Zmags Digital Catalog/

Magazine Benchmark Report: Q1 2013

Summary

Trends

Metrics

Implications

Zmags

Introduction
The Zmags Digital Catalog/Magazine Benchmark Report establishes guidelines on key performance metrics for digital magazines, catalogs, lookbooks and brochures. These pieces of content are becoming core to marketing strategies, allowing brands to easily create curated online experiences that can increase brand loyalty, conversions and revenue. This exclusive quarterly research report outlines what Marketing and Ecommerce teams should consider when creating these types of digital publications, and help them see how their brands online magazines and catalogs stack up relative to industry peers. The rst edition of the Zmags Digital Catalog/Magazine Benchmark Report established a baseline across all of 2012. This installment recaps results from online catalogs and magazines activated in Q1 2013. With the release of each quarters data, trends over time and seasonality will become more apparent.

20%

SHARE OF VISITS
VIA MOBILE DEVICE
to each Zmags online publication

19%

15%

7%
10%

0%
5% 0

2%

2009

2010

2011

2012

Q1 2013

Recap of 2012 Benchmark Report

RETAIL/ECOMMERCE & APPAREL/FASHION
INDUSTRY PERFORMANCE SPOTLIGHT ON

5-15% 22.8%
TOTAL SITE TRAFFIC
VIEWING CATALOGS

ONLINE CATALOG VISITS

VIA MOBILE DEVICE

3:21
(MIN:SEC)

211 %
HIGHER

TIME SPENT BROWSING

BY SHOPPERS ON AVG.

ECOMM CONVERSION
VS. NON CATALOG VISITS

Top metrics covered here include:

Brand engagement: visit duration, page views and bounce rates

HOLIDAY2012
8.5

VISIT INCREASES Total reach: visit levels overall and by VS mobile CHRISTMAS 2011 2012 device
Commerce: ecommerce conversion rates and average order sizes Impact on website: share of visits and revenue driven by shoppable % online catalogs.

51

27%

added items directly In addition, the Q1 2013 edition divesRetail deeper into the Travel/Hospitality Zmags from Zmags publications Sites

Top 500

visits via mobile

and Food & Beverage industries, focusing on aggregate results and

Source: http://lp.zmags.com/quarterly-zmags-digital-catalog--magazine-benchmark-report emerging trends.

View the full report on our website

Summary

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Metrics

Implications

Zmags

Summary of Key Findings

Mobile traffic to online magazines and catalogs rose across most industries in Q1 2013, with iPads still the predominant device. Dwell time in digital magazines/catalogs increased slightly since the 2012 benchmark, by 17 seconds per visit. For online retailers and ecommerce brands, share of total website visits viewing digital publications went up in Q1, as did the associated online revenue making this segment even more valuable.

Top Trends in Travel/

Dwell time in digital magazines/ catalogs increased slightly since the 2012 benchmark.

per visit

SECONDS

17

Hospitality and Food & Beverage Industries

Here, the intersection of digital with real-world falls into two main publication categories:

1. Pre-trip planning brochures and magazines: from downloadable

grocery lists with coupons to inspirational vacation destination guides.

2. Digital yers with on-the-go conveniences: examples include

pamphlets with searchable recipes that can be accessed online or in grocery stores, and travel guides that work across devices and can be taken anywhere.

SUMMARY/TREND

Summary

Trends

Metrics

Implications

Zmags

Online Magazine/Catalog Key Performance Metrics

Online magazines, catalogs and other publications are measured and tracked much like other digital marketing campaigns to: measure success learn from missed opportunities make adjustments (small and large) with the release of each new issue.

Performance metrics provide online magazines and catalogs with a large advantage over their print counterparts. Real-time tracking and measurement of digital publications provide marketers with invaluable insights through subscription rates and orders placed, as well as page, article and product views. Key metrics evaluated for all varieties of digital publications should begin with brand engagement and total reach (aka, visits). From there, online magazines can be assessed in the context of other website content and compared with print versions. Online catalogs also can be measured on ecommerce KPIs, including average order values, conversion and abandonment rates; even their impact on brick & mortar purchases can be estimated (albeit creatively).

Performance metrics provide online magazines and catalogs with a large advantage over their print counterparts.

METRIC

Summary

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Metrics

Implications

Zmags

Brand Engagement
Across all Zmags online magazines and catalogs released in Q1 2013, which averaged 52 pages, readers and shoppers spent over 4 minutes engaging with the articles, products, videos and other content. They viewed an average of 13 total pages [Table 1].

Online Magazine/ Catalog Brand Engagement KPIs Q1 2013 Total 2012 Total Table 1

Total Visits per Issue 5,312 7,402

% of Visits via Mobile Device 19% 23%

Average Time Spent

Pages Viewed per Visit

Average Number of Pages in Publication 52 51

4:06 3:49

13 12

Average time spent has risen by 17 seconds since the 2012 benchmark, a gain that will be monitored throughout the year. For a majority of brands, time spent viewing magazine/catalog content is in addition to, not in place of, other areas of the website. This means customers viewing online magazines and catalogs tend to be more engaged with brands a correlation that suggests either: This digital content is exciting readers and shoppers, making them want to see more of what brands have to offer, or Loyal customers are the group that is more likely to interact with online magazines and catalogs, and would spend more time with the brand anyway. The cause and effect will vary by company, industry and type of publication. Still, this trend represents a signicant opportunity for consumable content to build and strengthen relationships with a brand.

Readers and shoppers spent over

4 minutes
engaging with the articles, products, videos and other content.

METRIC

Summary

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Zmags

Total reach
Share of visits to online magazines and catalogs from smartphones and tablets signicantly increased in 2012 relative to previous years, approaching 1 in 4 views [Figure 1]. This nding is consistent with general industry trends toward mobile, supported recently by Monetates EQ1 2013 which found that 21% of traffic to leading ecommerce sites was from mobile devices in Q1 2013, up from just 11% at the same time last year.1 Within mobile, share of traffic was split fairly evenly between tablets and smartphones.2 Visits to digital magazines/catalogs echo this trend as well, with an equal share of mobile visits to digital publications coming from tablets and smartphones [Figure 2]. Although iOS still reigns over Android, the latter is more prevalent for brands in EMEA than North America (9.6% of total visits to each Zmag vs. 3.0% NA). While mobile traffic was slightly lower in Q1 2013 than across 2012, this may be due to seasonality as many consumers used their smartphones and tablets more regularly to shop and consume content during the busy holiday season. Still, the slowed momentum in mobile traffic is a reminder that desktops and tablets are still relied on by consumers. Its not all about mobile . . . yet!

Monetate Ecommerce Quarterly, EQ1 2013: http://pages.monetate.com/eq/?utm_source=M-PR-EQ-Q113 Monetate Ecommerce Quarterly, EQ1 2013: http://pages.monetate.com/eq/?utm_source=M-PR-EQ-Q113

25%

THE RISE OF MOBILE

SHARE OF VISITS
VIA MOBILE DEVICE
to each Zmags online publication

23%
19%

20%

15%

7%
10%

0%
5% 0

2%

2009

2010

2011

2012

Q1 2013

Figure 1

Its not all

about mobile . . . yet!

DIGITAL/CATALOG MAGAZINE

VISITS BY DEVICE
81.1%
Desktop/laptop

2013 3.9% iPhone 7.5% iPad 0.1% iPod Touch 6.9% Android Phone 0.6% Android Tablet

Figure 2

METRIC

Summary

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Metrics

Implications

Zmags

Total online magazine and catalog visit levels during the quarter declined vs. 2012, however some of these publications are still live and gaining additional visitors as we speak. For this reason, performance on these key metrics will be refreshed each quarter in order to account for any magazines/catalogs that are active for more than three months. Moreover, online brand presence and promotional channels are the primary determinant of these traffic levels; brands that feature their digital publications on their websites as well as in emails, search campaigns and on social networks see the greatest total reach. Brands that actively push out this engaging content are typically larger ecommerce companies using commerce-enabled catalogs on their .com through software solutions such as Zmags Commerce or CommercePro. Shoppable online catalogs average over 3x the traffic of digital magazines and brochures [Table 2], with an equal amount of returning readers.

Online Magazine/ Catalog Brand Engagement KPIs Q1 2013 Total Zmags Commerce/ CommercePro Shoppable catalogs and lookbooks Zmags Professional Magazines, brochures, yers, non-shoppable catalogs

Total Visits per Issue 5,312

% of Visits via Mobile Device 19%

Average Time Spent 4:06

Pages Viewed per Visit 13

Average Number of Pages in Publication 52

% Returning Readers

Bounce Rate

23%

24%

16,251

37%

3:27

10

27

25%

37%

4,901

19%

4:08

13

53

23%

24%

Table 2

Shoppable Consumer electronics and home improvement retailers had the three most-viewed Zmags in Q1 2013, with #1 achieving over 694K visits. (Interestingly, all three are weekly yers/circulars that allow purchases without ever leaving the publication, or have promotional offers that can be redeemed in-store.) The top traffic sources to these circulars were the brands websites, as well as dedicated email campaigns announcing the products on sale that week. A related, and arguably better, metric to benchmark total reach is share of website visits viewing the digital catalogs and magazines, putting them into context relative to other online campaigns. For ecommerce brands, share of visits to their online catalogs increased from 3% in Q4 2012 to 5% in Q1 2013, as shown later in Figure 6. online catalogs average over 3x the traffic of digital magazines and brochures, with an equal amount of returning readers.

METRIC

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Zmags

Commerce-enabled catalogs have fewer pages than other digital publications (27 vs. 53). And, not surprisingly, less time is spent per visit than in longer magazines [Table 2]. Shoppable digital catalogs are viewed largely on mobile devices, particularly iPads. In fact, iPads account for nearly 1 in 5 visits to online catalogs. This reinforces the idyllic t between online catalogs and the device; tablets are often used when consumers are in more relaxed settings and mindsets than when they use their smartphones, and feel freer to make purchases.3 Tablet users can browse and shop from their couches, whereas activities conducted on smartphones are often quick-hit web searches such as nding directions and store locations, downloading coupons, or catching up on the news on the way to work.

SHARE OF

DIGITAL CATALOG/ MAGAZINE VISITS

+280%

Q1 2013
Magazines, Brochures, Flyers, Non-shoppable Catalogs Shoppable Catalogs and Lookbooks

+295%
3.7% 10.9%

7.1%

19.9%

iPad
Figure 3

iPhone

Online catalogs continue to drive higher conversion rates and brand engagement
In 2012, the demonstrated lift in key performance metrics among digital catalog/magazine viewers relative to other website visits agged it as a segment to watch. Through Q1 2013, shoppers of digital catalogs remain more likely to make a purchase than other website visitors, have higher average order values, and spend more time online with the brand [Table 3]. For most metrics of interest, the lift seen for this segment of traffic relative to other website visitors was stable between Q4 2012 and Q1 2013.

Adobe via Revel Touch, Adobe Digital Index, March 2013 http://img4.clearslide.com/photo/by_id?code=9C4ZR9EXL3G3LAK8B828

METRIC

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Zmags

The average conversion rate for ecommerce websites: just 2-3%

Fortunately, for companies with Zmags commerce-enabled catalogs, ecommerce conversion rates in Q1 2013 were 162% higher relative to other visits to brands websites [Figure 4], on par with the increase seen in Q4 2012 (173%). The brand with the biggest jump in conversion rate in Q1 was a home dcor retailer with a strong online presence and both print and digital versions of its seasonal catalog. In addition, online catalog viewers who made a purchase had 14% larger average order sizes in Q1 2013 [Table 3]. For most retailers in this research, this translated into up to $106 more per order from the interactive catalog-viewing segment in Q1.

Correll, Jon. What is the average conversion rate for ecommerce sites? Conversionvoodoo.com. http://www.conversionvoodoo.com/blog/2012/05/what-is-the-average-conversion-rate-for-ecommerce-sites/

Google Analytics and Omniture website data aggregated across commerce-enabled Zmags clients.

+162%
Figure 4

Higher Ecommerce Conversion Rates

TRADITIONAL ECOMM SITES

WITH ZMAGS ONLINE CATALOG

Online Catalog Performance vs. Other Website Visits (non-catalog traffic)5

Retail/Ecommerce Online catalog % of total website visits Online catalog % of total website revenue % lift in ecommerce conversion rates % lift in average order values % lift in website visit duration % lift in website page views % decrease in bounce rates Table 3 Q4 2012 Average 3% 5% 173% 18% 144% 136% -65% Q1 2013 Average 5% 8% 162% 14% 134% 123% -71% Q4 2012 MAX 19% 22% 1887% 141% 317% 419% -100% Q1 2013 MAX 16% 22% 1085% 29% 229% 272% -100%

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Zmags

As seen in Q4 2012, higher ecommerce conversion rates and order sizes mean these digital catalog visitors are a more valuable segment for brand, since they make up more than their share of total online revenue [Figure 5]. In fact, the lift driven by digital catalog shoppers was even more pronounced this quarter relative to Q4 2012, with 8% of online revenue associated with the segment in Q1 2013 [Figure 6].

ONLINE CATALOGS

SHARE OF...

Q1 2013
5% 8%

TOTAL WEBSITE VISITS TOTAL WEBSITE REVENUE

+1.8x
Figure 5

ONLINE CATALOGS

SHARE OF...
TOTAL WEBSITE

Q4 2012 Q1 2013

+66%
3% 5%

VISITS

REVENUE
Figure 6

TOTAL WEBSITE

+60%
5% 8%

METRIC

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Zmags

Key Performance Metrics by Industry

The performance of online magazines and catalogs on key reach and brand engagement metrics varies by industry. While Food & Beverage digital publications clearly achieve the best visitation levels overall, Retail and Ecommerce brands see more visits from mobile devices [Table 4]. Yet, the trend toward smartphones and tablets has been starting to catch up in all other industries [Figure 7]. The percent of Retail/Ecommerce catalog visits from mobile dipped in Q1 2013. This is likely the result of the normal slowing of economic activity after the holiday season. Retail/Ecommerce visits are expected to pick up and remain strong into summer and the back-to-school season, when shoppers are both relaxed and on-the-go.
% of Visits via Mobile Device 19% 22% 38% 21% 26% 22% 13% 23% Average Number of Pages in Publication 52 43 36 70 39 55 56 58

Online Magazine/ Catalog KPIs Q1 2013 Total Retail/ecommerce Apparel & Fashion Travel & Hospitality Food & Beverage Education Publishing & Media Auto6 Table 4

Total Visits per Issue 5,312 8,176 9,853 1,549 46,653 1,489 1,292 3,841

Average Time Spent 4:06 2:47 3:43 4:10 2:49 4:28 5:00 3:45

Pages Viewed per Visit 13 12 12 15 14 14 13 15

% Returning Readers 23% 23% 24% 23% 18% 23% 24% 24%

Bounce Rate 24% 20% 34% 26% 25% 25% 33% 23%

SHARE OF... VISITS via MOBILE

Grand Total Retail/ ecommerce Apparel & Fashion Food & Beverage Education Travel & Hospitality Auto Publishing & Media
Figure 7

2012 Total Q1 2013

23% 19% 38% 22% 23% 38% 14% 26% 14% 22% 15% 21% 15% 23% 9% 13%

Travel & Hospitality online magazines and brochures tend to be longer (exceeding 70 pages), and so offer higher engagement levels with readers viewing 15 pages and spending over 4 minutes per visit. Dwell time is longest for Publishing & Media Zmags in this category (think traditional magazines digitized), at 5 minutes, with Education digital publications coming in second on this metric.

Low sample size for Auto industry. Interpret results with caution.

METRIC

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Zmags

Spotlight on Travel/ Hospitality and Food & Beverage Industries

Food & Beverage catalogs and yers have the highest traffic levels of all top industries, averaging 46,653 visits each. Many brands take the rst step into digital by simply uploading weekly circulars to their websites, allowing customers to see whats on sale and whats fresh that week. Shoppers can download yers, print at home and even share on Facebook before heading to the store. The concept of ordering groceries online for home delivery hasnt caught on as rapidly as hoped. Still, some brands do utilize a shopping list function in their digital yers, allowing consumers to mark the items they want and email to the nearest store, or simply print out the list to bring with them.

Some brands take things one step further. They publish content that doesnt just help sell groceries, but really adds value for their shoppers. Integrating links to digital coupons or QR codes and store locators makes the online grocery shopping experience even more productive and convenient for shoppers. For the few brands already experimenting in this area, link click-through rates back to advertisers websites or to complete other calls to action have been as high as 17%. Other retailers create lifestyle magazines that only feature their food and beverage products in a supporting role, instead emphasizing great recipe ideas, videos of chefs, etc. Adult beverages magazines and catalogs can offer tasting notes and food pairings, in addition to price and ordering information.

METRIC

Summary

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Zmags

Travel & Hospitality brands use of online magazines and brochures falls into two main categories
1. Pre-travel inspiration and trip planning 2. Take-with-you vacation guides. Travel & Hospitality online magazines and guides tend to be longer than average, with readers spending 4 min. 10 sec. with the content. Typically, 1 in 5 visitors accesses the magazines from a mobile device, which represents a signicant increase since 2012, as well as an opportunity to capitalize on travelers reliance on these publications while on-the-go.

Many Travel & Hospitality brands use online magazines and e-brochures to broaden the reach of their overall marketing efforts. Digital trip planners are easily embedded on websites, as well as featured in email campaigns, advertisements and on social media channels. Several brands are experimenting on Facebook to generate interest in their vacation planners and destination guides, encouraging followers to share tips and their favorite experiences in each location. In fact, a vacation planner embedded in Facebook by a major cruise line received over 8K visits, accounting for 35% of the brands total Zmags views across all channels. Delivering relevant information to travelers during trips is another use case for Travel & Hospitality companies digital publications. Destination guides can be downloaded and viewed in offline mode, so maps, restaurant reviews and area attractions can still be used, even in remote locations where WiFi is unavailable. Of course, there are still consumers who will request a print version of brochures; however, for more tech-savvy travelers, online travel guides provide instant gratication, especially those that serve up even more information and rich content than can be easily viewed on the page. Finally, maintaining search functionality will remain critical for mobile viewers, who may need to nd snippets of information quickly.

METRIC

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Zmags

Implications
Thinking about how and when customers will be relying on online catalogs and magazines is equally as important as why theyll use them. When creating digital publications, keep in mind the distinctions between smartphone and tablet users in order to maximize the brand experience for your target segments at every point of contact: Focus on quickly adding value for smartphone readers and shoppers Serve up more interactive and curated content for the tablet audience.

Methodology
Q1 2013 results were aggregated by Zmags across all publications that were activated between January 1 and March 31, 2013. The Q1 2013 total sample size is 5,857. By publication type: N=212 Commerce/CommercePro Zmags, N=5,645 Professional Zmags By industry: N=2,940 Retail/ecommerce Zmags, N=105 Apparel & Fashion, N=174 Food & Beverage, N=114 Education, N=149 Travel/hospitality, N=887 Publishing/media, N=23 Auto. Note: due to low sample size for Auto industry, results should be interpreted with caution. 2012 total sample size was 24,449: N=10,947 Retail/ecommerce Zmags, N=384 Apparel & Fashion, N=790 Food & Beverage, N=609 Education, N=591 Travel/hospitality, N=240 Auto, N=6886 Publishing/media, N=429 Holiday 2012 Zmags. Dataset excludes publications marked as test or draft or with under 250 visits.

IMPLICATION

Summary

Trends

Metrics

Implications

Zmags

Denitions
Visits: Aggregate number of visits to all Zmags live during the specied time period. Zmags determines a visit by browser session, meaning all activity within the same session counts as one visit. Data includes all devices: desktops, laptops and mobile (smartphones and tablets). Page Flips/Visit: Average number of pages viewed per visit across publications or to a specic publication. Data available for desktop/ laptop visits only. Average Time Spent: Average amount of time spent per visit across publications or to a specic publication. Data available for desktop/ laptop visits only. % Returning Readers: Percent of desktop/laptop visits that are repeat (vs. new). Bounce Rate: Percent of total visits that bounce, meaning they do not progress past the rst page of the digital publication. Add to Cart Rate: Percent of total visits (all devices) that added at least one item to cart through the catalog. Data includes all devices: desktops, laptops and mobile (smartphones and tablets). Go to Checkout Rate: Percent of total visits (all devices) that went to checkout directly from the catalog. Data includes all devices: desktops, laptops and mobile (smartphones and tablets).

 Average Value of Carts Checked Out: Average value of each cart among visitors who go directly to checkout from the catalog. Includes only items added to carts directly through the catalog, not products added before or after. Data includes all devices: desktops, laptops and mobile (smartphones and tablets). Total Revenue Potential per Catalog: Total value of all carts checked out directly from the catalog. Includes only items added to carts directly through the catalog, not products added before or after. Actual value of transactions completed will be lower due to cart abandonment. Data includes all devices: desktops, laptops and mobile (smartphones and tablets).

IMPLICATION

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Zmags

About Zmags
Zmags unlocks new revenue opportunities for retailers and marketers by delivering fully branded, commerce-enabled digital catalogs and publications that are consistent across all consumer touchpoints. The Zmags platform provides an immersive digital environment that invites discovery, deepens customer engagement, allows streamlined purchasing directly from the page and increases ROI. Zmags is among the fastest-growing technology companies in North America, having been named to the 2012 Red Herring Top 100 North America Tech Startups and the 2012 Inc. 5000, and is ranked #70 on the Deloitte 2011 Technology Fast 500. The company is headquartered in Boston, Mass., with offices in London and Copenhagen. For more information about Zmags, please visit www.zmags.com or follow us on Twitter: @zmags. For more information regarding this report, contact Hilary Dionne, Senior Manager, Customer Insights and Analytics, Zmags. hdi@zmags.com.

Appendix
Online Magazine/ Catalog KPIs 2012 Total Retail/ ecommerce Apparel & Fashion Food & Beverage Education Travel & Hospitality Auto Publishing & Media Table 5 Total Visits per Issue 7,402 10,148 % of Visits via Mobile Device 23% 38% Average Time Spent 3:49 2:36 Pages Viewed per Visit 12 11 Average Number of Pages in Publication 51 37

12,733

23%

3:21

11

47

39,555 2,707 3,537 9,751 4,420

14% 14% 15% 15% 9%

2:58 4:17 4:04 4:10 5:20

13 14 14 15 13

31 60 72 53 58

ZMAG