News
News
11/23/2005
03:40 PM
Connect Directly
RSS
E-Mail
50%
50%

Catering To Online Shoppers

This year online retailers are paying more attention to people browsing at search engines.

After the turkey and the pumpkin pie, let the shopping begin.

'Tis the season for Christmas shopping, and this year online retailers are paying more attention to people browsing at search engines. They're also spending more in the bidding war for the top spots in the "sponsored links" that appear above and to the right of the unpaid search results, paying a fee for each click by a potential new customer.

"This year people have gotten really serious about search," says Fredrick Marckini, chief executive and founder of iProspect, which helps retailers like Circuit City, Sharp Electronics, Columbia House and Lids.com manage pay-per-click advertising campaigns, as well as improve their rankings in unpaid search results.

The company, based in Watertown, Mass., has some retail clients spending hundreds of thousands of dollars per month on search engine marketing during the holiday season. That was the case last year, too, but only for a smaller group of merchants. "Paid search is the fastest growing segment of our business," Marckini says.

That's true for other search engine-marketing firms as well. Their customers are spending more this holiday season, and with a year or two of experience under their belts, they have more refined tools to determine how much to spend, and where.

Overall, 7 out of 10 retailers plan to spend more on paid listings on search engines during the holiday season, according to results of a study by Shop.org, an industry trade group of online retailers. The group found that the average retailer spent $877,000 on search engine marketing in 2004, more than twice as much as the average of $399,000 for the previous year. During that time, the spending jumped from 10 percent of total online marketing budgets to 19 percent.

"Online retailers love measurable marketing tactics, and search engine marketing is highly measurable and it's effective. The return on investment is very strong," says Scott Silverman, Shop.org's executive director.

Previous
1 of 3
Next
Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
solokin
50%
50%
solokin,
User Rank: Apprentice
5/15/2012 | 10:14:12 AM
re: Catering To Online Shoppers
Good Article.
The Business of Going Digital
The Business of Going Digital
Digital business isn't about changing code; it's about changing what legacy sales, distribution, customer service, and product groups do in the new digital age. It's about bringing big data analytics, mobile, social, marketing automation, cloud computing, and the app economy together to launch new products and services. We're seeing new titles in this digital revolution, new responsibilities, new business models, and major shifts in technology spending.
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek Tech Digest - July10, 2014
When selecting servers to support analytics, consider data center capacity, storage, and computational intensity.
Flash Poll
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
Join InformationWeek’s Lorna Garey and Mike Healey, president of Yeoman Technology Group, an engineering and research firm focused on maximizing technology investments, to discuss the right way to go digital.
Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.