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August 2012
State of the U.S. Online Retail Economy in Q2 2012
Gian Fulgoni, Chairman, comScore, Inc.
Andrew Lipsman, VP Industry Analysis, comScore, Inc.
Note: A copy of this presentation will be sent to all attendees within two business days of today’s webinar
2 © comScore, Inc. Proprietary.
Data sourced from comScore’s global panel of 2 million Internet
users via behavioral tracking and custom surveys
E-Commerce data includes all worldwide buying on U.S.
sites
Unless explicitly stated otherwise, the term e-Commerce
refers to online retail spending, as measured by
comScore, which excludes travel, autos and auctions
Behavioral activity through June 2012
Survey conducted week of July 30, 2012 (n=2000)
Consumer Measurements:
– Online Buying
– Attitudes and Sentiment
– Site Visitation
– Demographic Segments
– Mobile and Portable e-Commerce
2 million person panel
360°View of Consumer Behavior Analysis Parameters
3 © comScore, Inc. Proprietary.
Topics for Today
Review of Key Macroeconomic Trends
Consumer Perceptions of the Economy
Retailer and Product Category Overview
The Digital Endcap: Retailers as Publishers
The Impact of Mobile and Tablets on Shopping and Buying
Social Commerce Trends
Key Takeaways
Q & A
4 © comScore, Inc. Proprietary.
Validation of comScore Sales Data:
Comparison of comScore data to U.S. Department of Commerce
Billio
ns (
$)
Dept. of Commerce (DOC) comScore Estimate of DOC
Quarterly U.S. e-Commerce Sales* ($ Billions) Source: comScore & U.S. Department of Commerce (DOC)
Quarterly U.S. e-Commerce Growth* vs. YA Source: comScore & U.S. Department of Commerce (DOC)
% G
row
th v
s. Y
A
Dept. of Commerce (DOC) comScore Estimate of DOC
*Note: To be consistent with DOC, comScore estimate excludes travel and
event tickets but includes auction fees and autos.
comScore Estimate of Mobile e-Commerce
-10%
0%
10%
20%
30%
40%
50%
2005 -
Q1
2005 -
Q2
2005 -
Q3
2005 -
Q4
2006 -
Q1
2006 -
Q2
2006 -
Q3
2006 -
Q4
2007 -
Q1
2007 -
Q2
2007 -
Q3
2007 -
Q4
2008 -
Q1
2008 -
Q2
2008 -
Q3
2008 -
Q4
2009 -
Q1
2009 -
Q2
2009 -
Q3
2009 -
Q4
2010 -
Q1
2010 -
Q2
2010 -
Q3
2010 -
Q4
2011 -
Q1
2011 -
Q2
2011 -
Q3
2011 -
Q4
2012 -
Q1
Correlation: 0.93
6 © comScore, Inc. Proprietary.
$42 $53 $67 $82 $102
$123 $130 $130 $142 $162
$87 $30
$40 $51
$61
$69
$77 $84 $80
$85
$94
$54
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Q1-Q22012
$72 $93
$117 $143
Retail
Travel
+26%
+33%
+26%
+28%
+20%
+24% +24%
+13%
$171 $200
+20%
+12%
+6%
+9%
Retail e-Commerce spending is up +16% Y/Y, posting $87 billion in
sales through June 2012
$214
0%
-5%
$209
U.S. e-Commerce Dollar Sales Growth ($ Billions) Source: comScore e-Commerce Measurement
+10%
+6%
$228
+16%
+9%
$141 +29%
+26%
+22%
+19%
+17%
+7%
-2%
+9%
+12% +13%
$256
+14%
+11%
7 © comScore, Inc. Proprietary.
*Note: The U.S. Department of Commerce calculation includes total
retail and food service sales, which also includes motor vehicles and
parts dealers.
3% 3% 3% 3% 2% 2%
1%
-5% -5% -6% -6%
0%
4% 5% 6% 7%
6% 4% 4% 3%
6%
2%
Q12007
Q22007
Q32007
Q42007
Q12008
Q22008
Q32008
Q42008
Q12009
Q22009
Q32009
Q42009
Q12010
Q22010
Q32010
Q42010
Q12011
Q22011
Q32011
Q42011
Q12012
Q22012
Quarterly Retail & Food Services Sales Growth vs. YA
(excluding autos, gas and food/beverage)
4% 4% 3% 5% 4% 2%
1%
-8% -10% -9% -7%
2%
6% 7%
5%
8%
7% 7% 7% 5%
8% 4%
Q12007
Q22007
Q32007
Q42007
Q12008
Q22008
Q32008
Q42008
Q12009
Q22009
Q32009
Q42009
Q12010
Q22010
Q32010
Q42010
Q12011
Q22011
Q32011
Q42011
Q12012
Q22012
17%
23% 23% 19%
11%
13%
6% -3% 0% -1% -2%
3%
10%
9% 9%
11% 12% 14%
13%
14% 17%
15%
Q12007
Q22007
Q32007
Q42007
Q12008
Q22008
Q32008
Q42008
Q12009
Q22009
Q32009
Q42009
Q12010
Q22010
Q32010
Q42010
Q12011
Q22011
Q32011
Q42011
Q12012
Q22012
The channel shift to online was particularly evident in Q2 2012, with
online retail growing nearly 4x the rate of total consumer spending or
7x on an apples-to-apples basis
Quarterly e-Commerce Sales Growth vs. YA
Source: comScore e-Commerce Measurement
Quarterly Retail & Food Services Sales Growth* vs. YA
Source: U.S. Department of Commerce (DOC)
8 © comScore, Inc. Proprietary.
4.3%
3.7% 4.0%
4.6%
5.1%
4.3% 4.5%
5.3%
5.9%
5.0%
5.3%
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% 7.1%
8.0%
8.6%
7.7% 7.6%
8.9%
9.4%
8.7%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
The shift of consumer spending to the Internet continues to
accelerate, with the e-Commerce share of spending hitting 8.7% in
Q2, up 1.6 points in only two years
*Note: e-Commerce share is shown as a percent of DOC’s Total Retail Sales
excluding Food Service & Drinking, Food & Bev. Stores, Motor Vehicles &
Parts, Gasoline Stations and Health & Personal Care Stores.
e-Commerce Share of Corresponding Consumer Spending* Source: comScore for e-Commerce & U.S. Department of Commerce (DOC) for Retail
e-C
om
me
rce S
hare
e-Commerce share peaks in
colder seasons (Q4 & Q1)
Q2 2012 share: +1.6 points
vs. Q2 2010
9 © comScore, Inc. Proprietary.
$15.1
$12.4
$13.5
$12.1
$17.5
$15.0 $14.8
Q4 '10 Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '12
+9% +7% +12% +15% +16% +21% +10% +6% +2% +8% +3% +9% +12% +19%
$10.0 $10.3 $9.4
$8.9
$12.2 $12.1
$11.0
Q4 '10 Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '12
+26% +39% +28% +31% +22% +18% +17%
All income segments showed double-digit growth versus 2011, with mid
and lower income consumers leading the way
$50K - $99K
(43% of Total)
Under $50K
(23% of Total)
$100K or more
(34% of Total)
e-Commerce Sales by Income Segment ($ Billions)
Growth vs. YA Source: comScore e-Commerce Measurement
$18.3
$15.3 $14.6
$15.4
$20.0
$17.2 $17.3
Q4 '10Q1 '11Q2 '11Q3 '11Q4 '11Q1 '12Q2 '12
11 © comScore, Inc. Proprietary.
Overall consumer sentiment slid in July, with 56% of consumers
rating the economy as poor, up from 49% in April
Percent of Consumers Who View The Economy as Poor
Q. How would you rate economic conditions today? Source: comScore Surveys
77% 68% 66%
61% 61% 59% 62% 61% 52%
59% 60% 62% 60% 54%
49% 56%
Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Aug-11 Oct-11 Jan-12 Apr-12 Jul-12
Increase in negative sentiment driven by
Under $50k (61%) and Baby Boomers (60%)
12 © comScore, Inc. Proprietary.
Concern over unemployment saw a +7 point swing from April,
but continued to lag behind prices, the main economic concern
Percent of Respondents Citing Their One Most Important Issue
46%
40% 42%
50%
42% 44% 45%
36%
27%
37% 38%
31%
26%
33%
28%
32% 32%
29%
33% 30%
29%
42%
54%
37% 37%
43%
48%
44%
15% 13% 13%
9% 10%
13%
9% 7% 7%
12% 12%
10% 11% 10%
8% 8% 8%
7% 9%
8%
10% 11%
7%
8% 9%
10% 11%
8%
Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12
Unemployment /Job Security
RisingPrices
FinancialMarkets
Real Estate / HomeValues
Q. Based on your current situation, which one of the following economic conditions most concerns you? Source: comScore Surveys
14 © comScore, Inc. Proprietary.
Compared to 2011, retail e-Commerce saw an increase in every key metric,
including dollars per buyer, total buyers & transactions per buyer
Metric Q2 2011 Q2 2012 % change
Dollar Sales ($ Billions) $38 $43 +15%
Dollars per buyer $221 $242 +10%
Buyers (Millions) 170 178 +5%
Average Order Value $70 $74 +6%
Transactions (Millions) 539 584 +8%
Transactions per Buyer 3.2 3.3 +3%
Buyer Penetration (Total Internet) 70% 72% +3%
Key e-Commerce Buyer and Transaction Measures
Q2 2012 vs. YA Source: comScore e-Commerce Measurement
15 © comScore, Inc. Proprietary.
All product categories showed at least +10% growth, with digital
content and consumer electronics showing the highest growth
Q2 2012 e-Commerce Sales Growth vs. YA by Retail Category Source: comScore e-Commerce Measurement
Q2 growth rates of 15% or
higher
Product Category Q2 2012 Growth
vs. YA
Digital Content and Subscriptions Very Strong
Consumer Electronics (x PC Peripherals) Very Strong
Flowers, Greetings & Misc. Gifts Very Strong
Computers/Peripherals/PDAs Very Strong
Apparel & Accessories Very Strong
Event Tickets Very Strong
Consumer Packaged Goods Strong
Jewelry & Watches Strong
Home & Garden Strong
Books & Magazines Strong
Sport & Fitness Strong
Office Supplies Strong
Video Games, Consoles & Accessories Strong
Furniture, Appliances & Equipment Strong
Q2 growth rates of 10-14%
16 © comScore, Inc. Proprietary.
While Amazon remains the leader in unique visitors to retail sites,
Apple and Wal-Mart each showed strong gains versus year ago
Avg. Monthly UVs (MM) on Select Retail Sites in Q2 2012 Source: comScore Media Metrix, U.S.
+7%
+24%
+23%
-5%
+5%
+7%
+52%
+51%
+17%
Y/Y Change
12.4
14.7
14.9
18.3
23.2
27.3
41.4
47.5
100.4
Sears.com
The Home Depot, Inc.
Ticketmaster
Best Buy Sites
Target Corporation
Netflix.com
Wal-Mart
Apple.com Sites
Amazon Sites
17 © comScore, Inc. Proprietary.
0-40 Index: 40-80 80-120 120-160 160+
Compared to the overall retail e-Commerce market, Amazon.com
heavily over-indexes for consumer electronics, toys and books
Product Category Share at Amazon Indexed to
Retail e-Commerce (Q2 2012)
Nodes indicate range of Amazon’s index to Total Internet share composition
Computers/Peripherals/PDAs
Apparel & Accessories
Consumer Electronics (x PC
Peripherals)
Office Supplies
Books & Magazines
Home & Garden
Toys & Hobbies
0-40 Index: 40-80 80-120 120-160 160+
18 © comScore, Inc. Proprietary.
Groupon is still the leader in monthly unique visitors among coupon
sites. In June, visits to Groupon via mobile eclipsed PC visitors
Avg. Monthly UVs (MM) on Select Coupon
Sites in Q2 2012 Source: comScore Media Metrix, U.S.
-5%
N/A
-35%
-10%
N/A
+30%
+89%
+29%
+116%
+53%
Y/Y Change
* - WhaleShark Media includes RetailMeNot.com, Deals2Buy.com,
CouponShare.com and CouponsEven.com
1.3
1.5
1.6
1.8
2.0
2.1
6.3
6.7
7.5
11.8
FatWallet.com
BradsDeals.com
MyPoints Sites
CouponAlert.com
DealsPL.US
DeedOrGreed.com
Coupons, Inc.
LivingSocial
WhaleShark Media
Groupon
Unique Visitors to Groupon in June 2012 Source: comScore Media Metrix & Mobile Metrix, U.S., 18+
Groupon (via PC)
11.9 million
Groupon (via mobile*)
17.7 million
* includes mobile web and mobile app
19 © comScore, Inc. Proprietary.
2010- 1Q
2010-4Q
2011- 4Q (e)
4Q Share of $ Sold
1 Food & Drink 31% 26% 14% 16%
2 Beauty, Spa & Massage 20% 20% 13% 16%
3 Clothing & Accessories 2% 4% 10% 2%
4 Health, Medical & Dental 3% 5% 9% 14%
5 Travel & Hospitality 2% 2% 9% 13%
6 Photography & Photo Services 2% 4% 7% 5%
7 Kids 1% 2% 5% 1%
8 Home Products & Services 2% 6% 5% 4%
9 Fitness & Nutrition 6% 7% 4% 3%
10 Sports & Recreation 11% 5% 3% 4%
All Other 16% 17% 20% 20%
2010- 1Q
2010-4Q
2011- 4Q (e)
1 Food & Drink 31% 26% 14%
2 Beauty, Spa & Massage 20% 20% 13%
3 Clothing & Accessories 2% 4% 10%
4 Health, Medical & Dental 3% 5% 9%
5 Travel & Hospitality 2% 2% 9%
6 Photography & Photo Services 2% 4% 7%
7 Kids 1% 2% 5%
8 Home Products & Services 2% 6% 5%
9 Fitness & Nutrition 6% 7% 4%
10 Sports & Recreation 11% 5% 3%
All Other 16% 17% 20%
When looking at the types of daily deals consumers are purchasing,
Food/Drink and Beauty, Spa & Massage accounted for largest share
Offers Published by Category Source: Local Offer Network / Dealradar.com
20 © comScore, Inc. Proprietary.
The average price per deal has been increasing as deal of the day
sites offer higher-value offers to consumers
Excluding
Travel & Medical
21 © comScore, Inc. Proprietary.
Most flash sale sites continue to see growth in unique visitors, with
Totsy.com the fastest growing property
Avg. Monthly UVs (000) on Select Flash Sale Sites in Q2 2012 Source: comScore Media Metrix, U.S.
Y/Y Change
545
590
638
785
903
1,098
1,118
1,137
2,185
2,237
BeyondtheRack.com
EBay Fashion Vault
Ideeli.com
Totsy.com
MyHabit.com
OneKingsLane.com
HauteLook.com
Gilt Groupe
Woot.com
Zulily.com +9%
+74%
+36%
+40%
+60%
+82%
+881%
-20%
+46%
+22%
22 © comScore, Inc. Proprietary.
The percent of e-Commerce transactions with free shipping saw a
seasonal pullback to 42%, down from all-time high of 52% in Q4 2011
39% 40% 41% 49% 47% 43% 40%
52% 49% 42%
61% 60% 59% 51% 53% 57% 60%
48% 51% 58%
Q12010
Q22010
Q32010
Q42010
Q12011
Q22011
Q32011
Q42011
Q12012
Q22012
% Transactions with Paid Shipping
% Transactions with Free Shipping
Percentage of e-Commerce Transactions with
Free Shipping Source: comScore e-Commerce Measurement
55% of consumers stated in a recent survey* that if they reached the end of an e-Commerce transaction and
free shipping was not offered, they would cancel their purchase at that retailer
*comScore survey – July 2012
23 © comScore, Inc. Proprietary.
Among online shoppers,* 61% would prefer to use in-store pickup
than pay for shipping to their home
Q. When shopping online, are you more likely
to utilize free shipping to your home or
free in store pickup? Source: comScore Survey July 2012
95%
5%
% of respondents
More likely to use free shipping
More likely to use free in store pickup
Q. Similar to the previous question, would
you be more likely to pay for shipping to
your home, or utilize free in store pickup? Source: comScore Survey July 2012
39%
61%
% of respondents
More likely to pay for shipping
More likely to use free in store pickup
* - those who shop online at least once a month
24 © comScore, Inc. Proprietary.
Q60. How much do you agree with the following statements?
If an online retailer offers a lenient, easy-to-understand returns policy, I will …
32%
35%
48%
48%
Focus less on prices and more ontheir quality of service
Drop another retailer with a less easyreturns process
Recommend the retailer to a friend
Shop more often with that retailer
If an online retailer offers a lenient, easy-to-understand returns
policy, I will … Source: comScore Custom Survey
“Return policy has to be
clear, easy and up front.”
“[If] I cannot find the return policy
or it is unclear I will never purchase
or return to that site again”
A lenient and clear returns policy is likely to lead to recommendations
and repeat business from online shoppers
Agreement (Top 2 Box)
25 © comScore, Inc. Proprietary.
37
18 14
10
8
7 6
Average # of Chips Allocated out of 100
Free shipping on most items
Knowing what day my purchase will be delivered
Easy to understand returns process
Availability of express shipping choices
Offers environmentally-responsible products
Ability to select a 2-hour delivery window
Ability to re-route packages to an alternate locationwhile in transit
Factors Influencing Total Purchasing Experience Source: comScore Custom Survey
Free shipping was, by far, the factor considered most influential on the
online shopping experience
Q29. Thinking of factors that would influence your total purchasing
experience with a retailer, how influential is each of the following
factors? Please distribute 100 points across these factors, allocating
more points to factors that are more influential and fewer points to factors
that are less influential.
26 © comScore, Inc. Proprietary.
Join us and UPS for a deeper dive into the online shopping
experience – August 22 at 2 PM ET
www.comscore.com/OnlineShoppingWebinar
The Online Shopping
Customer Experience Study provides insights into consumers’
online shopping behaviors and
preferences.
Other online shopping surveys
have focused on purchase or web
usability, but this particular survey
bridges that gap with a view of
perceptions on customer
experience from pre-purchase
through post-delivery.
This study also provides a clear
picture of which shipping and post-
purchase services enhance
customer experience.
28 © comScore, Inc. Proprietary.
0
500
1,000
1,500
2,000
2,500
3,000
Amazon.com
Walmart.com
The Digital Endcap: Manufacturer ad impressions delivered on
Amazon.com tripled versus a year ago and remain far ahead of Walmart
Impressions Delivered (in Millions) & Selected Leading Creatives
on Amazon & Walmart Source: comScore Ad Metrix, U.S., Jan-2011 to June-2012
+341% vs. Jun ’11
Amazon.com
Walmart.com
+103% vs. Jun ’11
29 © comScore, Inc. Proprietary.
The Digital Endcap: Reaching consumers at the bottom of the funnel
Standard
Display
Ads
Digital
Endcaps
Average CPM
$2.91
Average CPM
$2.74
Ads on retailer websites reach consumers down-funnel, but sold at below average CPMs.
Shouldn’t they be going for more?
Source: comScore Ad Metrix, U.S.,
Apr-2012 to June-2012
30 © comScore, Inc. Proprietary.
The Digital Endcap: Friend or Foe?
Why aren’t more retailers leveraging
the Digital Endcap?
Friend
Ability to leverage available site
inventory
Delivers competitive advantage due
to synergies created for retailer and
manufacturer (vertical integration)
Inherently high margin offering, with
minimal costs
CPM upside
Foe
Shoppers might click away from the
retailer website
BUT, we know that display ad CTRs are
low and the branding effect is strong
Retailers may not have an ad sales
force to leverage
32 © comScore, Inc. Proprietary.
+1.1 +1.3 +1.3
+1.9
+3.3
+2.7
+1.3 +1.3
+1.0
+2.1 +2.3 +2.3
+2.9
+2.0
+0.7
+1.8
+2.7
+3.6
+2.9
+2.1 +2.2
+1.6
+3.8
+2.2
+3.1
+2.5
+1.4
+6.5
+3.5 +3.3
+2.1
+0.7
+2.6
+0.9
+0.0
+1.0
+2.0
+3.0
+4.0
+5.0
+6.0
+7.0
0
20,000
40,000
60,000
80,000
100,000
120,000
New Smartphone Acquisitions (In Millions)
Total Smartphone Subscriber Base (In Thousands)
More than 4 million new smartphone subscribers activated in Q2,
taking the audience over the 110 million mark
Acquisition Trend for Smartphone Subscriber Base and
Total Smartphone Subscriber Base Source: comScore MobiLens, U.S., 3 Mo. Avg. Sep-2009 to Jun-2012
33 © comScore, Inc. Proprietary.
Nearly 1 in 10 e-Commerce dollars are spent via mobile device
9% 8%
9% 8%
6% 6%
3% 3%
2%
Q22012
Q12012
Q42011
Q32011
Q22011
Q12011
Q42010
Q32010
Q22010
Percentage of Total e-Commerce Dollars Spent via Mobile or Tablet Device Source: comScore Mobile Measurements
Spike in percentage of
e-commerce sales via
mobile coincides with
surge in tablet ownership
34 © comScore, Inc. Proprietary.
Nearly 2 in 5 tablet owners have purchased something online via their
device in the past month, more than double smartphone owners
18% Smartphone owners
Smartphone Owners Who Purchased
Item/services via Mobile (past month) Source: comScore MobiLens
39% Tablet owners
Tablet Owners Who Purchased
Item/services via Tablet (past month) Source: comScore TabLens
Tablet owners are generally more engaged overall – in addition to the above ‘purchased’
metric, 43% have researched items and 42% have compared product prices in the past
month (compared to 21% and 22% for smartphones, respectively)
35 © comScore, Inc. Proprietary.
When compared to overall tablet owners, iPad owners significantly
over index on every e-Commerce metric, including purchasing items
Metric (took action in past month) All tablet
owners
iPad
Index
Kindle Fire
Index
Found store location 42% 122 85
Purchased goods or services online 39% 117 99
Made shopping lists 23% 115 106
Found coupons or deals 35% 115 96
Checked product availability 32% 113 93
Compared product prices 42% 113 92
Researched product features 42% 113 92
Retail/e-Commerce Actions Taken by iPad and Kindle Fire Owners
(Indexed Against All Tablet Owners) Source: comScore TabLens
38 © comScore, Inc. Proprietary.
0
5,000
10,000
15,000
20,000
25,000
Pinterest.com
Instagram.com
Pinterest & Instagr.am: U.S. Unique Visitor (000) Trend Source: comScore Media Metrix, May 2011 – July 2012
+22x Y/Y
+5x Y/Y
Pinterest & Instagram among the two hottest growth sites over past year
39 © comScore, Inc. Proprietary.
Social networkers tend to be heavier online buyers, but Pinterest has
significantly higher propensity than average
111
130
226
106 109
163
50
100
150
200
250
Facebook Twitter Linkedin Myspace Tumblr Pinterest
Buying Power Index (BPI)* for Selected Leading Social Networking Sites
Source: comScore Media Metrix, U.S., June 2012
*Buying Power Index = Average Spending per Buyer for Site / Average Spending per Buyer for Total Internet x 100;
Index of 100 represents average spending behavior
40 © comScore, Inc. Proprietary.
Pinterest users love, love, love shopping, making it a gold
mine for marketers wanting to reach buyers
22.8%
21.2%
20.1%
19.7%
19.0%
18.8%
18.7%
18.6%
18.3%
18.0%
17.8%
17.8%
17.7%
17.4%
17.2%
17.2%
16.8%
16.7%
16.6%
16.6%
Retail - Jewelry/Luxury Goods/Accessories
Retail - Flowers/Gifts/Greetings
Retail - Fragrances/Cosmetics
Retail - Food
e-cards
Gay/Lesbian
Retail - Books
Travel - Transactions
Lifestyles - Green
Retail - Coupons
Retail - Apparel
Retail - Consumer Goods
Retail - Health Care
Retail - Home Furnishings
Retail - Toys
Incentives
Retail - Mall
Religion/Spirituality
Travel - Hotels/Resorts
Shipping
Top 20 Site Categories with Highest Concentration (%) of Pinterest Visitors Source: comScore Media Metrix, U.S., June 2012
16 of top 20 Pinterest users’ highest affinity categories are Retail-related
Overall Pinterest
Internet
penetration: 10%
41 © comScore, Inc. Proprietary.
Pinterest is carving out a big share of social media referral traffic to
retail apparel category
54% 30%
8%
4% 4% Facebook
Tumblr
Other
% of Social Networking Referral Visits to Retail Apparel Category Source: comScore Custom Metrix, U.S., May 2012
43 © comScore, Inc. Proprietary.
Power of Like 2: Key Findings
Amplification: Brands can meaningfully
extend Facebook reach through amplification
to Friends of Fans and help drive sales
Earned Media Lift: The causal effects of
Facebook earned media (non-paid) exposure
can be isolated, and show lifts in purchase
behavior
Paid Media Lift: Facebook paid
advertising also shows evidence of driving
lifts in purchase behavior
Download full white paper at:
www.comscore.com/like2
44 © comScore, Inc. Proprietary.
comScore Social Essentials™ complements and extends Facebook
Insights’ functionality
Reach &
Frequency for
Your Own Brand
SOCIAL ESSENTIALS™ PAGE INSIGHTS
Competitive
Audience Insights
& Social Lift for
All Brands
45 © comScore, Inc. Proprietary.
Get Fans
Brand
Messages
Reach Fans
in News Feed
Fans “Talk
About”
News Feed
Content
News Feed
Content
Spreads to
Friends
Goal: Max
Reach,
ROI
2. Engagement 3. Amplification 1. Fan Reach
Many brands don’t consider
these intermediary steps
How Social Marketing Works: Brands control the three basic levers
that will determine social media marketing success
46 © comScore, Inc. Proprietary.
Quantifying Amplification: Top Facebook Brands tend to reach 0.5-2.0
Friends for every Fan reached w/ earned media
-
0.5
1.0
1.5
2.0
2.5
0
10
20
30
40
50
60
70
Am
pli
fica
tio
n R
ati
o
Ex
po
se
d S
ocia
l Im
pre
ss
ion
s (
MM
)
Fans & Friends of Fans' Earned Impressions and Amplification Ratios for Selected Leading Facebook Brands
Source: comScore Social Essentials, U.S., March 2012
Exposed Fan Impressions Exposed Friend of Fan Impressions Amplification Ratio
47 © comScore, Inc. Proprietary.
Earned Media Lift: Starbucks earned media impressions drove
significant lifts in in-store purchase in 4 weeks following exposure
0.17
0.36
0.50 0.58 0.83%
1.36%
1.80%
2.12%
0.66%
1.00%
1.30%
1.54%
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
0.00%
0.40%
0.80%
1.20%
1.60%
2.00%
2.40%
Week 1 Weeks 1-2 Weeks 1-3 Weeks 1-4
No
min
al L
ift
in P
urc
ha
se
In
cid
en
ce
% R
ea
ch
of
Ex
po
se
d a
nd
Co
ntr
ol
Gro
up
s
Starbucks Fans & Friends of Fans In-Store Purchase Behavior: % of Exposed Group vs. Control Group Purchasing Starbucks
Weeks 1-4 Following Earned Media Exposure Source: comScore Social Lift, U.S., February-March 2012
Nominal Lift Test Group Control Group
+38%
48 © comScore, Inc. Proprietary.
Paid Media Lift: Also evidence that Facebook paid ad campaigns can
drive positive lifts in purchase behavior
0.19%
0.38%
0.49% 0.61%
0.11% 0.20%
0.32%
0.39%
0.46%
0.84%
1.18%
1.47%
0.37%
0.69%
1.00%
1.27%
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
1.20%
1.40%
1.60%
Week 1 Weeks 1-2 Weeks 1-3 Weeks 1-4
Online - Test Online - Control In-Store - Test In-Store - Control
Retailer Premium Facebook Ad Lift: % of Exposed Group
Purchasing Online and In-Store Weeks 1 - 4 Following Paid Media Exposure Source: comScore AdEffx Action Lift, U.S., September-December 2011
+16%
+56%
49 © comScore, Inc. Proprietary.
Five Ways to Achieve Social Marketing Success
Move beyond just collecting Fans Use them as a leverage point to achieve marketing objectives
Reach Fans effectively Use newsfeed to get them to engage and amplify your messages
Know who you’re reaching & how often Tie these metrics back to your broader marketing strategies
Quantify value of earned media Compare earned to paid ads & put a $ value on exposures; measure ‘social lift’
Cultivate the ‘virtuous cycle’ of Paid, Earned & Owned Media are intertwined and combine to help brands
maximize impact
51 © comScore, Inc. Proprietary.
Key Takeaways
The channel shift to online appears to be accelerating: online sales
increased by +15% this quarter, while on a comparable category basis, offline
sales increased only 2%
Mobile and tablets accounted for 9% of all retail e-Commerce sales in Q2
All product categories showed strong (10% or higher) growth in Q2
Overall consumer sentiment weakened this quarter, with 56% of respondents
viewing the economy as poor (versus 49% in Q1 2012). Unemployment
increased in importance as a concern
Leading deal-of-the-day sites are now seeing more visitors from mobile devices
than from the fixed Internet and the value of offers has increased dramatically
The rise of the visual web is the key social media trend this year and promises
to be important for marketers and retailers
Facebook and Pinterest are both important social media channels for
influencing commerce but Linkedin attracts the heaviest online buyers
52 © comScore, Inc. Proprietary.
QUESTIONS?
Please contact us at [email protected] if
you have any additional questions or comments.