Cyber Monday E-Commerce Makes History

November 30, 2011

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Cyber Monday reached $1.25 billion in online spending this year, rising 22% from 2010 and representing the heaviest online spending day in history, and just the second day on record to surpass the billion-dollar threshold, according to November 2011 research from comScore. Data from comScore’s analysis indicates that for the holiday season-to-date (November 1-28), $15 billion has been spent online, marking a 15% hike from the corresponding days last year. Shopping momentum on Cyber Monday hit its peak at 11:05am PST/2:05pm EST, according to IBM Coremetrics data. IBM’s data also indicates that consumer shopping maintained strong momentum after commuting hours on both the east and west coast.

Buyers and Average Spending Both Increase

Cyber Monday’s sales growth this year was driven by an increase in both the number of buyers, which increased 11% from 9 to 10 million, and the average spending per buyer, which rose 9% from $114 to $125. According to comScore, the 10 million online spenders also represents the first time on record that threshold has been reached in a single day.
Data from the NPD Group disputes this finding, however: according to the “Anatomy of Black Friday and Cyber Monday 2011″ study, the growth in Cyber Monday results comes from the greater numbers of people shopping online this year rather than spending more this year. Results from the study indicate that almost 28% of consumers reported shopping online Cyber Monday compared to 21% last year, while of those shoppers, 16% reported making a purchase this year compared to 12% last year. This year, though, NPD data indicates that consumers spent only $187.83 on average, compared to last year’s $276.71.

Shopping at Work Drives Half of Spending

Half of dollars spent online at US web sites originated from work computers, up 2% from 49.2% last year, according to comScore. Buying from home comprised the majority (43.2%) of the remaining share, while buying at US web sites from international locations accounted for 6.6% of sales. More information on international Cyber Monday shopping is available at MarketingVox.

Mobile Sales and Traffic Soar

Meanwhile, according to IBM, 10.8% of consumers used a mobile device to visit a retailer’s site on Cyber Monday, more than double the 3.9% who did so in 2010. Furthermore, mobile sales also showed dramatic growth, reaching 6.6% of the population, almost triple the proportion in 2010 (2.3%).

Other Findings

• Coremetrics data indicates that shoppers using the iPad drove more retail purchases on Cyber Monday than any other device.
• Shoppers referred from social networks generated 0.56% of all online sales on Cyber Monday. Facebook led the pack, accounting for 86% of all social media traffic.
• Discussions on social media sites leading up to Cyber Monday increased in volume by 115% compared to 2010. According to Nielsen, in 2011 buzz about Black Friday/Cyber Monday peaked the day after Thanksgiving and made up 2.9% of all buzz that day, representing a 15% relative increase in the share of buzz compared to 2010. Furthermore, Nielsen reports that Cyber Monday buzz has also increased year-over-year, and is likely to climb further as discussion of Cyber Week sales continues throughout the week.

About the Data: The IBM Coremetrics Benchmark captures online marketing results and commerce data from more than 500 contributing US retailers. The NPD study is an online survey of a nationally representative sample of more than 3,300 U.S. consumers ages 18+ assessing what they did on Black Friday & Cyber Monday and why.

Mobile Advertisers Take Up Location-Based Targeting

Location-based targeting nearly doubled month-over-month as the preferred ad targeting method used to reach consumers on the Jumptap mobile ad network, employed by 61% of advertisers compared to 33% in September, according to[download page] a Jumptap report released in November 2011. Results from the “Simple Target & Audience Trends (STAT)” report indicate that 22% of campaigns used device capability, up from 19% in September, while only 5% used handset, down significantly from 25%.

Overall, the proportion of marketers using multiple targeting methods drastically rose in October: 80% of advertisers used more than one targeting method, up from just 10% in September.

Samsung Battles Apple

The report highlights some interesting differences between Samsung and Apple device users: for example, Samsung smartphone users accessed applications 27% more than iPhone users, although iPhone users were almost twice as active on the mobile web as Samsung smartphone users. And while gaming was the top content channel on Samsung smartphones, which Jumptap insight suggests is likely tied to Samsung users’ higher app usage, and which may suggest a younger audience, news and entertainment was the top channel for iPhones, which could explain the prevalence of web browsing and suggest an older audience.

On the Millennial Media mobile network, music and entertainment was the top applications category for Apple in October, growing 19% month-over-month, while gaming applications moved to the #2 app category.

CTRs Best in the Evening

According to the Jumptap report, there is a gradual increase in CTRs from morning through lunch and beyond, peaking in the evening hours at roughly 0.7%, before dropping off to about 0.5% as the night progresses. In October, mobile users aged 55-64 and 65-74 both had CTRs of over 0.7%, although this month those aged 55-64 took the lead, whereas 65-74-year-olds had the highest CTRs in September. CTRs are still highest for families with household income above $50,000 (1.38%), far above those below that income threshold (.26%). Men (.57%) also continue to demonstrate higher CTRs than women (0.33%).

Other Findings

• iOS (.63%) and Symbian (0.63%) maintain their CTR dominance among operating systems, while Android (0.49%) and Blackberry (0.55%) lag in direct response performance.
• For direct response performance, entertainment, government, and automotive again experienced the best CTRs in of the various verticals on the network.
• Android’s market share dipped to 44.7% in October 2011, down from 47% in September. However, Android still commanded a share almost equal to that of iOS (24.6%) and Blackberry (22.9%) combined.
• In October, 53% of requests were from the mobile web (compared to 52% in September) and 47% were from mobile apps. Feature phones saw a major decline in mobile web traffic in October, with only a 34% share, compared to 50% in September.
• Click-to-web (76%) and click-to-download (23%) continued to predominate as preferred actions for advertisers.

About the Data: October 2011 data is gleaned from the Jumptap network of over 95 million US users.

4 in 5 Will Buy a Gift Card These Holidays

4 in 5 Americans will purchase at least one gift card this holiday season, according to an NRF survey conducted by BIGresearch and released in November 2011. Data from the “Consumer Intentions & Actions Survey” indicates this to be the largest proportion of consumers since NRF began tracking gift card purchasing intentions in 2006. Additionally, holiday shoppers are expected to spend an average of $155.43 on gift cards, the highest amount since 2007 and a 6.7% rise from $145.61 last year. Total spending on gift cards this winter holiday season is forecast to reach $27.8 billion, representing 12% growth from $24.78 billion in 2010.

According to a November BDO USA study, among the retailers surveyed that sell gift cards,57% expect their gift card sales to increase compared to 2010, representing a 21% rise in respondents from 2010, when less than half expected to see growth in their gift card sales. Meanwhile, according to an earlier NRF survey also released in November, most shoppers (57.7%) would like to receive a gift card this holiday season, ahead of clothing or clothing accessories (50%), consumer electronics or computer-related accessories (35.4%), and jewelry (22.8%).

Shoppers To Spend More On Each Card, Led by Men, Elderly

Gift card purchasers will spend an average of $43.23 per card this year, up 4.2% from $41.48 last year and 8.6% from $39.80 in 2009, according to the latest NRF survey. Men will spend significantly more on gift cards this year than women, shelling out an average of $46.19 per card compared to $40.47 for women. Older demographics are also likely to spend more than their younger counterparts, led by those aged 55-64, who intend to spend $45.47 on each card, compared to the $38.37 planned by 18-24-year-olds.

Among gift card purchasers, one-quarter plan to buy 5 or more, while only 13.7% will buy a single card. Adults over age 45 are again more likely to purchase a greater amount of gift cards: about 1 in 5 plan to buy more than 6, almost triple the proportion of 18-24-year-olds (7.6%) who intend to do so.

Department Stores Win Out

When it comes to which gift cards people will buy, most shoppers say they will give their friends or family members a gift card to a department store (38.7%), restaurant (33.8%), electronic store (19.8%), or an entertainment venue such as a night at the movies or music event (18.2%), although adults aged 55-64 prefer restaurants (36.6%) to department stores (33.4%) for their gifts.

Book stores (19.8%), coffee shops (15.9%), and discount stores (13%) also prove popular among gift card shoppers.

Practicality Reigns Supreme

Practicality is the most likely reason shoppers will buy gift cards this year, as 46.4% report they will buy gift cards because it allows the recipient to select their own gift. Convenience is also cited as a major factor, with 19.4% of gift card shoppers saying that gift cards are easier and faster to buy than traditional gifts. A further 6% say that it is easier to mail or ship a gift card than a traditional gift to out-of-town gift recipients. However, some concerns remain: 26.1% say that the impersonal nature of gift cards could cause them to buy less of them these holidays, while others are worried about fees and expiration dates (17.4%) and not knowing which company a recipient would want a card from (9.7%).

Information regarding e-gift cards becoming more personal, social, and mobile is available at MarketingVox.

About the Data: The NRF survey polled 8,502 consumers and was conducted for by BIGresearch from November 1-8, 2011.

Wifi hotspots set to more than triple by 2015

Global public wifi hotspot numbers are set to grow from 1.3 million in 2011, to 5.8 million by 2015, marking a 350 per cent increase, according to research published by the Wireless Broadband Alliance (WBA), and compiled by Informa.

The findings from the WBA, the industry association focused on driving next generation wifi, also revealed that more than half – 58 per cent – of operators believe wifi hotspots are either “very important” or “crucial” to their customers’ experience, in order to offload busy mobile broadband networks and to provide a value-added services.

China Mobile alone is planning to deploy a million hotspots and Japan’s KDDI is planning to grow its 10,000 wifi hotspots to 100,000 within six months.

The growth in wifi hotspots will primarily be in three types of location: wide-area outdoor hotzones, such as parks; local-area outdoor hotzones, such as popular tourist attractions, and transport hubs, such as airports.

The findings also revealed that mobile data growth is a key factor in the build-out of wifi hotspots, as global mobile data traffic is expected to reach 16.84 million terabytes by 2014. The operators surveyed said that they intend to manage the impact of this growth primarily through new pricing strategies and wifi-based offload.

The survey, which took into account the views of 259 public wifi experts from across the world, found that smartphone connections to wifi hotspots will soon overtake laptop wifi connections globally. According to the research, laptops now represent just 48 per cent of the connections to hotspots, whereas smartphones account for 36 per cent and tablets 10 per cent.

However, there are several barriers to adoption of public wifi hotspots, such as cumbersome authentication procedures, costs of access, user discovery of available networks and security. One UK operator recently reported that only 20 per cent of its users access the free public hotspots available to them.

On the upside, several challenges will be overcome by next generation hotspots (NGH), according to the WBA. NGHs are currently being trialled internationally, and they allow users to seamlessly roam between cellular and wifi networks using their handset’s SIM card as authentication. This reduces concerns about authentication, network discovery and security.

“Fixed operators are extending broadband services beyond the home and office, and wifi is supporting busy mobile broadband networks,” commented Chris Bruce, chair of the WBA and CEO at BT Openzone. “Next Generation Hotspot trials are making inroads in the remaining barriers and by cracking the code of a simple, secure user experience hotspot use will continue to soar.”

Source: http://www.telecoms.com/

Power Media Group Celebrates its 10th Anniversary

Founded During the Recession of 2001, Company’s Customer Service Excellence Allows it to Grow Even in the Current Economic Downturn

Santa Clarita, California – October 29, 2011 – Power Media Group, an advertisin agency and media buying company with humble beginnings in the founder’s living room, is now celebrating its 10th anniversary. By specializing in addressing the needs of the Hispanic market, the company has done so well since its founding that in July 2008-SBA qualified for a real estate loan -acquisition of an 11,000 square-foot commercial building, a new home for clients and customers.

Patricia Gracia

Power was founded by Patricia Gracia. Gracia is an immigrant to the United States, originally from Peru, whose first position in the United States was at the Peninsula Hotel in California. The hotel sponsored her education at UCLA, where she majored in public relations. In 2001, she opened her advertising agency and was gaining clients. Three years after, her husband Tony Gracia joined her in managing the public relations firm. He is now the CEO and a full partner.

Tony Gracia

As CEO, Tony Gracia focuses many of his efforts on financial matters and the company’s long-term growth. One of his accomplishments is helping PMG in acquiring an SBA loan and making sure the firm met the agency’s strict requirements. He also works to solve financial issues that affect clients. After ten years of working in the advertising and broadcast industry, he understands the need of a financial product that can help companies avoid losses in revenues. He introduces “Dona Dollar”- to avoid Revenue Lost by Catalog Sellers, Direct Sellers over undeliverables and merchandise returns. “The frustration that companies have resulting from misdirected and lost mailings translates into significant money on the bottom line – revenue loss that can finally be avoided with our payment system called, “Dona Dollar.”

Tony Gracia also appears as a panelist or speaker at various public events.

Since its founding, the company and its management have received many awards. Some of the most recent ones include the Latin Business Association’s Sol Award, the 2009 Addy Award for Excellence in Creativity for a TV ad in the General Market and the US SBA’s Minority Small Business Champion of the Year Award for 2010. These are just a few of the many awards earned by Gracia’s company.

One award deserving of special mention arose from the Women’s History Month celebration of 2011 sponsored by the Air Force Flight Test Center and NASA Dryden Flight Research Center. Held at Edwards Air Force Base, this event celebrated the achievements of women in the past. Patricia Gracia was one of the keynote speakers. Her presentation, titled “The Transforming Role of Latina Business Owners in the Past Two Decades,” was an inspiration for many who attended the event. In recognition of her participation, she was awarded a plaque and a military decoration by the executive director of the Flight Test Center.

During the last 10 years, the company has gained an impressive roster of clients. These include giants like Vivendi Visual Entertainment, Universal Music Latin, Baby Magic and El Aviso Magazine, Creativa Interior-Primor, DDA- Directory Distributing Associates, along with numerous local companies. This shows the public relations firm’s recognized excellence at handling the unique advertising requirements of clients targeting the Hispanic market.

One of the reasons for this success is the founder’s customer service background. While working at the Peninsula Hotel, she learned that the key to providing a five star experience is in the details. She and her company work to always surpass customer expectations and take care of even the tiniest details. They work to create, position and maintain clients’ brands with the utmost care. Not only that, they work with clients to find new directions for their products. This allows clients to expand their market presence and improve sales success.

Gracia’s personal background is another underpinning of her company’s philosophy. She knows that creativity, dedication and perseverance are necessary for success. Before she crossed the Tijuana border into the United States, she had a goal and the drive to achieve it. This same goal-oriented planning is applied to clients’ accounts to ensure their utmost success. She also knows that it is very important to shift goals to meet changing needs.

Gracia makes sure to actually care for her company’s clients and their campaigns. Customers are not mere names in a book at Power. Their tagline, “we love your business as we love our baby,” shows their dedication to catering to clients’ needs and helping them grow. Clients don’t just get an ad campaign from Gracia. They also get helpful guidance and caring direction to help with their branding and sales efforts.

Patricia and Tony Gracia show a sincere desire to help others succeed as she has. Last year, they opened the Power Woman Business Center, a business incubator dedicated to helping minority businesswomen and men succeed in the marketplace. The Center occupies the same building as Gracia’s advertising company. The United States Small Business Administration’s Los Angeles District Office honored this effort by naming Gracia the Small Business Champion of the Year in 2010.

The United States Hispanic market has a potential buying power of $1triillion annually, and its size is growing every year. This has undoubtedly helped Gracia’s company expand, since many businesses are now seeking to tap that market. The excellence shown by her company then works to keep those new clients happy and returning for even more ad campaigns. Her company’s ability to bridge the culture gap allows domestic companies to cater to the unique needs of Hispanic customers. Hispanic-owned companies also do well by retaining her company to promote their products and services.

About the Company:

Power Media Group ( www.powermediagroup.com)

A public relations and advertising agency specializing in creating all-inclusive Spanish language campaigns for high-profile clients, including Universal Music Latin and Creativa Interiors Primor, Power Media Group helps businesses build lasting relationships with the Latino community. As the 2010 Minority Small Business Champion of the Year, Power Media Group utilizes grassroots media campaigns to reach out to the booming Hispanic population, who contribute more than $1 trillion to the U.S. economy annually. Last year, principals Patricia and Tony Gracia launched the Power Woman BusinessCenterwww.powerwomanbc.com , a business incubator that reaches out to diverse entrepreneurs who are trying to develop and grow their businesses during these precarious economic times.