NIELSEN//NETRATINGS REVEALS ONLINE SHOPPING JUMPS
21.8% THE DAY AFTER CHRISTMAS

Traffic to Hallmark and 1-800-Flowers Peaked Right Before December 25

NEW YORK – December 30, 1999 – Nielsen//NetRatings, the Internet measurement service of Nielsen Media Research and NetRatings, Inc. (NASDAQ: NTRT), today announced that Internet traffic on the day after Christmas rose 21.8 percent (see Table 1). Beginning Dec. 26, traffic online paralleled brick-and-mortar stores as shoppers rushed to commerce sites in search of post-Christmas specials.

According to the Nielsen//NetRatings Holiday E-Commerce Index, Hallmark and 1-800-Flowers spiked in traffic during the week ending December 26, suggesting many procrastinators sought electronic greeting cards and floral arrangements as last-minute gifts. Hallmark posted a weekly high of 496,000 visitors while 1-800-Flowers had approximately 252,000 visitors rush to its site.

Table 1. Nielsen//NetRatings Holiday E-Commerce Index
Daily Traffic for Dec. 12, Dec. 19-28
Date

Unique Audience (in millions)

Daily Percent Change from Previous Day

12-Dec

4.89

--

19-Dec

4.29

--

20-Dec

3.92

-8.6%

21-Dec

3.89

-0.8%

22-Dec

3.52

-9.5%

23-Dec

3.30

-6.3%

24-Dec

3.04

-7.9%

25-Dec

2.66

-12.5%

26-Dec

3.24

21.8%

27-Dec

3.70

14.2%

28-Dec

3.89

5.1%

29-Dec

3.88

-0.2%

Source: Nielsen//NetRatings Overnight Analysis, December 1999

Traffic dropped progressively in the days leading up to Dec. 25, with Christmas Day showing the lowest point of shopping activity on the Internet. December 12 marked the busiest day online during the holiday season.

The e-commerce world did its best to mimic the offline world to lure surfers and bargain hunters. Post-holiday sales were widespread and well-publicized on sites. Prices for Christmas decorations were cut by at least half.

"Wish lists created throughout the holiday season made post-Christmas purchases easier for those who knew exactly what they wanted. One could simply go to the wish list he or she created in October, and with a few clicks, the item is on its way," said Allen Weiner, vice president of analytical services at NetRatings, Inc.

 

Nielsen//NetRatings Holiday E-Commerce Index
The Nielsen//NetRatings Holiday E-Commerce Index showed a drop of 13.4 percent for the week leading up to Christmas Day (see Table 2). According to the index, software was the only category that increased in traffic this past week. Categories showing the greatest decline in traffic were toys (-42.9%), comparison sites (-35.2%) and electronics (-35.0%).

Software
With Y2K approaching, the computer hardware category suffered, but software has rallied.

"The likely reasoning here is that computer owners are buying software that allows them to ward off ‘new Millennium’ viruses as well as save or backup files on home computers," said Weiner. "Once Y2K fears die down, the computer hardware category should perk up."

Table 2. Nielsen//NetRatings Holiday E-Commerce Index
Percent Change in Unique Audience as Compared to the Prior Week

Category

% Change for Week Ending Dec. 19

% Change for Week Ending Dec. 26

TOYS

-14.0%

-42.9%

COMPARISON

4.0%

-35.2%

ELECTRONICS

0.1%

-35.0%

APPAREL

-8.5%

-27.6%

MALLS

-12.2%

-27.2%

GIFTS

-20.9%

-25.0%

BOOKS/MUSIC/VIDEO

-3.4%

-21.2%

COMPUTER HARDWARE

9.1%

-15.0%

AUCTIONS

1.3%

-6.8%

SOFTWARE

-4.4%

13.6%

TOTAL

-3.8%

-13.4%

Note: This index is comprised of five representative sites for each category, and acts as a barometer for
gauging the level of interest at commerce sites during the holiday season.

Source: Nielsen//NetRatings, December 1999

About Nielsen//NetRatings
Nielsen//NetRatings, the audience measurement service from Nielsen Media Research and NetRatings, Inc., collects data from more than 38,000 panelists as they use the Internet at home. The Nielsen//NetRatings panel is the largest media research sample of at-home Internet users currently under measurement. Nielsen//NetRatings uses unique technology capable of measuring both Internet use and advertising to provide the most timely, accurate and comprehensive Internet usage data and advertising information in the industry.

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