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© 2013 Kenshoo Inc. | CO-04-0002-EN 1
2013 Global Online Retail Seasonal Shopping Report: Early Edition
Covering Global Search Advertising Trends
U.S. updated through Cyber MondayU.K. updated through Green Monday
Release Date: December 16th, 2013
© 2013 Kenshoo Inc. | CO-04-0002-EN 2
TABLE OF CONTENTSIntroduction 3
Global 4
Record-high global increases in paid search activity kick off the 2013 shopping season 4
34% YoY increase in paid search spending fueled by shortened shopping season 4
Global retail advertisers generate clicks more efficiently in 2013 even as spending increases 5
Increases in spend and clicks drive double-digit revenues for global retailers during the 2013 shopping season 7
U.S. 9
U S paid search spend up nearly 50% YoY during 2013 shopping season 9
Paid search marketers in the U S ramped up spending sooner this year 9
U S search marketers spend more efficiently in 2013 with click-through rate up 14% 10
Consumers drive 31% YoY increase in 2013 U S shopping season paid search revenues 12
U.K. 13
Consumer behavior drives year-on-year increases in clicks, impressions, and ad spend during U K 2013 peak shopping season to date 13
U K marketers bump up ad spend on Black Friday as it grows in importance and popularity 13
U K marketers see vast year-on-year increases in click and impression volume for Black Friday and steady growth throughout the entire 2013 shopping season 14
Retailers generate nearly 300% year-on-year growth in paid search revenues on Black Friday in U K 15
Mobile 17
Global marketers bullish on mobile paid search in 2013 17
More than 1 out of every 3 global paid search clicks originated from mobile devices during the 2013 early shopping season 17
Computers are still the biggest driver of paid search revenues with tablets catching up in 2013 18
Product Listing Ads (PLA) 20
Online retailers fully embrace PLAs; Triple-digit YoY growth in spend, conversions, and revenue during the 2013 shopping season 20
Global PLA retailers needed less impressions to generate more clicks this year 21
4X lifts global revenues from Product Listing Ads in 2013 with nearly 9 to 1 return on ad spend (ROAS) 23
Product Listing Ads outperform traditional paid search ads during 2013 shopping season 23
Implications For Advertisers 24
Anticipate consumer shopping behavior and react to market activity 24
Capitalize on the PLA opportunity – not just during the shopping season 24
Embrace the mobile shift and establish your cross-device strategy 24
Don’t be afraid to go big during the peak shopping season 24
Glossary 25
Formulas 25
Terms 25
Methodology 26
About Kenshoo 27
© 2013 Kenshoo Inc. | CO-04-0002-EN 3
The National Retail Federation estimates that the holiday season can represent anywhere between 20–40% of annual sales For many retailers, performance during this time could mean the difference between a successful or unsuccessful year
Advertiser spending generally spikes during this season and budgets are rising every year Reviewing last year’s paid search advertising trends in the Kenshoo 2012 Global Online Retail Holiday Shopping Report, global retailers spent 36% more in 2012 than in 2011 From our look at this year’s data, it’s clear that retailers invested even more into these programs in 2013
One of the biggest drivers of early seasonal ad spending was that U S Thanksgiving arrived a week later than usual, and consumers had the fewest number of post-Cyber Monday days to shop in 11 years Retailers anticipated that consumers would begin shopping much earlier this year and concentrated more of their budgets in the weeks leading up to Thanksgiving than they did last year
This year marked major turning points for Product Listings Ads (PLAs) and mobile paid search with both taking huge leaps forward in the 2013 shopping season In the second year of paid Google Shopping ads, PLAs experienced triple-digit year-over-year growth in spend, conversions, and revenue Mobile devices also grew in importance with 1 out of every 3 clicks originating from either phones or tablets
As you will see in this report, retailer confidence in paid search seems to grow with every passing shopping season
INTRODUCTION
© 2013 Kenshoo Inc. | CO-04-0002-EN 4
Record-high global increases in paid search activity kick off the 2013 shopping seasonAs expected, the role of online shopping continued growing in importance during the peak shopping season of 2013 as marketers increased their year-over-year (YoY) investment to reach consumers on search engines The record highs in paid search activity observed in 2012 were surpassed this year as clicks increased 27% YoY and impressions grew by 12 5% YoY Of all key performance indicators, paid search spending saw the biggest lift with a 34% YoY increase
Zooming in on Cyber Monday, we saw gains across the board in clicks (10% YoY), impressions (12%) and spend (25 5% YoY)
34% YoY increase in paid search spending fueled by shortened shopping seasonKnowing that consumers would have fewer days than they would normally between Cyber Monday and Christmas due to the shortened calendar, retailers placed more importance on the early shopping season in 2013 than in 2012 This led to a 34% YoY increase in paid search spending
As you can see from the day-over-day (DoD) chart on the following page, paid search ad spending in 2012 slowly ramped up for the first three weeks then spiked in the final week of the shopping season However, in 2013, there is a noticeable lift in ad spend beginning on Day 14 and another major bump up on Day 18 Notice how retailers spent as much on the days leading up to U S Thanksgiving in 2013 as they did on the weekend before Cyber Monday
26.9%
12.5%
34.1%
10.1%12.2%
25.5%
Increases in 2013 Global Retail Paid Search Clicks, Impressions and Spend Year-over-Year
40%
35%
30%
25%
20%
15%
10%
5%
0Shopping Season to Date Cyber Monday
Clicks Impressions Spend
Source: 2013 Global Online Retail Seasonal Shopping Report: Early Edition© 2013 Kenshoo Inc., All Rights Reserved
GLOBAL
© 2013 Kenshoo Inc. | CO-04-0002-EN 5
Global retail advertisers generate clicks more efficiently in 2013 even as spending increasesRetail advertisers spent more on paid search during 2013’s shopping season than in 2012 Yet, even as they scaled up their paid search spend by 34% YoY, they were able to maintain a very efficient click-through rate (CTR) and gain 27% more clicks YoY for their investment Marketers achieved a 13% increase in YoY CTR through the use of better ad targeting, advanced optimization tools, and compelling creative messaging which helped to generate more clicks
Source: 2013 Global Online Retail Seasonal Shopping Report: Early Edition© 2013 Kenshoo Inc., All Rights Reserved
Global Retail Paid Search Ad Spend Year-over-Year
20132012
1
4
3
2
1
02 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
U.S. Thanksgiving DaysU.S. Black Friday
Cyber Monday
© 2013 Kenshoo Inc. | CO-04-0002-EN 6
Source: 2013 Global Online Retail Seasonal Shopping Report: Early Edition© 2013 Kenshoo Inc., All Rights Reserved
Increases in 2013 Global RetailPaid Search Clicks and CTR Year-over-Year
30%
25%
20%
15%
10%
5%
0CTR Clicks
12.8%
26.9%
Global Retail Paid Search Click Volume Year-over-Year
Source: 2013 Global Online Retail Seasonal Shopping Report: Early Edition© 2013 Kenshoo Inc., All Rights Reserved
20132012
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
U.S. Thanksgiving DaysU.S. Black Friday
Cyber Monday
3
2
1
0
© 2013 Kenshoo Inc. | CO-04-0002-EN 7
Increases in spend and clicks drive double-digit revenues for global retailers during the 2013 shopping seasonThe heightened investment in 2013 paid search spending not only drove more clicks for retailers over last year, but also generated a 19% YoY increase in revenues Online shopping continues to be a big part of the end of the year shopping season for merchants
Global Retail Paid Search Impression Volume Year-over-Year
Source: 2013 Global Online Retail Seasonal Shopping Report: Early Edition© 2013 Kenshoo Inc., All Rights Reserved
20132012
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
U.S. Thanksgiving DaysU.S. Black Friday
Cyber Monday
3
2
1
0
© 2013 Kenshoo Inc. | CO-04-0002-EN 8
Global Retail Online Revenues From Paid Search Year-over-Year
Source: 2013 Global Online Retail Seasonal Shopping Report: Early Edition© 2013 Kenshoo Inc., All Rights Reserved
20132012
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
U.S. Thanksgiving DaysU.S. Black Friday
Cyber Monday
4
3
2
1
0
Increases in 2013 Global Retail Shopping SeasonRevenue from Paid Search Year-over-Year
20%18%
16%
14%
12%10%
8%
6%
4%2%
5.8%
19.0%
0Cyber Monday Shopping Season to Date
Source: 2013 Global Online Retail Seasonal Shopping Report: Early Edition© 2013 Kenshoo Inc., All Rights Reserved
© 2013 Kenshoo Inc. | CO-04-0002-EN 9
U.S. paid search spend up nearly 50% YoY during 2013 shopping seasonExpectations were high regarding how paid search would help to fuel what was predicted to be a record year for online consumer spending in the U S Paid search spending grew a dramatic 48 1% YoY during the shopping season and retail marketers saw a 42% YoY increase in clicks
Paid search marketers in the U.S. ramped up spending sooner this year Thanksgiving has traditionally kicked off the major lift in advertising spend, but marketers ramped up spending sooner in anticipation that consumers would begin shopping earlier this year
As you can see in the day-over-day (DoD) chart on the following page, spending on the days leading to Thanksgiving 2012 rose steadily, but in 2013, there was a dramatic uptick in spending after the first few weeks
Impressions Spend CTRClicks
41.8%
24.3%
48.1%
14.1%
Increases in U.S. Retail Shopping SeasonKey Paid Search Metrics Year-over-Year
60%
50%
40%
30%
20%
10%
0
Source: 2013 Global Online Retail Seasonal Shopping Report: Early Edition© 2013 Kenshoo Inc., All Rights Reserved
U.S.
© 2013 Kenshoo Inc. | CO-04-0002-EN 10
U.S. search marketers spend more efficiently in 2013 with click-through rate up 14%Even with a 48% YoY increase in paid search spending, U S marketers were able to get more clicks for their dollars in the 2013 shopping season with a 14% increase in click-through rate This led to a YoY increase in clicks of 42% while only requiring 24% more impressions to generate that website traffic
This level of efficiency -- especially during such a competitive shopping season -- implies that marketers were able to use paid search better than last year to get the right messages in front of the right consumers at the right time
U.S. Retail Paid Search Ad Spend Year-over-Year
Source: 2013 Global Online Retail Seasonal Shopping Report: Early Edition© 2013 Kenshoo Inc., All Rights Reserved
20132012
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
Thanksgiving DaysBlack Friday
Cyber Monday
4
3
2
1
0
© 2013 Kenshoo Inc. | CO-04-0002-EN 11
U.S. Retail Paid Search Impression Volume Year-over-Year
Source: 2013 Global Online Retail Seasonal Shopping Report: Early Edition© 2013 Kenshoo Inc., All Rights Reserved
20132012
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
Thanksgiving DaysBlack Friday
Cyber Monday
3
2
1
0
U.S. Retail Paid Search Click Volume Year-over-Year
Source: 2013 Global Online Retail Seasonal Shopping Report: Early Edition© 2013 Kenshoo Inc., All Rights Reserved
20132012
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
Thanksgiving DaysBlack Friday
Cyber Monday
3
2
1
0
© 2013 Kenshoo Inc. | CO-04-0002-EN 12
Consumers drive 31% YoY increase in 2013 U.S. shopping season paid search revenuesAs expected, the 2013 shopping season generated record high online revenues for U S paid search retailers with a 30 7% YoY increase from 2012 By concentrating ad spending in the weeks leading up to Thanksgiving, U S retailers were able to take advantage of consumers starting their shopping earlier due to the reduced number of post-Cyber Monday shopping days this year
U.S. Retail Online Revenues from Paid Search Year-over-Year
Source: 2013 Global Online Retail Seasonal Shopping Report: Early Edition© 2013 Kenshoo Inc., All Rights Reserved
20132012
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
Thanksgiving DaysBlack Friday
Cyber Monday
4
3
2
1
0
© 2013 Kenshoo Inc. | CO-04-0002-EN 13
Consumer behavior drives year-on-year increases in clicks, impressions, and ad spend during U.K. 2013 peak shopping season to datePaid search continues to be a valuable and effective platform for retailers in the U K during the 2013 shopping season as marketers saw YoY increases in clicks, impressions, and ad spend With an 11% increase in ad spend YoY, retailers’ continued investment in this channel indicates that paid search remains an integral part of online marketing programs in the U K
U.K. marketers bump up ad spend on Black Friday as it grows in importance and popularityHistorically, U K marketers concentrated their ad spend on Cyber Monday and Green Monday during the peak shopping season In 2013, while these dates were still significant, U K marketers invested more ad spend on Black Friday, driving a 41% YoY increase
U.K.
Clicks YoY Impressions YoY Spend YoY
Source: 2013 Global Online Retail Seasonal Shopping Report: Early Edition© 2013 Kenshoo Inc., All Rights Reserved
25%
20%
15%
10%
5%
0
Increases in 2013 U.K. Retail Shopping SeasonPaid Search Key Metrics Year-on-Year
6.1%
21.2%
11.3%
© 2013 Kenshoo Inc. | CO-04-0002-EN 14
U.K. marketers see vast year-on-year increases in click and impression volume for Black Friday and steady growth throughout the entire 2013 shopping season2013 U K paid search growth was driven by steady increases in clicks and impressions, specifically on Black Friday, with a 44% YoY growth in clicks and 35% YoY growth in impressions Cyber Monday still drives the most traffic during the peak shopping season in the U K , showing considerable YoY growth of 13%
Black Friday Cyber Monday Green Monday
Source: 2013 Global Online Retail Seasonal Shopping Report: Early Edition© 2013 Kenshoo Inc., All Rights Reserved
25%
20%
35%
30%
45%
40%
15%
10%
5%
0
Increases in 2013 U.K. Retail Paid SearchAd Spend Year-on-Year for Key Dates
40.6%
12.1% 11.9%
Black Friday Cyber Monday
Clicks Impressions
Source: 2013 Global Online Retail Seasonal Shopping Report: Early Edition© 2013 Kenshoo Inc., All Rights Reserved
Increases in 2013 U.K. Retail Shopping Paid Search Click and Impresion Volume on Key Dates Year-on-Year
43.6%
35.1%
12.6%
26.8%
25%20%
35%30%
50%45%40%
15%10%5%0
© 2013 Kenshoo Inc. | CO-04-0002-EN 15
Retailers generate nearly 300% year-on-year growth in paid search revenues on Black Friday in U.K. In the 2013 shopping season, we noted a drastic change in U K buying patterns when compared to 2012 Cyber Monday and Green Monday produced high revenue for retailers in the 2012 shopping season; however, in 2013, Black Friday produced remarkably more revenue than any other day, driving a 291 4% YoY increase
20132012
1 3 5 7 9 11 13 15 17 19 37 3921 23 25 27 29 31 33 35
Black FridayDaysCyber Monday
Green Monday
U.K. Retail Paid Search Click Volume Year-on-Year
Source: 2013 Global Online Retail Seasonal Shopping Report: Early Edition© 2013 Kenshoo Inc., All Rights Reserved
1
1.5
.5
2
0
20132012
1 3 5 7 9 11 13 15 17 19 37 3921 23 25 27 29 31 33 35
Black FridayDaysCyber Monday
Green Monday
U.K. Retail Paid Search Impression Volume Year-on-Year
Source: 2013 Global Online Retail Seasonal Shopping Report: Early Edition© 2013 Kenshoo Inc., All Rights Reserved
1
1.4
.6
1.8
0
.8
1.2
.4
1.6
.2
© 2013 Kenshoo Inc. | CO-04-0002-EN 16
Black Friday Cyber Monday Green Monday
Source: 2013 Global Online Retail Seasonal Shopping Report: Early Edition© 2013 Kenshoo Inc., All Rights Reserved
250%
200%
350%
300%
150%
100%
50%
0
Increases in 2013 U.K. Retail Online Revenues From Paid Search Year-on-Year for Key Dates
291.4%
41.0% 48.6%
20132012
1 3 5 7 9 11 13 15 17 19 37 3921 23 25 27 29 31 33 35
Black FridayDaysCyber Monday
Green Monday
U.K. Retail Online Revenues From Paid Search Year-on-Year
Source: 2013 Global Online Retail Seasonal Shopping Report: Early Edition© 2013 Kenshoo Inc., All Rights Reserved
5
3
6
0
4
2
1
© 2013 Kenshoo Inc. | CO-04-0002-EN 17
MOBILEGlobal marketers bullish on mobile paid search in 2013 During the shopping season of 2012, paid search marketers allocated just 20 5% of total spend to mobile devices (11 8% to phones, 8 7% to tablets) That number increased 66 7% YoY to 34 4% in 2013 with phones capturing 17 7% and tablets receiving 16 7% of total spend Google’s big shift to enhanced campaigns was likely a significant driver in this lift in mobile spend as advertisers are now automatically opted in to tablet and phone targeting by default within the AdWords program
Computers (desktops, laptops, etc ) still maintained top priority for marketers in 2013, with over 65% of all spend allocated to those devices However, this is a decrease of 17 7% YoY from 2012 where computers captured 79 5% of marketers’ total search investment
More than 1 out of every 3 global paid search clicks originated from mobile devices during the 2013 early shopping season36 7% of all global paid search clicks came from mobile devices in 2013’s shopping season, a 32 1% YoY increase from 2012 The biggest driver came from tablets where clicks increased from 8 7% of total clicks in 2012 to 16 3% of total clicks in 2013 (a lift of 87 3% YoY) Phone clicks jumped just 7 5% YoY to 20 4% of total clicks
Phone
Tablet
Computer
Global Retail Shopping SeasonShare of Paid Search Ad Spend by Device
2012 2013
8.7%
11.8%
79.5%
16.7%
17.7%
65.6%
Source: 2013 Global Online Retail Seasonal Shopping Report: Early Edition© 2013 Kenshoo Inc., All Rights Reserved
© 2013 Kenshoo Inc. | CO-04-0002-EN 18
Computers are still the biggest driver of paid search revenues with tablets catching up in 2013In 2012, 90 4% of all global paid search revenues during the peak shopping season came from computers In 2013, computer revenues (although up year-over-year), saw a decrease in total revenue device share by 14 4% YoY to 77 0% of total
Tablets more than doubled from 7 8% of total revenue in 2012 to an incredible 18 9% in 2013 -- a 141 7% YoY increase With almost one-fifth of total revenue coming from tablets, this shopping season marks a major turning point in the importance of this device for retailers and consumers
Phones captured just 4 1% of revenue share in 2013 yet retailers remain confident in the ability for phones to ultimately influence and impact purchase decisions Advertisers know that consumers rely on their phones as an important resource for product information and pricing research, but will still turn to larger screen devices when ready to order online
Phone
Tablet
Computer
Global Retail Shopping SeasonShare of Paid Search Clicks by Device
2012 2013
8.7%
19.0%
72.3%
16.3%
20.4%
63.3%
Source: 2013 Global Online Retail Seasonal Shopping Report: Early Edition© 2013 Kenshoo Inc., All Rights Reserved
© 2013 Kenshoo Inc. | CO-04-0002-EN 19
Phone
Tablet
Computer
Global Retail Shopping SeasonShare of Paid Search Revenues by Device
2012 2013
7.8%1.8%
90.4%
18.9%
4.1%
77.0%
Source: 2013 Global Online Retail Seasonal Shopping Report: Early Edition© 2013 Kenshoo Inc., All Rights Reserved
Global Retail Shopping SeasonKey Paid Search Metrics by Device
Phone
Tablet
Computer
11.8%
8.7%
79.5%
Share of Ad Spend Share of Clicks Share of Revenue
19.0%
8.7%
72.4%
1.8%
7.8%
90.4%
2012
Phone
Tablet
Computer
17.7%
16.7%
65.6%
Share of Ad Spend Share of Clicks Share of Revenue
20.4%
16.3%
63.3%
4.1%
18.9%
77.0%
2013
Phone
Tablet
Computer
50.0%
91.4%
-17.4%
Share of Ad Spend Share of Clicks Share of Revenue
7.5%
87.3%
-12.6%
129.3%
141.7%
-14.8%
% of Change
Source: 2013 Global Online Retail Seasonal Shopping Report: Early Edition© 2013 Kenshoo Inc., All Rights Reserved
© 2013 Kenshoo Inc. | CO-04-0002-EN 20
Online retailers fully embrace PLAs; Triple-digit YoY growth in spend, conversions, and revenue during the 2013 shopping seasonPaid search retailers around the globe spent nearly twice as much (196 1% YoY) on Product Listing Ads during the 2013 shopping season as they did in 2012 Whereas global paid search spend for standard search text ads began ramping up rather quickly in the peak shopping season, ad spend for PLAs stayed at consistent, high levels day-over-day (DoD) until the boost leading up to Cyber Monday
PRODUCT LISTING ADS (PLA)
Clicks Impressions RevenueSpend
196.1%
115.6% 65.4%
417.4%
Increases in 2013 Global Retail Shopping SeasonProduct Listing Ads Key Metrics Year-over-Year
450%400%
250%300%350%
200%150%100%50%
0
Source: 2013 Global Online Retail Seasonal Shopping Report: Early Edition© 2013 Kenshoo Inc., All Rights Reserved
© 2013 Kenshoo Inc. | CO-04-0002-EN 21
Global PLA retailers needed less impressions to generate more clicks this yearIn the 2012 shopping season, the click-through rate on PLAs was 2 6% That rose 30% YoY to an average CTR of 3 3% in 2013 With this increased efficiency, merchants were able to generate 116% more clicks from only 65 5% more impressions year-over-year
Retailers are still gaining experience with this ad format so this dramatic increase in global click efficiency (with spend doubling) is a sign that they are finding best practices in the way they approach PLAs
Global Retail Product Listing AdsSpend Year-over-Year
Source: 2013 Global Online Retail Seasonal Shopping Report: Early Edition© 2013 Kenshoo Inc., All Rights Reserved
20132012
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
U.S. Thanksgiving DaysU.S. Black Friday
Cyber Monday
4.5
3.53
4
11.5
.5
22.5
0
© 2013 Kenshoo Inc. | CO-04-0002-EN 22
Global Retail Product Listing AdsClick Volume Year-over-Year
Source: 2013 Global Online Retail Seasonal Shopping Report: Early Edition© 2013 Kenshoo Inc., All Rights Reserved
20132012
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
U.S. Thanksgiving DaysU.S. Black Friday
Cyber Monday
3
2
1
0
3
2
1
0
Global Retail Product Listing AdsImpression Year-over-Year
Source: 2013 Global Online Retail Seasonal Shopping Report: Early Edition© 2013 Kenshoo Inc., All Rights Reserved
20132012
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
U.S. Thanksgiving DaysU.S. Black Friday
Cyber Monday
© 2013 Kenshoo Inc. | CO-04-0002-EN 23
4X lifts global revenues from Product Listing Ads in 2013 with nearly 9 to 1 return on ad spend (ROAS)Total global revenues from PLAs increased 417 4% YoY with ROAS reaching $8 62 in 2013 With almost a 9 to 1 return for their investment, retailers investing heavily in this ad format in 2013 must be delighted while those who missed the boat should be lamenting the missed opportunity
Product Listing Ads outperform traditional paid search ads during 2013 shopping seasonProduct Listing Ads performed better across the board versus traditional paid search ad metrics Click-through rates for PLAs were almost a full percentage point higher with costs 15% less PLAs drove higher returns as well with 40% higher Average Order Value (AOV)
Global Retail Product Listing AdsRevenues Year-over-Year
Source: 2013 Global Online Retail Seasonal Shopping Report: Early Edition© 2013 Kenshoo Inc., All Rights Reserved
20132012
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
U.S. Thanksgiving DaysU.S. Black Friday
Cyber Monday
4.5
3.53
4
11.5
.5
22.5
0
Global Retail Product Listing Ads vs. Traditional Paid Search Key Metrics
PLA
Di�erence
Paid Search
3.34%
CTR
26.9%
2.44%
$ 0.47
CPC
-15.3%
$ 0.55
Conv. Rate
3.40%
-20.7%
4.10%
$119.91
AOV
39.7%
$72.3
Source: 2013 Global Online Retail Seasonal Shopping Report: Early Edition© 2013 Kenshoo Inc., All Rights Reserved
© 2013 Kenshoo Inc. | CO-04-0002-EN 24
Anticipate consumer shopping behavior and react to market activityOnline consumer activity shifted in 2013 due to a change in key holiday calendar dates Many consumers began to shop earlier in 2013 because of the shortened time period between Cyber Monday and Christmas, creating an opportunity for marketers to capture interest sooner It’s important for retailers to anticipate these changes and be prepared for earlier or later shopping dates You may have missed out on an opportunity if you waited until Thanksgiving to reach your consumers this year
It’s never too early to prepare for next year With U S Thanksgiving falling on a later date again in 2014, marketers should use 2013 as a reference and adjust their paid search programs accordingly Meanwhile, use the remaining weeks in 2013 to drive a last minute push to make up for any lost time
Capitalize on the PLA opportunity – not just during the shopping season2013 was the second year that Google offered paid Google Shopping ads to its advertisers, and this format experienced enormous growth, specifically during the peak shopping season Online retailers observed a 196% YoY growth in PLA spend and 417% increase in revenues during the 2013 shopping season, emphasizing the growing effectiveness of this ad format
Retailers that have not begun to utilize PLAs should not wait Not only will PLAs continue to play a key role in search programs during the shopping season in 2014, but it is likely that they will become integral in marketers’ program year-round When setting up your PLA program, remember to maintain accurate product and pricing information, use impactful images, and stay relevant yet granular in order to get see positive performance
Embrace the mobile shift and establish your cross-device strategyMore than 1 out of every 3 global paid search clicks originated from mobile devices during the 2013 shopping season -- a 32% YoY increase Google’s enhanced campaigns played a big part in this increase, as more advertisers opted into mobile search ads than before
The shift from desktop to mobile paid search traffic will continue to occur as marketers adapt to consumer trends and behavior In 2014, marketers should be answering key questions in order to prepare for increased mobile interaction Is your site optimized across all mobile devices? Are you tailoring your messaging for each device? How do your consumers interact with your brand across all channels? Does your mobile practice align with these consumer interactions?
Don’t be afraid to go big during the peak shopping seasonRetailers may be hesitant to increase spend during the shopping season in fear of heightened competition and higher costs However, in 2013, global marketers saw highly efficient results with a 27% YoY increase in clicks while only needing 12 5% more impressions to generate that traffic
When approaching a highly competitive marketplace, don’t be afraid to invest Tailor your messaging and content and continuously optimize in order to generate the highest traffic and return Because click-through rate takes into account many factors including targeting, messaging, testing, and optimizations, marketers should utilize the advanced tools at hand to elevate paid search performance
IMPLICATIONS FOR ADVERTISERS
© 2013 Kenshoo Inc. | CO-04-0002-EN 25
Formulas Click Through Rate (CTR) = Clicks/Impressions
Cost Per Click (CPC) = Cost/Clicks
Return on Ad Spend (ROAS) = Revenue/Cost
TermsBlack Friday: The Friday after U S Thanksgiving Day In 2012, November 23 In 2013, November 29
Click: When a potential customer clicks on an ad and is taken to the retailer’s website or mobile application
Conversion: An action taken by a customer to make a purchase or complete a retailer-defined goal after having been brought to the website or application by a paid search ad
Cyber Monday: The Monday following U S Thanksgiving In 2012: November 26th In 2013: December 2nd
Green Monday: The second Monday of December In 2012: December 10th In 2013: December 9th
Impressions: The number of times an ad is shown or the number of times a keyword triggers an ad to be shown
Keyword: The word or words entered on a search engine that trigger an ad to be shown
Product Listing Ads (PLAs): A Google ad format that is linked to a product feed and contains an image
Revenue: Money earned by a retailer for their online sales driven by paid search
Shopping Season Defined as the 26 day period covering the 21 days leading up to Thanksgiving plus the 5 days through Cyber Monday for the Global and U S data and defined as the 40 days leading up to and through Green Monday for the U K
Spend The amount of money an advertiser spends on their ads Also the total cost of all paid search clicks
GLOSSARY
© 2013 Kenshoo Inc. | CO-04-0002-EN 26
The data analyzed in this report by Kenshoo reflects a representative cross-section of global Kenshoo clients (advertisers and agencies) managing paid search programs for the retail vertical with active campaigns tracking impressions, clicks, conversions and revenue from November 1, 2012 through December 9, 2013 All year-over-year (YoY) comparisons are from retailers engaged in paid search marketing in both the 2012 and 2013 seasons so key metrics can be considered “same store sales ” This index includes all major retail categories such as, but not limited to, electronics, books, apparel, appliances, shoes, sporting goods and more All data is accurate as of December 10, 2013 but subject to change as delayed conversions continue to accrue
For the purposes of this early edition report, the shopping season is defined as:
• For the U S and Global analysis: the three weeks leading up to U S Thanksgiving and through Cyber Monday (26 total days)
• The 2012 early shopping season was November 1st through November 26th
• The 2013 early shopping season was November 7th through December 2nd
• For the U K analysis: the four weeks leading up to U S Thanksgiving and through Green Monday (40 total days)
• The 2012 early shopping season was November 1st through December 10th
• The 2013 early shopping season was October 31st through December 9th
The data set covers 10+ billion paid impressions and clicks on search engines like Google, Yahoo!, and Bing that delivered more than $500 million dollars in online sales revenues during the November periods
For all charts with day-over-day breakdowns, volume metrics have been normalized to a factor of 1 based on the initial volume for the first day of data Data points from subsequent days are based on a multiplier from the first day For example, 3 1 means that volume is 210% greater than volume on initial day measured
Final figures and YoY analyses will be released in the full 2013 Global Retail Seasonal Shopping Report: Full Edition, available in early January 2014
METHODOLOGY
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