RAPAPORT... Online retail sales in 2008 were not immune to the effects of the recession in the U.S., according to the annual report by comScore Inc. While retail sales were up 6 percent to $130.1 billion, the year ranked as the softest for ecommerce growth since tracking began in 2001. Total ecommerce spending rose 7 percent to $214.4 billion, according to comScore.

Certain segments performed well in 2008, but the jewelry and watch category fell 12 percent. Only computer software, down 18 percent, and music, movies and videos, with a 23 percent drop, performed worse. The greatest sales increases were in video games and consoles, up 29 percent, home, garden and furniture, which climbed 25 percent, and sports and fitness, also rising 25 percent.

While most of 2008 experienced slower online sales growth than was seen in previous years, ecommerce actually experienced negative growth in November -- the first shrink in online sales since 2001 -- dipping by 3 percent. The same percentage drop was recorded in December, comScore reported.

ComScore found that the total Internet user population grew 4 percent to 190.7 million in the U.S. in December. Google's websites -- including YouTube, Blogger and many others -- became the top Internet property in April and held this spot for the duration of 2008. Google site traffic rose 12 percent to 149 million visitors, according to comScore's count. Yahoo! and its website properties came in a close second, followed by Microsoft, AOL and Fox Interactive Media. 

The company stated that 2009 will be another challenging year for retailers, but will also prove to be a "major opportunity for businesses to gain ground on their competitors with effective digital marketing strategies." ComScore predicts that in 2009, tough market conditions will spur innovation and operational efficiencies. Viewing videos, television shows and movies online will continue to become mainstream and thus present retailers with an opportunity to advertise and engage this audience, comScore noted, and mobile device penetration will continue its rapid expansion, providing advertisers with another viable opportunity to increase their market share.



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