Retailers' search spend up in Q4

Share this content:

A recent SearchIgnite report reveals that retail search spend has grown in anticipation of fourth quarter holiday sales.

Year over year, multi-channel retailers have increased their US search spend by 33% so far in Q4 2008, compared with spending at this time last year. The quarter to quarter increase in spending has also grown over last year's: between Q3 and the first half of Q4 2007, search spend rose 40%, but this year, search spend went up 58% between Q3 and the first half of Q4.

“Retailers are increasing their spending in Q4 at a faster rate this year than last year, which is very interesting given the current economic environment,” said Roger Barnette, president of SearchIgnite. “To put that into context, we feel that retailers are being much more cautious about where they spend and are putting their money into performance-driven media. This means they continue to invest in search, perhaps at the expense of other channels that aren't performance-based models.”

He added that search marketing is an efficient way of buying media, which could account for some of its added appeal in a slow economy.

The first two weeks in November, in particular, saw a sharp increase in search spend by retail clients, Barnette reported. In fact, that increase is responsible for much of the overall quarter over quarter increase.

“We think that bodes well for what will hopefully be a strong rest of the fourth quarter,” Barnette said. He added that he expects marketers' interest in search and other performance-based media to continue growing next year.

“You're going to see continued strength in search marketing and other performance-based digital channels, such as performance-based display ads and behavioral targeting," he said. "The market is moving more in that direction, and performance-based media will be bucketed in one group, where search will be part of the performance landscape instead of its own segment.”



Next Article in Marketing Strategy

Sign up to our newsletters

Company of the Week

Since 1985, Melissa has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above