Andrew McClelland

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• Andrew McClelland
• Director of Business Development
• andrew_at_imrg.org

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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 todays
most exciting and vibrant retail sector. Robin
Terrell Chief Operating Officer, Figleaves.com
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About IMRG
OnLine Green Awards 2008
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Market Trends

• UK Market Value
• Internet Use
• Average Basket Value
• Consumer Confidence
• Demographics

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Market Trends
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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

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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.
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Market Trends
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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

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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 BQ The Orange Shop ASDA
(NEW) Woolworths Boots (NEW) IKEA (NEW) Topshop
(NEW) Carphone Warehouse Sainsburys (NEW) Maplin
Electronics Dixons (NEW) River Island (NEW)
IMRG Hitwise Hotshops List 2008
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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

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Average Basket Value
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Consumer Confidence
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Consumer Confidence
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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

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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
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And Search?

• Value of Search spend
• Increasingly cluttered market place
• New brands entering the market
• Customer acquisition
• Customer retention

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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?

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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 dont understand the ROI from
  paid search
• 64 dont understand ROI from natural search
• 1 in 7 brand searches do not end up at that
  brands site

Harris Interactive April 08 Hitwise April 08
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And......?

• Analytics
• Understand your customer
• Cost of customer acquisition / cost of sale
• Manage the customer journey
• Dropouts
• Deep linking
• Conversion rates

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Is search worth it?

• Natural vs Paid?
• In house vs agency?
• To spend, or not to spend?

• Guestimate...
• 2007 e-Retail spend of 46.6 Billion
• 37.28 Billion influenced by search?

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IMRG

• IMRG Members Search workshop June 2008
• MSN
• Doubleclick

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The OLGAs 2007
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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

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Andrew McClelland Director of Business
Development andrew_at_imrg.org