7/29/2019 US Holiday Retail Analysis 2010
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KEY FINDINGS
+ Traffic is up: Traffic to retail sites from paid search is
currently up 29% over the same period in
2009. Traffic increased by 44% in 2009 over 2008.
+ Conversion rates are back up: Conversion rates have fluctuated
this period from 7.26% in 2008,
6.67% in 2009 and 7.61% in 2010.
+ Those who buy online are ordering more: Average order volume
has been rising slowly but steadily
from $140.66 in 2008 to $147.43 in 2009 and $155.53 in 2010.
+ Marketers are getting more bang for their buck: The return on
ad spend for core paid search
branded keywords on exact match rose 12.3% on average over the
past two years.+ Cost Per Click (CPC) for branded keywords is
decreasing: CPCs are down -34% from 2008-2009
and -29% from 2009-2010 for exact match brand keywords. Please
note that the figures are not
reflective of CPCs for non-brand keywords.
Written by:
Reid Spice, VP Search Media Insights
EARLY HOLIDAY SEASON ONLINE BUYING RESULTS OPTIMISTICTraffic
Up/People Buying More at Start of 2010 Season
In an analysis of paid search data for some of iCrossings
largest retail clients, it is clear that the 2010
holiday season will be much stronger than 2009, but is still
recovering in a difficult economy.
Average order volume
$140.66
$147.43$155.53
2008 2009 2010
7/29/2019 US Holiday Retail Analysis 2010
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EARLY HOLIDAY SEASON RESULTS OPTIMISTIC
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DECEMBER 20
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iCrossing reviewed the trafc, CPCs, average order value and
conversion rates for the core, exact match branded keyword
for several clients (typically the trademarked name of the
retailer) in Google for the period of November 20 through
December 2, 2010. We then compared the data to the same periods
for 2008 and 2009. The study purposely used a singleexact match
keyword in Google to ensure a consistent, sterile environment for
the analysis (eliminating the potential noise
of changes in matching algorithm, negatives, client
spend/targets, Yahoo/Bing alliance, etc.).
METHODOLOGY
Though this data does not necessarily provide any indicators
about overall economic health trends, it does clearly indicate
that 2010 will be a much stronger holiday season than 2009.
The strong increases in trafc may simply be a result of the
ongoing shift from brick and mortar to the convenience of
online holiday shopping, a trend that does not necessarily
indicate incremental revenue growth for all advertisers.
However,
the fact that the trafc increases are consistent across all
brands, including those without physical locations, indicates
that
retailers are continuing to enjoy some incremental market growth
and improved economic health. Decreasing brand CPCs
are offsetting some of the costs incurred with the increased
trafc, contributing to a stronger return on ad spend.
The year-over-year increases in average order value are
encouraging in the context of a stagnant economy, indicating
that
these gains cannot simply be attributed to ination.
Finally, it is interesting to note that, following mid-2009
changes to Googles trademark policy (that many predicted would
lead to an increase in CPCs), Google brand CPCs have actually
decreased for all but one retail client in our study. With CPCs
falling almost universally during a time when trademark policies
became more relaxed, one might assume that Google has
been making some changes to their pricing algorithm for keywords
that appear to be trademark terms. Googles Sitelinks
program has certainly contributed to the decrease in exact match
brand CPCs since its introduction in 2009.
We will revisit our analysis at the end of the holiday season to
see if retailers did indeed have a happy holiday or found
another lump of coal in their stockings.
WHAT IT MEANS
