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.