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Archive for November, 2006

comScore: Online Retail Sales on Record Pace

21 Nov 2006

comScore Networks released its U.S. e-commerce sales estimates for the third quarter of 2006 and forecast for the full year, estimating that non-travel e-commerce will break the $100 billion threshold for the first time.

In the third quarter, online retail (non-travel) spending increased to $23.1 billion (up 23 percent from a year earlier), while travel spending reached $18.2 billion (up 9 percent), despite a slowing rate of growth, comScore reports. Overall, total online spending by consumers reached $41.3 billion in the third quarter - a 16 percent increase from the year-earlier period.

Some retail categories far outperformed the average year-over-year growth of 23 percent, including consumer electronics (excluding PC Peripherals), which rose 42 percent, and apparel & accessories, up 32 percent; the sport & fitness and computer software (excluding PC games) categories rose 29 percent and 27 percent, respectively.

Year-to-date online spending (travel and retail) remains strong and is on pace to reach $170 billion in 2006. Through the first three quarters of 2006, total e-commerce spending rose 19 percent compared with last year, reaching $122.1 billion. Retail spending increased 24 percent, reaching $69.1 billion; online travel spending increased 13 percent, to $52.9 billion.

News Source: http://www.marketingvox.com

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Online Travel Spending to Hit $128B in 2011

16 Nov 2006

A new report by JupiterResearch estimates that $128 billion in travel will be spent online in the United States in 2011. The study, titled “US Travel Forecast, 2006 to 2011,” also predicts that 38 percent of travel revenue will be made online in 2011. Higher fares and more people flying will be the main drivers of the increase in total online air travel revenue, which will grow from $49 billion this year to $72 billion by 2011, according Jupiter.

“Online travel revenue will continue to grow strongly from $85 billion in 2006,” said Diane Clarkson, analyst at JupiterResearch and lead author of the report. “Factors that will spur online spending are greater consumer wallet share, increasingly sophisticated products available online, and improved online compliance in business travel.”

The report also predicts that hotel reservations will continue to move away from the telephone, as more customers make their reservations online.

News Source: http://www.marketingvox.com

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Jupiter: Media & Entertainment to Lead Online Ad Spend

07 Nov 2006

Online advertising spend from companies in the media and entertainment, financial services, and travel and automotive categories will account for the majority of online advertising spending within five years.

Online advertising spend in those four categories will total $11.5 billion in 2011, according to a new JupiterResearch report, “US Online Category Advertising Forecast, 2006 to 2011.” That amount will account for 57 percent of all online ad spending that year. “Media & entertainment and financial services advertisers benefit from business models that work well online,” said Emily Riley, JupiterResearch analyst and lead author of the report.

In 2011, automotive and travel advertisers will be the third and fourth largest contributors, respectively, to online spending, following financial services in second place, according to Jupiter. The largest online advertiser category will be media & entertainment, and it will also account for over one quarter of search spending overall.

“Audience fragmentation and ecommerce patterns will continue to drive brand and direct response advertisers to shift off-line budgets online,” said David Schatsky, president of JupiterKagan. “With consumers spending as much time going online as watching television - a median of 14 hours per week - the shifting of budgets to online advertising is inevitable.”

News Source: http://www.marketingvox.com

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Web reaches new milestone: 100 million sites

1 Nov 2006

Are your Web surfing fingers getting tired?

There may be a reason. Netcraft, an Internet monitoring company that has tracked Web growth since 1995, says a mammoth milestone was reached during the month of October.

“There are now 100 million Web sites with domain names and content on them,” said Netcraft’s Rich Miller.

“Within that, there are some that are busy and updated more often, and that represents the active sites, which are at about 47 or 48 million,” he said.

Bloggers, small businesses, and simplicity have combined to create the dramatic growth of sites, much of it just in the past two years.

“The bottom line is it’s much easier to create a Web site nowadays, and it’s much easier to make money with a Web site,” said Miller.

Netcraft uses the domain name system to identify Web sites, check how many of them are in a particular location, such as what operating system and Web server software they’re running, and then publishes its information in a monthly report.

There were just 18,000 Web sites when Netcraft, based in Bath, England, began keeping track in August of 1995. It took until May of 2004 to reach the 50 million milestone; then only 30 more months to hit 100 million, late in the month of October 2006.

Netcraft says the United States, Germany, China, South Korea and Japan show the greatest Web site growing spurts.

Today there are seemingly endless Web sites for shopping, social networking, and, of course, sleaze.

But what was the subject of Web site number one in 1989?

“When the Web was started, it was started as a mechanism for sharing high energy particle physics data,” said Professor Rebecca Grinter of Georgia Tech’s College of Computing.

The creator of that Web site, Tim Berners-Lee, wanted experts to be able to share data on particle smashing, even if they weren’t at CERN in Switzerland where he was doing research. CERN, in Geneva, is the European Organization for Nuclear Research.

Research facilities and universities soon started seeing benefits of this new tool for things as lofty as nuclear physics and as mundane as sharing restaurant recommendations.

Even today CERN proudly proclaims on its home page, “The world’s largest particle physics laboratory, where the Web was born!”

It did not take long for this technological baby to flourish.

“As is true of many things, if you teach a lot of students how to do something, these students go somewhere, and around ‘96, lo and behold, you see this much more significant transition of the Internet,” said Grinter.

Soon, a Web “explosion” took place when businesses realized they could use the Internet to make money.

“Web sites begin to be incorporated into advertising. So that just sort of raises the awareness of the general public,” said Grinter.

And by the mid-’90s the cost of personal computers had fallen enough so that the Internet began entering peoples homes and schools as well as their workplaces.

The cost, and the complexity of creating Web sites have both diminished since the beginning of the 21st century.

Computer users no longer have to be experts in HTML, or hypertext markup language, to be masters of their own Web sites.

“There have been price wars going on in both the domain name and Web hosting industries for some time now, and as a result it’s very affordable to create your own Web site, and the tools, the software being offered by these companies are much better,” said Miller.

Blogs and social networking sites link family, friends and experts in just about everything.
Bond and belong

“What we’ve seen is people finding interesting new ways to use the Web to showcase their information and their expertise; particularly in niches in all kinds of subjects where it’s really just opened the door to new uses of the Web,” said Miller.

Whether it is sharing photographs on Flickr.com, showing off an amateur video on YouTube, or looking for a mate on Match.com, Web sites have also become a way to bond and belong.

“The history of humanity is the history of being part of a group, having a group mentality, and the Internet makes a whole other set of those groups possible,” said Grinter. “And they don’t have to be physically proximate to you, you can create content for people who are physically distant,” she said.

So will a URL someday be as common as a birth name and a Social Security number?

For some celebrities, it already is. Angelina Jolie and Brad Pitt registered domains for all three of their children.

And in both the business world and the social scene, a Web site is now an identifier almost as common as a phone number or an e-mail address.

“The Web has gone from being a very straightforward thing where you put some text and perhaps some images, to being this incredibly powerful medium in and of itself. You can engage so much more dynamically, and so many more people are doing so many more things. And who knows what will come about tomorrow?” said Grinter.

News Source: http://www.cnn.com

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