Read on for this week’s digital stats roundup, which includes news about cart abandonment, fast-growing brands, luxury shopping, and programmatic advertising.
If you’re left wanting more, be sure to check out the Internet Statistics Database.
Online grocery sites have the lowest cart abandonment rate
New data from SaleCycle has revealed that the overall cart abandonment rate for retail was 84.24% in H1 2019. Breaking down rates into retail categories, SaleCycle notes that online grocery sites have the lowest cart abandonment rate at 72%. At the other end of the spectrum, jewellery sites have the highest rate at 88.6%, followed by homeware and DIY with 88.36.
The difference between categories is understandable, as homeware and jewellery is typically expensive, with plenty of time and planning required before consumers order items. In contrast, most people are committed to a weekly grocery shop, with sites requiring users to pick a delivery slot before they even start to add items to their basket.
Instagram videos receive 49% higher interactions that images and carousels
For its Instagram Study 2019, Quintly has analysed the performance of 34,121 Instagram Business Profiles and 5.4 million posts between January 1st and June 30th 2019.
Results show that audiences are growing, with all analysed profiles growing between 9.4% to 16% in just six months. It also found that 68.2% of Instagram posts are made up of single images, followed by video posts with a share of 18%, and carousel posts with just 14%. Interestingly, however, video posts receive up to 49% higher interactions than the other two formats combined.
Next, Quintly looked at various caption lengths and how this correlates to engagement. It found that profiles with over 1m followers received more interactions for posts without captions. For all other profile groups, too, posts with a length of 1 to 50 characters worked the best, proving the theory that less is more.
Deliveroo, Costa and BrewDog named the UK’s fastest growing brands
Kantar has revealed the 2019 BrandZ™ Top 75 Most Valuable UK Brands list, naming Vodafone as the UK’s most valuable brand, with a valuation of £21.5 billion. This is followed by HSBC and Shell.
Meanwhile, despite being listed down at number 50, Deliveroo was named in the top five fastest risers, after increasing its value 54% to reach £1.1bn. Costa Coffee was also recognised for its rapid growth, largely due to its acquisition by Coco-Cola. BrewDog was named in the top five risers too, with its unique identity contributing to its valuation of £1bn.
Interestingly, Kantar states that the rate of growth for UK brands continues to fall behind those in the BrandZ Global Top 100 – which are worth 7% more than they were in 2018. What’s more, the total value of the BrandZ UK Top 75 declined 3% over the last year. Their growth is also slower than the global economy, which expanded 3.7% over the last year.
45% of luxury consumers switch between online and offline during their buying journey
New research from Attraqt, involving a survey of 3,000 UK, France and UAE luxury shoppers, has highlighted the importance of multichannel for luxury retail brands. It found that 45% of all luxury shoppers switch between online and offline channels during their path to purchase, with this percentage rising to 47% for Gen Z and Millennial shoppers.
Elsewhere, the survey uncovered that the biggest frustration for luxury shoppers when browsing online is websites and apps that force them to search through too many menus and tabs. Next, more than a fifth of respondents said that they can’t access the intricate product detail and imagery they need to feel comfortable enough to buy, while 16% said irrelevant search results in the onsite search bar is a big frustration.
Finally, online reviews came out on top for the biggest influence on luxury purchases. Second was celebrity trends, followed by the online content and in-store visual merchandising of luxury brands. Perhaps surprisingly, Instagram narrowly missed out on being in the top three biggest influences on luxury purchases, coming in fourth.
Brand safety is now a bigger barrier to programmatic investment than a year ago
IAB Europe’s annual Attitudes to Programmatic Advertising Report delves into the status of programmatic adoption across Europe on both the buy-side and sell-side of the digital advertising industry.
In a survey of 539 (advertisers, agencies, publishers and ad tech vendors), the IAB found that digital advertising budgets continue to increase, with the proportion of advertisers investing more than 41% of their display inventory via programmatic methods increasing to 55% in 2019 – up from 42% in 2018.
Meanwhile, awareness and adoption of ads.txt on the buy-side is low, with only 6% of advertisers and 26% of agencies buying more than 81% of verified ads.txt inventory. Ads.txt adoption is much higher among publishers, however, with 56% of them selling more than 81% of their inventory with an ads.txt file attached.
Finally, the report reveals a number of barriers to programmatic investment, with 34% of advertisers citing brand safety as a barrier – a 10% increase from 2018. Despite hiring people with the right skillset decreasing as a barrier for advertisers, it remains a significant problem elsewhere, with 43% of agencies, 48% of publishers and 45% of ad tech vendors citing hiring people with the right skill set as a barrier to investment.
Finance apps generate higher retention and engagement rates than other verticals
Leanplum’s ‘Mobile Finance Apps’ report, in association with Liftoff, has revealed that fierce competition between banks and fintech companies has driven up costs across the funnel.
The average cost to acquire a new finance app user was $6.93 in 2018 – 5.32% higher than the year before. The average cost to convert that user to complete a registration was also somewhat higher, coming in at $25.73 compared to $21.42 the previous year.
However, despite high costs, finance apps typically retain users at a much higher rate than other app categories, including travel, media, retail, dating, and gaming. Leanplum states that day one retention for finance users is 73% higher than other categories. While the numbers do naturally drop, finance apps still have stronger retention by day 90, with 3.4% of users still being active, compared to 2.2% in other verticals.
Finally, Leanplum reveals that the average push notification open rate for finance apps is also surprisingly high, coming in at 15.78% compared to just 7% across other categories.