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DoubleClick Reveals Latest Performics 50 Search Engine Marketing Index
23 February 2006 Performics, the performance-based marketing division of DoubleClick Digital Advertising Solutions, today unveiled the latest Search Trend Report, featuring the Performics 50, the only index of actively-managed, ongoing paid search engine marketing campaigns. The latest Performics 50 offers marketer insights and illustrates trends based on data from October 2004 through December 2005.
In the fourth quarter of 2005, the average number of active keywords in a campaign increased 58 percent, and the total number of clicks for campaigns increased 107 percent over the fourth quarter of 2004. "Keyword and overall campaign growth remain very strong. Search portfolios are expanding as marketers seek to connect with consumers during all stages of the buying cycle, and therefore, results are being measured beyond immediate ROI alone," said Stuart Larkins, vice president, search at Performics.
Another key finding is that seasonality is driving the consideration of keyword ads further down the page. The Performics 50 shows that the percentage of overall conversions that come from lower ranked keywords improves dramatically in December versus November. "Depending on the seasonality of various vertical markets, there may be opportunities to leverage these trends during other times of the year," said Larkins.
The report also noted that the cost per keyword (CPK) rose dramatically during the holiday season. This can be attributed to both the expected seasonal peak and the overall trend of lower priced keywords making up smaller and smaller percentages of campaigns. CPK is a scalable metric introduced by the Performics division of DoubleClick, which can be used to evaluate the performance of individual keywords, groups of keywords or an entire search keyword portfolio.
Summary of Key Takeaways from DoubleClick Q4 2005 Search Trend Report:
* Campaigns are getting larger. In Q4 2005, the total number of clicks for
campaigns in the Performics 50 increased by 107 percent over Q4 2004.
* Searcher demand grew. A 58 percent increase in the average number of
active keywords/campaign showed consumers clicked on more keywords.
Keyword list growth contributed to this trend, but keywords must be
clicked to be classified as active.
* As expected, CPK and CPC rose dramatically during the holiday season.
Average CPK rose from $25.50 in September to $54.62 in December 2005.
Indexed CPC values also increased.
* Nearly half of all clicks and conversions in Q4 happened in December.
Forty percent of all Q4 Performics 50 clicks and 48 percent of all Q4
conversions took place in December.
* Holiday shoppers go further down the page. Relative to November,
December saw a greater percentage of conversions from paid search ads
ranked lower than second, but this was not nearly as pronounced as in
2004.
About the Performics 50
The Performics 50 offers marketers a practical way to gauge the success of their search campaigns against an industry average. It is a representative index that monitors the growth of paid search advertising by providing a stable platform for benchmarking and analysis. Each quarter, Performics selects the 50 paid search campaigns that most closely represent the average number of monthly clicks across all campaigns. Performics draws on the more than 150 campaigns it manages, excluding the very top and bottom of the ranges.
When Performics introduced the Performics 50 in mid-2005, the company unveiled cost per keyword (CPK), which measures the total cost of ownership of a keyword over the course of a month. Trending data based on average CPK represents actual advertisers' search costs and helps marketers grade the quality of growth in their own search campaigns, much like a stock market index provides context for a particular stock's performance against the market. Why is CPK relevant? A keyword with a cost per click (CPC) of $.80 that receives ten clicks in a month, for example, costs an advertiser less than a keyword with a CPC of $.50 that receives 20 clicks. CPK incorporates both the supply and demand components of all keywords in a campaign, measuring what an advertiser actually paid for their keyword positions and resulting click traffic.
"Marketers can look at a single trend line and uncover a number of benchmarks and dynamics at work, including the average price paid by advertisers across their entire portfolio of keywords," added Larkins. "Some of the report's other findings give marketers contextual comparisons for such factors as growth rate of active keywords, indicating searcher demand; overall advertiser investment and budget decisions; and market competitiveness." The full Search Trend Report is available at http://www.doubleclick.com/knowledge_central.
About DoubleClick Digital Advertising Solutions
Performics is the performance-based marketing division of DoubleClick Digital Advertising Solutions and is a leading provider of Affiliate, Search and Data Feed Marketing Solutions.
DoubleClick Digital Advertising Solutions, an operating unit of DoubleClick, provides technology and services that empower marketers, agencies and Web publishers to work together successfully. Its focus on innovation, reliability and insight enables clients to improve productivity and results.
Since 1996, DoubleClick has empowered the original thinkers and leaders in the digital advertising industry to deliver on the promise of the rich possibilities of our medium. Today, the company's DART and Performics divisions power the digital advertising marketplace. Tomorrow, it will continue to enable clients to profit from opportunities across all digital advertising channels as consumers worldwide embrace them.
DoubleClick has global headquarters in New York City and maintains 24 offices around the world to serve its more than 1500 clients.
Contact:
Kraig Smith
PReturn Inc.
(312) 432-9405
ksmith@preturn.com
Source: prnewswire
All trademarks and copyrighted information contained herein are the property of their respective owners.
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