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Holiday Marketing Update from Kenshoo

Posted on 12.08.2011

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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