September 1, 2010, 2:28 PM

Back-to-school marketing drives up paid search

Retailers increased spending by 51% in July.

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Retailers boosted paid search advertising spending by 51% in July over the same period last year as merchants tried to promote sales of back-to-school products and get ready for the holiday shopping season, reports PM Digital, a provider of search engine marketing services. Actual spending amounts were unavailable.

“Online retailers are anticipating that Q3 and Q4 may require strong promotion to meet increased competition in the heavily competitive search landscape," says Suzy Sandberg, president of PM Digital. “They are increasing search spending, and offering early pre-season promotions to counter this trend.”

PM Digital bases its findings on client activity that it aggregates in the PM Digital Rewind Index. Among other things, it also reported the following findings for July over the same month last year:

● Cost-per-click increased 10%

● Number of clicks increased 31%

● Conversion rate increased 18%

● Average order value declined 2%

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