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.
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: