Ecommerce sales to account for more than 11% of £383 billion UK retail market

eMarketer: Mcommerce Takes 15% of UK Retail Ecommerce Sales

Ecommerce sales to account for more than 11% of £383 billion UK retail market; retail mobile commerce sales expected to top £6.61 billion alone

LONDON (20 June, 2013) -- Shopping on mobile devices is helping drive retail ecommerce sales in the UK to new heights and a larger percentage of retail sales overall, according to new figures from eMarketer.

The UK has always registered relatively high online shopping and buying penetration rates. Based on eMarketer's first-ever forecast for UK retail sales across channels, digital sales in the country, including online and mobile, as a percentage of total retail sales, is among the highest in the world. eMarketer estimates that digital sales (excluding travel) will represent 11.5% of UK total retail sales this year, compared with 10.2% in 2012.

With retail ecommerce sales growing at double-digit rates for several years to come, as total retail sales remain all but flat, digital commerce's share of the total will continue to increase.

Nonmobile online retail sales will continue rising robustly in the coming years, even as a significant portion of digital's growth will come from mobile devices, as shopping on smartphones and tablets reaches record levels-driving much of the incremental growth in the market.

Tablet commerce will grow by triple digits in 2013 for the third year running, to reach £3.57 billion ($5.67 billion), while smartphone mcommerce sales growth will fall to 42.6%. Other mobile devices, such as ereaders, account for only a tiny fraction of mobile sales. The total mcommerce figure will reach £6.61 billion ($10.49 billion) this year and £17.24 billion ($27.36 billion) by 2017, with growth remaining robust throughout the forecast period.

Over the same period, UK retail mcommerce sales will increase its percentage of overall retail ecommerce sales from 15% this year to 26.5% by 2017, eMarketer estimates. Retail mcommerce sales include products and services ordered using a browser or app via any mobile device, regardless of where fulfillment occurs, but excludes travel sales and event tickets.

Factored into eMarketer's figures for UK retail ecommerce and mcommerce sales are the multiple ways in which mobile devices drive ecommerce sales. Growing use of smartphones and tablets as shopping and product research devices give consumers reasons to shift spending from stores to the internet, while additionally encouraging incremental purchases that stem from impulse buying. Smartphones and tablets also promote ecommerce by extending the shopping day and untethering consumers from the desktop or the store. eMarketer estimates 23.4 million people in the UK, or 58.3% of digital shoppers, will browse or research products on smartphones this year. Nearly 15 million will do the same on tablets.

eMarketer bases its estimates of online and mobile sales in the UK on the analysis of data from other research firms, historical trends, consumer digital buying trends, and macro-level economic conditions.

About eMarketer
eMarketer is the authority on digital marketing, media and commerce, offering insights essential to navigating the changing, competitive and complex digital environment. By weighing and analyzing information from different sources, eMarketer provides businesspeople, marketers and advertisers with the most complete view of digital marketing available.
www.eMarketer.com

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The new desktop 'iTab' solution - The Giant iTab now has a little Brother

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"How do websites know which adverts suit your interests?"

IAB UK launches ad campaign to give consumers greater control over targeted online ads

Initiative aims to drive consumer awareness, provide information and enable consumer choice

UK first in Europe to roll out campaign

Some of UK’s largest news brands, media owners and advertising tech businesses donating inventory

London, 13 June, 2013: Today sees the launch of an awareness campaign from the Internet Advertising Bureau UK (IAB) aimed at boosting awareness, education and enabling consumer choice regarding online ‘interest-based’ or ‘behavioural’ advertising. 

Designed by Mediacom, the “unzipped” campaign features a zip with statements such as “How do websites know which adverts suit your interests?” and “Find out what goes on behind the ads you see online.” The zip opens to reveal the blue triangular ‘AdChoices’ icon which has been appearing on behavioural ads in the UK and EU markets for over a year. 

When the ad is clicked, it links to a landing page explaining the role of online advertising and how privacy can be safeguarded. The landing page also features a short video helping people to understand ‘interest-based’ advertising.

The icon is part of a pan-European self-regulatory initiative – supported by the European Commission and the UK government – to give consumers more transparency and control over targeted online ads. The icon links to information about how data is collected and used to serve these types of ads and ways consumers can control this, including via the Your Online Choices website.

    Ed Vaizey MP, UK Minister for Culture, Communications and Creative Industries, says: “I very much support EU-wide industry self-regulation to enhance transparency and consumer choice over online behavioural advertising. I particularly welcome this European advertising campaign – with the UK leading the way - to promote greater awareness of the ad icon which can empower consumers to control their data.”

Nick Stringer, Director of Regulatory Affairs at IAB UK, says: “There are two key points people should be aware about. Firstly, advertising helps to pay for the content and services consumers receive for little or no cost, and interest-based ads are more relevant to the user’s likely interests. Secondly, which many are mistaken about, is that interest-based advertising is based upon the sites previously visited and not on any personal information that identifies the user.

“The research is very clear: once consumers are aware of these points and know they are in control, they are far more open to interest-based ads. Over half a million people a month* now visit the UK Your Online Choices site to find out more.” 

The UK campaign will initially run for six to 10 weeks. Some of Britain’s largest news brands, media owners and advertising technology businesses** have donated inventory to support the goal of reaching 30% of all online Britons.  

The UK is the first EU country to go live in what will be a pan-European campaign – coordinated by Velvet Rock Communications – followed by Ireland and Germany later in June. Campaigns in other EU countries will start in the autumn.

Stringer concludes: “The ultimate aim of the campaign is that, by giving people better information and more control, they make more informed decisions. It also enables relevant advertising to support innovation on the internet which helps provide the ever-increasing range of online services people rely on so heavily in their daily lives.”

Britons 60% more likely to interact with video ads

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Online video ads: interactive pre-rolls twice as popular in UK Account for twice the share of in-stream video ads in the UK (72%) than globally (36%) UK interaction rate with interactive pre-rolls 60% higher than globally for campaigns executed by AdoTube London – 11 June 2013 – interactive ads served before video content (pre-rolls) are twice as popular in the UK as they are globally, according to new data from AdoTube, the in-stream video advertising specialist owned by Exponential Interactive. Interactive pre-rolls accounted for twice the share of in-stream video ads in the UK (72%) in 2012 than they did globally (36%). In contrast, standard pre-rolls accounted for 25% in the UK – almost half the global share (46%). Ads that run on top of the main video (overlays) are far less popular in the UK – accounting for less than 2.5% of ads served compared to 18% globally. Britons 60% more likely to interact with video ads In the UK, 4.8% of video ads with interactive capabilities – such as playing a game, finding a shop or entering data – are interacted with compared to 3.0% globally. Click-through rates to the advertiser’s website are also much higher in the UK (3.7%) than globally (2.6%). Also, only 8% of video ads served by AdoTube in the UK with a “dismiss option” were actually dismissed compared with 11% globally. Niki Stoker, Exponential UK managing director, said: “It’s tricky to say if Britons are simply more inclined to engage with ads or whether UK brands are delivering more relevant and engaging creative. Whatever the case, the figures are extremely encouraging for the UK, particularly compared to the global picture." In the UK, 60% of in-stream video ads are watched in full while 15-second video ads have an 18% higher completion rate than 30-second spots. Stoker says: "It’s vital that marketers have a clear picture about their goals. For example, if it’s video completion they should opt for 15-second spots instead of 30 as their completion rate is higher. However, if it’s looking to drive traffic or engagement, the 30-second spot is more effective.” How UK and global video advertisers differ Quick service restaurant brands – such as KFC, Pizza Express and Dominos – ran the most online video campaigns in the UK in 2012, accounting for 15%, followed by finance/insurance and retailers (both 13%). Following the top three were mobile, FMCG and alcohol advertisers (all accounting for 10%). These six sectors accounted for seven in every ten UK video campaigns (see chart). E.g. Quick service restaurants accounted for 15% of UK online video ad campaigns in 2012 served by AdoTube The UK industry is far more dominated by quick service restaurants and financial brands (28% total) than globally (11% total). Also, mobile brands accounted for twice the share in the UK than globally (5%). In contrast, FMCG, auto and entertainment brands have a much smaller footprint in the UK than globally. FMCG advertisers, the most active globally, accounted for twice the share of video campaigns (19% global vs. 10% in UK), followed by automotive (14% vs. 8%) and entertainment (12% vs. 5%). Stoker said: “It’s clear that the food service and finance brands in the UK have embraced AdoTube’s innovative video advertising capabilities. It will be interesting to see if FMCG, car and entertainment brands follow suit and embrace it here to the degree they have globally.” ENDS Editor’s Notes Methodology The data comes from an analysis of more than 9,500 campaigns run through AdoTube and nearly 13.5 billion impressions during 2012. About Exponential Exponential Interactive (www.exponential.com) is the global provider of advertising intelligence and digital media solutions to brand advertisers. Our e-X Advertising Intelligence Platform combines one of the world’s largest digital media footprints with proprietary audience data and technology to deliver advertising intelligence that enables smarter, better-informed marketing decisions. Our audience engagement divisions - Appsnack, AdoTube, Firefly Video and Tribal Fusion - apply advertising intelligence to deliver high-impact, high-engagement campaigns across display, video and mobile media. Exponential offers solutions in 26 countries worldwide and reaches more than 450m unique users every month. Contact information Joanne Patterson EMEA marketing director, Exponential Joanne.patterson@exponential.com 07805 570 443 Wes Rogers Meteor Public Relations wes@meteorpublicrelations.com 0203 287 3262

Cadbury tops Amazon as Generation Y's favourite brand

Cadbury tops Amazon as Generation Y’s favourite brand

Chocolate, crisps and internet brands dominate the top 10

Food, drink and retailers account for over half of top 100

London, 6 June 2013 – Chocolate, crisps and the internet dominate the most liked brands amongst 16-34 year olds according to a new report “Generation Y and Brand Loyalty” from w00t! Media.

The report, which looks at the changing relationships Britons have with brands as they age from 16 to 34, reveals Cadbury is the most liked brand amongst UK 16-34 year olds (82%), followed by Amazon (78%), Pringles, Walkers and Heinz (all 74%). 

The top ten is completed by Google, Coca-Cola, (both 73%), Galaxy (71%), Kellogg’s and Facebook (both 70%). See Editor’s notes for Top 100 and category winners.

Dan McDevitt, w00t! Media’s joint managing director says: “Despite all the media attention given to internet, technology and mobile brands, the top 100 overall shows Generation Y remain most fond of traditional food, drink and retail brands – which account for over half the entire list.”

 

Most liked brands by category

The BBC is the favourite media/entertainment brand at 14th overall. McDonald’s takes the honours in high-street retail (16th). Following the top four internet brands, Apple is the leading technology/mobile brand but ranks 19th in the overall list, just a few places ahead of Colgate (23rd) – the most liked personal care brand. Nike is the favourite clothing/fashion brand (40th) as is Smirnoff in the alcohol sector (46th).

Visa is the only finance brand in the top 100 (51st), British Airways is the only travel brand (64th) whilst the top car brand ranks just 75th (Audi) ahead of BMW (83rd) and Ford (99th).

Brand preferences by demographic

Within Generation Y, Guinness indexes highest (141) amongst males who are 41% more likely to like Guinness than the average Generation Y person. For females it’s Rimmel London (171) and for 16-19 year olds it’s Twitter (146). Twitter is the 35th most liked brand amongst 16-19s compared to 70th overall.

American Express is the highest indexing brand amongst Generation Y’s earning over £40,000 per year (index of 325) and social group ABC1 (147).

How brand preferences change from 16 to 34

The report identifies three life-stages within Generation Y and how brand preferences change. The ‘all about me’ stage are typically 16-21 years and only need to consider brands for themselves, not having to buy for partners or kids; Snacks, fashion and the internet dominate their most liked brands.

The ‘all about us’ stage are typically 21-30 and becoming independent – moving into their first home, moving in with a partner or stepping onto the career ladder. The most liked brands here start to include more alcohol, retailer and household grocery brands such as Colgate.

The ‘all about them’ stage are 25-34 years old and are accountable to other considerations such as a partner, children or a mortgage – which trump initial personal preferences. Their brand repertoire grows considerably and more family-orientated brands such as Johnsons, Warburtons and Kellogg’s appear.

McDevitt says: “Despite being subject to the biggest life changes, no other age group is treated as such a homogenised unit by advertisers and the media as 16-34s. The study reveals how Generation Y’s relationships with brands change considerably as they move through these very different life stages." 

Why brands appeal

Quality (cited by 72%) and how the product performs versus the competition (67%) are the major reasons why brands appeal to 16-34 year olds. Six in 10 say it’s because the brand fits their own personality while ‘what the company represents appeals’ and the ‘price being fair’ are both cited by half of 16-34 year olds.

McDevitt: “Regardless of age, two common denominators emerged about why brands appeal to Generation Y – the product’s perceived quality and performance. These ‘functional’ reasons run counter-intuitive to those who believe young adults are preoccupied with simply jumping onto the next big thing.”

Irish Laughter Spot : “I found this pen, is it yours?” | TheMarketingblog

'Great British Brand Journalism' • Irish Laughter Spot : “I found this pen, is it yours?” | TheMarketingblog

How UK consumers are ready for a richer messaging experience : A survey carried out on behalf of Acision by Vanson Bourne

Hi Will,

 

As we approach the bank holiday weekend, I wanted to send you an insightful infographic from the global leader in mobile messaging, Acision, uncovering how UK consumers are ready for a richer messaging experience. The full infographic can be found below and is also hosted online here.

 

The infographic is based on a survey carried out on behalf of Acision by Vanson Bourne that examined the trends, habits and views of 1000 Smartphone users in the UK. The stats the survey produced offer insight into UK mobile messaging trends, including:

·         80% of smartphone users in the UK currently use OTT services

·         76% of these smartphone users currently admit to using multiple messaging services to contact friends, families and colleagues

·         78% would be keen to try a rich messaging service such as the GSMA’s rich communications Service (RCS) Joyn