Search Revenue Grew 22 percent for Advertisers During the 2011 Holiday Shopping Season

According to a recent study published by Kenshoo, search advertisers saw revenue growth to the tune of 22 percent during the 2011 Holiday Shopping Season compared to the previous year. Much of this increase was due to increased paid search budgets and customer demand during the holiday season.

The research, collected during November and December of 2011, also suggested a significant increase in the use of mobile devices for online shopping. Over 14 percent of all the studied clicks were made on a mobile device (8 percent on tablets and 6 percent on phones). It is also interesting to note that those using tablets were more likely to make an actual purchase than those on other platform. Also, Apple iOS users pulled the trigger more often and spent more per purchase than their Android-using counterparts.

Other insights from the study included the following-

  • U.S. consumers used the Internet more often for holiday purchases, and they’re spending more.
  • Heavy retail competition drove costs up, but return on ad spend remained strong.
  • Thanksgiving cemented its position as a major online shopping day.
  • U.S. retailers saw fewer opportunities for advertising exposure, but higher response rates when exposure occurred.
  • U.S. consumers trusted search ads more; retailers ran more savvy paid search campaigns.
  • Last-minute shoppers still purchased online the week before Christmas.
  • Deal-seeking and gift card redemption drove higher post-Christmas revenue.

This all seems to add up to encouraging news for online retailers, especially those who intend to increase their presence on the paid search channels by keeping their fingers on the pulse of important marketing trends.

For more details about the study, check out the full report over at Kenshoo.

About the AuthorNii is COO of CPC Strategy and is responsible for day-to-day business operations and long-term financial, tactical and strategic planning for the company. He has been with CPC Strategy since January of 2007. Prior to working with CPC Strategy, Nii was a product manager at eBay working on algorithm merchandising and reviews and guides. Nii holds a Bachelor of Arts degree in interdisciplinary field studies with a focus on international trade and economics from the University of California, Berkeley. See all posts by this author here.

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