State Of The Us Online Retail Economy Q2 2012

State of the U.S. Online Retail Economy in Q2 2012
August 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

Data sourced from comScore’s global panel of 2 million Internet
users via behavioral tracking and custom surveys

2 million person panel
Analysis Parameters
360°View of Consumer Behavior

 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

© comScore, Inc. Proprietary. 2

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


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

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)

Dept. of Commerce (DOC) comScore Estimate of DOC
Dept. of Commerce (DOC) comScore Estimate of DOC
comScore Estimate of Mobile e-Commerce

50%
Correlation: 0.93

40%
Billions ($)

% Growth vs. YA
30%

20%

10%

0%

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
-10%

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

State of the Economy
A Review of Key Macroeconomic Trends


Retail e-Commerce spending is up +16% Y/Y, posting $87 billion in
sales through June 2012

U.S. e-Commerce Dollar Sales Growth ($ Billions)
Source: comScore e-Commerce Measurement
+13%
+12%

+7% +9%
$256
+17% -2%

+19% $214 $209 $228
$200 $94 +11%
+22%
$171 $84
$85 +6%
+26% +9%
$80 -5%

+29% $143 $77 +12%
$141
$117 $69 +13%

$93 $61 +20% $54 +9%

$72 $51 +28%

$40 +33% $162 +14%
$142 +10%
Travel $30 $123 +20% $130 +6% $130 0%
$102 +24% $87 +16%
+26% $67 +26% $82 +24%
Retail
$42 $53

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Q1-Q2
2012


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
23% 23%
17% 19% 17%
14%
13% 11% 12% 14%
10%
13% 15%
11% -3% 0% -1% -2% 3% 9% 9%
6%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011 2012 2012

Quarterly Retail & Food Services Sales Growth* vs. YA
*Note: The U.S. Department of Commerce calculation includes total
Source: U.S. Department of Commerce (DOC) retail and food service sales, which also includes motor vehicles and
parts dealers.

8% 8%
5% 6% 7%
4% 4% 3% 4% 2% 4%
1% 2%
5% 5% 7% 7% 7%
2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011 2012 2012
-8% -7%
-10% -9%

Quarterly Retail & Food Services Sales Growth vs. YA
(excluding autos, gas and food/beverage)

7% 6%
3% 3% 4% 5% 6% 6% 4%
3% 3% 2% 2% 4% 3%
1% 2%
0%
2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011 2012 2012
-5% -5% -6% -6%


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

e-Commerce Share of Corresponding Consumer Spending*
Source: comScore for e-Commerce & U.S. Department of Commerce (DOC) for Retail
10.0% 9.4%

8.6% 8.9% 8.7%
9.0%
8.1% 8.0%
7.7%
8.0% 7.6% 7.7%
e-Commerce Share

7.4% 7.3%

7.0% 6.4% 6.7% 7.7% 7.6%
5.9% 6.9% 7.1% 7.1%
6.8%
6.0% 6.3% 6.5% 6.6%
5.1%
5.9%
5.0% 5.3% 5.3%
4.3% Q2 2012 share: +1.6 points
5.0%
4.0% 4.6% 4.5% vs. Q2 2010
4.3%
4.0% e-Commerce share peaks in
3.0%
3.7%
colder seasons (Q4 & Q1)
2.0%

1.0%

0.0%

*Note: e-Commerce share is shown as a percent of DOC’s Total Retail Sales
excluding Food Service & Drinking, Food & Bev. Stores, Motor Vehicles &
© comScore, Inc. Proprietary. 8 Parts, Gasoline Stations and Health & Personal Care Stores.

All income segments showed double-digit growth versus 2011, with mid
and lower income consumers leading the way

e-Commerce Sales by Income Segment ($ Billions)
Growth vs. YA

Under $50K $50K - $99K $100K or more
(23% of Total) (43% of Total) (34% of Total)
+6% +2% +8% +3% +9% +12% +19% +9% +7% +12% +15% +16% +21% +10%

$20.0
$18.3 $17.5
$17.2 $17.3
+26% +39% +28% +31% +22% +18% +17% $15.1 $15.0
$15.3 $15.4 $14.8
$14.6 $13.5
$12.2 $12.1
$12.4 $12.1
$11.0
$10.0 $10.3
$9.4
$8.9

Q4 '10 Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q4 '10Q1 '11Q2 '11Q3 '11Q4 '11Q1 '12Q2 '12 Q4 '10 Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '12


Consumer Perceptions of the Economy


Overall consumer sentiment slid in July, with 56% of consumers
rating the economy as poor, up from 49% in April

Q. How would you rate economic conditions today?
Source: comScore Surveys

Percent of Consumers Who View The Economy as Poor
Increase in negative sentiment driven by
Under $50k (61%) and Baby Boomers (60%)

77%
68% 66%
61% 61% 59% 62% 61% 59% 60% 62% 60%
54% 56%
52% 49%

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


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
Q. Based on your current situation, which one of the following economic conditions most concerns you?
Source: comScore Surveys

54%
50%
48%
46% 45%
44% 43%
Unemployment / 42% 42% 44%
40%
Job Security 37% 38%
42%
Rising 33%
32% 32% 37% 37%
Prices 30% 36% 33%
28% 31%

Financial 29% 29%
27% 26%
Markets

Real Estate / Home 15%
Values 13% 13% 13%
11% 12% 12% 10% 11%
7% 9% 10%
7% 10%
10% 11% 8%
8% 8% 10% 8% 9% 9%
8% 9% 7% 8%
7%

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


Retailer and Product Category Overview


Compared to 2011, retail e-Commerce saw an increase in every key metric,
including dollars per buyer, total buyers & transactions per buyer

Key e-Commerce Buyer and Transaction Measures
Q2 2012 vs. YA

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%


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

Q2 2012 Growth
Product Category
vs. YA

Digital Content and Subscriptions Very Strong
Consumer Electronics (x PC Peripherals) Very Strong
Flowers, Greetings & Misc. Gifts Very Strong Q2 growth rates of 15% or
Computers/Peripherals/PDAs Very Strong higher
Apparel & Accessories Very Strong
Event Tickets Very Strong
Consumer Packaged Goods Strong
Jewelry & Watches Strong
Home & Garden Strong
Books & Magazines Strong
Q2 growth rates of 10-14%
Sport & Fitness Strong
Office Supplies Strong
Video Games, Consoles & Accessories Strong
Furniture, Appliances & Equipment Strong


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. Y/Y Change

+7%
Amazon Sites 100.4

+24%
Apple.com Sites 47.5

+23%
Wal-Mart 41.4

-5%
Netflix.com 27.3

+5%
Target Corporation 23.2

Best Buy Sites +7%
18.3

Ticketmaster 14.9 +52%

The Home Depot, Inc. 14.7 +51%

Sears.com 12.4 +17%


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)
Index: 0-40 40-80 80-120 120-160 160+
Computers/Peripherals/PDAs

Apparel & Accessories

Consumer Electronics (x PC
Peripherals)

Office Supplies

Books & Magazines

Home & Garden

Toys & Hobbies

Index: 0-40 40-80 80-120 120-160 160+

Nodes indicate range of Amazon’s index to Total Internet share composition


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 Unique Visitors to Groupon in June 2012
Source: comScore Media Metrix, U.S. Source: comScore Media Metrix & Mobile Metrix, U.S., 18+
Y/Y Change
Groupon 11.8 -5%
Groupon
WhaleShark Media 7.5 N/A
(via PC)
LivingSocial 6.7 -35% 11.9 million
Coupons, Inc. 6.3 -10%

DeedOrGreed.com 2.1 N/A

DealsPL.US 2.0 +30%
Groupon
CouponAlert.com 1.8 +89%
(via mobile*)

MyPoints Sites 1.6 +29%
17.7 million
BradsDeals.com 1.5 +116%

FatWallet.com 1.3
+53%
* - WhaleShark Media includes RetailMeNot.com, Deals2Buy.com,
CouponShare.com and CouponsEven.com

* includes mobile web and mobile app

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

2010- 2010- 2011- 4Q Share
1Q 4Q 4Q (e) 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%


The average price per deal has been increasing as deal of the day
sites offer higher-value offers to consumers

Excluding
Travel & Medical


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

Zulily.com 2,237 +9%

Woot.com 2,185 +74%

Gilt Groupe 1,137 +36%

HauteLook.com 1,118 +40%

OneKingsLane.com 1,098 +60%

MyHabit.com 903 +82%

Totsy.com 785 +881%

Ideeli.com 638 -20%

EBay Fashion Vault 590 +46%

BeyondtheRack.com 545 +22%


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

Percentage of e-Commerce Transactions with
Free Shipping

51% 53% 48% 51%
61% 60% 59% 57% 60% 58%

49% 47% 52% 49%
39% 40% 41% 43% 40% 42%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2010 2010 2010 2010 2011 2011 2011 2011 2012 2012
% Transactions with Paid Shipping
% Transactions with Free Shipping

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

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 Q. Similar to the previous question, would
to utilize free shipping to your home or you be more likely to pay for shipping to
free in store pickup? your home, or utilize free in store pickup?
Source: comScore Survey July 2012 Source: comScore Survey July 2012

95%

61%

39%

5%

% of respondents % of respondents

More likely to use free shipping More likely to pay for shipping
More likely to use free in store pickup More likely to use free in store pickup

© comScore, Inc. Proprietary. 23 * - those who shop online at least once a month

A lenient and clear returns policy is likely to lead to recommendations
and repeat business from online shoppers

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.”

Shop more often with that retailer 48%

Recommend the retailer to a friend 48%

Drop another retailer with a less easy
35%
returns process
“[If] I cannot find the return policy
or it is unclear I will never purchase
or return to that site again”
Focus less on prices and more on
32%
their quality of service

Agreement (Top 2 Box)
Q60. How much do you agree with the following statements?
© comScore, Inc. Proprietary. 24 If an online retailer offers a lenient, easy-to-understand returns policy, I will …

Free shipping was, by far, the factor considered most influential on the
online shopping experience

Factors Influencing Total Purchasing Experience
Source: comScore Custom Survey

Average # of Chips Allocated out of 100
Free shipping on most items

6
Knowing what day my purchase will be delivered 7
Easy to understand returns process 8 37
Availability of express shipping choices
10
Offers environmentally-responsible products

Ability to select a 2-hour delivery window 14
18
Ability to re-route packages to an alternate location
while in transit
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.

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The Digital Endcap: Retailers as Publishers


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 Amazon.com
3,000

+341% vs. Jun ’11
Amazon.com
2,500
Walmart.com

2,000

1,500
Walmart.com
+103% vs. Jun ’11
1,000

500

0


The Digital Endcap: Reaching consumers at the bottom of the funnel

Ads on retailer websites reach consumers down-funnel, but sold at below average CPMs.
Shouldn’t they be going for more?

Standard Average CPM
Display $2.91
Ads

Digital Average CPM

Endcaps $2.74

Source: comScore Ad Metrix, U.S.,
Apr-2012 to June-2012

The Digital Endcap: Friend or Foe?

Friend Foe

 Ability to leverage available site  Shoppers might click away from the
inventory retailer website
 Delivers competitive advantage due BUT, we know that display ad CTRs are
to synergies created for retailer and low and the branding effect is strong
manufacturer (vertical integration)
 Retailers may not have an ad sales
 Inherently high margin offering, with force to leverage
minimal costs
 CPM upside

Why aren’t more retailers leveraging
the Digital Endcap?


The Impact of Mobile and Tablets
on Shopping and Buying


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

+7.0 +6.5 120,000
New Smartphone Acquisitions (In Millions)
+6.0 100,000
Total Smartphone Subscriber Base (In Thousands)
+5.0
80,000
+4.0 +3.8
+3.3 +3.6 +3.5
+3.1 +3.3 60,000
+2.9
+3.0 +2.7 +2.7 +2.9 +2.5 +2.6
+2.3+2.3 +2.2
+1.9 +2.1 +2.0 +2.1+2.2 +2.1 40,000
+2.0 +1.8 +1.6
+1.3 +1.3 +1.3 +1.4
+1.1 +1.3
+1.0 +0.9 20,000
+1.0 +0.7 +0.7

+0.0 0


Nearly 1 in 10 e-Commerce dollars are spent via mobile device

Percentage of Total e-Commerce Dollars Spent via Mobile or Tablet Device
Source: comScore Mobile Measurements

Spike in percentage of 9% 9%
e-commerce sales via
mobile coincides with
8% 8%
surge in tablet ownership

6% 6%

3% 3%
2%

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2010 2010 2010 2011 2011 2011 2011 2012 2012


Nearly 2 in 5 tablet owners have purchased something online via their
device in the past month, more than double smartphone owners

Smartphone Owners Who Purchased Tablet Owners Who Purchased
Item/services via Mobile (past month) Item/services via Tablet (past month)
Source: comScore MobiLens Source: comScore TabLens

Smartphone owners 18% Tablet owners 39%

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)


When compared to overall tablet owners, iPad owners significantly
over index on every e-Commerce metric, including purchasing items

Retail/e-Commerce Actions Taken by iPad and Kindle Fire Owners
(Indexed Against All Tablet Owners)
Source: comScore TabLens

All tablet iPad Kindle Fire
Metric (took action in past month)
owners Index 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


Social Commerce Trends


Pinterest & Instagram among the two hottest growth sites over past year

Pinterest & Instagr.am: U.S. Unique Visitor (000) Trend
Source: comScore Media Metrix, May 2011 – July 2012
25,000

20,000
Pinterest.com +22x Y/Y
15,000
Instagram.com

10,000

+5x Y/Y
5,000

0


Social networkers tend to be heavier online buyers, but Pinterest has
significantly higher propensity than average

Buying Power Index (BPI)* for Selected Leading Social Networking
Sites
Source: comScore Media Metrix, U.S., June 2012
250
226

200
163
150 130
111 106 109
100

50

Facebook Twitter Linkedin Myspace Tumblr Pinterest

*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


Pinterest users love, love, love shopping, making it a gold
mine for marketers wanting to reach buyers

Top 20 Site Categories with Highest Concentration (%) of Pinterest Visitors
Source: comScore Media Metrix, U.S., June 2012
Retail - Jewelry/Luxury Goods/Accessories 22.8%
Retail - Flowers/Gifts/Greetings 21.2%
Retail - Fragrances/Cosmetics 20.1%
Retail - Food 19.7%
e-cards 19.0%
Gay/Lesbian 18.8%
Retail - Books 18.7%
Travel - Transactions 18.6%
Lifestyles - Green 18.3%
Overall Pinterest
Retail - Coupons 18.0%
Internet Retail - Apparel 17.8%
penetration: 10% Retail - Consumer Goods 17.8%
Retail - Health Care 17.7%
Retail - Home Furnishings 17.4%
Retail - Toys 17.2%
Incentives 17.2%
Retail - Mall 16.8%
Religion/Spirituality 16.7%
Travel - Hotels/Resorts 16.6%
Shipping 16.6%

16 of top 20 Pinterest users’ highest affinity categories are Retail-related


Pinterest is carving out a big share of social media referral traffic to
retail apparel category

% of Social Networking Referral Visits to Retail Apparel Category
Source: comScore Custom Metrix, U.S., May 2012

4% 4%
Facebook
8% Pinterest
Tumblr
54% Twitter
30%
Other


Quantifying the Effect of the Social Web


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

comScore Social Essentials™ complements and extends Facebook
Insights’ functionality

PAGE INSIGHTS SOCIAL ESSENTIALS™

Competitive
Reach &
Audience Insights
Frequency for
& Social Lift for
Your Own Brand
All Brands

How Social Marketing Works: Brands control the three basic levers
that will determine social media marketing success

Many brands don’t consider
these intermediary steps

Brand Fans “Talk News Feed Goal: Max
Messages About” Content
Get Fans Reach Fans News Feed Spreads to Reach,
in News Feed Content Friends ROI

1. Fan Reach 2. Engagement 3. Amplification


Quantifying Amplification: Top Facebook Brands tend to reach 0.5-2.0
Friends for every Fan reached w/ earned media

Fans & Friends of Fans' Earned Impressions and Amplification Ratios for
Selected Leading Facebook Brands
Source: comScore Social Essentials, U.S., March 2012
70 2.5
Exposed Social Impressions (MM)

60
2.0

Amplification Ratio
50

40 1.5

30 1.0
20
0.5
10

0 -

Exposed Fan Impressions Exposed Friend of Fan Impressions Amplification Ratio


Earned Media Lift: Starbucks earned media impressions drove
significant lifts in in-store purchase in 4 weeks following exposure

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
% Reach of Exposed and Control

2.40% Nominal Lift Test Group Control Group 1.60

Nominal Lift in Purchase Incidence
2.12% 1.40
2.00%
1.80% +38% 1.20
Groups

1.60% 1.36% 1.54% 1.00
1.20% 1.30% 0.80
0.83% 1.00% 0.58
0.50 0.60
0.80%
0.66% 0.36 0.40
0.40% 0.17
0.20
0.00% 0.00
Week 1 Weeks 1-2 Weeks 1-3 Weeks 1-4


Paid Media Lift: Also evidence that Facebook paid ad campaigns can
drive positive lifts in purchase behavior

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

1.60%
1.47%
1.40% +16%
1.18% 1.27%
1.20%
1.00%
0.84% 1.00%
0.80%
0.60% 0.69% 0.61%
0.46% 0.49%
+56%
0.38%
0.40% 0.39%
0.37%
0.20% 0.19% 0.32%
0.20%
0.11%
0.00%
Week 1 Weeks 1-2 Weeks 1-3 Weeks 1-4

Online - Test Online - Control In-Store - Test In-Store - Control


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


Key Takeaways


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


QUESTIONS?

Please contact us at learnmore@comscore.com if
you have any additional questions or comments.


Thank You!
Note: A copy of this presentation will be sent to all attendees within
two business days of today’s webinar.

State Of The Us Online Retail Economy Q2 2012

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