2014 HolidayShopping Recap - CMO.adobe.comADOBE DIGITAL INDEX | 2014 Holiday Shopping Recap Methodology • Data from Adobe Marketing Cloud: Adobe Analytics, Adobe Mobile Services,

2014 Holiday Shopping RecapAdobe Digital Index

ADOBE DIGITAL INDEX

ADOBE DIGITAL INDEX | 2014 Holiday Shopping Recap

Methodology• Data from Adobe Marketing Cloud: Adobe Analytics,

Adobe Mobile Services, Adobe Media Optimizer, and Adobe Social

• Based on analysis of aggregated and anonymous data • More than 18 billion visits to 4,500 retail websites during

November and December• Over $7.00 out of $10.00 spent online with top 500

retailers is measured by Adobe Marketing Cloud• Separate findings from surveys of 400+ U.S. consumers,

and digital marketers

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ADOBE DIGITAL INDEX


US: Online ShoppingAdobe Digital Index

ADOBE DIGITAL INDEX


73 billion spent online this holiday season • During November and December

US retailers raked in an impressive $73.4 billion

• Holiday season sales up 12% over 2013.

• US retailers are more dependent on the holiday shopping season than those of any other country as this key time period represents 28% of annual online sales.

• Mobile accounted for 16% of all online sales and was as high as 29% on key shopping days like Thanksgiving and Black Friday$0

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1-Nov 8-Nov 15-Nov 22-Nov 29-Nov 6-Dec 13-Dec 20-Dec 27-Dec

2014 online sales (billions) Online sales Prediction

Thanksgiving

Black FridayCyber Monday

Christmas

$73.4 B+ 12%YoY

ADOBE DIGITAL INDEX


Shop online, pick it up in your local store• In-store pickup became a key

differentiator for brick-and-click retailers over their online-only competitors in 2014

• Especially on key traditional offline shopping days consumers chose skip the lines by purchasing online before and while shopping in-stores and pick up in the store.

• On Black Friday In-Store Pickups soared to 40% above the average day and stayed elevating throughout the Thanksgiving weekend.

• In-store pickup rates again shot up just before Christmas when it became too late to wait for shipping.

70%

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In-Store Pickup: relative to normal

Thanksgiving

Black Friday

Cyber MondayChristmas

ADOBE DIGITAL INDEX


Geo-Based Personalization: Consumer Sentiment• 34% report receiving a marketing promotion

based on their location (another 21% unsure);

• Open to Beacons? 55% feel it would be useful to receive marketing promotions on their mobile device while in a physical store

• 71% like having ads personalized, but opinions differ about quality of today’s personalization efforts:• 20% like it, but say that such ads are “not done well

enough today” • 30% like it and feel that today’s efforts are “as tailored to

me as they need to be” • 20% feel today’s personalization efforts are too intrusive• 29% don’t think ads should be personalized at all

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Presenter

Presentation Notes

***Clearly there are a variety of segments retailers have to negotiate when it comes to presenting offers, during the holidays or any time of year. - 34% of US consumers report that they’ve received a marketing promotion based on their location (Q30) (with another 21% being unsure as to whether they have); 53% have noticed a retargeting effort aimed at them (Q31) - Open to Beacons? 55% of consumers feel that there are times when it would be useful to receive marketing promotions on their mobile device while they are in a physical store. (Q34) - Most are open to personalization of offers (Q32): 71% like having ads personalized. However, they have differing opinions about the quality of today’s personalization efforts. 20% like it, but say that such ads are “not done well enough today.” 30% like it and feel that today’s efforts are “as tailored as me as they need to be.” 20% feel that today’s personalization efforts are too intrusive. 29% of responds don’t think ads should be personalized in any way. - 35% report that their mobile phone allows them to make payments at a physical store (Q35), and of these 47% report that they have used their mobile phone to make such a payment (NOTE: seems high)

ADOBE DIGITAL INDEX


• The use of location technologies to personalize mobile experiences is expanding via both GPS location data and iBeacons. • For GPS location, 49% are already using device

position to deliver location-aware content. • In addition, majority of expert mobile marketers,

56.5%, use GPS in comparison to only 36.6 % of less-experienced marketers.

• But the newbies are catching up; 48.8 percent plan to add it in the next 12 months.

• In the case of iBeacons, sports media companies like Major League Baseball have already deployed beacons in their stadiums to “push” relevant content to fans. Furthermore, companies like Safeway, American Airlines and Marriott have announced the deployment of beacons at retail stores, airports and hotels to drive a location-aware experience for customers.

Location Aware Content Request GPS Location Data

Use Beacon Technology

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ADOBE DIGITAL INDEX


Digital Wallets • 35% of consumers report that their mobile phone allows

them to make payments at a physical store; of these people, 47% report having used their mobile phone to make such a payment

• Consumers, weary of entering credit card information on mobile devices, rely more on alternative payment methods like PayPal, Amazon Payments, Google Wallet to make purchases online.• 23% of purchases on smartphones• 19% of purchases on tablets• 16% of purchases on desktops

• Apple Pay will soon become the default alternative payment tool for many consumers. Enabling easy transactions both off and online.

• Mobile conversion rates expected to increase as digital wallets become ever more commonplace for online shopping.

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Mobile Phone Tablet Desktop

Share of online sales via digital wallet payments

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Presenter

Presentation Notes

- Retailers should implement easy-of-use payment systems for mobile devices - Apple Pay is not just for offline payments; enables easier online payments

ADOBE DIGITAL INDEX


Growth by Retailer Category2014 Winners and Losers• Specialty, General Merchandise, and Apparel retailers faired the best YoY• Jewelry, Food & Drug, Health & Beauty sold less online in 2014 than 2013When do people shop?• Toy and General Merchandise retailers saw high sales levels on Thanksgiving• Most other categories didn’t see major spikes until Black Friday and Cyber Monday.

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ADOBE DIGITAL INDEX


Price Level and Product Availability• Online prices hit rock bottom on

Thanksgiving Day at an average discount of 25.2%

• Online Sales started on Monday before Thanksgiving as prices fell by more than 5% in two days.

• During Thanksgiving week the average item was discounted more than 20%.

• Prices began to increases dramatically after Black Friday and remained elevated during the rest of December.

• Out-of-stock messages increased 5-fold to peak Cyber Monday due to increased demand and limited supply

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2014 average discount: online prices by day Average discount Prediction

Thanksgiving Black Friday

Cyber Monday

70%

90%

110%

130%

Out-of-stock product views per visit

Thanksgiving

Black Friday Cyber Monday

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ADOBE DIGITAL INDEX


New Sales RecordsRecord Sales growth on Thanksgiving Day

• $1.33 Billion • 25% YoY growth

Black Friday barely lags behind Cyber Monday• $2.40 Billion• 24% YoY growth

Cyber Monday continued to drive top dollar• $2.65 Billion• 16% YoY growth

+25%

+24% +16%

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Thanksgiving Black Friday Cyber Monday

Online sales growth (billions) 2013 2014

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2009 2010 2011 2012 2013 2014

Cyber Monday growth of online sales (billions)

Online Sales YoY Growth

ADOBE DIGITAL INDEX


13% 12% 9%

16% 14%12%

Thanksgiving Black Friday Cyber Monday

Mobile share of salesTabletSmartphone

Mobile Continues to Move Sales OnlineThe iPad was the online shopping device of choice for consumers in 2014• Mobile accounted for 16% of all online sales and

was as high as 29% on key shopping days like Thanksgiving and Black Friday

• 48% of mobile sales came from consumers using iPads to shop online

• iOS represented nearly three-quarters of all mobile sales.

Smartphones aren’t just for browsing anymore.• Large screen phones led smartphones to account

for nearly half of all mobile ecommerce, up from a third last year.

• Tablets still drove the majority of mobile sales on Thanksgiving, Black Friday and Cyber Monday with 13%, 12%, and 9% of total sales.

iPad, 48%

iPhone, 27%

Android Tablet, 6%

Android Phone, 17%

Other Mobile, 2%

iPad iPhone Android Tablet Android Phone Other Mobile12

ADOBE DIGITAL INDEX


Retail Facebook trendsPosts:• In retail, up 74% year-over-year in November• Up 64% year-over-year in December

Paid Impressions: • In retail, up 13% year-over-year in December • Up 20% year-over-year in November

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ADOBE DIGITAL INDEX


Top Gifts according to Social Media Buzz Top Gifts • Mobile Phones: iPhone 6/6+ • Wearable Devices: Fitbit• 4K TVs: Sony and Samsung• OTT Devices: Roku• Video Games: “Call of Duty”• Game Consoles: PS4 tops Xbox One

Toys: • Guardians of the Galaxy Toys• My Little Pony• Transformer Toys• Legos• Teenage Mutant Ninja Turtles

Top buzzed about gifts

Top children’s gifts

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ADOBE DIGITAL INDEX


International: Online ShoppingAdobe Digital Index

ADOBE DIGITAL INDEX


Online sales and spend per personUS Cyber Monday sales exceeded the largest shopping day in Japan, Germany, France and the UK combined

• Mobile spending alone in the US will surpassed most other countries total online sales

• China’s Singles Day (Bachelor’s Day), which appropriately falls on 11/11 every year, rivals Cyber Day as the largest online shopping day world-wide

The Average U.S. consumer will spent $8 online on Cyber Monday

• The Swedes, Swiss, and Fins spent $12+ per person.

• The large economies of China, Brazil, and Russia all ranked near the bottom of the list in spend per person.

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$1,000 $1,500 $2,000 $2,500 $3,000

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Online Spend on Largest Online Shopping Day (Millions)

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Spend per Person on Largest Online Shopping Day

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ADOBE DIGITAL INDEX


Growth by CountryUS, Austrian and Brazilian retailers brought in the largest share of annual online sales during the holiday period.

Online sales growing fastest in Ireland China, Russia, Brazil, and Thailand.

• All five countries saw holiday sales grow by more than 20% over last year.

• Average growth was closer to 10% year-over-year.

• Offline sales are growing at 2-4% in most countries.

13%15%

16%16%16%16%

17%17%17%17%

18%19%19%19%19%19%

20%20%20%20%

21%22%

23%23%

25%26%

28%

PolandAustralia

New ZealandSingapore

Hong KongChina

NetherlandsFinland

JapanIreland

ThailandPortugal

FranceSpain

GermanyBelgium

DenmarkSwedenCanada

ItalyUnited Kingdom

SwitzerlandNorway

RussiaBrazil

AustriaUnited States

Holiday Season Share of Annual Online Sales

34%30%

29%29%

28%27%

18%17%16%16%16%

15%15%14%

13%12%12%

11%11%

9%9%9%8%

7%4%

0%-4%

IrelandRussiaBrazil

ThailandChina

PolandHong Kong

ItalySwitzerland

BelgiumUnited Kingdom

SingaporeAustria

CanadaAustralia

GermanyUnited States

JapanSweden

FranceSpain

FinlandNetherlands

DenmarkPortugal

New ZealandNorway

Holiday Season YoY Growth

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ADOBE DIGITAL INDEX


Mobile Share of SalesThe most mobile friendly (phones and tablets) shoppers in the world can be found the countries of North-west Europe: UK, Ireland, Norway, Swedish and Denmark.

But shoppers in Asia including Japan, Hong Kong, Thailand, and Malaysia are the most likely to pull our their phones rather than a tablet to shop online.

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Phone Tablet

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ADOBE DIGITAL INDEX


Product Price Variation - International ComparisonThe biggest discounts of the season were found in the UK on Boxing Day, followed by the 11th of December in Germany and Thanksgiving for the US.

In UK and Germany prices fall gradually throughout the holiday season and hit their lowest point in December.

US prices are lower throughout November, but stay relatively high during December when many consumer expect lower prices due to inventory blow-outs.

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2014 average discount: online prices by dayUnited StatesGermanyUnited Kingdom

Thanksgiving

Dec 11th Boxing Day

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Documents

2014 HolidayShopping Recap - CMO.adobe.comADOBE DIGITAL INDEX | 2014 Holiday Shopping Recap Methodology • Data from Adobe Marketing Cloud: Adobe Analytics, Adobe Mobile Services,