5/02/13

Paid search is not child’s play for kids' products retailers

Toys ‘R’ Us overtakes Disney in AdGooroo’s new paid search report.

Thad Rueter , Senior Editor

Toys ‘R’ Us Inc. overtook the Disney Store USA LLC last year when it comes to paid search impressions for children’s goods retailers, according to a new report from AdGooroo. The Kantar Media-owned research firm based its findings on data covering some $2.3 billion worth of U.S. paid search spending in 2012.

Toys ‘R’ Us, which dropped to No. 30 from No. 29 in the new Internet Retailer Top 500 Guide, did not comment on the report’s findings. The retail chain has been working to tie together its stores with its mobile and web sites and apps—a push often called “omnichannel retailing”—and last year hit $1 billion in annual web sales. Over the last several years, Toys ‘R’ Us also has purchased such web-only retailers as BabyUniverse.com and eToys.com. The retailer sells online at Toysrus.com, Babiesrus.com, eToys.com, FAO.com and BabyUniverse.com.

“Toys ‘R’ Us appears to have greatly enhanced its paid search efforts last year,” says Jim Leichenko, AdGooroo’s director of marketing. He says the chain increased its paid search impressions 47.8% last year to 201 million, from 136 million in 2011. Google defines a paid search impression as every time an ad is show to a consumer. The Disney Store dropped 9.6% in year-over-year paid search impressions to 188 million from 208 million. Disney is No. 83 in this year’s Top 500—the 10th such annual e-commerce research guide—up from No. 79 last year. Disney offered no immediate comment.

Toys ‘R’ Us ranks No. 194 overall in paid search among the retailers included in Internet Retailer’s 2013 Search Marketing Guide. According to the guide, the chain received 36.3% of its traffic from paid search in 2012, and spent on average $155,000 per month on pay-per-click advertising, down 14.8% from $182,000 in 2011. Disney, meanwhile, ranks No. 221 for paid search, having received 36.1% of its traffic from that marketing source in 2012, and spending $107,000 per month on pay per click, up 664.3% from $14,000 in 2011.

Topics:

e-commerce, e-retail, industry statistics, paid search, retail chains, search engine marketing, SEM, Top 500 Guide

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