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  • Posted on 1 April 2014

SEA: The 2013 Retail Sales

The year 2013 began with gloomy weather!

Despite the widespread use of floating balances for retailers – in order to sell winter products – the first 5 months of the year were particularly sensitive in this sector. A decline in sales of 4% was recorded compared to 2012. Inclement weather of spring and early summer highlighted the crucial importance of Summer Sale to save the 2013 season.

The retailers were therefore obliged to adopt more aggressive strategies on their PPC campaigns. There has been a 72% increase of the SEA budget on the 1st week of sales compared to 2012 as well as putting forward strong promotions up to -50% or -80% from the first days.

The weather has been an influential player in the buying behavior of consumers. 27% of French say they spend more during sales if it is fine, 33% of French also say that bad weather could encourage them to make sales on the Internet rather than store. We are talking about the weather sensitivity of the Retail sector.

 

Performance of SEA campaigns global accounts Retails

Compared to 2012, the profitability of PPC campaigns fell on the 1st day of Sales but fades over the period to return to a similar trend to the previous year.

The main reason for this drop in profitability in the beginning of the sales comes from increased competition due to the presence of retailers and other advertisers on all queries (Brand and Generic) our advertisers which resulted higher average CPC for an average ad position identical. This loss of efficiency is also explained by the increase in the share of investment on generic keywords.

After these first days of difficult Sale, the performance of SEA campaigns have improved thanks to higher conversion rates and average basket. 

This year consumers have diluted their purchases throughout the sales period unlike previous years or the first day was the keystone purchases.

 

Campaign performance SEA Retail accounts on Mobile

Following the release of Universal Campaigns device by Google, mobile this year became an important vector in the strategy Sponsored links Retailers, in particular the sales period.

It was observed a decrease in the profitability of mobile compared to 2012 throughout the sales period. The main causes of performance degradation mobile from the increased competition and rising from the generic global investing. 

Google’s new policy to promote Mobile through passage “Campaigns Universal” was detrimental to the profitability of Mobile on Sale 2013. Consumers do not seem mature enough to go to the end of the buying process on the mobile via the SEA campaigns. More mobile sites of retailers are still not up to expectations in terms of conversion rate and quality of navigation.

 

Performance Campaigns Products Listing Ads (PLA) on Retail Accounts

 

During 2013, Google has changed its policy at the PLA has made more skilled and therefore more efficient for retailers campaigns. Advertisers in the Retail sector have increased their investments in this type of campaign for Sale of 2013.

There has been an increase in the profitability of PLA campaigns at the beginning of 2013 and especially on the sales period. Higher conversion rate and average basket is the main reason for the improved performance of PLA campaigns.

Consumers seem to respond favorably to ads that are more complete PLA through the display of the product, the price and the name of the advertiser. This type of promotional campaigns or visual element is perfectly suited to the strategy of retailers.

Summer 2013 Sales were mainly marked by the changing behavior of consumers in their purchase decision. Dilution purchases on the whole period, the growing interest in PLA campaigns and difficulty of PPC campaigns on Mobile are the main phenomena identified. Will there be consistency in these events for the next Winter Sale or return to behaviors conform to previous years?

 

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