Massive US Online Spending Up
Online spending in the US grew by almost a fifth to a massive $47.5 billion during the second quarter of 2007, indicating the huge impact of internet marketing.
Digital measurement expert comScore found that non-travel e-commerce increased by a whopping 23 per cent to $27.2 billion, while travel spending on the web grew by 14 per cent to $20.3 billion.
The comScore study also predicted that online consumer spending in the States would probably reach $200 billion in 2007, as more and more shoppers shun the high street in favour of the ease and good value of the internet.
Video games, consoles and accessories sales rose especially sharply, rising 159 per cent compared to the second quarter of 2006.
Other categories that grew rapidly included sport and fitness, consumer electronics, event tickets, jewellery and watches, and furniture and appliances.
The figures demonstrate the massive response garnered by internet advertising.
“Even factoring in the moderate growth rates from Q1, we’re currently on pace to break $200 billion in e-commerce spending in 2007,” said comScore chairman Gian Fulgoni.
“However, in the past we’ve seen growth rates accelerate as the year progresses, culminating with the online holiday shopping season, so $200 billion may actually turn out to be a conservative estimate.”
A recent report from IPA showed that online marketing budgets are increasing fast as companies come to see the benefits of the medium. In the second quarter, 24 per cent of firms reported an increase in their total marketing budgets, with internet advertising posting the strongest gains.