Digital Dollar Report

Executive Summary Leveraging Adobe Analytics Cloud data, the Digital Dollar Report for the first quarter of 2018 is the first release of a new quarterly series of reports focusing on retail and economics. Like the ADI Holiday, Digital Economy Project, and retail reports, this report uses aggregate and anonoymized data from the Adobe An- alytics Cloud to develop insights on online retail and economic trends. Releases feature updates on general trends in e-commerce and predictions and summaries of quarterly online retail, updates on pricing via the Digital Price Index, and features focusing on product insights and trends. Section 1: E-commerce Trends • Fast growth in the U.S. online sector continues: Q1 2018 records $112B in online retail in the U.S., up 14.1% year-over-year and Q2 2018 expected to top $115 Bin online retail in the U.S., up 14.4% • Martin Luther King Jr. Day and President’s Day anchor Q1 online retail at $1.5 and $1.7B respectively. Memorial Day in Q2 2018 is the next big e-commerce holiday and ADI predicts $1.9B in U.S. online sales and 19.0% growth year-over-year Section 2: Digital Price Index (DPI) Update • Adobe DPI shows faster deflation online continues into 2018; DPI deflation at -0.7% year-over-year while offline deflation at -0.1% for comparable categories Section 3: Product Insights – Trends in Smart Products • Smart TVs are the now the norm: in Q1 2018 9/10 TVs sold online were smart-equipped. On track to become smart-dominant: smartwatches (1/5 watches sold in Q1 2018 are smart-enabled) and smart-speakers (more than half of speakers sold in Q1 2018 come with voice assistant technology on-board) Section 4: Digital Marketing Trends Update • Smartphone visits nearly equal desktop visits in March 2018 (44% compared to 47% from desktops, respectively) but the pace of smartphone visit growth is plateauing • Average revenue-per-visit is up across all devices but increasing at a fast-pace on the smartphone. The average smartphone visit is worth over 30% of a desktop visit, nearly double the share from 2014 DIGITAL DOLLAR: RETAIL AND ECONOMICS UPDATE 2018Q1