Holiday Season Traffic to AOL's Shopping Channel More Than Three Times Heavier
Than Last Year
DULLES, Va.--(BUSINESS WIRE)--Dec. 16, 1998--
AOL Shoppers Spending Nearly 50% More on Wide Array of Consumer
Goods, With Toys and Apparel the Top Categories
750,000 AOL Members Become First-Time Buyers Over Past Two Weeks
With more than a week of around-the-clock shopping left until
Christmas, America Online, the industry leader in e-commerce,
Wednesday reported a significant climb in traffic to the AOL Shopping
Channel over last year, with a big boost from first-time online
shoppers and record sales among its retail partners.
Even before this year's expected last-minute rush, AOL's Shopping
Channel is attracting three-and-a-half times more shoppers than last
year, as online shopping increasingly becomes an important retail
option for consumers.
Ninety-five percent of AOL shoppers find online shopping easier
and more convenient because the cyberstores are always open, according
to new research produced by The Internet Research Group for America
Online.
The most popular time to shop on AOL is the "prime-time" usage
hours of 8:00 p.m. to 10:00 p.m., with nearly one-third of Shopping
Channel traffic occurring when "brick and mortar" stores are closed
between 10 p.m. and 10 a.m.
AOL's Most Popular Categories for 1998 -- Toys Moves to No. 1,
Apparel Still Strong
Mainstream consumer products -- including toys, apparel, books
and music -- are the most popular retail categories in the AOL
Shopping Channel. This year, toys have overtaken apparel as the
greatest driver of traffic to date. The most popular categories on AOL
this year are:
1998
1. Toys/Kids/Babies
2. Apparel
3. Books/Music
4. Electronics/Video
5. Flowers/Candy/Cards
6. Department Stores
Bob Pittman, President and Chief Operating Officer for America
Online, Inc., said: "This is a breakthrough holiday season for
shopping on AOL with our members flocking to the AOL Shopping Channel
in record numbers. More and more of these mass market consumers are
discovering the tremendous convenience, ease-of-use and value of
shopping with us and a stellar roster of commerce partners.
"And we believe that this sharp climb in online holiday shopping
will drive record traffic to the AOL Shoping Channel during the coming
year."
Research by the Internet Research Group, an independent firm
based in Radnor, PA, shows that a growing number of AOL's mass market
consumers are adopting online shopping as an integral part of their
buying behavior this holiday season:
-- The number of first time buyers on AOL continues to increase
dramatically -- Just two weeks into the holiday shopping season, AOL
has motivated 750,000 more members to make their first purchase
online;
-- AOL holiday shoppers are making frequent online purchases and
spending more per purchase than last year -- The average AOL holiday
shopper is purchasing two items online every week, and is spending
48%(a) more on each purchase for an average of $54.00;
-- AOL members are purchasing a wide array of gifts -- Among this
holiday season's AOL shoppers, 63% are buying for their kids, 60% for
their spouses, 54% for their parents and friends, 35% for themselves,
and 10% for their pets; and
-- AOL members going online to shop after pricing products and
services at stores over the weekend, the research suggests -- the
heaviest buying days on AOL this holiday season are Monday and
Tuesday.
Mr. Pittman added: "Most exciting for us is that 750,000 more AOL
members have gone from 'window-shoppers' to first-time online buyers
during this holiday season. Our veteran online shoppers are buying
more frequently and spending on average more per purchase. Together
with our retail partners, AOL is taking the convenience and value of
online shopping to a whole new level of success."
Wendy Brown, Vice President of Electronic Commerce for America
Online, Inc., said: "This holiday season tells us that AOL members are
shopping for the same wide array of consumer goods and services that
they do in the offline world for everybody on their gift list.
"We are especially encouraged to see AOL members taking advantage
of the around-the-clock convenience of shopping online. And, with just
over a week of holiday shopping to go, we anticipate that the biggest
shopping days are ahead of us."
The AOL shopping departments experiencing the biggest increases
in shopping traffic over last year are:
-- Toys, Kids, Babies +300%
-- Flowers, Candy, Cards +275%
-- Electronics & Video +230%
-- Apparel +210%
AOL Merchants Report Banner Holiday Sales
AOL merchants are seeing dramatic increases in their online sales
this holiday season. According to Phil Polishook, Vice President of
Marketing for eToys, the online toy store "had 20 times the business
from the AOL Shopping Channel this holiday season versus last year."
"Eddie Bauer's site on AOL has experienced incredible incremental
growth this year." said Sally MacKenzie of Eddie Bauer Online.
"Holiday sales thus far have been terrific. In fact, we beat our
December '97 sales number in October '98!" Cliff Sharples, CEO of
Garden.com, said, "Sales from AOL are up 500% over last year, and are
increasing as Christmas approaches."
According to Susan Daniher, Vice President of Marketing for DVD
EXPRESS, the company's sales volume "has increased ten-fold since last
December, and has doubled since the beginning of our partnership with
AOL in September. This holiday season, the company is seeing a new
sales record every day."
"Since early November, weekly sales at Bluefly.com, a leading
online retailer for brand name apparel, have increased by
approximately 700%," said Jonathan Morris, Executive Vice President of
Bluefly, Inc. "In that same period, the total number of registered
users on Bluefly.com grew approximately 300% to more than 19,000."
He added: "AOL customers are clearly comfortable shopping online
and have contributed greatly to Bluefly's holiday success. It's clear
from our sales results that many AOL members are opting to buy online
rather than wait in lines this holiday season."
"This November, Omaha Steaks Internet sales more than doubled
over the same month last year," said Stephanie Healy, Interactive
Sales Manager for Omaha Steaks. "AOL does a wonderful job building
community and boosting confidence of AOL shoppers. It also does an
excellent job of facilitating shopping by directing them to stores
such as Omaha Steaks."
About AOL Shopping
With more than 14 million members on AOL -- and millions more
other Internet users on AOL.COM -- America Online is the undisputed
leader in the online marketplace, bringing together the best roster of
name-brand retail partners with the largest audience of shoppers
anywhere in cyberspace.
More people use America Online to shop than any other destination
in cyberspace because, with more than 110 of the best brand name
partners offering the largest variety of popular consumer products,
AOL makes it easy and convenient for consumers to locate and buy the
products they are looking for.
With the Shopping Channel on AOL and AOL.COM, consumers need only
visit one shopping site - rather than multiple stores - to find what
they are interested in buying. All of this -- brand name merchants,
one-stop-shopping, and great new features and programming -- makes AOL
the most popular place to browse and e-shop this holiday season, and
throughout the year.
About America Online
America Online, Inc., based in Dulles, Virginia, is the world's
leader in branded interactive services and content. America Online,
Inc. operates two worldwide Internet services: America Online, with
more than 14 million members; and CompuServe, with approximately 2
million members. America Online, Inc. also operates AOL Studios, a
leading builder of Internet brands for new market segments.
Other branded Internet services operated by America Online, Inc.
include AOL.COM, the world's most accessed Web site from home; Digital
City, Inc., the No. 1 branded local content network and community
guide on AOL and the Internet; AOL NetFind, AOL's comprehensive guide
to the Internet; AOL Instant Messenger, an instant messaging tool
available on both AOL and the Internet; and ICQ, an instant
communication and chat technology on the Internet.
(a) based on Ascolese Associates research, January 1998
CONTACT:
America Online Inc.
Wendy Goldberg, 703/265-2359 |
