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BizReport : Ecommerce archives : November 19, 2010

Burst Media: 88% of consumers still buying holiday gifts

With less than a week to go until Thanksgiving, more than three-quarters of Americans (88.9%) still have holiday shopping to do. Although holiday ecommerce traffic ramped up in late October, much of the early traffic has been consumers doing research or comparing prices.

by Kristina Knight

burstmedia.jpgAccording to a new report from Burst Media, 43% of those already shopping are spending more in 2010 than 2009. Only about 11% of consumers have completed their holiday shopping thus far.

"With Thanksgiving a week away, crunch time is here and holiday shoppers are poised to hit the stores and the web to make their purchases," said Mark Kaefer, Director of Marketing with Burst Media. "Given signs that consumers may be spending more than expected, retailers have reason to be optimistic."

The report further found:

• 43% of those finished with holiday shopping spent 'much more' or 'somewhat more' on purchases in 2010
• 25% report spending about the same as in 2009
• 15% spent less
• 45% of those buying online report spending more in 2010
• 35% of online shoppers report spending 'about the same' as in 2009

Earlier this fall, during a pre-holiday survey, Burst Media's researchers found that only about 17% of consumers planned to spend more than in 2009 with about 36% reporting they would keep the same spending levels. So, with early shopping numbers outpacing September's survey, the 2010 holiday season does look bright for merchants.

In a related report, MediaMind is reporting that about 20% of online conversions are now the result of click-thrus; their research also found that click thru rates (CTRs) have stopped declining and reached a steady rate. Since 2008, CTRs have seen steady declines, to reach about 0.09%. In 2006, the average CTR was 0.16%.

Why the decline? MediaMind suggests it is because of the resurgence of display ads and the advanced technology that allows brands to more directly target and personalize messages to consumers.

Tags: 2010 Holiday Forecast, Burst Media, click thru rates, ecommerce, holiday shopping, MediaMind, online spending

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