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Andrew McClelland Director of Business Development andrew@imrg.org. Introduction to IMRG. Formed 1990 The industry body for global e-retail 2 00 IMRG Members; 13 00+ ISIS-accredited merchants.
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Andrew McClelland Director of Business Development andrew@imrg.org
Introduction to IMRG • Formed 1990 • The industry body for global e-retail • 200 IMRG Members; 1300+ ISIS-accredited merchants “IMRG membership is a must for any retailer serious about their online strategy. The access to market information is invaluable and the regular workshops are fantastic - not just for the information they provide but also the opportunity to network with peers.” Christian Robinson Managing Director, Firebox.com “The IMRG does a tremendous job in championing internet retailing. It never misses an opportunity to get the message across to the public, via the media, that online is today’s most exciting and vibrant retail sector.” Robin Terrell Chief Operating Officer,Figleaves.com
About IMRG OnLine Green Awards 2008
Market Trends • UK Market Value • Internet Use • Average Basket Value • Consumer Confidence • Demographics
Market Trends • Between April 2000 - December 2007: • the Index grew 5,213% • the monthly value of UK online shopping rose from £87 million to £5.4 billion
Market Trends Full year 2007 UK e-retail sales estimated to be worth £46.6 billion, up 54% on the £30.2 billion recorded for 2006.
Market Trends • Electricals traditional driving growth • Increased competition – CPW/Best-Buy • Low margins • No new ‘must have’ technologies • Fashion slow take up, rapidly increasing – 20% month-on-month • More brands coming online
Retailers Online 2007 24 High Street Retailers Argos Tesco Marks & Spencer Next Currys HMV John Lewis Comet PC World Game (NEW) 02 Shop Debenhams Up 50% since 2006 B&Q The Orange Shop ASDA (NEW) Woolworths Boots (NEW) IKEA (NEW) Topshop (NEW) Carphone Warehouse Sainsbury’s (NEW) Maplin Electronics Dixons (NEW) River Island (NEW) *IMRG Hitwise Hotshops List 2008
Internet Use Penetration Internet users and penetration in the UK 2005-2011: [Source: eMarketer, October 2007] • 2005: 33.7 million (55.8%) • 2006: 35.1 million (57.9%) • 2007: 37.2 million (61.2%) • 2008: 39.1 million (64.2%) • 2009: 42.3 million (69.2%) • 2010: 44.2 million (72.1%) • 2011: 45.0 million (73.2%) • Recent Nielsen Media Research stated that 97% of UK people with internet access shop online
Consumer Demographic Online demographic is changing • Traditionally the domain of young males it is now split 51.5% male – 48.5% female But now:- • Women aged 18-34 account for 21% of all time spent on computers in the UK Nielsen/Net Ratings • Twice as many women aged 18-34 active online as there are girls under 15 or women over 50Hitwise
The Social Phenomenon • UK - 9.6 Million Users in 2007* • Predicted growth to 27.1 Million in 2012* • Mobile – 82 Million Worldwide in 2007** • 803 Million in 2012** *Datamonitor April 2008, **EITO March 2007
And Search? • Value of Search spend • Increasingly cluttered market place • New brands entering the market • Customer acquisition • Customer retention
Search Spend • IAB quotes – • Up 38% in 2007 • Market share of over 15% • Worth £2.8 Billion in 2007 • But, do you know how effective your spend is?
Value of Search Spend • One search site responsible for 36.55% of all traffic to top sites** • 80% of all online activity begins with search* • 44% of advertisers don’t understand the ROI from paid search** • 64% don’t understand ROI from natural search** • 1 in 7 brand searches do not end up at that brand’s site** *Harris Interactive April 08 ** Hitwise – April 08
And......? • Analytics: • Understand your customer • Cost of customer acquisition / cost of sale • Manage the customer journey • Dropouts • Deep linking • Conversion rates
Is search worth it? • Guestimate... • 2007 e-Retail spend of £46.6 Billion • £37.28 Billion influenced by search? • Natural vs Paid? • In house vs agency? • To spend, or not to spend?
IMRG • IMRG Members Search workshop – June 2008 • MSN • Doubleclick
The OLGAs 2008 • Kensington Roof Gardens July 24 2008 • OLGA area on MSN shopping • Julia Hailes author “The Green Consumer Guide” on board • Award nominations sought during April • Categories voted by consumers and distinguished panel
Andrew McClelland Director of Business Development andrew@imrg.org