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Growth in Holiday E-Commerce Spending Driven by More Online Buyers Who Spend More, According to comScore Networks

 

Online Holiday Spending from Home Growing Faster than from Work
 

comScore Networks, a leader in measuring the digital age, today released a report on consumer online non-travel (retail) spending at U.S. sites for the 2006 holiday season, from November 1 through December 3, compared to the corresponding days last year.  comScore’s data reveal that online sales reached $12.42 billion during this period, an increase of 25 percent versus year ago. This gain is being driven by a 17 percent increase in the number of online buyers, coupled with a 7 percent increase in the average dollars spent per buyer.

 

Online Spending Drivers

Non-Travel (Retail) Spending

Excludes Auctions and Large Corporate Purchases

Holiday Season to Date (Nov. 1 – Dec. 3, 2006) vs. Corresponding Days in 2005

Source:  comScore Networks

 

Percent Change

E-Commerce Spending

25%

Number of Buyers

17%

Dollars Per Buyer

7%

 

“Clearly, comScore’s data are confirming that more and more consumers are becoming comfortable buying online,” said Gian Fulgoni, chairman of comScore Networks.  “But, an accentuating factor is that online spending per buyer is also increasing – as a result of more buying transactions and an increase in higher-ticket purchases.”
 

Higher-Ticket Categories Driving Growth

Higher-ticket purchases are having an impact on the average order value in several retail categories.  For the 2006 Holiday season, to-date, the computer hardware category has the highest average order value at $292, followed by consumer electronics ($153), video game consoles & accessories ($141), jewelry & watches ($128), and event tickets ($123).

 

Top Online Product Categories by Average Order Value

Non-Travel (Retail) Spending

Excludes Auctions and Large Corporate Purchases

Holiday Season to Date (Nov. 1 – Dec. 3, 2006) vs. Corresponding Days in 2005

Source:  comScore Networks

Retail Category

Avg. Order Value

Computer Hardware

$292

Consumer Electronics

$153

Video Game Consoles & Accessories

$141

Jewelry & Watches

$128

Event Tickets

$123

 

That most of the higher-ticket categories also appeared on the list of fastest growing retail categories confirms that they are significant growth drivers for this year’s holiday season.  Specifically, online spending on jewelry & watches has grown 69 percent, while event tickets is up 66 percent, video game consoles & accessories is up 51 percent, and consumer electronics is up 37 percent.

 

Fastest Growing Online Product Categories, by Dollar Growth

Non-Travel (Retail) Spending

Excludes Auctions and Large Corporate Purchases

Holiday Season to Date (Nov. 1 – Dec. 3, 2006) vs. Corresponding Days in 2005

Source:  comScore Networks

Retail Category

Percent Change

Video Games

85%

Jewelry & Watches

69%

Event Tickets

66%

Video Game Consoles & Accessories

51%

Consumer Electronics

37%

 

Growth in Online Buying From Home Exceeds Rate of Growth at Work

For the holiday season to date, spending from home locations has increased 30 percent versus year ago while spending from work is up 19 percent.

 

Holiday E-Commerce Spending by Location

Non-Travel (Retail) Spending

Excludes Auctions and Large Corporate Purchases

Holiday Season to Date (Nov. 1 – Dec. 3, 2006) vs. Corresponding Days in 2005

Source:  comScore Networks

 

Billions ($)

Purchase Location

2005

2006

Percent Change

Home

$4.18

$5.44

30%

Work

$4.51

$5.36

19%

 

“As broadband connectivity in the home continues to rise, we’re seeing some online spending shift from work computers to home computers,” commented Mr. Fulgoni.  “Nonetheless, online buying at work still accounts for as many e-commerce dollars as buying from home. This could indicate that ‘old habits die hard’ – while also reflecting consumers’ valuing of the workplace as the location where they’re able to confidentially buy gifts online for immediate family members.”
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About comScore Networks

comScore Networks is a global leader in measuring the digital age. This capability is based on a massive, global cross-section of more than 2 million consumers who have given comScore permission to confidentially capture their browsing and transaction behavior, including online and offline purchasing. comScore panelists also participate in survey research that captures and integrates their attitudes and intentions. Through its proprietary technology, comScore measures what matters across a broad spectrum of behavior and attitudes.  comScore consultants apply this deep knowledge of customers and competitors to help clients design powerful marketing strategies and tactics that deliver superior ROI.  comScore services are used by global leaders such as AOL, Microsoft, Yahoo!, Verizon, Best Buy, The Newspaper Association of America, Tribune Interactive, ESPN, Fox Sports, Nestlé, MBNA, Universal McCann, the United States Postal Service, Merck and Expedia.  For more information, please visit www.comscore.com.

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