Internet Retailer research also reveals the top retail spenders on search marketing.
Paid search spending has increased 17.8% this year for North America’s largest e-retailers, according to an analysis by Internet Retailer in advance of a new search marketing research report scheduled for release early next year.
The collective monthly paid search spend for the Top 1000 e-retailers in 2014 stands at approximately $158.4 million, up from nearly $134.5 million for 2013, according to data from ROI Revolution, a search marketing agency. In part, that comes from more spending on Google’s Product Listing Ads, some retailers report. PLAs, as they’re also known, feature product images and prices from merchants prominently in the central area of a Google search results page. They replaced free comparison shopping listings in October 2012.
The paid search growth roughly matches what other search firms have reported. Clients of digital marketing firm Kenshoo, for instance, have increased their third quarter paid search spending 19% year over year, with revenue stemming from the marketing channel increasing “even more,” says Doug Chavez, global head of marketing research and content. “We are seeing marketers get much savvier about how to use their search data to fuel ROI in other channels as well as layering on cross-channel insights to get better results in paid search,” he says.
The preliminary Internet Retailer research also shows that the retailer spending the most on paid search in 2014 was Amazon, No. 1 in the Internet Retailer 2014 Top 500 Guide, with 2014 monthly paid search spend of about $12.2 million, up 56.8% from last year.An exclusive Internet Retailer survey from the November 2014 issue of Internet Retailer magazine finds that 53.3% of respondents plan to increase their pay-per-click search spending in the coming year. That compares with roughly 56% of respondents who said in 2013’s survey that they would increase their pay-per-click advertising.
By Thad Rueter Senior Editor
November 13, 2014, 11:05 AM