Black Friday 2016 Online Spending Pushed Past $5 Billion

Posted: Nov 26 2016, 2:30pm CST | by , Updated: Nov 29 2016, 6:09am CST, in News | Latest Business News

 

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Black Friday 2016 Online Spending Pushed past $5 Billion
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The final numbers of the Adobe online Black Friday 2016 consumer spending are in.

Adobe today released its 2016 online shopping data for Black Friday and Thanksgiving Day. More than $5 billion ($5.27 billion) was spent online by the end of Black Friday, a 17.7 percent increase year-over-year (YoY).

Black Friday set a new record by surpassing the three-billion-dollar mark for the first time at $3.34 billion (21.6 percent growth YoY) while Thanksgiving accounted for the remaining $1.93 billion.

Update: Cyber Monday 2016 only narrowly beat Black Friday 2016 in online spending with $3.39 billion. The reign of Cyber Monday as biggest online shopping day will be over in 2017. Black Friday has the bigger momentum and the longer onramp marketing promotions.

Black Friday became the first day in retail history to drive over one billion dollars in mobile revenue at $1.2 billion, a 33 percent growth YoY.

The five best selling toys were Lego Creator Sets, electric scooters from Razor, Nerf Guns, DJI Phantom Drones and Barbie Dreamhouse. The five top selling electronic products on Black Friday were Apple iPads, Samsung 4k TVs, Apple MacBook Air, LG TVs and Microsoft Xbox. Mobile is driving the majority of visits to retail websites on Black Friday at 55 percent (45 percent coming from smartphones, ten percent from tablets), while accounting for 36 percent of sales (25 percent smartphones, eleven percent tablets). Large retailers* have seen twice the growth in online sales compared to small retailers since the beginning of the season. Retailers that have invested in mobile, email and social have seen 30 percent more sales on average and 25 percent higher average order values.

Adobe’s Black Friday report is based on aggregated and anonymous data from 22.6 billion visits to retail websites. Adobe measures 80 percent of all online transactions from the top 100 U.S. retailers, more than any other technology company**, and uses its proven predictive model powered by Adobe Sensei to forecast online sales and trends. Seven dollars and fifty cents out of every 10 dollars spent online with the top 500 U.S. retailers go through Adobe Marketing Cloud. The tremendous volume of data puts Adobe in the unique position to deliver highly accurate, census-based online sales totals, pricing and product availability trends.

“Shoppers hit the buy button at unprecedented levels as conversion rates were up nearly a full percent across all devices in the evening hours on Black Friday,” said Tamara Gaffney, principal analyst and director, Adobe Digital Insights. “With the full day total coming in at $3.34B Black Friday may have just dethroned Cyber Monday's position as largest online shopping day of the year. Shoppers are still buying at higher than expected levels in the early morning hours of Small Business Saturday.” 

 Highlights of Black Friday 2016:

Mobile performance: Conversions improved over holiday averages, with smartphones at 2.4 percent, tablets at 4.6 percent and desktops at 5.5 percent (compared to holiday averages of 1.3, 2.9, and 3.2 percent, respectively). The average order value (AOV) on iOS smartphones ($142) was higher compared to Android smartphones ($130).

Out-of-stock items: The products most likely to run out-of-stock include Nintendo NES Classic, PlayStation VR bundle, PlayStation 4 Call of Duty Black Ops bundle, Beats Solo, Nintendo 3DS XL Solgaleo Lunala Black Edition, and Xbox One S Madden NFL 17 Console Bundle for electronics, in addition to Hatchimals, Razor Hovertrack 2.0, Kurio Smartwatches, Lego Star Wars Advent Calendar, Lego Star Wars, Paw Patrol Jungle Tracker’s Cruiser Vehicle, and Little Tikes Princess Horse & Carriage for toys. Out-of-stock messages were at 10.5 percent, 1.5 percent less than levels seen in 2015 and 1.9 percent higher than on Thanksgiving Day (8.6 percent). Products under $300 were 20 percent more likely to be out-of-stock.

Most popular products of the season: For the entire season so far (Nov. 1 – 24), PlayStation 4 is the best-selling video game console, followed by Microsoft Xbox One. Pokémon Sun and Moon leads in video games, followed by Call of Duty. Samsung 4K TVs lead in televisions, followed by Vizio 4K TVs.

Discounts: The highest price drops were seen for tablets (average discount of 25.4 percent), televisions (23.2 percent), toys (15.0 percent) and computers (11.6 percent). Video game consoles were sold for higher prices (3.2 percent) compared to Thanksgiving.

Top promotion drivers: Retailers saw an increase in sales coming through Shopper Helper Sites like RetailMeNot and CNET (16.5 percent share of sales), email (17.8 percent), display (1.2 percent) and social (0.9 percent). Traffic coming from Search ads (38.3 percent) decreased by 4.3 percent from holiday averages while direct traffic (25.3 percent) decreased by 9.6 percent, although both remained the largest contributors to overall sales.

Thanksgiving Day: Consumers spent $1.93 billion, 11.5 percent more than in 2015, with an average order value that was relatively flat at $160, compared to $162 in 2015.Mobile accounted for 57 percent of visits and 40 percent of sales ($771 million). Smartphones drove twice as many sales as tablets, at 27 percent and 13 percent, respectively.

Cyber Monday is the encore shopping event to Black Friday. The deals on sale on Cyber Monday are not different anymore from Black Friday. The difference are retailer specific. While Amazon (Amazon Cyber Monday Deals) and Walmart (Walmart Cyber Monday deals) are continue to offer individual deals, like on Black Friday, Target is offering a 15% sitewide discount. This deal broke Target's online store last year. The retailer said that they made a lot of changes and Target.com will not fail on Cyber Monday.

Target will also offer the 15% sitewide discount in stores, negating the meaning of Cyber Monday. Cyber Monday, a term coined by Shop.org in 2005, got established when retailers saw a trend of consumers shopping online on the Monday after Thanksgiving. Today, Cyber Monday is viewed as the online equivalent to Black Friday.

Cyber Monday 2016 is expected to set a new record for online spending. 2016 Black Friday and Thanksgiving Day already set a new records in online spending with $3 billion and $1.93 billion respectively. Cyber Monday 2015 set a new record with $3 billion. This year Cyber Monday sales need to exceed $3 billion to beat Black Friday.

Timing is everything in scoring the best Cyber Monday 2016 deals. To not miss a Cyber Monday deal, deal hunters can follow use on Twitter, where we notify followers about every hot Cyber Monday deal.

Cyber Monday 2016 is on November 28. Many retailers kicked off Cyber Monday sales events right after Black Friday ends. You can find more Cyber Monday 2016 deals and news in our Cyber Monday 2016 hub.

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The Author

<a href="/latest_stories/all/all/2" rel="author">Luigi Lugmayr</a>
Luigi Lugmayr () is the founding chief Editor of I4U News and brings over 15 years experience in the technology field to the ever evolving and exciting world of gadgets. He started I4U News back in 2000 and evolved it into vibrant technology magazine.
Luigi can be contacted directly at ml@i4u.com.

 

 

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