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Hitwise Intelligence - Robin Goad - UK

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The changing facets of social shopping online

April 07, 2011

We had quite a few comments on my post last month about Groupon UK and the rise of social shopping. Given the interest surrounding this topic, I thought I’d follow up with a post which concentrates on the key differences between the four key types of retail affiliate: Price Comparison sites, Cashback sites, Voucher sites and Social Shopping sites.

One of the first things to realise is that these four groups attract very different online audiences. Using Mosaic, Experian’s in-house audience segmentation system, we can see what types of people are visiting the four categories.

Social Shopping Mosaic Spider.png

The spider diagram above highlights how different UK Internet audiences use Rewards and Directories sites. Cashback sites for example are most popular with the Careers and Kids and New Homemakers groups, typified by modern professionals with young families. Price Comparison sites are popular with a number of the more affluent groups including Professional Rewards and Rural Solitude. Social Shopping sites on the other hand attract Terraced Melting Pot and Liberal Opinions, which are young urbanites of a brand range of ethnicities living in big metropolises.

As well as attracting different audiences, the four groups cater for diverse sectors of the online retail market. Looking at the breakdown of downstream traffic from each of the four groups, there are distinct variations in where traffic is being sent. Department Stores such as Amazon, John Lewis and Debenhams receive the highest proportion of traffic from Price Comparison Sites, Cashback Sites and Voucher Sites. Where Social Shopping Sites depart from this trend is that most of the traffic sent from Social Shopping Sites like Groupon goes directly to fashion retailers in the Apparel and Accessories category.

Social Shopping downstream heatmap.png

We can drill into this further by observing some of the search data of product-related search terms which are driving traffic to the four key sectors.

Social Shopping industry search terms.png

I’ve divided these search terms into broad product categories of fashion (green), technology (blue), entertainment/travel (pink), home (purple) and insurance (red). So top search terms which are driving traffic to Price Comparison websites are predominantly technology and entertainment based, including searches for ‘ipad 2’ ‘kindle’ and ‘star wars games’. Cashback sites are very much driven by technology products, whereas Voucher sites are driven by insurance products and entertainment products, especially for food and restaurant vouchers. Again, Social Shopping caters to quite a unique niche, with the majority of its top product search terms relating to fashion.

What is very apparent about the search terms driving traffic to Social Shopping sites is that most of them are very specific, looking for items like ‘maxi dresses’, ‘high waisted jeans’ and ‘grecian dresses’. In fact 1.4% of all search terms driving traffic to the Social Shopping category include the word ‘dress’ or ‘dresses’.

As I said in my previous blog, social shopping is definitely a growing trend. What these results highlight is that social shopping is catering to a different audience from the rest of the Rewards and Directories sites and is principally focussed on apparel products sold by fashion retailers.

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Posted by Robin Goad at 01:25 PM | (6) | (0)
In Categories Demographics | Fashion | Insurance | Mosaic lifestyle | Search | Shopping and Classifieds | Social networks

Comments

Brilliant article. Thanks.

Posted by Best Bingo Sites | April 7, 2011 01:43 PM

Great article!

Do you have a bigger version of the spider diagram?

Thanks!

Posted by Justin | April 11, 2011 10:40 AM

Sadly the constraints of the blog mean we have to post the pictures quite small to make sure they fit on the page. I have however emailed you a copy of spider diagram in full size.

James

Posted by James Murray | April 11, 2011 04:21 PM

Hi Robin, super interesting post and really enjoyed reading it, but want to know more. Though the search terms driving traffic to these sites are specific in some respects, I still find them somewhat general, especially as it pertains to fashion, and would be curious to know a bit more about what users were thinking and what their exact intent was when they entered these terms and subsequently engaged with these sites. e.g. was someone searching for a maxi dress and had absolutely no preference about brand, style, etc?

Were they seeking information or opinions on what was out there, or what? While I don't know the exact details of the personas you created or people you interviewed, somehow I have a hard time imagining that a young urbanite living in a major metropolis would be completely brand agnostic and be searching purely based on value.

As well, I'm curious about the full breadth or other examples of sites you classified as 'social shopping' since I also feel a disconnect between Groupon for example being a place where a young urbanite seeking shoes might turn to. Any more details insight, etc to whet my curiosity? :) Really looking forward to hearing more!

Posted by Emeka Patrick | April 11, 2011 09:53 PM

Hi Emeka, thanks for your post. There is quite a lot to cover here but I'll do my best to keep it concise.

(1) This list only covers the top 15 products in each category, not the top 15 search terms overall (which contain brand terms). As you can imagine there are thousands of terms so these top 15 are just a flavour, and the more generic searches tend to rise to the top with more specific branded searches lower down the list.

(2) Deriving intent is quite difficult without looking at quite specific search terms. So someone looking for 'ipad 2' might be looking to buy one or just find information out about one. There are clues, so if someone searches for 'ipad 2 prices' chances are they want to buy one but 'ipad 2 review' suggests they want information. Again, with the generic search terms here it's more of a flavour of the types of products people are interested in, and there is an overwhelming skew with social shopping sites to apparel and fashion brands.

(3) We don't conduct interviews, the Mosaic data is based on hundreds of sources of information which builds up our group and type profiles which is then overlaid on the Internet data we have at Hitwise. This allows us to see the types of people who visit certain websites, in this case young urbanites are more likely to visit social shopping sites than affluent rural dwellers who prefer price comparison sites.

(4) Social Shopping we've classified here as an online retail site which relies on some sort of community aspect be that through forums, social media or group buying. These sites include the likes of Groupon, LivingSocial, ShopStyle, Kaboodle and woot! among others.

Posted by Robin Goad | April 12, 2011 09:52 AM

Great data!
I'd like the spider diagram in full size too, could you please send it to me?
Thanks!

Posted by Bindy | April 13, 2011 08:38 AM

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Robin Goad

Research Director, Hitwise UK.

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