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July has seen total sales volumes across TradeDoubler’s network increase by seven per cent compared to June. Interestingly, sales values over the same period have decreased by 22%. This disparity between number of sales generated and the value of these sales can be partly attributed to the fact that retailers are increasingly tying their online offers in with their offline activity. The summer sales discounts traditionally associated with offline retail stores can now also be found online, hence the number of sales increases as customers flock to make the most of the discounts available and subsequently the value of these sales is lower.

Sales in four leading sectors (Financial Services, Telecoms, Entertainment and Travel*) have either remained constant or decreased month-on-month in July, a traditionally quieter month. August is also expected to be relatively quiet before the busy pre-Christmas sales period begins in earnest in September. Taking into consideration the impact of the Euro 2004 football championships, the Olympics are predicted to contribute towards a slower August as people spend less time online. It is also expected that advertisers marketing budgets will be allocated to more traditional offline channels, such as television during the Olympics.

Highlights:

The Consumer Electronics sector has increased by 23% month on month as the latest digital music players continue to gain popularity and consumers take advantage of attractive sale prices for a wide range of other goods
Other sectors, as mentioned above, remain more or less constant or slightly down, as expected during this typically quiet time of year.

The travel sector has decreased by just one per cent. From June to July last year this sector saw a much greater drop of seven per cent. The recent poor weather has meant people have waited until later to book their holidays and a rush of last minute bookings in July has contributed to the continued strong bookings this month.

Year-on-year the entertainment sector has increased the least by 49%, the lowest of all sectors tracked by TradeDoubler. This indicates that this sector which took off early in terms of online sales, is now maturing and showing slower growth than other sectors which were not doing as well this time last year. A number of large global entertainment companies have already responded to this slow down in growth of their core business by branching into other product areas.

Although sales volumes in four of the five leading sectors have not increased, the total number of sales generated though TradeDoubler’s network has grown steadily month-on-month by seven per cent.

At the same time, sales values have decreased by 22%. The summer sales and an increase in sales of lower value items have contributed to this as outlined in more detail above.

* Sector specific data includes results from TradeDoubler’s top five clients per sector covering the top 5 sectors: Financial Services, Consumer Electronics, Telecoms, Entertainment and Travel.

The TradeDoubler Tracker™ is a monthly report detailing online sales volumes and trends across Europe, based on TradeDoubler’s monitoring of sales made through its European network. The data contained within the tracker shows results from 750 advertisers, spanning a multitude of different sectors.

The data contained within this tracker is provided by TradeDoubler’s independent third party tracking technology

* Sector specific data includes results from TradeDoubler’s top five clients per sector covering the top 5 sectors: Financial Services, Consumer Electronics, Telecoms, Entertainment and Travel.

About TradeDoubler

Founded in 1999, TradeDoubler is the European leader in providing online marketing and sales solutions. Industry leaders all over Europe have partnered with TradeDoubler to work with performance-based marketing and to manage online relationships, in order to increase sales and improve online business. TradeDoubler is headquartered in Sweden with a presence in 15 other markets, and customers include Apple, Dell, John Lewis, Air France and Kelkoo. Please visit www.tradedoubler.com for further information.

Editorial Contacts

Bite Communications
Georgina Blizzard

T: +44 (0) 208 834 3460

E: georgina.blizzard@bitepr.com

TradeDoubler
William Cooper

T: +44 (0) 207 881 1404

E: will.cooper@tradedoubler.com

Published on: 12:00AM on 9th August 2004