Retail Search Spend Soars 33% Ahead of Holiday Season
SearchIgnite issues mid Q4 report evaluating search marketing spend by retailers
ATLANTA, GA – November 24, 2008– Multi-channel retailers are increasing their U.S. search spend dramatically despite the economy’s troubles, with retail search spend up 33% so far in Q4 08 compared with the same time period last year. The findings come from a report released today by SearchIgnite, a leading provider of search management and campaign optimization technology managing more than $350 million in paid search annually.
This growth in retail search spend is becoming more pronounced as the quarter progresses leading up to the peak holiday season. Although it is typical for retailers to ramp up their marketing spend throughout Q4 and leading up to the holidays, 2008 showed marked differences from the prior year.
For the first half of Q4 08, the pace of spending among retailers is up 58% over Q3spend. This compares to an increase of only 40% for comparable periods in 2007 (Q3 vs. first half Q4).
Consumers continued to purchase online at a steady rate, (i.e. “Conversion Rate”), but they are spending less on average per transaction. The growth in spend despite stagnant conversations and a lull in average order value indicates that retailers are relaxing their ROI goals and being increasingly aggressive with their paid search spend in an effort to capture more of consumers’ dollars online.
With the current economic climate leading up to the holidays, retailers are looking for ways to capture consumer spend and drive revenue in efficient ways,” said Roger Barnette, President of SearchIgnite. “We’re seeing multi-channel marketers moving more dollars into search from other areas of their marketing mix since search is still the most efficient and measurable advertising channel.”
SearchIgnite is a powerful search management and auction campaign optimization technology that simplifies large cross-engine search campaigns, providing marketers and advertising agencies with one central platform for managing, optimizing and tracking complex keyword portfolios in real time. Marketers who use SearchIgnite have full transparency and control over their campaigns with flexible bid management capabilities including manual bidding, rules-based bidding and portfolio optimization. Leading marketers and agencies depend on SearchIgnite to simplify and maximize the performance of their paid search campaigns. SearchIgnite is part of Innovation Interactive, a digital marketing services company.
Press ContactAmanda Bird