Holiday Paid Search Analytics Reveal Insights Into Today’s Cross-Channel Shopper

When analyzing early holiday paid search data, it’s readily apparent that shopping is truly a cross-channel endeavor. For instance, the majority of this year’s Black Friday shopping occurred in-store, but consumers used search engines in droves before setting foot in a store. Search helped shoppers map out their in-store Black Friday strategies, informing them exactly where and when they could find the best deals on the products they wanted.

When analyzing early holiday paid search data, it’s readily apparent that shopping is truly a cross-channel endeavor. For instance, the majority of this year’s Black Friday shopping occurred in-store, but consumers used search engines in droves before setting foot in a store. Search helped shoppers map out their in-store Black Friday strategies, informing them exactly where and when they could find the best deals on the products they wanted.

Search played a major role in driving in-store traffic this Black Friday. Performics tracked a huge spike in Google paid search clicks for its clients on both Thanksgiving and Black Friday. Paid search clicks increased 87 percent year-over-year on Thanksgiving and 65 percent year-over-year on Black Friday. Additionally, this year saw the most mobile paid search clicks and impressions ever seen on Black Friday — 400 percent more than 2010.

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For the second consecutive year, Black Friday clicks surpassed Cyber Monday clicks. The adjacent graph shows three primary spikes in 2010 and 2011 fourth quarter paid search clicks. Black Friday represents the biggest spike, with Thanksgiving and Cyber Monday (which were close to each other) following behind.

Cyber Monday has historically been the biggest online sales day of the year, not Black Friday. In terms of online sales, Black Friday historically ranks behind Cyber Monday, Green Monday (the second Monday in December) and Free Shipping Day. Black Friday drives the most clicks, but the fourth most online sales.

This indicates that consumers use search engines heavily on Black Friday to discover the best in-store deals. Post-recession shoppers are researching on their computers and mobile devices more than ever to find the right combination of quality and price. The rise of mobile, highlighted by the 400 percent year-over-year increase in Black Friday mobile clicks, is the biggest indicator of true cross-channel shopping.

Not only are on-the-go consumers searching for your store locations, but they’re also conducting competitive price searches and looking for product information on their phones/tablets while in your store. According to Performics’ 2011 Social Shopping Study, 62 percent of consumers perform competitive price searches on their mobile devices while in a retailer’s store and 41 percent look for product information.

To capitalize on this cross-channel shopping behavior during the holiday season and beyond, marketers should do the following:

  • integrate online and offline promotional planning;
  • create strong mobile websites;
  • use paid search extensions (e.g., addresses, phone numbers, click-to-call) to aid searchers looking for your store;
  • let searchers know that products are in stock in your stores;
  • ensure visibility in mobile search for keywords likely to be used by shoppers searching for your store while on the go or in-store; and
  • create comprehensive local paid and organic search campaigns.

Marketers should invest in analytics to understand exactly how search marketing affects offline sales. Uncovering insights through data will help you best allocate budgets and create marketing strategies to maximize cross-channel performance.

Forecasting a Cheery 2010 Holiday Shopping Season for Paid Search Campaigns

With the holidays fast approaching, news and economic trends relevant to this year’s holiday shopping season have been mixed, though generally favorable. A recent study by ChannelAdvisor revealed that 81 percent of shoppers plan to spend the same or more on holiday gifts this year. The study also found that more of that shopping will be conducted online.

With the holidays fast approaching, news and economic trends relevant to this year’s holiday shopping season have been mixed, though generally favorable. A recent study by ChannelAdvisor revealed that 81 percent of shoppers plan to spend the same or more on holiday gifts this year. The study also found that more of that shopping will be conducted online.

From a performance perspective, actively managed holiday paid search campaigns delivered impressive results during the 2009 holiday shopping season in comparison to the rest of the year. In 2010, these campaigns have already achieved strong year-to-date (YTD) growth. This strong YTD growth will likely continue into the fourth quarter, and Performics predicts this will net out to 15 percent year-over-year (YOY) growth for actively managed holiday paid search campaigns. The results could be even stronger for search advertisers who are able to make Q4 outshine the rest of the year like they did in 2009.

Either way, all signs point to growth for these campaigns, and marketers should keep the following opportunities in mind:

Continued emphasis on value. Free shipping and discounts have become standard as retailers continue to vie for cost-conscious consumers. Average order value is down 9 percent YTD according to a Performics Holiday Retail Group report, and this trend will likely continue into Q4. Providing offers on upsell or cross-sell products can help boost order totals and offset free shipping and other discounts merchants offer.

Delayed shopping as savvy consumers research and wait for late sales. The first two weeks in December 2009 saw sales increase by 27 percent compared to 2008, while Black Friday sales decreased 17 percent YOY. Sales during the last week of free standard shipping prior to Christmas also increased significantly in 2009. However, numbers may shift this year if consumers feel more confident with compelling sales already underway. The recently released Compete Holiday Insights survey found that 50 percent of consumers have already started holiday shopping.

Shoppers are reaching for their phones. Nearly half of adult smartphone owners younger than 25 will use their smartphones to shop this holiday season, according to a new survey from the National Retail Federation and BIGresearch. An increasing share of overall clicks are coming from mobile — 6.7 percent in September, and projected to be greater than 10 percent within 12 months.

Improved efficiency of last-minute shopping. Consumer spending and cost per clicks dropped dramatically following the last week of free standard shipping prior to Christmas 2009. Active paid search advertisers can do more for less after Dec. 17.

Marketers looking to capitalize on these opportunities and improve holiday performance should consider the following recommendations:

  • follow best practices to actively manage campaigns and effectively respond to market forces;
  • offer aggressive promotions early to capture shoppers;
  • actively participate in the last week of free standard shipping prior to Christmas;
  • embrace mobile to ensure the channel’s increasing user base can find you when searching; and
  • continue active management of paid search beyond Dec. 17 to further boost efficiency.

By following shoppers’ changing behaviors this holiday season — and planning and executing campaigns accordingly — marketers can boost their odds of a jolly holiday.