Posts Tagged ‘eMarketer’

Online Consumer Packaged Goods Sales Soaring

May 10, 2010

From eMarketer:

Following some of the dismal failures of the dot-com-crazy 1990s, consumer packaged goods (CPG) e-tailers are making real inroads in e-commerce. The advent of broadband, more efficient online retailing strategies and consumers’ wider acceptance of Internet shopping are driving the resurgence.

Online CPG sales now stand at $12 billion, triple what they were in 2004, according to Nielsen. By 2012, online CPG sales are expected to hit $16 billion. That would account for more than 3% of the total $475 billion in e-commerce sales projected for that year.

US CPG E-Commerce Sales

US Consumer Packaged Goods E-Commerce Sales

“Business models vary, but a successful online CPG selling model must fill one of two key consumer needs: convenience or a shopper’s desire to purchase hard-to-find products,” according to the new eMarketer report “Consumer Packaged Goods Take E-Commerce Path”. “While sticker shock is a no-no, deep discounting is rarely part of the online CPG selling model.”

To learn more about which Consumer Packaged Goods categories sell better online than others order eMarketer’s report.

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Local Online Advertising Spending Up?

November 3, 2009

eMarketer has published predictions for the online advertising industry over the next five years from two sources with conflicting points of view.

Piper Jaffrey predicts a compound annual growth rate of 9% for local online ad dollars compared to 4% for national internet advertising spending.

Local Online Spending

Local Online Spending

Borrell Associates on the other hand predicts a much smaller 2.9% compound annual growth rate over the next five years for the local internet advertising market.

From eMarketer:

While Borrell believes the local online market is approaching saturation, Piper Jaffray indicates in its report that small businesses will begin to catch up with consumers online, bringing significant growth to the local online sector and moving local dollars from offline to the Web.

Piper Jaffray considers lead generation the primary goal of local advertising, and suggests that mobile presents a major opportunity on that front. With online search the preferred method to find local business info, and consumers highly connected to their mobile phones, especially during the weekends, the research firm predicts huge growth in mobile search spending through 2012.

US Mobile Paid Search Spending

US Mobile Paid Search Spending

“Local lead gen companies will play a key role in bringing small businesses into mobile advertising,” according to the report. “Small businesses need to understand that mobile can be as valuable a channel as online and lead gen players be the educators.”

While each analyst has well thought out and reasoned positions, I think both of their predictions will be proven wrong!