Kenshoo Study Reveals U.K. Retailers Spent 27% More on Paid Search in Christmas Season with Nearly One-Third of all Clicks from Mobile

Kenshoo Study Reveals U.K. Retailers Spent 27% More on Paid Search in Christmas Season with Nearly One-Third of all Clicks from Mobile

LONDON, January 10, 2013 /PRNewswire/ --

    - UK consumers spent 34% more on Boxing Day 2012 online purchases through paid search
ads than in 2011

    UK retailers spent 27% more on search marketing through Google and other major search
engines during this past Christmas season than in 2011 with more than 31% of all paid
search clicks coming from mobile phones and tablets according to data from global digital
marketing technology leader, Kenshoo [http://www.kenshoo.com ].

    (Logo:
http://photos.prnewswire.com/prnh/20120907/559592 )

    The Kenshoo 2012 Global Online Retail Holiday Shopping Report
[http://www.kenshoo.com/2012GlobalOnlineRetailShoppingSeasonReport ] reveals UK retailers'
Boxing Day search ads generated a 34% increase in online sales revenue with a 43% increase
in conversion rates year-on-year (YoY) . Overall, for the season, advertisers in the
Kenshoo U.K. retail index generated GBP12.95 return on ad spend or nearly 13 GBP for every
1 Pound invested in paid search.

    "Savvy U.K. retailers planned ahead for post-Christmas shopping and allocated budgets
to capture Boxing Day peaks," said Aaron Goldman, chief marketing officer at Kenshoo.
"Despite increased competition throughout the Christmas season, Kenshoo U.K. clients
adapted their strategies to achieve strong results including creating bespoke campaigns to
target consumers by device type."

    The Kenshoo study found that tablets emerged as a critical consumer shopping device,
generating 18% of all paid search clicks and 21% of total revenue. More affluent tablet
owners produced an average order value (AOV) of GBP88.48 from search ads, significantly
higher than the GBP73.78 AOV for computers. Despite the strong performance, the average
paid search cost-per-click (CPC) for tablets is 31% less expensive than computers.

    2012 U.K. Retail Paid Search Key Metrics - Breakdown by Device

       
        Device   Clicks  Conversions Revenue Ad Spend Cost-per-Click Conversion Rate    Average
                                                                                    Order Value
        Computer 68.88%       78.07%  75.32%   78.74%       GBP 0.36           6.53%   GBP73.78
        Phone    13.09%        3.62%   3.40%    7.09%       GBP 0.17           1.59%   GBP71.98
        Tablet   18.02%       18.31%  21.27%   14.17%       GBP 0.25           5.85%   GBP88.84

    Other key U.K. findings revealed in Kenshoo's report include:

       
        - When comparing paid search ads across mobile phone operating systems,
          Apple's iOS (iPhone) devices were dominant (62.4% of clicks), leaving Android behind
          (34.55% of clicks) with lower conversion rates and smaller average order sizes, while
          Blackberry drew just 2.18% of clicks
        - For paid search ads delivered through tablet devices, 98.3% of clicks came
          from iOS (iPad) with just 1.07% coming from Blackberry and 0.62% from Android
        - Paid search conversion rates in the U.K. grew steadily from late November
          through the first three weeks in December and did not drop until the final few days
          before Christmas
        - Consumers were choosier with clicks as Christmas Season paid search
          impressions were up 18% but clicks were down 2%

    The Kenshoo 2012 Global Online Retail Holiday Shopping Report provides charts, graphs
and insights supporting these trends along with search marketing imperatives for
advertisers in the year ahead for search, social, and mobile.

    The data analysed for this report reflect a representative cross-section of Kenshoo
clients (advertisers and agencies) managing paid search programs for the retail vertical
across all major markets (including Australia, China, France, Germany, Japan, U.S. and
U.K.) with active campaigns tracking impressions, clicks, conversions and revenue over the
12+ month period from November 1, 2011 through December 31, 2012. This index includes all
major retail categories such as, but not limited to, electronics, books, apparel,
appliances, shoes, sporting goods and more. The data set covers 24+ billion paid
impressions and clicks on search engines including Google, Yahoo!, Bing, AOL and Baidu
that delivered more than $1.7 billion dollars in online sales revenue.

    In addition to the U.K., the Kenshoo 2012 Global Online Retail Holiday Shopping Report
also includes sections covering search advertising trends in the United States. Please
visit http://www.Kenshoo.com/2012GlobalOnlineRetailShoppingSeasonReport to download
the entire report.

    About Kenshoo

    Kenshoo is a digital marketing technology [http://www.kenshoo.com ] company that
engineers premium solutions for search marketing, social media and online advertising.
Brands, agencies and developers use Kenshoo Enterprise, Kenshoo Local and Kenshoo Social
to direct more than GBP16 billion in annual client sales revenue. The Kenshoo Universal
Platform delivers automation, intelligence, integration and scale to make better marketing
investments. With campaigns running in more than 190 countries for nearly half of the
Fortune 50 and all 10 top global ad agency networks, Kenshoo's UK clients include Accor,
Burberry, GroupM, Havas, John Lewis, Omnicom and Tesco. Kenshoo has 16 international
locations and is backed by Sequoia Capital, Arts Alliance and Tenaya Capital. Please visit
http://www.Kenshoo.com for more information.

    Kenshoo is a trademark of Kenshoo Ltd. Other company and brand names may be trademarks
of their respective owners.

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Kenshoo

CONTACT: Contact : Uday Radia, CloudNine PR, +44(0)7940-584161, uradia@cloudninepr.com