A report from comScore indicates that the e-commerce industry recovered well in 2010. The total spend on e-commerce in the U.S.A. was $227.6billion during the course of last year.
The largest spending was seen in November ($14.5 billion) and December ($18.1 billion). Cyber Monday – the first Monday after the Thanksgiving holiday – broke all records with $1.028 billion being spent in a single day.
Among electronic items, flat panel TVs and mobile devices were the fastest selling, followed by computer hardware.
Group buying through sites such as Groupon and Living Social gained tremendous popularity during the year. Social networks also continued to grow. Facebook became the number 1 site in August 2010, for time spent online, beating sites like Google and Yahoo! It now accounts for 12.3% of the total time spent online in The U.S.
The amount of time spent on leisure activities online also grew in 2010. Portals represented 20.2% of the share of time spent online, while social networks accounted for 14.4% and entertainment sites for 12.6%.
The growth of social media caused web-based email usage to reduce from 12.5% to 11.0%, especially among the younger generation. Social networking accounts for 14.4% of all time spent online, but its share much higher for youngsters. Women also tend to spend more time on social networks than men.
Facebook also now accounts for 10% of the U.S. page views and has gained millions of new users. MySpace, on the other hand, has seen a sharp decline, losing 27% of its users. LinkedIn, Twitter and several new social sites continue to grow gradually. While it has lost some users in the 35-54 years demographic, the number of users below 18 years and above 55 years have grown significantly. On the other hand, Twitter saw maximum gain in the 18-34 years demographic.
The search market has also seen innovation with the introduction of instant search by Google. Google continues to be the market leader in the States, with over 60% of the market share, while Yahoo! had 16% and Microsoft had 12% in December 2010. ‘Facebook’ was the most searched term, with 1.9 billion queries in 2010, followed by ‘YouTube’ with 790.7 million searches.
Online advertising has grown by 23% between December 2009 and 2010. Leading brands have now started reallocating a larger share of their ad spend to online advertising. Over 1 trillion display ads were shown on Facebook and 529.4 billion ads on Yahoo! The strategies being used for display as have also improved resulting in better user response especially through retargeting. The online video and TV market are also growing, which is a fact that advertisers should take note of.