Optimizing Digital Paths to PurchaseDiffering Economies and Differing Customer Journeys

© 2019 Jumpshot, Inc. 2

But first…

Icebreaker

© 2019 Jumpshot, Inc. 3

Digital

Everyone starts out on the island.

People are kicked off based on their digital knowledge.

Unless otherwise noted, all data refer to US desktop & mobile web usage. iOS & app data not shown

© 2019 Jumpshot, Inc. 4

What Percent of All Search Is On Google?(includes Google’s “extended family” of YouTube, Google Image Search, etc.)

Must be within +/-10 percentage points

© 2019 Jumpshot, Inc. 5

Google Garners About 90% of All Searches

-

10,000,000,000

20,000,000,000

30,000,000,000

40,000,000,000

50,000,000,000

60,000,000,000

Jan-

16

Feb-

16

Mar

-16

Apr-

16

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct

-16

Nov

-16

Dec

-16

Jan-

17

Feb-

17

Mar

-17

Apr-

17

May

-17

Jun-

17

Jul-1

7

Aug-

17

Sep-

17

Oct

-17

Nov

-17

Dec

-17

Jan-

18

Feb-

18

Mar

-18

Apr-

18

May

-18

Jun-

18

Jul-1

8

Aug-

18

Sep-

18

Oct

-18

Nov

-18

Dec

-18

Jan-

19

Feb-

19

Mar

-19

Share of Search by Month – Desktop

Google

Google Images

YouTube

© 2019 Jumpshot, Inc. 6

What Is Amazon’s Share of U.S. Digital Transactions?

© 2019 Jumpshot, Inc. 7

Amazon Averages 74% Share of Digital Transactions

© 2019 Jumpshot, Inc. 8

What Percent of Product-Related Search Is On Amazon? Closest wins!!

© 2019 Jumpshot, Inc. 9

54%: Product Search – & Valuable Intel – Shifting to Amazon

46%

54%54%

46%

2015 2018

Share of Product Searches

Optimizing Digital Paths to PurchaseDiffering Economies and Differing Customer Journeys

© 2019 Jumpshot, Inc. 11

Striving for Data Accuracy, Breadth & Granularity

Unlock consumer behavior and competitive insights

across the entire web

800+ Websites

Get as precise and as granular as your

business needs

1,615 Categories

300M Shopping Events

100M Devices

Make confident decisions with

unrivaled accuracy

5B Clicks Per Day

14 Months Ave Tenure

1M Brands

150+ Marketplaces

Accuracy Breadth Granularity

188 Countries

© 2019 Jumpshot, Inc. 12Overview of the eCommerce Landscape

© 2019 Jumpshot, Inc. 13

Mapping the eCommerce Space

Home

Electronics

Food

Women's Clothing

Shoes Men's ClothingFurniture

AppliancesBaby

Toys /Games

Home Improvement

Health

Pets AutomotiveHousehold Essentials

Personal Care Office Sports/Outdoors

Beauty

0

35,000,000

70,000,000

30.0% 65.0% 100.0%

Amazon’s Market Share

# of

Dig

ital T

rans

actio

ns

Source: Jumpshot. Q1 2019 data shown

© 2019 Jumpshot, Inc. 14

Identifying Amazon’s Opportunities

Home

Electronics

Food

Women's Clothing

ShoesMen's Clothing

Furniture

Appliances

Baby

Toys /Games

Home Improvement

Health

PetsAutomotiveHousehold EssentialsPersonal Care Office

Sports/OutdoorsBeauty

0

35,000,000

70,000,000

5% 25% 45%

Amazon’s Conversion Rate

# of

Am

azon

Tra

nsac

tions

Increase conversion

Incr

ease

vo

lum

e

© 2019 Jumpshot, Inc. 15

Q1 YOY Growth

(# of transactions)

Q1 YOY Growth

(%)

Top Percentage Gainers

Total market (all digital transactions) +9.5 million +1.9% • Food (+11.4%)

• Household essentials (+10.1%)

Amazon +9.1 million +2.4% • Food (+10.4%)• Household essentials (+10.0%)

Amazon Driving Industry Growth & CPG Transformation

Across categories shown on previous slide

Amazon’s conversion rate in household essentials rose from 29% to 39%

© 2019 Jumpshot, Inc. 16

Etsy

Target

Home Depot

Kohls

QVCCostco

Barnes & NobleMacys

Best Buy

WayfairVictoria's Secret

Lands EndSephora

LL BeanUlta

Jet

KmartBlair

0

10,000,000

20,000,000

30,000,000

40,000,000

-60% -40% -20% 0% 20% 40% 60%

Chewy

# of

dig

ital t

rans

actio

ns (2

018)

Change in # digital transactions (2018 vs. 2017)

A Selective Look at Successful & Struggling Brands

Source: Jumpshot Insights; U.S. data; full-year 2018.

Closing gap vs. Sephora

Offline footprint provides a good shot at omnichannel

Establishing online niches

Brick-and-mortar retailers who need to find a digital identity

© 2019 Jumpshot, Inc. 17

The Customer Journey

© 2019 Jumpshot, Inc. 17

© 2019 Jumpshot, Inc. 18

Consumers (& Google) “Getting Better” At Search

0%

10%

20%

30%

40%

50%

60%

Jan-16

Mar-16

May-16

Jul-16

Sep-16

Nov-16

Jan-17

Mar-17

May-17

Jul-17

Sep-17

Nov-17

Jan-18

Mar-18

May-18

Jul-18

Sep-18

Google SERP Click-Through Rates

51.5%Total CTR

6.8%3.8%

55.8%

Paid CTR

On Amazon, product views from sponsored listings are rising

© 2019 Jumpshot, Inc. 19

Chewy & Wayfair Have Both Bought Growth

Chewy

Wayfair

# of transactions per month

Growth* CVR Ave $Paid

search**

+78% 3.6% $21 79%

+66% 1.2% $163 45%

* From Jan 2017 to March 2018** % of search traffic that is paid

© 2019 Jumpshot, Inc. 20

Product Search – & Valuable Intel – Shifting to Amazon

46%

54%54%

46%

2015 2018

Share of Product Searches

© 2019 Jumpshot, Inc. 21

Amazon Sponsored Search Has Surged in Views and Sales

-

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

45,000,000

50,000,000

-

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

350,000,000

400,000,000

450,000,000

500,000,000

Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019

Amazon Pageviews and Conversions from Sponsored Search by Quarter

Pageviews Conversions

© 2019 Jumpshot, Inc. 22

The Utilitarian Economy The Branded Economy

Basic Customer Journeys Multi-Phase Journeys

Amazon-driven Google-enabled

© 2019 Jumpshot, Inc. 23

The Utilitarian Economy Yields Basic Customer Journeys

Product characteristics• Utilitarian• Low price• Low research• Low involvement• Indistinct brands• Few product returns

“Basic” customer journey• High conversion rate• Low time to conversion• Minimal cross-visitation• Search skews onsite• Direct journey w/few “side trips” • Amazon/marketplace dominated

© 2019 Jumpshot, Inc. 24

Most Headphone Journeys Start – and end – on Amazon

$0

$70

$140

0% 5% 10% 15% 20%

Amazon

•Quick conversion; high CVR•Also visit: Best Buy 8%, Walmart 3%•Most research happens onsite

Conversion rate

Aver

age

Pric

e

Best Buy• 45% also visit Amazon

Walmart

Size of circle reflects volume of transactions in U.S. in 2018

Journey Metrics: Headphones

© 2019 Jumpshot, Inc. 25

Apparel Searches Reflect Two Journeys

socks

slipperssweaters for women

womens tops mens underwearUgg slippers

suits

Crocs

earrings

jewelry

-

1,000,000

2,000,000

3,000,000

Tota

l Sea

rch

Volu

me

50/50100% Google /

0% Amazon100% Amazon /

0% Google

Major fashion brands would be in far upper right

(example -- Nike: 11 million Google vs. 260K Amazon)

© 2019 Jumpshot, Inc. 26

CPG Search Skews Amazon; Health Search Skews Google

toilet paper

paper towels pens aa batteries toothpaste

baby wipes

melatonin

essential oils

coconut oil probiotics

vitamin d

tea tree oil

-

1,000,000

2,000,000

3,000,000

4,000,000

Tota

l Sea

rch

Volu

me

50/50100% Google /

0% Amazon100% Amazon /

0% Google

© 2019 Jumpshot, Inc. 27

Summing Up

• Digital knowledge is digital power -- you must see the full journey, including transactions and search across sites

• Choose your economy -- utilitarian or branded -- and optimize accordingly (some, like Nike, can do both)

• Identify opportunities to work with (or against) Amazon --particularly where Amazon is less dominant

• Still, realize a customer’s journey to Amazon is usually a one-way trip

© 2019 Jumpshot, Inc. 28

Every search. Every click. Every buy. On every site.

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Our real-time, anonymized global panel tracks 5B actions a day across 100 million devices to deliver insights into online consumer behavior. Clients include:

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Group Discussion