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Tradedoubler TrackerTM - May 2004

The Tradedoubler Tracker™ is a monthly report detailing online sales volumes and trends across Europe, based on Tradedoubler’s monitoring of sales made through its European network. The data contained within the tracker shows results from 700 advertisers, spanning a multitude of different sectors. Tradedoubler is an independent third party tracking technology.

May’s results support the prediction made in April’s Tracker that online spending is now experiencing a more steady and sustainable growth month on month.

With the exception of a particularly strong month in March, the graphs below demonstrate a consistent growth from February through to May in terms of total sales volumes and sales values across all sectors.

This Tracker looks in more detail at 4 of Tradedoubler’s top sectors and analyses the trends these sectors have experienced over the past 12 months.



Highlights:

  • As expected, after a slightly quieter month in April, four of the five major sectors have increased month on month in May.

  • Financial services has remained almost constant with a drop of just 3%.

  • Total sales volumes across all sectors have increased by 8% from April to May and total sales values are up by 16% over the same period.

  • The final graph above shows the results from 4 of the major sectors compared to the same period last year. These results include figures for the full year period and are analysed in greater detail below.


Sales Volume Trends over the Past Year in Leading Sectors




* Sector specific data includes results from Tradedoubler’s top 5 clients per sector
**Due to the technical process involved in reporting the performance of financial services clients, it has not been possible to include this sector in certain charts.


Highlights:

Consumer Electronics

The consumer electronics sector has increased by 141% from May 2003 to May 2004. Sales grew steadily in the second half of 2003 peaking over the busy Christmas months and since February have maintained steady growth, consistently over 100% higher than over the same period last year. This exceptional year on year growth can be attributed to a number of factors including the increase in consumer confidence in purchasing higher value items online. In addition, products within this category are easily researched online and there is less need for a customer to physically see the product they are buying.

Telecoms

Although peaking sharply over the Christmas period, sales in this sector have settled back to a level approximately 20% higher month on month than last year. The online telecoms sector was generally more established than many other sectors at this time last year, with telecoms companies providing attractive offerings to encourage customers to purchase online. Subsequently although the year on year growth in sales is significant, it has not been on the same level as the huge increases enjoyed by some other sectors.

Entertainment

Entertainment was the sector most heavily affected by the Christmas shopping period with sales in December peaking at a level almost 350% up on this time last year. Although sales have dropped off as expected following this period, volumes in May 2004 are still over 90% higher than May 2003.

When compared to the exceptional growth seen in some other sectors, this could suggest that online sales of products within the entertainment sector are affected by ‘impulse buying’ which favours traditional offline retailers. For example, a customer wanting to purchase a particular CD may prefer not to wait 2 to 3 days for a CD purchased online to arrive, and will instead purchase the item from an offline retailer and take it home there and then. Christmas sales are unaffected by the impulse buying trend as the desire to have the item right away does not apply.

Travel and Holidays

Tradedoubler’s results for the Travel sector support a recent prediction made in the Economist (May 15th – 21st 2004) that travel could be the first major industry with the majority of its sales made online – this proportion is predicted to reach 50-70% of total sales within a decade in the US with the UK approximately 3 years behind . Tradedoubler’s results show sales within this sector are 141% higher than this time last year and soared during the traditionally strong booking period from January to March. Customers like the freedom to research holidays online and pick and choose various parts of their trip from different travel companies rather than leaving this in the hands of a travel agent.

About Tradedoubler

Founded in 1999, Tradedoubler is the European leader in providing online marketing and sales solutions. Industry leaders all over Europe have partnered with Tradedoubler to work with performance-based marketing and to manage online relationships, in order to increase sales and improve online business. Tradedoubler is headquartered in Sweden with a presence in 15 other markets, and customers include Apple, Dell, John Lewis, Air France and Kelkoo.

Editorial contacts

Bite Communications
Georgina Blizzard
T: +44 (0) 20 8834 3460
E: georgina.blizzard@bitepr.com

Tradedoubler
William Cooper
T: +44 (0) 207 881 1404
E: will.cooper@tradedoubler.com