At least in terms of holiday sales and advertising

Nov 19, 2007 15:05 GMT  ·  By

When it comes down to holiday sales and advertising Santa has moved online. Microsoft, via the Atlas Institute, revealed that the Internet is a crucial influence over holiday sales. The Seventh Annual Holiday Online Shopping Report, put together by Microsoft Advertiser & Publisher Solutions' research and education division, the Atlas Institute, indicates that consumers follow a specific trend divided in the "online crush" and the "offline rush." Both are intimately connected with the Internet, and as Microsoft put it, revolving around Cyber Monday.

The Atlas Institute explained that Cyber Monday is typically the second Monday before Christmas, a day when online shopping is at a climax. But at the same time, Cyber Monday is synonymous with the end of the "online crush". After this date online shopping for the holidays drops dramatically. "In 2006, the busiest online shopping day (aka Cyber Monday) was Monday, December 11, which recorded activity 89 percent above average. We've noticed a trend over the past few holiday seasons where the peak in online holiday shopping has begun to stabilize on the second Monday before Christmas," revealed Albert Kim, from the Atlas Institute.

Although online sales drop after Cyber Monday, Microsoft's position is that in no way will the Internet's impact on overall holiday sales diminish. In fact, the Atlas Institute explained that traffic and ad-viewing increases as the Internet audience gets ready for the "offline rush." Microsoft advised advertisers to continue to push hard after Cyber Monday and especially to guarantee that shipping will occur before Christmas.

"The highest levels of ad-viewing occurred on Wednesday, December 20th, well past the busiest online shopping day. During the Online Crush between Thanksgiving and Cyber Monday, ad-viewing increased only three percent. However, during the Offline Rush between Cyber Monday and Christmas, the rate of ad consumption increased by 18 percent. Thus, while online sales decline after Cyber Monday, consumers continue to flock to the web for last minute gift ideas and to research items still left on their shopping lists," Kim added.