shopping expensesSource: comScore Surveys July & October 2008, April 2009, April & July 2010

July2008

Oct2008

April2009

April2010

July2010

% Chg(07/08 to 07/10)

Reducing gift spending 41% 51% 59% 57% 56% +15%

Shopping at different retailers 20% 25% 30% 33% 32% +12%


uy ng eren ran s nc u ng gener c ran s 52% 51% 58% 57% 62% +10%

Shopping online for deals 24% 25% 33% 32% 32% +8%Signing up for retail point programs or customer loyaltyprograms

22% 22% 27% 29% 29% +7%

Using coupons more often when making purchases 59% 62% 68% 64% 66% +7%

Shopping only when there are sales (i.e. one daysales)

40% 43% 41% 43% 44% +4%

Shopping at secondhand stores, garage sales, etc. 30% 33% 30% 31% 33% +3%

Shopping less frequently 68% 71% 70% 72% 69% +1%

Buying in bulk at warehouse/discount retailers likeCostco, Sam`s Club, BJ`s etc.

27% 28% 31% 28% 28% +1%

Shopping at auction sites such as ebay.com 13% 14% 14% 13% 13% 0%

Only shopping for basic necessities 66% 67% 60% 62% 65% -1%


20/50

Amazon has the largest audience with 76 million UVs in Q2 2010; itsone of the fastest growing sites in the category, second only toNetflix

Average Monthly Unique Visitors (MM) and % Growth vs. YAon Selected Retail Sites in Q2 2010

Source: comScore Media Metrix

+13%

+21%

+15%

+5%

168.7

76.2

40.2

34.9

Retail Sites

Amazon Sites

Apple.com Sites

Walmart


-3%

+34%

+8%

+6%

+8%

-3%

+1%

26.1

19.0

16.7

14.8

13.1

12.0

11.0

Target Corporation

Netflix.com

Best Buy Sites

Hewlett Packard

The Home Depot, Inc.

JC Penny Sites

Sears.com


21/50

Pure-play retailers have gained market share over the past two years.Multi-channel retailers have lost share

47.2%51.1%

44.3%48.6%

44.8% 44.6% 42.5%40.1%

36.0%41.3%

70%

80%

90%

100%

Multi-channel vs. Pure-play: Share of Quarterly U.S. e-Commerce SalesSource: comScore


52.8%48.9%

55.7%51.4%

55.2% 55.4% 57.5%59.9%

64.0% 58.7%

0%

10%

20%

30%

40%

50%

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010

Multi-Channel

Pure-Play

L il i b fi f l i d di


22/50

Larger retailers continue to benefit from leveraging deeper discounts,free shipping incentives and inventory, garnering an additional 5.6share points from Q2 2009

Sales Share Q2 2009 Q2 2010Point Change

vs. YA

Q2 2010

Total E-Commerce 100.0% 100.0% N/A

Largest 25 Retailers 59.8% 65.4% +5.6 pts

Share of Sales for Top 25 Retailers in Q2 2010 vs. YASource: comScore e-Commerce Measurement


All Other Retailers 40.2% 34.6% -5.6 pts

Q2 2010 vs. YA Q1 2010 vs. YA Q4 2009 vs. YA

Largest 25 Retailers +5.6 pts +3.6 pts 4.2 pts

All Other Retailers -5.6 pts -3.6 pts -4.2 pts

Share Shifts


23/50

Women are more avid online buyers than men, making up 58% oftotal dollars spent and 61% of online transactions

In the U.S.,

12.5% of femaleInternet users madean online purchase

61.1%58.2%


U.S. Consumers, Non-Travel Internet Purchases, February 2010Source: comScore e-Commerce Report

in February 2010,compared to 9.3%of men.

38.9%41.8%

TransactionsDollars

Women

Men


24/50

60% of buying on multi-channel sites is attributable to women,whereas the distribution on pure-play sites is more evenly split

Women Men

Age


25/50

Most product categories showed sales growth versus year ago.Consumer electronics and computers have shown strengththroughout 2010

Q2 2010 e-Commerce Sales Growth vs. YA by Retail CategorySource: comScore e-Commerce Measurement

Category Change vs. YA

CONSUMER ELECTRONICS (x PC PERIPHERALS)Strong

COMPUTERS / PERIPHERALS / PDAs Strong

BOOKS & MAGAZINESStrong

VIDEO GAMES, CONSOLES & ACCESSORIESStrong

JEWELRY & WATCHESModerate

Moderate

Out-Performing Total Internet(Growth rates of 9% or higher)


FURNITURE, APPLIANCES & EQUIPMENTModerate

CONSUMER PACKAGED GOODSModerate

FLOWERS, GREETINGS & MISC GIFTSModerate

OFFICE SUPPLIESModerate

EVENT TICKETSModerate

APPAREL & ACCESSORIES

Flat

SPORT & FITNESSWeak

Under-Performing Total Internet

(Growth rates of 1%-8%)

Flat/NegativeGrowth


26/50

The Impact of Promotions & Price Incentives onInternet Behavior



27/50

50,000

55,000

60,000

65,00070,000

75,000

80,000

85,000

90,000

Unique Visitors (000) to Comparison Shopping SitesSource: comScore Media Metrix

Comparison Shopping sites, such as Nextag and Shopping.com,have gained visitors and increased time spent on their sites

85.5 Million in Jul 10+30% vs. Jul 08


200

250

300

350

400

450

500

550

600

Total Minutes (MM) Spent on Comparison Shopping SitesSource: comScore Media Metrix

440 Million in Jul 10+51% vs. Jul 08


28/50

0

20,000

40,000

60,000

80,000

100,000

120,000

Total Unique Visitors (000) and Total Visits (000) to Coupon SitesSource: comScore Media Metrix

Coupon sites continue to grow in importance; category visitors tendto skew slightly older and female

34.5 million UVs+34% vs. Jul 08

101.1 million visits+56% vs. Jul 08


Jul-2008 Sep-2008 Nov-2008 Jan-2009 Mar-2009 May-2009 Jul-2009 Sep-2009 Nov-2009 Jan-2010 Mar-2010 May-2010 Jul-2010

Total Unique Visitors (000) Total Visits (000)

UV Composition Index by Income UV Composition Index by Gender

Females

Males

114

86

97

104

101

104

Under

$60K

$60K -$74,999

$75K -$99,999

$100K

or more


29/50

4.4

5.3

6.8

7.2

RetailMeNot.com

Groupon.com

LivingSocial*

Coupons, Inc.

Top Coupon Sites by Unique Visitors (MM)July 2010

Source: comScore Media Metrix

Coupons.com, which leads the Coupon category in terms of UVs,reports $1 billion in redemption value in first half of 2010

[Coupons.com] said savings fromcoupons printed out or loaded to a loyaltycard from its online properties doubled tomore than $1 billion from $529 million a

year ago. The value of savings in Junealone hit $110 million, the highest total todate for any single month via

Coupons.com. (MediaPost, July 2010)


1.4

1.6

2.2

2.2

2.4

4.0

CouponCabin.com

CouponMountain.com

MyPoints Sites

RebateGiant.com

eBayCoupon.US

EverSave.com

With only 2.2 million UVs, MyPoints Sitesgenerated 14.5 million visits or an average

of 6.6 visits per visitor in July 2010.

*Note: LivingSocial is currently included in the Social Networking category

within comScore Media Metrix. For the purpose of this analysis, it has beenincluded in the above Coupon ranking.

Flash Sale sites continue to gain traction with high growth rates


30/50

1000

1200

1400

1600

1800

2000

Flash Sale sites continue to gain traction with high growth ratesversus year ago, although were seeing a slight slowdown during thesummer months

HauteLook+12% vs. July 09

U.S. Unique Visitors to Flash Sale SitesSource: comScore Media Metrix


0

200

400

600

800

HAUTELOOK.COM IDEELI.COM GILT.COM RUELALA.COM

Ideeli

+382% vs. July 09

Gilt+46% vs. July 09

RueLaLa+15% vs. July 09

Group buying is surging. Groupon.com and LivingSocial continue to


31/50

Group buying is surging. Groupon.com and LivingSocial continue toexecute against strategies that enhance the user experience andentice consumers from across the Web

U.S. Unique Visitors (000)Source: comScore Media Metrix

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Groupon.com+3300+% vs. YA

LivingSocial.com+8300+% vs. YA


19% of UVs to Living Socialare sourced from Evite and15% from Facebook.

Source: comScore Media Metrix, July 2010

LIVINGSOCIAL.COM GROUPON.COM

Half of consumers say theyll abandon their shopping cart if free


32/50

Half of consumers say they ll abandon their shopping cart if freeshipping isnt offered, a quarter will only buy when free shipping is anoption and 90% wont pay more than $10

Q. In general, how much are you willing to pay for shipping on a purchase made online?Source: comScore Survey July 2010

23%I only purchase items with free shipping

51% of consumers are at least somewhat likely to cancel their entire purchaseif free shipping is not offered.*


47%

20%

4%

1%

0%

0%

4%

Between $0.01 and $4.99

Between $6 and $9.99




More than $50

Shipping charges do not matter to me

% of All Respondents

*Q. If you reached the end of your online checkout and found thatfree shipping was not offered, how likely would you be to cancel yourpurchase? (comScore Survey, July 2010)


33/50

Free Shipping Alternatives

Special pricing, future discounts and rewards/incentives areappealing alternatives to free shipping for consumers

54%Special pricing on items

Q. If free shipping was not offered on an order, which of the following would make you morelikely to continue with your purchase anyway?



16%

11%

13%

16%

Faster shipping

Money back through branded credit card offers

Not sure

None of these% of All Respondents

66% would be more likely tocontinue their purchase if

special pricing ordiscounts/rewards on future

purchases were offered


34/50

Other Digital Trends Retailers Cant Afford to Ignore


Facebook monthly UVs now over 145 million in the U.S. while


35/50

130,000

150,000

yMySpace still reaches 60 million more people than any single multi-channel retailer site

itors(000)

Number of Unique U.S. Visitors (000) to Facebook.com and MySpace.comSource: comScore Media Metrix

+66% in July 2010

vs. YA


50,000

70,000

90,000

110,000

Unique

Vis

-11% in July 2010vs. YA

In May 2009, Facebook surpassed MySpace for the first time in terms of total U.S. UVs, and the site iscontinuing to experience explosive growth, now with more than 2X the monthly UVs of MySpace.

On fixed Internet, Retail sites and Search have a comparable reach,


36/50

, p ,however, with Smartphones and Mobile, Searchs reach is about 3Xand 5X greater than Retail sites, respectively

78.3%

88.8%

51.2%

% Reach for Search and Retail On Fixed Internet, Smartphone & MobileSource: Media Metrix + MobiLens, June 2010


15.8%5.6%

19.6%

Internet Smartphone Mobile

Retail Search

Among Smartphone users only 10% have purchased physical items via


37/50

Among Smartphone users, only 10% have purchased physical items viatheir phones. On average, these users spent $121 in the last 3 months

Q. Do you own or use a smartphone or digital media device,such as an iPhone, iPad, Droid,

Blackberry, Kindle or similardevice?


In the past 3 months, approximately how muchmoney have you spent on each of the followingtypes of digital content via a mobile device,Smartphone or other wireless device?

Average dollarsspent (among

those whopurchased)

% ofSmartphoneusers whopurchased

Movies/videos/TV shows $28 13%

Games $24 17%

Music $19 17%

Kindle books $15 9%

Applications $10 14%

Other type of e-book $10 7%

Ringtones $7 9%


Wallpapers/graphics $7 6%

Other digital content $5 5%

In the past 3 months, approximately how muchmoney have you spent on each of the following viaa mobile device or Smartphone?

Average dollarsspent (among

those whopurchased)

% ofSmartphoneusers whopurchased

Physical items purchased from a retail site $121 10%

Physical items purchased from an auction site $52 7%Deal of the day sites $48 8%

Renewing or recurring website expenses $23 9%

Renewing subscriptions to online services $22 9%

Other physical/subscription purchase $2 2%

22%

78%

Yes No


38/50

22% of Twitter users follow businesses to find special deals


39/50

44%

33%

24%

Reading tweets from users I follow

Posting my own tweets

Conversations with other users

Consumer Usage of Twitter

22% of Twitter users follow businesses to find special deals,promotions or sales

Q. For which have you used Twitter?Source: comScore Survey July 2010


21%

20%

17%

15%

14%

11%

9%

4%

16%

Finding breaking news

Retweeting other users tweets

Following celebrities

Finding political news

Finding product reviews/opinions

Following my favorite sports teams

Asking for help/advice from other users

Other

None of the above

% of Twitter users

29% of Twitter usersin total use the

service for retail-related purposes


40/50

The Use of Video in Retail



41/50

Retail video a quick overview

July2009

July2010

% Chgvs. YA

Number of people who

watch video on retailsites each month

41MM 58MM +40%

% of retail site visitors

YOY growth in retail

video viewers (40%)significantly


onsite

Total # of viewedvideos

174MM 311MM +79%

Viewing time perperson 11mins 20mins +82%

% reach total USpopulation

14% 20% +43%

in total video viewers (17%)

Source: comScore Video Metrix


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Adding video to retail sites is extremely powerful

150

200

250

137

201

Retail site visitors who alsoview video are 64% morelikely to purchase

Retail site visitors who also

Buying Power IndexSource: comScore Video Metrix 2.0, June 2010


TotalInternet

Total Internetw/ Video

Retail SiteVisitors

Retail SiteVisitors w/

Video Viewing

0

50

100 100 115

view video spend 2 minutes

longer onsite per visit


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Nearly 100% of online spenders are video viewers

Non-VideoViewers

4%


Video Viewers96%

Source: comScore Video Metrix 2.0, June 2010


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Video advertising is significant in terms of online audience reach

63% of the online audience iscurrently reached by

video advertising each month

44 comScore, Inc. Proprietary and Confidential. Source: comScore Video Metrix 2.0, June 2010

spending comes fromthem


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Video advertising is increasingly important in terms of impact

83% of all online spending comes from thesevideo viewers who have seen a video ad

45 comScore, Inc. Proprietary and Confidential. Source: comScore Video Metrix 2.0, June 2010

Not all video audiences are created equal when it comes to video


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advertising and retail spending at a category level

120140160180

170

145136

115

Buying Power IndexSource: comScore Video Metrix 2.0, June 2010


Total Video Sites Video Ad NetworkCategory Earned Media &Social Video Long Format TV

020406080

100


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Tips for Retailers Considering Video

For key products with important and detailed benefits, adding video to yoursite can encourage people to spend more time on your site and ultimatelyto make a purchase

Remember, almost all online spenders are video viewers and retail site visitors

who view video are 64% more likely to make a purchase

When adding video to your site or on sites like YouTube, ensure yourvideos are easy to find and have detailed metadata tags for search visibility


this will help your video cut through the clutter to reach your target

audience

Video advertising on premium and social video sites like Hulu andYouTube can help you reach people who are much more likely than typicalWeb visitors

Its definitely worth considering for high value products, branding or important

launches


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comScore Holiday Season Retailer Report

Track the performance of your site versus your competitors during theholiday season and get answers to important questions such as:

How does my audience size and that of my competitors vary day to day throughout

the holiday season?

What are my peak traffic days? What retailers are leading in terms of audiencesize?

To what extent are retailers leveraging free shipping?


ow e ec ve s my s e compare o e compe on a conver ng v s s n o

transactions and how does that compare with site averages across the Internet? How qualified is the traffic at each of the competitive domains as well as my own?

To what extent is my site and my competitors sites penetrating the online buyers

and how does that compare to last holiday season?

For more information:Jenn Vlahavas

[email protected]

1-312-775-6628

For more information:Jenn Vlahavas

[email protected]

1-312-775-6628


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QUESTIONS?


Please contact us at [email protected] if you have anyadditional questions or comments.


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Thank You!

Note: A copy of this presentation will be sent to all attendees within 24hours of todays webinar.

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Documents

ComScore Q2 2010 Online Retailing