United Kingdom Newsletter - November, 2007

Specific to this issue:
UK Retail Industry Gadgets
Hitwise and Google are now offering a new joint iGoogle gadget as part of a broad partnership between Google and leading research, trade and media organisations to help the UK Retail industry and its agencies connect with consumers.

A free set of customisable iGoogle gadgets, designed to provide Retail news, information, industry data and creative examples, is now available.

The dynamic Retail package can be downloaded for free through iGoogle here.

High Street Retailers Overtake Pure-play Retailers Online
It looks like this year will be a bumper Christmas online for traditional bricks and mortar brands as recent analysis shows that high street retailers received over half of all UK Internet visits to online retailers during October (based on two Hitwise custom categories consisting of the top 50 high street and non-high street online retailers in the UK, excluding online auctions and ticket retailers). 51.1% of visits were to an online retailer that also has an offline presence, such as Argos, Marks & Spencer and Next, while 48.9% were to a retailer without a high street presence, such as Amazon, Dell and ASOS.

Traditionally high street retailers receive less online traffic than their pure-play online competitors, except during the Christmas and January sales period. In 2006, high street retailers only overtook their online rivals during the peak month of December, but this year they overtook in September and have been widening the gap ever since.

Search engines are the largest source of traffic to both high street and pure-play retailers online. However, high street retailers were more successful at gaining traffic from search engines during October, with Search Engines accounting for 37.1% of their upstream traffic compared to 30.4% for the pure-play online retailers.

Email marketing is also an important source of traffic for retailers in the run up to Christmas, with one in 20 visits to a Shopping and Classifieds website coming from web-based email websites in October. Analysis from CheetahMail, Experian's email marketing and website analytics company, reveals that UK consumers spent an average of £85 online in response to permission-based email offers from apparel retailers in October 2007.

The Apparel and Accessories sector has seen the largest online growth of the 19 Hitwise retail sub-sectors, increasing its share of visits from 6.6% to 8.4% within the online Shopping and Classifieds industry over the last 12 months. This sector now accounts for one in every 12 Internet visits to the Shopping and Classifieds industry. The top three Apparel and Accessories retail websites in October were Next (www.next.co.uk), ASOS (www.asos.com) and Topshop (www.topshop.co.uk), while 'next', 'asos' and 'topshop' were also the three most searched-for terms sending traffic to the sector.

In October, Next continued to lead the Apparel and Accessories industry, receiving twice the market share of visits and two and a half times as many brand searches as its nearest rival, ASOS. However, both ASOS and third-ranked Topshop have seen a steady growth in visits over the last year. Both websites index highly amongst females aged 18-24 and capture a higher proportion of traffic from the North West region and London compared to next.co.uk.

UK Internet Traffic to High Street Retailers and Non-High Street Retailers, October 2006 - October 2007

Evaluating Online Partners Based on New and Returning Traffic - New!
Hitwise can now help you gauge the effectiveness of online partners in driving new and repeat traffic to your website. The addition of New and Returning data to our clickstream tool will help websites evaluate whether their online partners are providing an above average New Visitor Rate. For example, clickstream data reveals that Boden's recent advertising campaign on Facebook is proving to be successful in driving new visitors to their website, with 75% of referral traffic originating from 'new' users - an overrepresentation of 35% (135) compared to the overall New Visitor Rate for the website.

For Hitwise clients who would like to discuss this application further, please contact Hitwise Customer Support, or visit the Hitwise University and review the New and Returning Visitors (Clickstream) FAQ.

To learn more about Hitwise Clickstream data, download the Hitwise Clickstream Product Fact Sheet.

The following report shows the most popular upstream websites for the 'www.boden.co.uk' website for the week ending 03/11/2007.
  Rank Website Upstream Share New Visitor Rate Returning Visitor Rate Representation
1. www.google.co.uk 28.10% 56.57% 43.43% 101
2. www.google.com 5.74% 57.76% 42.24% 103
3. mail.live.com 5.34% 55.41% 44.59% 99
4. www.ebay.co.uk 4.70% 33.60% 66.40% 60
5. www.facebook.com 3.67% 75.53% 24.47% 135

Financial Websites Most Visited by Men from the Mosaic Group “Symbols of Success”
Based on those websites that had the greatest proportion of traffic from Males in the Mosaic Group "Symbols of Success", week ending 13th October 2007.

Business and Finance (Top 1000 sites) » All sites » Demographic site search » 4 weeks ending 13/10/2007
  Rank Site Domain Gender % Mosaic UK Group %
1. E*TRADE www.etrade.com 65.59% 48.42%
2. British Airline Pilots Association www.balpa.org 79.29% 38.91%
3. Forex Factory www.forexfactory.com 80.08% 37.43%
4. Investegate www.investegate.co.uk 82.44% 32.78%
5. Aegon Scottish Equitable www.aegonse.co.uk 67.45% 35.71%
6. Bestinvest www.bestinvest.co.uk 69.19% 34.23%
7. Wall Street Journal www.wsj.com 59.75% 39.35%
8. Investors Chronicle Online www.investorschronicle.co.uk 66.94% 33.91%
9. Hargreaves Lansdown www.h-l.co.uk 70.29% 31.27%
10. PLUS Markets Group www.plusmarketsgroup.com 73.83% 29.68%

Social Networks Overtake Webmail
During October, UK Internet visits to social networks overtook visits to web-based email services for the first time. A custom category of the top 25 social networks, which includes Facebook, Bebo and MySpace, accounted for 5.17% of all UK Internet visits during October 2007, compared to 4.98% for Computers and Internet - Email Services, which includes Hotmail, Yahoo! Mail and Gmail, amongst others.

This confirms that social networks are starting to eat into the web-based email providers' dominance of the Internet messaging market. A growing proportion of the UK online population is choosing to communicate with friends via social networks rather than email. In October, social networks referred as much traffic to other websites as web-based email services.

Hitwise Demographics data for the four weeks ending 27th October 2007 shows that age plays a role in the choice between using a web-based email or a social network, with Internet users aged 18-34 more likely to use Facebook, while older surfers, 35+, choose Windows Live Mail.

Apple iPhone - www.apple.com/iphone
Week ending 27th October: #40 (within Business & Finance - Telecommunications)
Week ending 10th November: #19
Places moved: 21

UK Internet visits to the Apple iPhone website increased by 127% for the week ending 10th November as the Apple iPhone was launched in the UK on November 9.

Ahead of the launch, Apple received the most traffic from the term 'iphone'; with more people going to the global iPhone page (www.apple.com/iphone) than the UK homepage (http://www.apple.com/uk), based on weekly search term data for the week ending 10th November.
Visits to www.o2.co.uk and www.carphonewarehouse.com, the official retailers of the iPhone, increased by 18% and 26% respectively over the same period.

Media queries at Hitwise

If you are interested in using Hitwise content and statistics in publications and presentations, we encourage you to do so. Please source the content as "Hitwise United Kingdom - hitwise.co.uk".

Additionally - if you require assistance with statistics or content, please feel free to contact Jannie Cahill at jannie.cahill@hitwise.com.

About this Newsletter

This monthly e-mail Newsletter is designed to provide Hitwise subscribers with analysis of new developments, industry trends and competitive activity. The powerful real-time web intelligence capabilities of Hitwise and a continual flow of additional research findings make this an indispensable business resource.

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