E-Commerce Industry Index
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1 intelliad E-Commerce Industry Index Mobile shopping experiences exponential growth, advertising spend on the increase KPI BUY Branche Conversion rate 1 Shopping basket value 2 E-Commerce Industry Index Time taken to reach buying decision 3 (in hours) of traffic via mobile 4 of purchases via mobile 5 Costper-click 6 (SEA) SEA spend purcha Pharmacies 7.4% % 17% (10.5%) (59 ) (92) (18%) (12%) (0.21 ) Key Facts Key Findings Unique, representative analysis of 2.3 million online purchases between 1st April and 30th June 2016 from the initial search to the final purchase Benchmarks for the online retail industries pharmacy, books, digital printing, electronics, house and garden, cosmetic articles, fashion (including sub-segments) and the travel industry Direct comparison with Q2/2015 in order to highlight trends and developments Decision-making basis for marketing leaders for optimising their digital strategies Mobile first: a quarter of all purchases are now made on a smartphone or tablet Increased investment: SEA spend has grown in many industries by over 40% Pressure from competition: conversion rates are decreasing across the board Online pharmacies are the biggest losers, womenswear retailers are making strong gains Want to receive more customer insights? Arrange an appointment at performance@intelliad.com
2 Up-to-the-minute figures on online shopping behaviour As the new intelliad e-commerce Industry Index demonstrates, mobile s star is on the rise and SEA expenditure is increasing significantly. intelliad analyses the online shopping world in detail on a quarterly basis in order to deliver you the very latest insights. Over 2.3 million online purchases in diverse industries were recorded for the analysis from the second quarter of 2016 and compared with the same period from the previous year. Competition in online retail is growing and the pharmacy sector is feeling this the most. The conversion rate sank from 10.5% to 7.4% in just 12 months, SEA expenditure rose by 163% per purchase and the shopping basket value also decreased slightly. Womenswear specialists saw some positive developments: thanks to a significant reduction in cost per click, an investment of just 3 is required for a shopping basket value of 161. Conversely, for menswear an investment of 18 is required for each sale. Purchases via mobile: mobile sector is out in front, electronics needs to catch up The mobile first orientation of retailers is making an impact: 38% of overall traffic (2015: 29%) and 24% of sales (2015: 17%) were made in Q2/2016 via tablets or smartphones (industry averages). The frontrunner is the fashion industry which achieved as much as 30% of its sales via mobile devices. The electronics industry achieved just 10% of its sales via mobile devices and has some serious catching up to do. No strong increase for books or womenswear The average SEA expenditure per sale varies between 2 and 53 depending on the sector. However, it is apparent that companies are investing a growing proportion of their revenues in search engine advertising despite falling CPC values. For example, the fashion, travel and electronics industries spent 40% more on SEA in Q2/2016 than they did in same period of the previous year. SEA plays a central role in e-commerce as a traffic supplier through which a company can purposefully increase its share of voice. However, it is essential that marketers manage their SEA campaigns efficiently with as much automation as possible and, at the same time, intelligently link them with other channels explains Frank Rauchfuß, Director and CEO of intelliad. 1 The largest 11 e-commerce segments in terms of revenue were examined, including electronics, travel and fashion (divided into womenswear, menswear, sportswear and generalists)
3 Shopping baskets and conversion rates: an oveview of developments The fashion industry under the microscope: Spotlight Fashion The conversion rate is falling in many industries, including home & garden (from 2.8% to 2.3%) or sportswear (from 2.8% to 1.8%). Grouped together, all industries show a decrease from 3.2% to 2.9%. This can be put down to increased competition and also the comparatively lower conversion rate on smartphones which represent an ever increasing share of overall traffic. Depending on the industry, up to 53% of visitors may enter the shop via mobile devices. Download the study book Spotlight Fashion from intelliad and Deloitte free of charge at Anyone wishing to convert this interest from mobile devices into sales has a decisive advantage in the hotly contested e-commerce business. This requires two things: a convincing and responsive mobile offering and relevant, user-specific (re) targeting. With intelliad, retailers can specifically target users currently showing buying interest in particular segments from the e-commerce Industry Index adds Frank Rauchfuß. 2 Total value of the womenswear, menswear and fashion generalist segments
4 KPI BUY Branche Conversion rate 1 Shopping basket value 2 Time taken to reach buying decision 3 (in hours) of traffic via mobile 4 of purchases via mobile 5 Costper-click 6 (SEA) SEA spend per purchase 7 Pharmacies 7.4% % 17% (10.5%) (59 ) (92) (18%) (12%) (0.21 ) (1 ) Books 5.3% % 27% (5.4%) (22 ) (63) (32%) (20%) (0.26 ) (5 ) Print on demand Electronic goods Home & Garden ** 4.7% % 24% (2.6%) (38 ) (71) (19%) (20%) (1.08 ) (9 ) 1.7% % 10% (1.7%) (281 ) (94) (19%) (9%) (0.25 ) (4 ) 2.3% % 26% (2.8%) (120 ) (79) (%) (18%) (0. ) (6 ) Cosmetics 3.7% % 26% (4.2%) (51 ) (143) (28%) (15%) (0.48 ) (5 ) Fashion * 1.9% % 30% (2.1%) (104 ) (100) (39%) (24%) (0.31 ) (6 ) Womenswear 3.0% % 16% (3.7%) (159 ) (127) (24%) (12%) (0.26 ) (4 ) Menswear 1.6% % 22% (1.0%) (165 ) (105) (25%) (16%) (0.55 ) (12 ) Fashion generalists 1.9% % 32% (2.0%) (94 ) (100) (42%) (26%) (0.30 ) (6 ) Sportswear 1.8% % 29% (2.8%) (165 ) (85) (41%) (22%) (0.25 ) (3 ) Travel 0.6% 1, % 14% (0.5%) (1,009 ) (107) (23%) (9%) (0.58 ) (36 ) 1 Number of purchases / number of website visits 2 Average shopping basket value per purchase (= total revenue / number of purchases) 3 Average time taken from first site visit (e.g. through SEA advert) to final purchase 4 of total traffic occurring via tablet or smartphone 5 of total purchases occuring via tablet or smartphone 6 Average click price for search engine advertising 7 Average spend for search engine marketing per purchase (= total SEA spend / number of purchases) * Total value of the segments womenswear, menswear, fashion generalists; sportswear is not included in this calculation ** Contains the segments DIY, furniture and home accessories Source: intelliad Media N= Over 2.3 million online purchases in diverse sectors from April 1 June Reading Help 7.4% (10.5%) Green background: Best performing industry Gray background: Worst performing industry Drastic change compared to previous year Red: Decline Green: Improvement Value Q Value Q2 2015
5 About intelliad intelliad offers agencies and advertisers a performance marketing platform for cross-media tracking and comprehensive optimisation of all online marketing activities with intelligent tools, full control and absolute transparency. Best SEA Suite 2016 Your benefits Comprehensive crosschannel marketing Track, automate and optimise all channels on a central Performance Marketing Platform cross-channel and cross-device. Efficient customer targeting via SEA and display Use all Customer Journey Tracking data to reach potential buyers with exactly the right offer and to increase your revenue - via SEA and display. Award-winning customer support % i n G e m a d e Data security r m y a n Absolute data security: 100% made in Germany Benefit from personal support and deep industry knowledge. With our insights you are always a step ahead of the competition. Your data is in the best hands: the recording, saving and processing of data at intelliad takes place solely in Germany, TÜV and ISO certified. Would you like to learn more about our products or arrange a demonstration? intelliad Media GmbH Sendlinger Straße Munich Tel. +49 (0) 89 / performance@intelliad.com facebook.com/intelliad twitter.com/intelliad intelliad.com/blog
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