Performics projected holiday retail sales from paid search will grow by 15 percent in 2010 for actively managed campaigns.
A few trends and past performance analyses that contributed to this growth prediction include:
- Great holiday success in 2009: Actively managed holiday paid search campaigns spent 25.7 percent more in 2009 and reaped 24.0 percent more in sales year-over-year (YoY)
- Decreasing average order value (AOV): Year-to-date (YTD) AOV is down 9 percent
- The growing popularity of delayed shopping to capitalize on free shipping: Sales during the last week of free standard shipping prior to Christmas increased significantly in 2009
- Increased efficiency of last minute shopping: After the last week of free standard shipping prior to Christmas in 2009, spending and CPCs dropped dramatically; active paid search advertisers can do more for less after December 17
“Performics’ holiday retail client group detailed findings that can help retailers significantly boost results this holiday season, just by making a few fundamental changes to their search management practices,” said Daina Middleton, CEO of Performics. “In mobile search, for example, we’re emphatically recommending that clients design standalone search campaigns specifically to target mobile devices instead of extending their standard paid search campaigns into the mobile arena. Performics’ clients who’ve already made this change have seen costs per click drop by 60 percent on average with click through rates more than doubling.”