Search giving Santa the sack – Xmas online sales to hit £14billion

October 24, 2007
by Latitude

UK present buyers have been forecast to spend at record levels this Christmas. Forrester predict spend of £14 bn with 27 million people buying online according to an article in this morning’s Guardian.

And it’s not just the UK. 33 million Germans are forecast to spend E12 bn while the French, Italians and Dutch will spend E6.6 bn, E2.1 bn and E1.9 bn respectively. All in all western Europe is predicted to spend £35 bn / E51 bn – up a pretty impressive 58%.

This got me thinking on three levels.

Firstly, if you bear in mind that an estimated 80% of all purchases begin with a search then this is good news for search marketing.

Secondly, I still think there’s room for more significant growth in years to come. One of the big drivers behind this increase is the take-up of broadband. The adjacent Guardian article today also announced the launch of the Post Office broadband service. It’s targeting lower income and older households who make up many of the 24 million people who visit a Post Office every week. They aim to get 1 million customers and with some serious marketing cash behind an advertising campaign, including Westlife no less (!), I think this could well work. If they don’t make inroads on the “broadbandless” someone will I’m sure.

And third, and arguably most important, is the Igglepiggle factor. This star of In the Night Garden is predicted to be this year’s “hot toy” so I better get my act together if I’m going to get it at a good price and get it delivered in time for my 2 year old. Sorry Santa I can’t rely on you – you’re sacked

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