LinkShare Corporation News

LinkShare/JupiterResearch Study Finds Consumers Turning to the Internet in a Challenging Economy

NEW YORK, June 27 PRNewswire — A new US survey, commissioned by LinkShare, a leading pay-per-action marketing network, reveals consumers expect their overall spending to decrease in 2008, but more so offline than online. The study also finds that four out of five consumers surveyed believe the US is mired in an economic recession, but the Internet may offer relief to some shoppers. Recommendations from the study include encouraging online sellers to engage wary online shoppers through ongoing promotions, and seeking out "Influencers" through multiple online touch points.

Outlined in a custom research survey of 1,243 Internet users conducted by JupiterResearch in June 2008 and sponsored by LinkShare, the study reveals that online retailers can adjust to the weakening economy by focusing on deepening relationships with existing customers, as they are vulnerable to promotional influences, and also engaging those consumers who tend to influence the purchases of others.

"In a challenging economy, when people are spending less and scrutinizing each purchase they make, every e-retailer must work to distribute their promotions widely, in the most effective way," said Jonathan Levine, Co-President of LinkShare.

A powerful means of establishing that relationship and driving repeat business, according to the study, is through ongoing promotions, which also help to deepen customer relationships and keep customers loyal.

"In light of this study, we advise ecommerce marketers to broaden their marketing partnerships online and embrace user-generated reviews," added Yasuhisa Iida ("Yaz"), Co-President of LinkShare. "Marketers who encourage customers to share their positive shopping experiences with peers will end up benefitting."

The survey distinguished two key segments of buyers. The Influencers, who are considered a key shopper segment because they influence their friends in purchase decisions, spend more money online than the average consumer and plan to increase their annual online spending (on average) as compared to all online shoppers. Advertisers that want to reach influencers, become part of their purchase consideration and benefit from their advocacy should consider stepping up their outreach to this segment.

The other key segment is the engaged shopper, a group that comprises 50% of online shoppers. While this group claims they will stick with their current brands and stores, 50% are still willing to experiment with new retailers in order to get the best price on a product.

Patti Freeman Evans, Research Director of JupiterResearch, unveiled the survey results to over 600 ecommerce leaders assembled at the LinkShare Symposium in New York City on June 24.

Overall, the LinkShare survey conducted by JupiterResearch revealed the following about online shoppers in the US:

— On average, online consumers are predicting their offline spending will drop more than online spending. Offline spending is predicted to drop 6.3% versus a smaller drop of 4.2% online.

— Most online consumers (81%) believe they are facing an economic recession.

— 56% of Influencers plan to do more product and pricing research online to ensure the best price as a result of struggling economy.

References

1. JupiterResearch's Attracting and Retaining Customers in a Challenging Economy (dated June 2008).

About JupiterResearch

JupiterResearch provides unbiased research, analysis and advice, backed by proprietary data, to help companies profit from the impact of the Internet and emerging consumer technologies on their business. The company helps online businesses make critical decisions about technology selection, spending, staffing, and Web site effectiveness; advises consumer-facing companies with online advertising, marketing, and customer service strategies to understand, attract, convert and retain customers; and guides technology vendors and service providers on market opportunity, positioning, product definition, and pricing. JupiterResearch is headquartered in New York City and has offices throughout the US and Europe. For more information, visit www.jupiterresearch.com.

About LinkShare Corporation

LinkShare Corporation provides ecommerce businesses with a vast, high quality pay per action marketing network, along with expert consultative services and patented technology. LinkShare's cost-efficient pay per action (PPA) affiliate, search and lead generation campaigns acquire new customers, increase revenue and drive results. LinkShare clients are Fortune 500 and prominent companies doing business online, including J.C. Penney, 1-800-Flowers.com, American Express and Avon Products. LinkShare was founded in 1996 and is headquartered in New York City, with offices in San Francisco, Chicago, London and Tokyo.

About Rakuten

Headquartered in Tokyo, Rakuten is one of the world's largest and most comprehensive Internet service companies, providing leading services in e-commerce, portal & media, travel, financial services, and professional sports. Rakuten focuses on new business development and increasing its scope in order to improve and diversify service offerings. Rakuten is a publicly traded company in Japan (JASDAQ: 4755).

SOURCE LinkShare Corporation

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