Study: Online retailers at risk of losing $2.1 billion this holiday season
More unauthorized product ads are hijacking the consumerexperience — an issue that will cost retailers precious revenue this holiday season.
As unauthorized product ads are injected into consumer browsers — and appear on retailer sites — consumers are distracted from the retailer’s offerings. This disruption – known as online journey hijacking – cuts directly into retailers’ revenue, an issue that could cost companies $2.1 billion this holiday season.
This was according to “The Impact of Online Journey Hijacking on E-Commerce Q4 Sales in the U.S.,” a report from Namogoo.
According to the study, 15% to 25% of all e-commerce customer sessions are exposed to unauthorized ads while browsing retailer sites, and this could increase to 20% to 30% of all sessions during peak shopping seasons. In addition, 80% of the displayed ads during peak season are competitive product ads, sending a retailer’s traffic directly to its competitors.
Meanwhile, hackers are sharpening their malware just in time for the holiday season. Specifically, malware developers are pulling out all the stops to increase their reach and optimize their ads to generate more clicks and revenue, there report said.
As the holiday season heats up, online journey hijacking will likely remain steady at the 15% to 25% in September/early October, and increase exponentially during busy shopping periods such as Black Friday, Cyber Monday and Christmas.
“Amazon isn’t the only threat to retailers this holiday season. Online journey hijacking is a serious issue for online retailers, not just from a revenue standpoint but also in terms of brand experience and loyalty,” said Chemi Katz, co-founder and CEO of Namogoo. “The amount of lost revenue resulting from such tactics is astronomical and can be devastating, particularly at such a pivotal shopping time as the holiday rush.”
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Amazon doubles down on Echo—and then some
Amazon’s Echo is in expansion mode just in time for the holiday rush.
The online giant on Wednesday announced five new Echo products, along with several other new gadgets. And none of the items cost more than$150, TechCrunch reported. The new items include Echo Plus, which will do double duty by also serving as a hub for smart home devices.
The new Amazon products were announced at a critical time, according to TechCrunch, as there are rumors that Google is about to announce updates to its Google Home line, including an Echo Dot – like smaller Google Home.
“Google was already playing catch-up and now it’s nearly inconceivable Google or Apple will be able to catch Amazon,” the report said.
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