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Kenshoo ( ), a global leader in search marketing and online advertising technology, today released its full Kenshoo 2010 Online Retail Holiday Shopping Report. Kenshoo’s digital marketing software is used by hundreds of advertisers, including five of the top ten U.S. retailers and directs more than USD 15 billion in online sales for its customers.

To compile this report, Kenshoo aggregated search marketing data from the holiday shopping season across its U.S. Retail Index, a cross-section of Kenshoo retail customers from verticals such as apparel, electronics, entertainment, home improvement, gifts, luxury goods and toys. In all, more than 3 billion total advertising impressions, 60 million clicks and 3 million online sales transactions were analyzed for the period beginning 21 days prior to Thanksgiving and ending the weekend after New Year’s Day in 2009 and 2010.
The Kenshoo 2010 Online Retail Holiday Shopping Report shows strong improvement in the U.S. economy and performance of retail search advertisers. For example, search ad budgets increased 54 percent in 2010, driving a 69 percent lift in online sales revenue year-over-year.
The report identifies seven key trends:

  1. The online holiday shopping season is starting earlier and lasting longer than ever
  2. Online shoppers are increasingly responsive to paid search advertising
  3. Consumers buy more often than they used to, with smaller basket sizes
  4. Paid search advertisers have increased effectiveness and budgets
  5. Thanksgiving is now “Cyber Kickoff Day”
  6. Retail search advertising competition peaks on Cyber Monday and the second shopping week in December
  7. Search advertising activity slows dramatically after Christmas

The Kenshoo 2010 Online Retail Holiday Shopping Report provides data, charts, graphs and insights supporting these trends along with implications for advertisers and 2011 predictions for search and online marketing.
“When we released our first report after Cyber Monday, the state of the economy and search industry at large had already proven to be healthier in 2010 compared to 2009,” said Aaron Goldman, Chief Marketing Officer at Kenshoo. “But the upward trending of budgets, sales and revenue increased further in the weeks before Christmas, helping the Kenshoo U.S. Retail Index earn an average of USD 10.60 for every dollar spent on search ads. We’re excited to share these findings and the corresponding implications with the industry and hope retailers are able to leverage the insights to improve search marketing programs in the coming year.”
Kenshoo plans to make this an annual report and, in future editions, include regions outside the United States as well as online advertising channels beyond paid search such as social media and display. Please visit to download the report and get the latest updates.