Rise Of Online Shopping On Mobile Devices: How Is Your Paid Search Strategy?
By Bruce Morin
The holiday season is in full swing. Christmas is just around the corner and now that the Black Friday shopping frenzy is over, it seems that everyone involved in marketing and retail has started looking at spending numbers. Unfortunately for brick and mortar stores, this year was not stellar. In fact, retailers in the United States gained only 2.3-percent over last year, making this the smallest increase since the last recession.
However, online shopping is another story and a bright spot for retailers, as well as consumers. According to IBM Corp., online sales rose 20-percent from last year on Thanksgiving and 19-percent on Black Friday. This seems to suggest that people are more willing to buy online than to fight the crowds at the mall. People are starting to realize that you can get the same (or better) deals online without the travel and the hassle.
This is great news for online retailers and marketers – in the paid search space, there were huge increases in spending by retailers. In fact, our partner, Kenshoo, reports a 33-percent increase on Thanksgiving and a 21-percent increase on Black Friday over last year.
“Thanksgiving and Black Friday are two of the biggest shopping days and this year both consumers and advertisers had their wallets ready”, said Aaron Goldman, Kenshoo CMO. “Kenshoo saw dramatic increases in paid search ad spend and online sales revenue on these two days signifying the peak shopping season is off to a hot start. With the 2013 calendar condensing the time between Thanksgiving and Christmas, we expect the torrid pace to continue”.
Not surprisingly, the largest growth was in mobile device activity. According to Kenshoo, marketers spent 79.5-percent of their paid search budgets on computers during the 2012 holiday season and only 11.8 percent on phones and tablets. This year, they spent 60.3-percent on computer ads while spending 21.2 percent on phones and 18.5 percent on tablets.
“It’s clear that the story of the shopping season to date is the mobile migration,” added Goldman. “In fact, this isn’t just a migration we’re seeing, it’s a full on revolution. With phones and tablets accounting for nearly 40% of all paid search ad spend on Thanksgiving and Black Friday, its clear marketers have multi-device strategies in place to lure consumers wherever and whenever they’re shopping”.
These days, retailers who take advantage of paid search on mobile devices are being rewarded. 55.8- percent of all paid search clicks in 2013 were still on computers, but phones and tablets represented almost half of all paid search clicks on Thanksgiving and Black Friday. It will be interesting to see how this trend will affect the financial and insurance industries in 2014.