Tuesday, November 29, 2011

What the death of Cyber Monday says about our broadband habits

Stacey Higginbotham analyzes online shopping habits and looks at whether Thanksgiving day will be biggest online shopping day, and beat Cyber Monday. There is an interesting implication of this - since more and more people are shopping online using their smartphones and tablets, and broadband penetration has increased substantially in US homes, online shopping will no longer be dependent on people going to office. This holds out something for us in India as well. For now, we might see more online shopping out of offices compared to that at homes because internet penetration is likely to follow a similar direction in India as well.  Another trend to watch out for in India will be the impact of smartphones on online shopping because the mobile revolution has seen a somewhat different trajectory in India. India has seen a huge mobile penetration and with cheaper smartphones we may see increased buying through mobiles as well. Read more below:

"The effort to figure out the biggest online shopping day of the year is still in flux with Thanksgiving, so far, seeing the peak traffic for the shopping season according to Akamai. Will this year be the one where Turkey day beats out Cyber Monday? We’ll have to wait a few more hours to find out. But the loss of Cyber Monday, which got its name when most people had to go into their offices to shop online, shows how far broadband, and now mobile, have come.

Wikipedia notes that Shop.org was the first to use the term Cyber Monday back in 2005, but the phenomenon of increased web traffic had been noted by retailers for a year or two prior. In 2003, only 20 percent of U.S. homes had broadband connections, a figure that stands at 68 percent today. But in the last few years, as Cyber Monday traffic has bled back into Black Friday and even the two days of the weekend, the smartphone has changed the holiday landscape even more.

So while PayPal is reporting that it is seeing 6 times the traffic today than it did last year, it’s the Akamai data around traffic generated on Thanksgiving that catches my eye. Much like last year, it seems consumers are not waiting for any industry-mandated shopping day to submit their credit cards online. Thanksgiving itself experienced a 70 percent growth traffic according to Akamai, which saw a peak traffic of about 2 million page views per minute on Thanksgiving evening — the peak so far for this shopping season."

Read more here

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