Despite the economic downturn, the prognosis for e-commerce looks good for this holiday shopping season and for long term Internet marketing growth. Several indicators point towards continued expansion for online sales and emerging Internet media for targeted advertising.
“Despite slowing retail sales in many channels this holiday shopping season, online shopping is likely to be one of the few bright spots this holiday season,” said in a statement Mary Brett Whitfield, a director at the market research firm TNS.
Consumer survey findings released by TNS in conjunction with The Conference Board indicate that spending in retail stores will likely decrease, while online sales increase.
Catalogers and discount retailers operate the most popular e-commerce Web sites. TNS projects total online sales will reach $42.5 billion in the fourth quarter, up $3.5 billion from the same quarter last year.
However, women shoppers have been migrating more to Web sites operate by discount retailers
The number online households planning to spend more than $500 in stores this year has decreased to 16%, compared to 21% last year.
About 5% of online consumers are planning to spend more than $500 online this year, compared to 4% last year.
Growth in online sales will driven by offers of free shipping, coupons, discounts and other incentives, according to the report. Product categories likely to generate the most online sales are books, clothing, movies and toys.
Other Internet media channels for mobile marketing and social networking Web sites are expected to become major growth areas for marketers in the next two years, according research from Halyard Capital, a New York-based equity capital firm.
Mobile marketing can be expected to grow faster than Internet advertising networks, search marketing and display advertising, according to Halyard’s research.
Operators of social networking Web sites, advertisers and search marketers will find new ways to exploit information contained in online consumer profiles for commercial purposes, predicts the online research services firm Contentinople Insider.
