7 KEY INSIGHTS FROM YEAR-OVER-YEAR DATA

1. 2012 U.S.
ONLINE RETAIL INSIGHTS

2. 2011 U.S. HOLIDAY
SEASON RECAP
7 KEY INSIGHTS FROM YEAR-OVER-YEAR DATA
1
U.S. CONSUMERS USING THE INTERNET MORE OFTEN FOR 13
GO Cart
HOLIDAY PURCHASES AND THEY’RE SPENDING MORE
22% Holidayby SearchRevenue
Driven
Season
Advertising 5% Average Order Size for Sales
Driven by Search Ads
HEAVY RETAIL COMPETITION DRIVES COSTS UP BUT
2
RETURN ON AD SPEND STILL STRONG
$ Holiday Season Search Advertising Budgets Up 31%
$ Holiday Season Paid Search Average Cost-Per-Click Up 8%
$ Holiday Season Search Advertising Return On Ad Spend $5.57
THANKSGIVING CEMENTS ITS POSITION AS A MAJOR
3
ONLINE SHOPPING DAY
28% 40%
Thanksgiving Day Search Thanksgiving Day Revenue
Advertising Conversion Rates Driven By Search Advertising
U.S. RETAILERS SAW FEWER OPPORTUNITIES FOR
21% AD EXPOSURE BUT HIGHER RESPONSE WHEN
4
EXPOSURE OCCURRED
Search Advertising
Impressions
3%
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3. U.S. CONSUMERS ARE MORE TRUSTING OF SEARCH ADS
AND RETAILERS ARE MORE SAVVY WITH PAID SEARCH
CAMPAIGN MANAGEMENT
Paid Search Holiday Season
5
Click-through Rates Up 26%
26%
LAST-MINUTE SHOPPERS STILL PURCHASE ONLINE THE
WEEK BEFORE CHRISTMAS
6
Revenue Driven by Search Advertising 40% from Dec. 17-23
DEAL-SEEKING AND GIFT-CARD REDEMPTION DRIVE
HIGHER POST-CHRISTMAS REVENUE
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4. 2011 RECAP
CALENDAR
INSIGHT #1: INSIGHT #2: INSIGHT #3:
The Online Shopping Season Starts Early Mondays are Big Don’t Neglect Last-minute Shoppers
Sales tick upward even the week before Thanksgiving Look at the calendar and note It may seem logical for last-minute
as shoppers begin to compare prices and make initial that, aside from the key dates in shoppers to flee to offline stores, but last
purchases. Many people take advantage of the Thanksgiving green, Monday is the top sales year there was a 40% increase in online
holiday to start their shopping early by jumping in the game day of the week throughout the sales during the last week of shopping
online. We saw this trend begin in 2010 and solidify in 2011 holiday season. Make sure to before Christmas. Make sure that you
so look for retailers to have a strong pre-Thanksgiving week create promotional strategies and have reserved budgets to capture this
and Thanksgiving Day in 2012 as well. optimize campaigns accordingly. last-minute traffic opportunity.
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5. WHAT TO
EXPECT IN 2012
Key Calendar Dates will have a Heavy Impact on Shopping Activity
This year, Thanksgiving falls on the 22nd, which adds 2 days to Another important date to note is that “Free Shipping Day”, typically
the shopping period that begins on Thanksgiving and ends on the last day to order online and receive free shipping, falls on
Christmas Eve. Last year, Christmas Eve and Christmas Day fell December 17th, a Monday. Since Mondays have historically been
over a weekend while this year, Christmas Eve is on a Monday. The the peak online shopping day during the holiday season, look for
result: 5 full weekends between Thanksgiving Day and Christmas increased traffic and sales this year.
Eve — 1 more weekend than last year.
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6. Competition will be Fiercer than Ever
This year, Kenshoo clients (both retail and non-retail) have continued to increase their investment in search. For the first half of 2012,
ad spend is up by 46% over the same period last year. As search marketing continues to prove its value, expect to see even more
competition this holiday season.
Source: Kenshoo Enterprise 2012 U.S. Holiday Online Retail Insights | © Kenshoo, Inc.
Note: Volume metrics have been normalized to a factor of 1 based on the initial quarter of data. Data points from subsequent quarters
are based on a multiplier from the first quarter. Eg, 1.55 means that volume is 1.55 greater than volume in initial quarter measured.
Cost-per-Click Rates will be Less Expensive This Year
Over the past 6 quarters, there has been a steady drop in paid search cost-per-click (CPC) rates which was only abated by a small
increase in Q2 of 2012. Overall, the average CPC is down $0.16 from its 18-month high representing a 28% drop. As a result, look for CPCs
to be less expensive this holiday season compared to the year before.
Source: Kenshoo Enterprise 2012 U.S. Holiday Online Retail Insights | © Kenshoo, Inc.
Note: Volume metrics have been normalized to a factor of 1 based on the initial quarter of data.
Data points from subsequent quarters are based on a multiplier from the first quarter.
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7. Increased Budgets Combined with Low CPCs will Result in Massive Click Volumes
The combination of the previous 2 trends will result in a huge paid search click increase for retailers this holiday season. As CPCs get
less expensive, budgets get more effective at driving traffic. This is apparent as click volumes more than doubled in the first half of 2012
compared to 2011. Look to maximize budgets so that you can take full advantage of this trend and check your impression shares to make
sure that you aren’t missing any opportunities.
Source: Kenshoo Enterprise 2012 U.S. Holiday Online Retail Insights | © Kenshoo, Inc.
Note: Volume metrics have been normalized to a factor of 1 based on the initial quarter of data. Data points from subsequent quarters
are based on a multiplier from the first quarter. Eg, 1.55 means that volume is 1.55 greater than volume in initial quarter measured.
Contact a Kenshoo Representative to receive your copy of the full
Kenshoo Enterprise Holiday Best Practices Guide featuring more than
35 ways to leverage Kenshoo and maximize results this holiday season.
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