• by January 11, 2005

We mentioned last week that the online holiday shopping season was rather robust, according to data from various researchers including comScore Networks, which yesterday released its holiday and full year (2004) online spending figures.

ComScore reports that online spending from November to December hit $15.8 billion, representing a 29 percent increase, versus the $12.3 billion spent during the same period in 2003.

For all of 2004, comScore finds that total online spending reached $66.5 billion, increasing 26 percent versus 2003. Notably, spending in the travel category hit $117 billion, up 26 percent compared to 2003. For the November to December period, online spending in the travel segment hit $7.8 billion.

A comScore survey of 25 multi-channel retailers (those that sell online and offline) showed aggregate year-over-year growth that was nearly twice that of online retail in total. "While it's clear that a broad range of online merchants saw a strong season, multi-channel retailers were standouts this year," comments Dan Hess, senior vice president of industry analysis, comScore Networks, in a release. Cross-channel promotions, aggressive advertising, and speedier delivery times are partly responsible for the lift.

An analysis of online traffic to retail sites by comScore Media Metrix found that six of the top 15 gaining retail properties over the holiday season were the online storefronts of traditional offline department stores, such as Home Depot, Neiman Marcus, and Wal-Mart. This finding is quite interesting and retailers would do well to examine it further.

Decent cross-channel promotions are helping retailers get a lift. Tagging TV spots with clear references to online channels offering special online-only promotions, and perhaps free delivery, can be very effective. By the same token, flagging online stores with references to physical store locations is smart business.

Interestingly, comScore also notes that online shopping really picked up during the last two weeks of December. For the weeks ending December 19 and December 26, sales grew by 57 and 53 percent, respectively. And perhaps here is where cross-promotional capabilities demonstrated effectiveness.

ComScore says retailers that provided the ability to buy online and pick up in-store, as well as those offering local delivery, were able to offer consumers last-minute buying options as late as the day before Christmas. Later shipping deadlines enabled consumers to purchase late in the week before Christmas and still have products delivered by Christmas Eve using standard shipping. The calendar helped out! And gift cards, a popular gift option, could be delivered immediately via e-mail.