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Hitwise Intelligence - Robin Goad - UK

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UK Internet users spending more time on social networks than shopping online

April 21, 2009

UK Internet users are spending less of their online time shopping and more time browsing online media. During March 2009, 8.6% of all UK Internet visits went to online retail websites and 9.8% to social networking websites. A year ago, in March 2008, the figures were reversed: online retailers accounted for 9.7% of all UK Internet visits, and social networks 8.2%. Over the same time period, the share of UK Internet visits attributed to Entertainment websites (11.4% in March 2008, 11.6% in March 2009) and News and Media websites (5.0% in March 2008, 5.6% in March 2009) has also increased.

UK_Internet_traffic_to_social_networks_online_reteailers_2009_2008_chart.png

The growth of social networking, online video and the continuing popularity of news websites has meant that an increasing proportion of consumer’s online time in the UK has been devoted to online media. Historically this has gone hand in hand with the growth of online retail, but over the last 3 months online retailers seem to be really suffering from the economic downturn for the first time. Traffic to online retailers always peaks over the Christmas period, then declines during January and February, but picks up in March. Last year UK Internet traffic to online retailers increased by 0.8% between February and March, but this year it fell by 0.1%. The decline between December and February was also greater this year.

Electronics retailers and department stores have experienced the most significant declines in traffic since Christmas, although the recent Spring sales acted as a temporary boost for the latter category. However, despite the post-Christmas decline in online retail, there are a number of categories that continue to outperform the general market Online fashion was the fastest growing online retail category during 2009 and continues to perform well, despite growth slowing. Sports retailers are also doing well, helped in part by the demand for the new England football kit.

The good weather over the last few weeks has led to an increase in searches for garden furniture and tools, with a corresponding increase in traffic to House and Garden retailers. Finally, Classifieds websites have seen their UK Internet traffic increase by 15% over the last 12 months as people look to buy and sell second hand goods online.

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