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Amazon tops holiday spending plans

News, 30 November 2015

NEW YORK: E-commerce giant Amazon has squeezed past Walmart in terms of being the most favoured retailer for the US consumer dollar this holiday season, according to a survey of more than 4,000 US adults.

Ad insights firm Advertising Benchmark Index (ABX) conducted an online poll in early to mid-November about their shopping intentions for the holidays at each of 10 major retailers and an assortment of "all others", Advertising Age reported.

ABX found Amazon took 21% of "Share of Wallet", narrowly taking it past the 20% allocated to Walmart, with Best Buy coming in third at 11%.

The survey also found that online purchases are expected to account for 60% of consumers' holiday spending this year with 14% of these purchases being picked up later in stores instead of being delivered.

Advertising effectiveness also formed part of the survey based on how respondents reacted to the likeability of ads, brand and message awareness, and whether retailers' ads generated brand reputation or a call to action.

According to these measurements, ABX rated Amazon and Walmart at 106 in its index, placing them at the higher end of a scale of 96 to 106 in which almost all the major retailers were rated.

However, discounter Kmart and mid-range department store JC Penney both stood out with ad effectiveness index scores of 111 and 114 respectively. Kmart's ads were the most improved among the major retailers, having risen 20 index points since last year's holiday season.

A separate report from Pixability, the video marketing platform that specialises in YouTube, has shown that retailers are significantly increasing their adspend devoted to TrueView ads on YouTube this holiday season.

Led by Walmart, the top retailers more than tripled their spending on YouTube to $31m in the third quarter and are expected to triple their spending in the fourth quarter to $41m, the report said.

Data sourced from Advertising Age; additional content by Warc staff