John Lewis and Amazon Lead U.K. Home Décor in Paid Search
AdGooroo recently looked at Paid Search Advertising for the Home Décor retail sector in the United Kingdom, specifically examining Google.co.uk desktop text ad activity on 500 top, non-branded Home Décor keywords in the U.K. market from January 2015 through January 2016.
In total, 4,892 advertisers spent £45.5 million sponsoring the 500 Home Décor keywords during the period, at an average clickthrough rate of 3.14% and an average cost per click of £0.88.
The following chart details the Top 20 advertisers on the keyword group based on Paid Search spend:
The Top 20 advertisers by Paid Search spend collectively spent £14 million on the Home Décor keyword group from January 2015 through January 2016, accounting for more than 30% of the £45.5 million total spent by all advertisers on the 500 Home Décor keywords.
Department store chain John Lewis led all advertisers with £920,000 spent on the keyword group, followed by mass retailer Argos (£884,000), online giant Amazon (£867,000), window blind retailer Hillarys (£829,000) and U.S. furniture retailer Wayfair (£804,000).
Although John Lewis spent more, Amazon actually led all advertisers in clicks with 2 million during the period, just edging out John Lewis’ 1.99 million clicks. The difference in spend between the two retailers’ campaigns is attributable to Amazon’s lower average cost per click—£0.43 compared with John Lewis’ £0.46.
The five window blinds retailers in the Top 20, including Blinds-2Go.co.uk, Tuiss, 247Blinds.co.uk, Web-Blinds.com and Hillarys, had the highest average cost per click, £1.57.
The following chart ranks the Top 20 keywords in the Home Décor keyword group by Paid Search spend from January 2015 through January 2016.
The keywords with the highest spend were ‘fitted wardrobes’ and ‘blinds’, both of which generated slightly more than £1 million in Paid Search spend during the period. Notably, the two terms shared the same average cost per click, £2.27—the highest CPC among the Top 20 keywords.
Demonstrating the importance of keyword choice for advertisers is the fact that the term ‘fitted wardrobes’ was the top ranked keyword with £1 million in spend and 460,000 clicks during the period while the very similar term ‘built in wardrobes’ ranked 19th with £399 in spend and 199,000 clicks.
Paid Search competition in the Home Décor category is particularly strong. On average, 93 advertisers sponsored each of the Top 20 keywords during the period. In addition, an average of 83 advertisers were found sponsoring each of the 500 Home Décor keywords studied. Among the Top 20 keywords, the terms with the highest competition during the period were ‘kitchen design’ with 179 advertisers during the period and ‘kitchens’ with 147 advertisers.
Note: The results in this study are limited to Google.co.uk desktop text ad activity on the 500 non-branded Home Décor keywords AdGooroo studied from January 2015 through January 2016. Advertisers may have sponsored additional keywords during this period that, if measured, would alter the findings of this report.
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