One of the dominant trends that we’ve seen in online activity over Christmas is that popular interest in shopping is higher on Christmas Day than during many of the traditional shopping days preceding it.

Insights for Search for Christmas 2008 shows that web search interest in shopping first peaked around Cyber Monday (07-08th Dec) but compared to the rising trend on Christmas Day, that was at least 10% higher and over 20% higher than online interest on the 21st, 22nd, 23rd and 24th.

Retail related searches rise dramatically in December but pick up incredible momentum over the 24th and 25th and into the traditional Boxing Day sale period. This year, however, the ramp up in seasonal activity appears to be taking place without the prevalence of deep discounting that was so commonplace last year. Arguably, this means more inventory for many top retailers and a longer sales period that can be expected by consumers.

To date, Christmas 2009 appears to be defined not just by the lack of 2008’s fire-sale panic but by online retailer’s improved organisation. Many businesses have extended delivery windows for pre-Christmas Day shopping with cataloguers and pure-play retailers the like of Amazon taking orders for Christmas delivery up to and including December 23rd (or the 24th if you’re within the M25 [1]).

We also believe that there is better and more widespread industry understanding of the size of the opportunity presented by Christmas Day itself. Certainly, few if any, major retail clients have neglected to build their Christmas and Boxing Day sales campaigns in anticipation of increased consumer demand and stock availability. In our opinion, businesses are more adept than ever in targeting consumers with the most relevant and timely offers during the peaks of the holiday period.

A recent Uswitch study found that the average British broadband user now spends an average of 30 hours online each week [2]. With the high levels of search interest in retail and shopping searches before, during and after Christmas Day it seems that a disproportionate amount of this time - if not many more additional hours - will be spent over Christmas in search of great deals and insatiable retail therapy.

[1]Internet Retailing December 18, 2009
[2]Uswitch Study



Posted by Brendan Patterson, UK Retail Team

October has often been a month of economic turmoil; it is the month when both the stock market crashes of 1929 and 1987 took place. Last year, it looked like the global economy was on the precipice of financial meltdown. It was during October that various governments were forced to take shares in numerous large financial institutions.

Refreshingly, 12 months on and October appears to have passed without major incident. The banks look like they will survive, the FTSE 100 is up around 30%, and GDP is expected to be positive in the next quarter.

After a very tough year for retailers, the story seems the same. According to the CBI optimism from UK retailers is the most positive it has been in 2 years. High Street sales have grown modestly in the year to October[1].

However online retail presents a much stronger picture, and is the channel driving growth for a lot of retailers. Argos have reported that 'Check & Reserve' orders have grown 50% and represent 18% of all orders; 42% of orders are now 'multi-channel' [3]. John Lewis reports website sales growing at 29% vs 5% for the overall business for the 12 weeks ended 24th October[4]. It seems there is no stopping UK consumers embracing the internet to browse and shop for products. At Google, UK searches for popular categories such as clothing and Home Entertainment are up 36% and 26% respectively Y/Y. The charts below show how four popular categories are trending as we head into the seasonal peak. In some cases search activity is already greater than peak levels of Christmas 2008.





All this should provide some optimism for retailers on the verge of the busy Christmas trading period. As we look to the festive season, it is seems that ~30% Y/Y growth is the benchmark to set.

Amazon's recently reported third quarter results. International sales (which include UK, DE, FR & JP) were up 33% on the same period last year. The company has forecast growth next quarter to be between 21-36% compared to 2008[2].

What targets have you set for your website this Christmas? And how can you capitalise on the growth opportunity presented by online (eCommerce) over the festive period? For those new to online advertising a Google Adwords account can be set up in minutes and will allow you to place a targeted message alongside search results. Go to www.google.co.uk/Adwords to learn more.

For those already well versed in paid search advertising, Google tools such as Insights for Search can show what new terms users are searching for, and help you target your marketing activity. While the Search Based Keyword Tool can help identify gaps in your keyword coverage. Get in touch with your Google representative for more help.

[1] “UK retailers’ optimism at two-year high” Norma Cohen, FT.com, October 27 2009
[2] Amazon Investor Relations
[3] “Half-year results for the 26 weeks ended 29 August 2009” Home Retail Group, October 21 2009
[4[ John Lewis Partnership


Posted by Jonathan Marsh, UK Retail Team