Holiday Paid Search Spend Up 79% YoY; CPCs Stabilize

Posted by Ryan Hornacek, Analyst

For the last 7 weeks, we’ve seen major year-over-year paid search spend increases for our aggregate group of retailer clients.  Leading up to Black Friday, we saw an 82% YoY spend increase during the week of 11/6–11/12 and a 79% YoY spend increase during the week of 11/13–11/19.  More competition inflated CPCs, especially during the week of 11/6–11/12 (where CPCs were up 26% as compared to the same week last year).  But this week (11/13–11/19), CPCs started to stabilize (up 19% YoY).  This means that retailers aren’t just paying more this year for the same amount of clicks they got last year; they’re receiving significantly more clicks for their increased investment.  In fact, clicks were up 50% YoY during the week of 11/13–11/19. 

Holiday Retailer Paid Search Metrics_4


The below graphs show the increases in paid search spend vs. 2010, while CPCs start to trend downward.  This data is from our retailer clients only and includes all engines:

Spend
CPCs