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Thanksgiving Drove Retailers’ Highest Paid Search Revenue Gains Of The Holiday Season [Report]
Revenue rose 50 percent year-over-year, just beating out Black Friday's revenue gains of 49 percent according to Kenshoo.
Thanksgiving day performed strongly again for retailers with a 50 percent increase in revenue year-over-year. Overall, clicks rose 16 percent on an impression increase of 7 percent throughout the holiday season (most of November and December) compared to 2013. Revenue increased 21 percent on a 30 percent increase in ad spend year-over-year, according to Kenshoo’s final retail seasonal shopping report.
Consumers Engage On Thanksgiving Day
Revenue jumped on Thanksgiving and Black Friday compared to 2013. Thanksgiving revenue nearly rivaled that of Black Friday. Compared to 2013, retailers generated 50 percent more revenue on a 47 percent increase in spend on Thanksgiving year-over-year.
During the 2014 holiday season, retail-related paid search impressions remained relatively flat from the previous year — the exception being the week of Cyber Monday. Retailers continued to push promotions after the key shopping dates and realized significant increases in impressions in the week of Cyber Monday year-over-year.
Despite somewhat flat impression gains, advertisers realized higher efficiencies as clicks rose globally for retailers during the holiday season compared to 2013.
Click-through rates (CTRs) began their ascent earlier this year–roughly 10 days before Thanksgiving–as retailers started promoting online sales sooner than in the past. CTRs peaked on Thanksgiving day. Click volume on Thanksgiving rose 30.5 percent compared to 2013.
Conversion rates peaked on Cyber Monday again in 2014 as they did the prior year.
In another sign that consumers were on board with earlier promotions, conversion rates were higher in the two weeks ahead of Thanksgiving this year than in 2013.
Smartphones drove 32 percent of retail paid search clicks throughout the season and 13 percent of conversions and 11 percent of revenue. Mobile revenue peaked on Thanksgiving Day with smartphone revenue share coming in at 18 percent.
Smartphone CPCs jumped 56 percent, followed by desktop which rose 20 percent and tablet which increased by 16 percent. Across all devices CPCs rose 15 percent year-over-year throughout the shopping season. Average desktop and tablet CPCs were on par at $0.59 and $0.58, respectively. The average smartphone CPC was $0.39, up from $0.25 in 2013.
The entire report, which includes more details on product listing ads and seasonal Facebook ad trends, can be downloaded here.