Average Order Size for Sales Driven by Search Ads During the Holiday Season up 5%
According to Kenshoo’s “2011 Online Retail Holiday Shopping Report – Early Edition,” consumers are buying more and are buying more at a time this holiday season. Also, holiday season search advertising budgets were up nearly 30 percent, while the paid-search average cost per click (CPC) was up nearly 10 percent.
Holiday season revenue driven by search advertising was up 22 percent year-over-year, according to Kenshoo.
Meanwhile, the average order size for sales driven by search ads during the holiday season was up 5 percent. More specifically, the average order value in 2011 was $129.94, while the average order value in 2010 was $124.28.
The report, which is updated through Cyber Monday, also notes that holiday season search advertising budgets were up 29 percent, while paid-search average CPC was up 9 percent. Search advertising return on ad spend was noted to be at $5.22.
Search advertising conversion rates rose 28 percent on Thanksgiving Day, according to Kenshoo. Thanksgiving Day revenue driven by search advertising increased 40 percent.
During the five days from Thanksgiving through Cyber Monday, search advertising impressions were down 9 percent year-over-year, though clicks rose 16 percent.
The drop in impressions could be due to two reasons, according to Kenshoo:
– “Consumers performed fewer search queries relative to last year and instead turned to social networks (including real-world conversations with friends and family at the dinner table) for inputs on what to buy.
– “Modifications made by search engines to improve relevancy of Search Engine Results Pages (SERPs) caused fewer ads to show.”
The increase in clicks could be due to:
– “Consumers have come to rely on search ads as the place to find the best and most up-to-date deals.
– “Advertisers did a better job of delivering targeted ads and compelling offers.”
Click-through rates for paid-search ads during this time period rose 11 percent, according to Kenshoo.
There are five implications for advertisers: 1) focus on quality as costs increase, 2) capitalize on timely opportunities by automating budgets and bids, 3) connect data sources to understand how paid search influences (and is influenced by) other media, 4) be ready to pounce since online advertisers started their holiday promotions earlier and budgets may run out, and 5) retailers without complex paid-search campaign management technology aren’t able to compete.
According to Kenshoo, Black Friday has accounted for 10.93 percent of search advertising revenue so far this holiday season, followed by Cyber Monday with 9.34 percent and Thanksgiving with 7.09 percent.
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