Online Spending Surges For Irish Firms
Irish consumer spending online through the second quarter of 2014 was up by 51% on the same period last year, according to a new report published by Wolfgang Digital.
The Dublin-based digital marketing firm's Irish e-commerce study for Q2 2014 analysed traffic and revenue from a range of e-commerce websites, including Mothercare, the Guinness Storehouse, Harvey Norman and Littlewoods.
Wolfgang Digital found that website traffic among the sample analysed grew by 30% year on year in the second quarter of 2014, with average revenue per visit up by 17%.
Retail websites were the best-performing vertical within the study, posting 34% traffic growth and a 57% hike in revenue year on year through same period.
Travel sites also enjoyed a strong second-quarter performance – they grew their online revenue by an average of 42% year on year.
According to Alan Coleman, chief executive of Wolfgang Digital, the data collected for the second-quarter report indicates that the digital arena is still one of flux for companies doing business there.
“Four out of five participants saw their revenue grow year on year, and of those who grew, 30% more than doubled their revenue for that time period.
“For those whose revenue went south, the average rate of decline was a damaging 25%,” Coleman adds.
The digital landscape is complex and fast moving, says Coleman, which provides businesses with the opportunity to enjoy extraordinary returns or endure sharp losses.
“Google releases new advertising features and algorithm updates weekly, and those who stay on the right side of the fast-paced rate of innovation are rewarded with extraordinary returns.”
Coleman says that the extent of deviation from the average in his firm's e-commerce study reflects the peak-and-trough nature of trading in an online environment.
“Have you ever been to a tech conference and heard the words 'disrupt' and 'failure' ad nauseam? This is an aural representation of the high standard deviation of success in the tech world.
“While performance in the tech startup world is skewed towards striking out, what we are seeing here is the majority of Irish e-commerce merchants are either hitting home runs, or going one better and smacking that ball right out of the park.” (August 2014)