Holiday Marketing Update from Kenshoo

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The early holiday numbers are in, which has led digital marketing software provider Kenshoo to unveil its 2011 Online Retail Holiday Shopping Report.

Key findings from the report include:

  • Holiday revenue that is driven by search advertising increased 22 percent year over year (YoY), while average order size grew 5 percent.
  • Search advertising budgets increased by 29 percent YoY throughout the season, and  average cost per click increased 9 percent, but overall return on advertising spending (ROAS) was $5.22. 
  • Search advertising conversion rates on Thanksgiving increased 28 percent YoY and sales revenue grew 40 percent. 
  • Search advertising impressions decreased 9 percent YoY during the 5 days from Thanksgiving through Cyber Monday; however, total clicks increased 16 percent. 
  • Overall search advertising click-through rates for the holiday season increased 11 percent YoY. 

Some tips for online advertisers during the remainder of the holiday season include the following:

  • Focus on quality as keyword costs increase.
  • Capitalize on timely opportunities by scheduling budgets and bids.
  • Connect data sources to understand how paid search influences – and is influenced by – other media.
  • Hold some holiday budget back for post-Christmas spending, which allows advertisers to take advantage of less competition and consumers' focus on returns and gift card spending.

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