Shopping Comparison Engines market worth £120m-£140m in 2005, says E-consultancy
Online retailers are increasing their investment in comparison websites as growing numbers of consumers buy goods after researching price and product features online.
London, UK (PRWEB) April 13, 2006
Retail-focused shopping comparison sites made between £120m and £140m in UK revenue during 2005, according to E-consultancy's 2006 Shopping Comparison Engines Buyer's Guide published this week.
Shopping comparison sites such as Kelkoo and Pricerunner have experienced a surge in demand from web users, who are keen to compare products and prices to find the best deal.
The amount of traffic to shopping comparison sites is growing at a very healthy 30% year on year, yet market revenues outstrip this figure. Revenue growth of up to 500% has been reported by comparison engines, driving massive amounts of sales to merchant partners.
Companies that actively use price comparison engines typically spend around 3-5% of their marketing budget to drive new leads, but investment in shopping comparison is set to increase, in line with user growth and as new comparison engines come to market.
As well as retail, comparison engines are becoming increasingly popular in sectors such as travel, financial services and utilities, according to E-consultancy's research.
"More and more consumers are using comparison sites to research products and services so they can find the best value products and services, whether they are looking for the best priced iPod or the most suitable mortgage," said E-consultancy analyst Linus Gregoriadis.
"Online marketers across a range of sectors from retail to financial services realise that comparison sites are an important weapon in their armoury for driving online sales," he added. "Retailers want to partner with comparison engines which can help consumers make informed decisions because it means they will be closer to the point of purchase when they arrive at their websites."
E-consultancy editor Chris Lake said: "The recent purchase of the uSwitch by the US media conglomerate EW Scripps for £210m is the latest in a string of acquisitions within this market which underlines the growing importance of comparison sites in driving online sales."
ComScore Media Metrix estimated that there were 14.9 million unique visitors to shopping comparison websites in February 2006, compared to 11.5 million for the same month in 2005. The volume of traffic to comparison sites is growing twice as quickly as for online retail where the market has increased by 15% in the last year.
The UK's overall online population swelled its ranks by 7% last year, while broadband connections surpassed dial-up connections. Broadband users are known to spend more, and to spend longer online.
Key market trends and findings
For retailers in some categories, for example electrical goods, income which can be attributed to shopping comparison sites can amount to 30% of total online sales.
Growth is being driven by increased use of the internet as a research tool before purchase.
For some financial services products, comparison sites (also known as aggregators) can account for up to 50% of their internet business. Price comparison for loans and credit cards is particularly popular among consumers, for obvious reasons. Up to a third of new online business for car insurers can be attributed to comparison sites (also known as aggregators).
About this report
This guide to shopping comparison engines (also referred to as "price comparison" engines or aggregators) is primarily aimed at retailers/merchants who want to increase their online sales. It contains profiles of 12 major shopping comparison engines as well as market research about industry growth and drivers or growth.
Which shopping comparison engines are featured in the buyer's guide?
Cheapflights, Ciao, Genie Group, Kelkoo, MoneyExpert. com, NexTag UK, Pangora, PriceGrabber, PriceRunner, Shopping. com, Smart Quotes, Zencudo.
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About E-consultancy
E-consultancy is the UK's leading online publisher of best practice internet marketing reports, research and how-to guides. It also publishes buyer's guides and has a directory of 100,000+ third party internet marketing white papers.
Since moving to a paid-content model in 2003 E-consultancy has amassed thousands of paying subscribers, more than 36,000 registered users and 150,000+ unique users sessions per month. Its weekly newsletter is sent to 20,000 users.
Subscribers pay from £149 per year to access the exclusive and highly practical content, which helps internet marketers get the most out of their websites.
E-consultancy has more than 100 events lined up for 2006, including roundtables and monthly Supplier Showcases, where six suppliers pitch to an audience of pre-qualified buyers (typically between 100-150) in a Central London venue. E-consultancy also provides a range of public and in-house training programmes, such as seminars and workshops.
Other popular E-consultancy reports
Managing An E-commerce Team (June 2005) Web Analytics: A Buyer's Guide (June 2005) Online Advertising Networks: A Buyer's Guide (July 2005) Affiliate Marketing Networks: A Buyer's Guide (September 2005) E-commerce Solutions: A Buyer's Guide (October 2005) Online Ad Serving Solutions: A Buyer's Guide (January 2006) Usability & Accessibility: A Buyer's Guide (February 2006)
