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Holiday Shopping Up 3.5 Percent, Search Ads Drive Growth

Adobe continued this year’s Holiday Shopping analysis with a report on Wednesday showing a 3.5% increase in spending over last year – the data from Adobe shows that $25.59 billion has been spent during the holiday season thus far. The bulk of revenue is driven by search ads.

Adobe has released new insights related to online sales between Nov. 1 and Nov. 22. $25.59 billion has been spent to date for the holiday season, a 3.5% increase year-over-year (YoY). 21 of the 22 days have exceeded $1 billion in online sales.

Top selling products include Samsung 4K TVs, iPads, Macbooks, electric scooters & vehicles for Kids, Lego sets (Scooby Doo Lego Sets and Minecraft Lego Sets) and Paw Patrol toys.

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Highlights include:

Highest discounts: Toys, tablets and computers launched in 2016 are seeing higher discounts than last year (-5.4%, -19.2%, and -7.8% respectively). Apparel, appliances, furniture, TVs, and video game consoles are trending at discount levels similar to 2015.

Mobile shopping: Mobile has accounted for 47% of visits and 29% of purchases. (2015: 46% mobile share of visits, 24% mobile share of sales) Mobile visits and purchases are expected to increase starting tomorrow, Thanksgiving Day. Desktop sees the highest conversion rate, averaging 3.2%, followed by tablet (2.9%) and smartphone (1.3%). iOS is outperforming Android by 13% wrt average order value – $132 versus $117 respectively.

Products low in stock: As of Nov. 22, out of stock rates are 2.3% lower YoY at 5.2%. Most popular products low in stock include the NES Classic Edition, SAMSUNG GEAR S3 Smart Watches, PlayStation VR Launch Bundle, Hatchimals, Speak Out Game, PJ Masks and the Trolls Collector Pack

Average order value: Consumers are spending less per order YoY on video game consoles (-7%), jewelry (-14%) and computers (-13%). Spend per order is increasing for pet care, tablets and apparel (140%, 7%, and 6% respectively).

Sales driven by marketing channels: The bulk of revenue is driven by search ads (40%; 4% more than in ’15), followed by direct traffic (28%; 4% increase YoY), shopper helper sites such as RetailMeNot and CNET (16%; 17% decrease YoY), then email (15%; flat with 1% increase YoY). Social media drives lower sales than other channels (0.8% share; but 21% increase YoY).

Walmart leads social buzz: Walmart has 35% of share of voice among retailers, overtaking Target (34%) SOV. Kohl’s follows at 11%, Toys R Us at 7% and Sam’s Club at 4%.

Adobe’s latest insights are based on aggregated and anonymous data from 21 billion visits to retail websites. Adobe’s retail reports offer the most comprehensive data compilation in the industry, measuring 80% of all online transactions from the top 100 U.S. retailers. $7.50 of every $10 spent with the top 500 retailers goes through Adobe Marketing Cloud.

SourceAdobe Digital Insights 2016 Holiday Results

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Ina Steiner

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. Send news tips to ina@ecommercebytes.com.


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