The total number of online purchases driven by search advertising increased 17 percent on last year, while search adspend increased 7%, according to new research.
The study, from digital marketing software provider Kenshoo looked at core online search advertising data gathered from transactions over the period of 1st November to 12th December, 2011 and compared against 2nd November to 13th December, 2010.
A full report for the season with detailed charts and trend analysis will be released in the New Year.
Other findings for the 2011 season to-date include:
• Online retail revenue driven from search advertising increased 54 percent YoY
• Average search advertising cost per click (CPC) increased 35 percent YoY
• Online retailers’ return on advertising spend (ROAS) increased 45 percent YoY
“Online Christmas shopping has been quite strong in the U.K. so far this year,” said Aaron Goldman, chief marketing officer at Kenshoo. “Search advertising appears to be a main growth driver of U.K. e-commerce with both advertisers and consumers spending more than ever before. The best news for retailers is that the higher cost per click has not resulted in a lower return on ad spend. This makes search advertising an extremely profitable channel.”
The data above is based on the Kenshoo U.K. Retail Index, a cross-section of Kenshoo retail advertisers covering verticals like apparel, electronics, entertainment, home improvement, gifts, luxury goods, and toys.
The research covers paid search advertising in the U.K. across channels like Google, Yahoo, and Bing. The trends were culled from an aggregation of more than 1.4 billion total search advertising impressions, 34 million clicks and 1.4 million online sales transactions.
www.Kenshoo.com