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UK Insights

Amazon and telecom brands spend big on paid search

Jim Leichenko

Director of Marketing, AdGooroo

Retail 28.07.2016 / 10:00

Amazon_co_uk

Retail spend up 24% year-on-year

Kantar Media’s AdGooroo examined Google.co.uk desktop text ad activity on the top 250 retail product keywords during the six months up to July 2016. Our research found that advertisers spent £26.7 million on the keywords examined in the first half of the year, compared with £21.6 million during the same period of 2015. Online giant Amazon.co.uk led the field in spend in the first six months of 2016, followed by Apple and John Lewis.

Retailers in the telecoms sector, including o2.co.uk and carphonewarehouse.co.uk, dominated the remainder of the list, making up 6 of the top 20 entries and spending a total of more than £2.2 million.

The presence of so many telecoms in the retail ranking is driven by the strength of just 12 mobile-specific terms in the top 250 keywords, which accounted for £4.5 million, or 16.85%, of total paid search ad spend on the keyword group during the first six months of the year.

Top Advertisers on Top 250 Retail Product Keywords in the UK:

  Advertiser   Spend   Avg. Clickthrough Rate   

Avg. Cost Per Click

 

# of Keywords

  amazon.co.uk   £891,000   2.8%    £0.41   216
  apple.com   £508,000   4.3%    £0.53   28
  johnlewis.com   £505,000    3.0%   £0.36   141
  o2.co.uk   £476,000    3.2%   £0.64   17
  carphonewarehouse.com   £474,000    3.8%   £0.47   13
  argos.co.uk   £469,000    2.9%   £0.40   64
  ee.co.uk   £397,000    3.0%   £0.75   16
  three.co.uk   £378,000    3.0%   £0.68   14
  diydress.co.uk   £364,000    4.4%   £0.48   22
  samsung.com   £333,000   4.5%   £0.81   19

Apparel & accessories keywords were the dominant category among the top 250 retail product keywords, with 86 apparel terms generating nearly £6.7 million in paid search ad spend during the first six months of 2016, or 25% of the total spend across all 250 terms.

Findings show a strong start to the year for retailers in terms of paid search ad spend compared with the first half of 2015. In fact, according to AdGooroo data, the 24% year-over-year increase in paid search spend we measured in the retail sector outpaced the UK search industry at large, which increased paid search ad spend by just 7.4% in the first half of 2016 compared to the same period in 2015.

UK Top 20 Retail Product Keywords By Paid Search Spend

  Advertiser   Spend   Avg. Clickthrough Rate   

Avg. Cost Per Click

 

# of Keywords

  iphone 6s   £956,230   3.1%    £0.90   30
  engagement rings   £847,667   3.7%    £1.81   85
  samsung galaxy s6   £773,125    3.9%   £0.93   38
  business card   £633,708    3.4%   £3.36   93
  mobile phone   £592,298    3.5%   £3.46   60
  conservatory   £486,915    3.4%   £3.41   120
  windows   £476,748    3.1%   £5.49   53
  iphone 5s   £417,857    2.9%   £0.60   43
  prom dresses   £417,842    3.2%   £0.66   101
  double glazing   £415,042   3.1%   £9.12   141

The top five UK retailers by keyword ad spend in the six-month period were:

1.       amazon.co.uk

2.       apple.com

3.       johnlewis.com

4.       o2.co.uk

5.       carphonewarehouse.com

 

The top five retail product keywords by paid search spend in the six-month period were:

1.       “iphone 6s”

2.       “engagement rings”

3.       “samsung galaxy s6”

4.       “business cards”

5.       “mobile phones”

 

Source : Kantar Media

Editor's Notes

Kantar Media's AdGooroo, examined Google.co.uk desktop Text Ad activity on the top 250 retail product keywords from January 2016 through June 2016.

Journalists, for more information, please contact us.

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