Q4 11 us-holiday-shopping-report


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Q4 11 us-holiday-shopping-report

  1. 1. Mid-Q4 2011U.S. HolidayShopping Report■ A report by digital marketing firm IgnitionOne. Follow us on Twitter: @IgnitionOne
  2. 2. Co nnect. P e r for m. Conve rt. 2 Significant Gains in Q4 Ad Spend Signal Strong Holiday Sales for Retailers OVERVIEW STRONG HOLIDAY SPENDING EXPECTED Based on the continued YoY growth in ad spending and performance across channels, we predict a strong holiday retail season for online marketers. With the incredible growth of mobile search ads over the past year, it is clear that search advertising on mobile devices and tablets is now a critical part of any retailer’s online strategy. In addition, display advertising is becoming an increasingly important tactic for promotions and driving qualified website traffic. As our report showcases, consumer spend and ad spend are up significantly, and online marketers should realize a strong 2011 holiday season. KEY FINDINGS ■ RETAILERS INCREASE YOY ONLINE ADVERTISING SPEND AHEAD OF BLACK FRIDAY In the first half of Q4, multi-channel retailers significantly increased both paid search spend (+31%) and display spend (+27%) compared with the first half of Q4 2010. ■ CONSUMERS SPENDING MORE ONLINE Transactions (Orders) increased a staggering 120% YoY, while conversion rates and revenue both increased 52%. ■ INCREASED CONSUMER RESPONSE TO MOBILE AND TABLET SEARCH ADS Consumers’ mobile search activity has skyrocketed in the past year, with paid search clicks jumping 355% compared to Q4 2010.www.ignitionone.com | 1.888.744.6483 | copyright ©2011 ignitionone, inc. all rights reserved.
  3. 3. Co nnect. P e r for m. Conve rt. 3 DETAILED FINDINGS RETAIL SEES GROWTH IN AD SPEND AND REVENUE HEADING INTO HOLIDAY SHOPPING SEASON U.S. search spend from existing retail marketers (“Same Retailer Spend”) is up 31.2% year-over-year (“YoY”) 1 in the first half of Q4 across all major search engines (Google, Yahoo!/Bing). This rate of growth is slightly down compared to 2010’s growth over 2009 (36.7%) but shows strong total growth in spending YoY. US Search Ad Spend Growth Since 2008 Change in Spend Since 2008 100% 80% 60% 40% 20% 0% 2009 2010 2011 Search Ad Spend Growth Rate © 2011 IgnitionOne At a time when the media is focused on decreased consumer confidence, our findings show an opposite effect in consumer behavior and spending online. The number of transactions has increased 120%, along with a 52% increase in revenue ahead of the peak holiday shopping season. Revenue per click held steady with a small increase of 5.5%, which points to the ability to monetize advertising at increasing rates. Search ads are shown to be performing better with a 52% increase in conversion rate, which significantly tops last year’s growth of 28.7%. 1 Year-over-year growth rates represent the growth rate seen in a given time period (in this case, October 1 – November 13) compared with the same time period one year earlier.www.ignitionone.com | 1.888.744.6483 | copyright ©2011 ignitionone, inc. all rights reserved.
  4. 4. Co nnect. P e r for m. Conve rt. 4 Search Advertising Conversion 60% Change 1H Q4 YoY 52.3% 50% YoY Growth 40% 30% 28.7% 20% 17% 10% 0% 2009 2010 2011 Conversion Rate © 2011 IgnitionOne DISPLAY ADVERTISING ON THE RISE Display spending by retailers is also strong heading into the holiday season. Total display spend has increased 27% YOY for the first half of Q4. MOBILE ADS SHOW MASSIVE GROWTH Consumers are increasingly interacting with search advertising through mobile devices and tablets. Paid search clicks on mobile rose significantly (+355.2%). Mobile ad spend on Google alone is up 288% YoY. This matches with the current trends in mainstreaming of tablets and the increasing ease of use for smartphones. We expect this growth in mobile ads to continue. DATA POINTS TO STRONG ONLINE HOLIDAY SPENDING Based on the continued growth in ad spend and the increase in transactions and conversions leading up to it, we predict a robust holiday retail season for online marketers. While the bulk of the holiday spending season is still ahead, including the critical Black Friday to Cyber Monday weekend, the strength of consumer spending and the increasing effectiveness of online advertising to drive sales point to a very strong fourth quarter for retailers.www.ignitionone.com | 1.888.744.6483 | copyright ©2011 ignitionone, inc. all rights reserved.
  5. 5. Co nnect. P e r for m. Conve rt. 5 METHODOLOGY This report tracked more than 5 billion impressions and 75 million clicks on Google and Yahoo!/Bing search networks, Google AdEx, and other display networks from Oct 1, 2010 to Nov 13, 2011 across IgnitionOne’s retail clients. This is the latest in a series of quarterly reports from IgnitionOne. The reports can be found at: http://bit.ly/ignitiononeresearch. About IgnitionOne IgnitionOne is the world’s first closed loop Digital Marketing Suite, offering multiple solutions to improve online performance within a single interface. Solutions include ad management and optimization (search, dis- For more information, play and Facebook), cross-channel attribution please visit and website conversion optimization. www.ignitionone.com IgnitionOne currently powers more than $20 or follow the company billion in revenue each year for some of the on Twitter world’s leading online marketers, including @IgnitionOne General Motors, Chico’s, Ann Taylor, Fiat and advertising agencies such as MRM Worldwide, CyberAgent and more.www.ignitionone.com | 1.888.744.6483 | copyright ©2011 ignitionone, inc. all rights reserved.