2011 holiday consumer intentions
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U.S., November 2011
Holiday 2011: Consumer Intentions
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Background and Methodology
Google commissioned Ipsos OTX, an independent market research firm,to gain a better understanding of consumers shopping intentions for theupcoming 2011 Holiday Season. Specific goals of the study are to:
Provide insight into the behavior of consumers when holiday shopping for the 2011Holiday Season
Understand the role the internet & online search plays in holiday shopping Identify the hot gifts for the upcoming season Gauge the impact of the current economic climate Discern whether respondents will postpone purchases until after the holiday season
when sales are more prevalent
Interviews were conducted via an online quantitative survey yielding a totalsample of 2,000 holiday shoppers
Trended comparisons were made throughout the report to data collectedfrom 2008 through 2010, where applicable
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Consumers Show Signs of Optimism
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Signs of Positive Retail Growth for Holidays
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Sources: BusinessWeek (http://www.businessweek.com/news/2011-10-14/u-s-economy-retail-sales-increase-by-most-in-seven-months.html), Internet Retailer (http://www.internetretailer.com/2011/10/20/holiday-bells-ring-e-commerce), Experian Hitwise Black Friday Holiday Webinar, October 2011, Wall Street Journal (http://online.wsj.com/article/AP3b54d0ae8f01415d820ea9f77c98c56e.html)
October same-store sales risemarks the 14th consecutivemonth of increases for U.S.retailers
In the four weeks ending Oct.15, traffic to top 500 retail sitesincreased 10% compared with
the same period a year ago
FedEx expects to deliver 12%more packages betweenThanksgiving & Christmas thisyear
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Consumers Plan to Spend More this Holiday
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Average Planned Spending Amount up 6% from 2010
$717
$808
$854
2009 2010 2011
(Q4). In total, approximately how much do you plan to spend on your Holiday Shopping this coming season?
Source:. Google & Ipsos OTX Consumer Intentions Survey for Holiday 2011
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Products Planning to Purchase
Growth Expected in Purchases Across ProductCategories
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(S11). Listed below are a variety of products or services that you may purchase for yourself or someone else during the upcoming Holiday Season. Which of the following doyou plan to shop for or purchase?
Jewelry/Watches
57%83% 56%
Clothing/Apparel/Fashion Accessories Electronics Home Furnishings
29%
Source:. Google & Ipsos OTX Consumer Intentions Survey for Holiday 2011
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Though Spending More, Economy has ShoppersAdjusting Game Plan
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I plan to spend more timeshopping around
for gifts
I plan to use searchengines more for
researching my Holiday
purchases this year
50%
Source:. Google & Ipsos OTX Consumer Intentions Survey for Holiday 2011
(Q16) Using the scale below please tell us how much you agree or disagree with the following statements about shopping during the holiday season *ResponsesDue to Economic Conditions
I plan to use couponsmore this year
55% 46%
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As Holiday Shoppers Adjust Their Strategy,Fewer Rely on Newspapers & Catalogs to Shop
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Source:. Google & Ipsos OTX Consumer Intentions Survey for Holiday 2011
(Q6). Which of the following sources of information, if any, do you plan to use during your Holiday Shopping this year?
%ofCon
sumersUsingthisMediumfo
rHolidayShopping
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As More Shoppers Turn to Social & Deal-CentricResources Online
9
Source:. Google & Ipsos OTX Consumer Intentions Survey for Holiday 2011
(Q6). Which of the following sources of information, if any, do you plan to use during your Holiday Shopping this year?
%ofCon
sumersUsingthisMediumforHolidayShopping
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US Unemployment and Consumer Interest in Deals 2004 - 2011
But Stretching Each Dollar Remains Top of Mind
10
- 50%
0%
50%
100%
150%
200%
0.0
2.0
4.0
6.0
8.0
10.0
12.0
US Unemployment Rate Searches for Coupons and Rebates
Linear (Searches for Coupons and Rebates)Linear (US Unemployment Rate)
Jan04
May04
Sep04
Jan05
May05
Sep05
Jan06
May06
Sep06
Jan07
May07
Sep07
Jan08
May08
Sep08
Jan09
May09
Sep09
Jan10
May10
Sep10
Jan11
May11
Sep11
Source: U.S. Bureau of Labor Statistics, Google insights
Shopping and deal related queries up year/year
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Key Recommendations
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1Capture Consumer Demand: 50% of holiday purchasing will startin the next 22 days
2Make Sure Your Brand is Top of Mind: 67% of holiday shoppersplan to shop for gift ideas
3 Open Attribution Window: Purchasers are researchingup to one month prior to purchase
4Be Present Across All Screens: Consumers choosethe best device available
5 Implement full coverage for mobile and tablet: Holiday shoppers usingtablets and smartphones as shopping assistants
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50% of holiday purchasing will start in the next 30 days
Capture Consumer Demand:
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Consumer Demand is Exceeding Ad Supply
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Recommendation: Address now before traditional retailerslaunch seasonal spend
+46% Y/Y
-26% Y/Y
Google internal
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50% of Holiday Purchasing Will Start Within Next22 Days
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When Plan to Start Holiday Purchasing
11%
11%
23%
9% 7%
22%
8% 9%
9%
12%
28%
9%8%
20%
7% 8%
0%
5%
10%
15%
20%
25%
30%
35%
BeforeHalloween
BetweenHalloween&
Thanksgiving
BlackFriday
Weeken
dafterThanksgiving
CyberMonday
Early/MidDecember
Lastminute
Afte
rChristmas/Holiday
Season
2010 2011
(Q1). When do you plan to start your holiday shopping/researching and purchasing this year? n=2000
Consumers start research up to a month prior to purchase;be present for holiday shoppers now
%ofConsumersStartin
gHolidayShopping
Source:. Google & Ipsos OTX Consumer Intentions Survey for Holiday 2011
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43% of Holiday Shoppers Plan to do Majorityof Shopping by Cyber Monday
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Plan To Do Majority of Holiday Purchasing
3%
7%
18%
9% 6%
34%
7%5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
BeforeHalloween
BetweenH
alloween&
Thanksgiving
B
lackFriday
Weekendafter
Thanksgiving
CyberMonday
Early/MidDecember
Lastminute
AfterChristm
as/Holiday
Sea
son
2011
Keeping the Lights On Post-Holiday More Important than Ever:5% will do majority of shopping after Christmas
(Q2). And, when do you plan to do the majority of your holiday purchasing? n=2000
%o
fConsumersDoingMajorityofHolidayShopping
Source:. Google & Ipsos OTX Consumer Intentions Survey for Holiday 2011
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67% of gift givers plan to shop for gift ideas
Make Sure Your Brandis Top of Mind:
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Undecided Holiday Shoppers are ResearchingNow
17Google Insights
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Most Shoppers Have Yet to Make Decisionson What to Buy/Where to Buy
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67% 61% 70%
Plan to shop aroundfor gift ideas
Do not have specificbrands in mind
to purchase
Are not tiedto a particular store/
retailer
Source:. Google & Ipsos OTX Consumer Intentions Survey for Holiday 2011
(Q16) Using the scale below please tell us how much you agree or disagree with the following statements about shopping during the holiday season.
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Online Research Highly Impacts Choice ofRetailer, Brand and Type of Gift
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82%79% 77%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Retailer(s) Shop At Brand(s) Buy Type of Gift(s) Buy
%ofConsumersStatingOnlineR
esearchwillhave
Significant/ModerateI
mpact
Source:. Google & Ipsos OTX Consumer Intentions Survey for Holiday 2011
Question: How much impact will online research have on your purchase decisions in-store for each of the following items? (Top two boxes only shown- Significant /ModerateImpact)
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Holiday Shoppers using tablets and smartphoneas Shopping Assistants
Implement Full Coveragefor Mobile and Tablet:
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Coverage Across Multiple Screens is Essentialas Consumers Turn to Best Available Device
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54%56%
68%
77%
54%
82%
Online shopping In-store shopping Both
Smartphone Tablet
Source:. Google & Ipsos OTX Consumer Intentions Survey for Holiday 2011(Q24) How likely are you to use your smartphonet/tablet to do your Holiday Shopping?
When Will Shoppers Use Mobile Devices?
Online Shopping In-Store Shopping Either Online or In-Store Shopping
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The Majority of Online Purchases Will be Madeon Desktop, 26% Will be Done on a Mobile Device
22Base: Among those who use a tablet or smartphone regularly (n=599 smartphone users), (n=208 tablet users)(Q26). Thinking about all the online purchases you plan to make this Holiday Season, what percent will be done on each of the devices below?
Devices Shoppers Plan to Make Online Purchases on
Smartphone17%
Tablet9%
Otherinternetdevice
7%
Desktop/laptopcomputer
67%
Source:. Google & Ipsos OTX Consumer Intentions Survey for Holiday 2011
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Holiday Shoppers Plan to Use Smartphonesto Locate Stores, Products and Compare Prices
23Source:. Google & Ipsos OTX Consumer Intentions Survey for Holiday 2011(Q23a). In which of the following ways, if any, do you plan to use your mobile device(s) to do your shopping this Holiday Season?
47%Will use smartphones
to compare prices
42%Will search for nearest store
based on current location
55%Will use GPS/locationfeatures on some/most
shopping trips
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While Tablets are Key Throughout the HolidayPurchase Process
24Source:. Google & Ipsos OTX Consumer Intentions Survey for Holiday 2011(Q23a). In which of the following ways, if any, do you plan to use your mobile device(s) to do your shopping this Holiday Season?
53%Will price-comparison
shop
47%Willsearch
for coupons/rebates
52%Will compare product
features
44%Will purchase on their
tablet device
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Smartphone and Tablet Shoppers Planto Download Shopping Apps This Year
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Source:. Google & Ipsos OTX Consumer Intentions Survey for Holiday 2011Base: Likely to use tablet/smartphone for Holiday Shopping (n= 599 )(Q25). And, how likely are you to download or use an app (application) to do your Holiday Shopping this Season?
52%of Tablet users are Very/Extremely Likelyto DL a shopping App this year 42%of Mobile Device users are Very/ExtremelyLikely to DL a shopping App this year
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Recommendations
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Key Recommendations
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1 Capture Consumer Demand: 50% of holiday purchasing will startin the next 22 days
2Make Sure Your Brand is Top of Mind: 67% of holiday shoppersplan to shop for gift ideas
3 Open Attribution Window: Purchasers are researchingup to one month prior to purchase
4Be Present Across All Screens: Consumers choosethe best device available
5 Implement full coverage for mobile and tablet: Device users usingtablets and smartphones both in-store and online