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Adobe Digital Insights -- Prime Day 2019

Prime Day is one of the largest shopping days each year. Adobe Digital insights dives into the data around Amazon's Prime day, to measure exactly what kind of impact this brand created shopping day has on online shopping.

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Adobe Digital Insights -- Prime Day 2019

  1. 1. PRIME DAY PREDICTIONS | 2019 METHODOLOGY Visit our website: Sign up for email alerts: Follow us: @adobeinsights Most comprehensive report of its kind in industry Based on analysis of aggregate and anonymous data via: • Daily revenue model based on analysis of more than 1 trillion visits to the U.S. based on retail websites • Product and pricing insights based on analysis of sales of more than 55 million unique products • Adobe Analytics measures transactions at 80 of the top 100** retailers on the web in the U.S. Adobe Advertising Cloud ** Source: Adobe Analysis of Internet Retailer 2018 Adobe Experience Cloud Adobe Analytics Cloud
  2. 2. PRIME DAY PREDICTIONS | 2019 KEY FINDINGS State of E-commerce • E-Commerce Growth Continues Strong in H1 2019 with +12.8%YoY • Mobile is Not JustThe FutureOf E-Commerce, It’s the Present • Dollars Spent on SmartphonesWill Surpass Desktop In 2022 Prime Day • The Retail Giants Will See their Best Prime DayYetThisYear • Retail Giants Are Learning HowTo Convert Prime DayTraffic • Every RetailerThat’s Growing Will Experience the Halo Effect • Physical Locations Give an EdgeOn Prime Day • EmailWill Be the Key to a Successful Prime Day • Heightened EngagementWithVideoAds • The Demographics Of Prime Day Skew Middle Class And Urban • Electronics, And Smart Devices In Particular, Will SeeThe Best Prime Day Discounts • Deeper Discounts Don’tAlways Mean More Sales • Return Rates Increase for Purchases Made on Prime Day
  4. 4. PRIME DAY PREDICTIONS | 2019 E-COMMERCE GROWTH CONTINUES STRONG IN H1 2019 W/ +12.8% YoY• Q1 saw a slow down in growth compared to a year ago at 11.6%YoY. • Consumers picked up their online spending in Q2 to drive a strong 14% growth over the same period in 2018. • Overall, E-commerce growth is not showing signs of slowing down. H1 combined grew at 12.8%YoY. • We expect strong double digit growth going into Q4 and the holiday shopping season.
  5. 5. PRIME DAY PREDICTIONS | 2019 SMARTPHONES AREN’T JUSTTHE FUTURE OF E-COMMERCE,THEY’RE THE PRESENT • Smartphone is here and now.The vast majority of visits to retail websites come from mobile devices. • Consumers are shopping and researching on the go, whenever and wherever they’d like. • Capturing, directing and converting mobile traffic is imperative for a growing retailer.
  6. 6. PRIME DAY PREDICTIONS | 2019 DOLLARS SPENT ON SMARTPHONES WILL SURPASS DESKTOP IN 2022 • While smartphones are the devices of e-commerce research, the last step is still mostly completed on desktops. • About $1 in $3 is spent online through smartphones. • We project the smartphones to become the primary device for checking out by May 2022, and will account for more than 50% of revenue by the end of that year.
  8. 8. PRIME DAY PREDICTIONS | 2019 RETAIL GIANTS WILL SEETHEIR BEST PRIME DAYYET • Online retailers are seeing an increasingly strong “halo effect” on Prime Day. • The big e-commerce competitors are becoming better and better at reaping the benefits of this artificial holiday, indicating Prime Day isn’t just an Amazon holiday anymore. • We predict the revenue lift for this year to be stronger than ever at 79%.
  9. 9. PRIME DAY PREDICTIONS | 2019 RETAIL GIANTS ARE LEARNING HOWTO CONVERT PRIME DAY TRAFFIC • The big retailers’ edge lies in their ability to better convert the traffic they get on Prime Day: conversion accounts for 70% of the Prime Day lift for the big retailers. • An influx in visits is also contributing factor on Prime Day, although a much smaller one. • Over the past 3 years the big retailers have improved significantly how they convert the traffic on Prime Day.
  10. 10. PRIME DAY PREDICTIONS | 2019 RETAILERS THAT ARE GROWING WILL EXPERIENCE A HALO EFFECT • Retailers in the average and above average growth buckets saw a revenue lift greater than 15% on Prime Day. • Retailers who are growing below the industry benchmark saw almost no lift on Prime Day.
  11. 11. PRIME DAY PREDICTIONS | 2019 PHYSICAL LOCATIONS GIVE AN EDGE ON PRIME DAY • Consumers usually use Buy- Online-Pick-Up-In-Store (BOPIS) for less expensive items that result in a smaller AverageOrderValue. • Prime Day brings BOPIS order values up closer to the online average.
  12. 12. PRIME DAY PREDICTIONS | 2019 EMAILWILL BETHE KEYTO A SUCCESSFUL PRIME DAY • Retailers who showed the highest share of their revenue coming from their email campaigns saw a significant Halo effect last year. • Retailers with a poorly developed or completely undeveloped email channel saw zero lift on Prime Day. • Overall, the email channel saw an 8.8% increase in order share on Prime Day. 8.8 % INCREASE IN SHARE OF ORDERS ON PRIME DAY
  13. 13. PRIME DAY PREDICTIONS | 2019 HEIGHTENED ENGAGEMENT WITHVIDEO ADS • While video advertising CPMs stay relatively flat for Prime Day, engagement is heightened, with click-through- rates up 55% and viewable completion rates up 20% • This engagement lift is primarily driven through desktop, indicating advertisers should focus their energy here rather than mobile
  14. 14. PRIME DAY PREDICTIONS | 2019 THE DEMOGRAPHICS OFTHE “PRIME DAY HALO EFFECT” SKEW MIDDLE CLASS AND URBAN • Some of the major cities with the biggest Prime Day lift: • Baton Rouge, LA • Mooresville, NC • Long Beach, CA Methodology: analysis based on Census county data combined w/ Adobe Analytics
  15. 15. PRIME DAY PREDICTIONS | 2019 WHERETO FINDTHE BEST PRIME DAY DISCOUNTS • The best deals on Prime Day can be found on electronics, apparel, and home goods • Discounts on home goods and electronics are on par with discounts found on Cyber Monday, while Prime Day apparel and linen discounts outpace holiday discounts • Look for the steepest electronic discounts on smart items, specifically watches,TVs, and home accessories
  16. 16. PRIME DAY PREDICTIONS | 2019 DEEPER DISCOUNTS DON’T ALWAYS MEAN MORE SALES • Consumers are most discount sensitive toward toys and home/garden goods, but steeper discounts on appliances, personal care products, and groceries doesn’t necessarily indicate more purchases • Items in the $50-$100 bucket see the strongest relationship between discount and units purchased
  17. 17. PRIME DAY PREDICTIONS | 2019 RETURN RATES INCREASE FOR PURCHASES MADE ON PRIME DAY • In 2018 there was a 30% increase in returns for items purchased on Prime Day, indicating that consumers are quick to buy items they don’t ultimately want