Holiday online retail insight
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Holiday online retail insight

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7 KEY INSIGHTS FROM YEAR-OVER-YEAR DATA

7 KEY INSIGHTS FROM YEAR-OVER-YEAR DATA

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    Holiday online retail insight Holiday online retail insight Document Transcript

    • 2012 U.S.ONLINE RETAIL INSIGHTS
    • 2011 U.S. HOLIDAY SEASON RECAP 7 KEY INSIGHTS FROM YEAR-OVER-YEAR DATA1 U.S. CONSUMERS USING THE INTERNET MORE OFTEN FOR 13 GO Cart HOLIDAY PURCHASES AND THEY’RE SPENDING MORE 22% Holidayby SearchRevenue Driven Season Advertising 5% Average Order Size for Sales Driven by Search Ads HEAVY RETAIL COMPETITION DRIVES COSTS UP BUT2 RETURN ON AD SPEND STILL STRONG $ Holiday Season Search Advertising Budgets Up 31% $ Holiday Season Paid Search Average Cost-Per-Click Up 8% $ Holiday Season Search Advertising Return On Ad Spend $5.57 THANKSGIVING CEMENTS ITS POSITION AS A MAJOR3 ONLINE SHOPPING DAY 28% 40% Thanksgiving Day Search Thanksgiving Day Revenue Advertising Conversion Rates Driven By Search Advertising U.S. RETAILERS SAW FEWER OPPORTUNITIES FOR 21% AD EXPOSURE BUT HIGHER RESPONSE WHEN4 EXPOSURE OCCURRED Search Advertising Impressions 3% 2
    • U.S. CONSUMERS ARE MORE TRUSTING OF SEARCH ADS AND RETAILERS ARE MORE SAVVY WITH PAID SEARCH CAMPAIGN MANAGEMENT Paid Search Holiday Season5 Click-through Rates Up 26% 26% LAST-MINUTE SHOPPERS STILL PURCHASE ONLINE THE WEEK BEFORE CHRISTMAS6 Revenue Driven by Search Advertising 40% from Dec. 17-23 DEAL-SEEKING AND GIFT-CARD REDEMPTION DRIVE HIGHER POST-CHRISTMAS REVENUE7 Po st-C hri stm as Se arc hI mp 19 % 37%s ion 32% res vers Pos s Con ertising Driven t-Christmas sio s Sale v By Sea Re ns h ristma Search Ad rch Ad venue Post-C riven by vertisin g D 3
    • 2011 RECAP CALENDARINSIGHT #1: INSIGHT #2: INSIGHT #3:The Online Shopping Season Starts Early Mondays are Big Don’t Neglect Last-minute ShoppersSales tick upward even the week before Thanksgiving Look at the calendar and note It may seem logical for last-minuteas shoppers begin to compare prices and make initial that, aside from the key dates in shoppers to flee to offline stores, but lastpurchases. Many people take advantage of the Thanksgiving green, Monday is the top sales year there was a 40% increase in onlineholiday to start their shopping early by jumping in the game day of the week throughout the sales during the last week of shoppingonline. We saw this trend begin in 2010 and solidify in 2011 holiday season. Make sure to before Christmas. Make sure that youso look for retailers to have a strong pre-Thanksgiving week create promotional strategies and have reserved budgets to capture thisand Thanksgiving Day in 2012 as well. optimize campaigns accordingly. last-minute traffic opportunity. 4
    • WHAT TO EXPECT IN 2012 Key Calendar Dates will have a Heavy Impact on Shopping ActivityThis year, Thanksgiving falls on the 22nd, which adds 2 days to Another important date to note is that “Free Shipping Day”, typicallythe shopping period that begins on Thanksgiving and ends on the last day to order online and receive free shipping, falls onChristmas Eve. Last year, Christmas Eve and Christmas Day fell December 17th, a Monday. Since Mondays have historically beenover a weekend while this year, Christmas Eve is on a Monday. The the peak online shopping day during the holiday season, look forresult: 5 full weekends between Thanksgiving Day and Christmas increased traffic and sales this year.Eve — 1 more weekend than last year. 5
    • Competition will be Fiercer than EverThis year, Kenshoo clients (both retail and non-retail) have continued to increase their investment in search. For the first half of 2012,ad spend is up by 46% over the same period last year. As search marketing continues to prove its value, expect to see even morecompetition this holiday season. Source: Kenshoo Enterprise 2012 U.S. Holiday Online Retail Insights | © Kenshoo, Inc. Note: Volume metrics have been normalized to a factor of 1 based on the initial quarter of data. Data points from subsequent quarters are based on a multiplier from the first quarter. Eg, 1.55 means that volume is 1.55 greater than volume in initial quarter measured. Cost-per-Click Rates will be Less Expensive This YearOver the past 6 quarters, there has been a steady drop in paid search cost-per-click (CPC) rates which was only abated by a smallincrease in Q2 of 2012. Overall, the average CPC is down $0.16 from its 18-month high representing a 28% drop. As a result, look for CPCsto be less expensive this holiday season compared to the year before. Source: Kenshoo Enterprise 2012 U.S. Holiday Online Retail Insights | © Kenshoo, Inc. Note: Volume metrics have been normalized to a factor of 1 based on the initial quarter of data. Data points from subsequent quarters are based on a multiplier from the first quarter. 6
    • Increased Budgets Combined with Low CPCs will Result in Massive Click VolumesThe combination of the previous 2 trends will result in a huge paid search click increase for retailers this holiday season. As CPCs getless expensive, budgets get more effective at driving traffic. This is apparent as click volumes more than doubled in the first half of 2012compared to 2011. Look to maximize budgets so that you can take full advantage of this trend and check your impression shares to makesure that you aren’t missing any opportunities. Source: Kenshoo Enterprise 2012 U.S. Holiday Online Retail Insights | © Kenshoo, Inc. Note: Volume metrics have been normalized to a factor of 1 based on the initial quarter of data. Data points from subsequent quarters are based on a multiplier from the first quarter. Eg, 1.55 means that volume is 1.55 greater than volume in initial quarter measured. Contact a Kenshoo Representative to receive your copy of the full Kenshoo Enterprise Holiday Best Practices Guide featuring more than 35 ways to leverage Kenshoo and maximize results this holiday season. 7 EN-03-0112