E marketer the_us_retail_industry_2013-digital_ad_spending_forecast_and_key_trends

THE US RETAIL
INDUSTRY
2013
Digital Ad Spending Forecast
and Key Trends
AUGUST 2013
Victoria Petrock
Contributors: Christine Bittar,Tobi Elkin, Stephanie Kucinskas, Martín Utreras
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THE US RETAIL INDUSTRY 2013: DIGITAL AD SPENDING FORECAST AND KEY TRENDS ©2013 EMARKETER INC. ALL RIGHTS RESERVED 2
CONTENTS
2 Executive Summary
3 Retail Maintains Digital Ad Spending Lead
6 Mobile Investments Accelerate
8 Direct Response Still Trumps Branding
17 Conclusions
17 eMarketer Interviews
17 Related eMarketer Reports
18 Related Links
18 Editorial and Production Contributors
EXECUTIVE SUMMARY
The US retail industry’s advertising spending on
paid digital media will hit $9.42 billion in 2013 and
rise to $13.50 billion by 2017, for a 10.5% compound
annual growth rate (CAGR).While gains in digital
outlays have slowed over the past several years,
retail remains the top spender among US industries
and will retain this lead for the duration of the
forecast period.
This year, eMarketer has taken a deeper dive into digital
spending to determine how much marketers are investing
in ad tactics primarily focused on obtaining sales or leads
compared with those designed to drive favorable opinion
about a brand. eMarketer estimates that marketers in the
retail industry—led by online and multichannel retailers,
but also including catalog retailers and restaurants—will
invest 64.6% of their paid digital dollars in direct-response
efforts this year. Brand-focused campaigns will make
up the remaining 35.4%. Various types of search and
display continue to command the largest chunks of digital
spending across the category. At the same time, targeted
advertising in mobile, local and social channels is growing
rapidly as retailers attempt to forge direct and personal
relationships with their consumers across multiple
screens and platforms.
KEY QUESTIONS
■■ How much will retailers spend on US paid digital
advertising in the next five years?
■■ How much of their digital budgets are retailers
spending on direct-response vs. branding initiatives?
■■ How are online and mobile platforms changing the
way the retail industry approaches advertising?
billions, % of total digital ad spending and % change
US Retail Industry Digital Ad Spending, 2011-2017
2011
$7.17
22.4%
29.8%
2012
$8.21
22.3%
14.5%
2013
$9.42
22.3%
14.9%
2014
$10.52
22.1%
11.6%
2015
$11.60
22.1%
10.3%
2016
$12.61
22.0%
8.7%
2017
$13.50
22.0%
7.1%
Digital ad spending % of total digital ad spending % change
Note: CAGR (2012-2017)=10.5%; includes advertising that appears on
desktop and laptop computers as well as mobile phones and tablets, and
includes all the various formats of advertising on those platforms; data
through 2012 is derived from IAB/PwC data
Source: eMarketer, Aug 2013
162005 www.eMarketer.com

RETAIL MAINTAINS DIGITAL AD
SPENDING LEAD
The US retail industry will invest $9.42 billion in
paid online and mobile media advertising in 2013.
This figure will grow to $13.50 billion by 2017, for a
10.5% CAGR.While spending growth is slowing, the
industry’s share of digital investment, relative to
other industries, will remain high over the forecast
period. Retailers have fast-tracked investment in
targeted mobile advertising and will continue to
embrace new and more dynamic cross-channel search
and display ad formats.
billions, % of total digital ad spending and % change
US Retail Industry Digital Ad Spending, 2011-2017
2011
$7.17
22.4%
29.8%
2012
$8.21
22.3%
14.5%
2013
$9.42
22.3%
14.9%
2014
$10.52
22.1%
11.6%
2015
$11.60
22.1%
10.3%
2016
$12.61
22.0%
8.7%
2017
$13.50
22.0%
7.1%
Digital ad spending % of total digital ad spending % change
Note: CAGR (2012-2017)=10.5%; includes advertising that appears on
desktop and laptop computers as well as mobile phones and tablets, and
includes all the various formats of advertising on those platforms; data
through 2012 is derived from IAB/PwC data
Among the US industries eMarketer tracks, retail—which
we define to include brick-and-mortar, mail order/catalog,
and online merchants of apparel, home furnishings and
textiles, toys, pet food and supplies, appliances, jewelry,
accessories, cosmetics, drugs and food, as well as
restaurants—is currently the leader in paid online and
mobile media spending. Although growth during the
period from 2012 to 2017 will fall a bit below the average
of all industries, retail will remain by far the largest
spender in the digital ad space.
billions
US Digital Ad Spending, by Industry, 2012-2017
Retail
Financial services
Automotive
Telecom
CPG & consumer
products
Travel
Computing products &
consumer electronics
Media
Entertainment
Healthcare & pharma
Other
Total
2012
$8.2
$4.6
$4.3
$4.3
$3.0
$2.9
$2.8
$1.8
$1.7
$1.1
$2.1
$36.8
2013
$9.4
$5.2
$5.1
$4.8
$3.5
$3.4
$3.2
$2.2
$1.9
$1.2
$2.2
$42.3
2014
$10.5
$5.9
$5.9
$5.3
$4.0
$4.0
$3.6
$2.7
$2.2
$1.2
$2.3
$47.6
2015
$11.6
$6.5
$6.6
$5.8
$4.5
$4.4
$4.0
$3.0
$2.5
$1.3
$2.4
$52.5
2016
$12.6
$7.0
$7.3
$6.3
$5.0
$4.8
$4.4
$3.4
$2.8
$1.4
$2.5
$57.3
2017
$13.5
$7.5
$7.9
$6.7
$5.4
$5.0
$4.7
$3.6
$3.0
$1.5
$2.6
$61.4
CAGR
(2012-
2017)
10.5%
10.2%
13.1%
9.2%
12.6%
11.3%
10.5%
14.6%
12.2%
5.9%
5.1%
10.8%
Note: includes advertising that appears on desktop and laptop computers
as well as mobile phones and tablets, and includes all the various formats
of advertising on those platforms; data through 2012 is derived from
IAB/PwC data; numbers may not add up to total due to rounding
eMarketer also expects the retail industry’s share of the
total US digital advertising pie to decline slightly, from
22.3% in 2013 to 22.0% in 2017.
% of total
US Digital Ad Spending Share, by Industry, 2011-2017
Retail
Financial services
Automotive
Telecom
CPG & consumer products
Travel
Computing products &
consumer electronics
Media
Entertainment
Healthcare & pharma
Other
2011
22.4%
12.6%
11.3%
12.3%
7.8%
7.5%
7.8%
4.5%
4.4%
3.2%
6.2%
2012
22.3%
12.5%
11.6%
11.7%
8.1%
8.0%
7.7%
4.9%
4.6%
3.0%
5.6%
2013
22.3%
12.4%
12.1%
11.4%
8.3%
8.0%
7.6%
5.3%
4.6%
2.8%
5.2%
2014
22.1%
12.4%
12.3%
11.2%
8.4%
8.3%
7.6%
5.6%
4.7%
2.6%
4.8%
2015
22.1%
12.3%
12.5%
11.1%
8.5%
8.3%
7.6%
5.8%
4.8%
2.5%
4.5%
2016
22.0%
12.2%
12.7%
11.0%
8.7%
8.3%
7.6%
5.9%
4.8%
2.4%
4.4%
2017
22.0%
12.2%
12.9%
10.9%
8.8%
8.2%
7.6%
5.8%
4.9%
2.4%
4.3%
of advertising on those platforms; data through 2012 is derived from
IAB/PwC data; numbers may not add up to 100% due to rounding
Source: eMarketer, June 2013; conﬁrmed and republished, Aug 2013

eMarketer’s US Digital Ad Spending Forecasts:
Scope and Definitions
eMarketer’s US digital ad spending estimates for the
years up to and including 2012 are benchmarked against
data from the Interactive Advertising Bureau (IAB) and
PricewaterhouseCoopers. Estimates for years subsequent
to 2012 are eMarketer’s own projections. Estimates are
based on the analysis of reported revenues from major
digital ad-selling companies; estimates from other
research firms; consumer internet usage trends; and
eMarketer interviews with executives at ad agencies,
brands, digital ad publishers and other industry leaders.
eMarketer’s digital ad spending figures include advertising
that appears on desktop and laptop computers, as well
as mobile phones and tablets, and include all the various
formats of advertising on those platforms: banner ads
(static display), classified ads, email (embedded ads only),
mobile messaging (SMS, MMS and P2P messaging), rich
media, search ads (including contextual text links, paid
inclusion, paid listings and search engine optimization
[SEO]), sponsorships, lead generation (referrals) and video
(including in-banner, in-stream, in-text).
eMarketer’s breakouts of direct-response vs. branding
spending are based on overall estimates of spending
by media from the IAB; analysis of third-party retail
industry ad spending data; and in-depth interviews with
retail brand marketers, agency media planners and other
industry marketing strategists.
TOTALAD SPENDING RISES
By most accounts, total retail marketing spending
has been growing modestly over the past few years.
Earlier this year, Kantar Media reported that overall 2012
retail industry outlays across traditional and internet
measured media—including internet display but not paid
search—increased 3% year over year and totaled nearly
$16.35 billion.
millions and % change
Top 10 US Product Categories, Ranked by Ad Spending,
2011 & 2012
2011 % change
1. Retail $15,866 3%
2. Automotive $13,848 7%
3. Local services $8,736 3%
4. Telecom $8,348 4%
5. Financial services $8,074 -2%
6. Personal care products $6,525 5%
7. Food & candy $6,433 2%
8. Direct response $6,224 2%
9. Restaurants $5,912 4%
10. Insurance $4,949 -2%
Total $84,916
2012
$16,345
$14,840
$8,978
$8,660
$7,889
$6,836
$6,567
$6,342
$6,185
$4,860
$87,502 3%
Note: excludes FSIs and public service announcement (PSA) activity;
numbers may not add up to total due to rounding
Source: Kantar Media as cited in press release, March 11, 2013
A survey by Gartner conducted in late 2012 found that
retail marketers expected their marketing budgets to
grow an average of 7% in 2013.
% change
Average Growth in Marketing Budget in 2013 Among
US Companies in Select Industries
Media 10%
Retail 7%
Financial services/insurance 6%
Healthcare 5%
High-tech 4%
Manufacturing 4%
Total 6%
Source: Gartner, "US Digital Marketing Spending Report 2013," March 13,
2013
And in a June 2013 study by audit, tax and advisory firm
KPMG, 24% of 101 US retail executives interviewed
planned to increase advertising and marketing spending in
the coming year.

The largest retailers currently dominate US retail industry
ad spending, though not all retailers—or all categories
of retail—are increasing investments across the board.
Among mass merchants, for example, Wal-Mart upped
advertising by 12% in 2012, whileTarget’s spending fell
5%, according to Kantar Media. In the food category,
The Kroger Co. increased ad outlays by 9%, while
SUPERVALU decreased ad expenditures in favor of other
types of promotions, including digital couponing.
% change vs. prior year
Growth in Promotional Activity Among Select
US Retailers, 2012
Mass
Wal-Mart
Target
Food
The Kroger Co.
Safeway
SUPERVALU
Drug
Walgreens
CVS
Advertising
dollars
12%
-5%
9%
-5%
-20%
29%
23%
FSI
promotion
pages
47%
7%
7%
6%
12%
43%
21%
Digital coupon
events* on retailer
websites**
190%
30%
4%
-9%
202%
77%
150%
Note: *a distinct occurrence on a retailer website; **monitored by Kantar
Media
Source: Kantar Media as cited in press release, March 13, 2013
DIGITAL GROWSAS PART OFTHE MIX
In aggregate, digital marketing—encompassing paid
advertising and other digital tactics—is becoming
increasingly critical to retailers’ promotional mix. Retailers
of all types are shifting from higher-priced print formats to
more inexpensive, targetable and efficient digital options.
Gartner’s research revealed that digital marketing
spending made up approximately 23.6% of US retailers’
total marketing budgets in 2012.
% of revenues
Digital and Total Marketing Budgets in 2012 Among
US Companies in Select Industries
Media
3.9%
12.7%
Financial services/insurance
2.4%
10.6%
Manufacturing
2.8%
10.6%
Retail
2.5%
10.6%
Healthcare
2.2%
9.2%
High-tech
2.3%
9.1%
Total
2.5%
10.4%
Digital Total
Note: read chart as saying media companies spent an average of 12.7% of
their company revenues on total marketing and 3.9% on digital marketing
Source: Gartner, "US Digital Marketing Spending Report 2013," March 13,
2013
On the paid advertising front, a number of retail marketing
experts—representing both brands and agencies that
work with them—said in interviews with eMarketer that
typical retailers generally spend an average of 25% to
50% of their paid ad budget on digital media.
However, there are wide variations in how much retailers
spend based on the type of advertising they do and the
channels through which they market. Digitally native
retailers, such as Amazon.com and eBay, spend the vast
majority of their ad dollars online. At the other end of the
spectrum, smaller, regional companies whose revenues
primarily come from brick-and-mortar locations spend less
on digital.
For the majority of retail marketers, digital spending is
growing as a percentage of the total advertising budget.
Julie Krueger, retail industry director at Google, said she
sees “99% of clients increasing their digital budgets,”
and other studies show US retail marketers are far
more bullish on digital media than on traditional media,
especially print.

In a fall 2012 study, Advertiser Perceptions asked US
retail advertising and marketing executives whether they
planned to increase or decrease their ad spending in
specific media in the next 12 months. It then calculated
the difference between percentages.The study’s
“optimism index” showed high numbers for most digital
media, indicating high intent to increase spending,
especially in mobile, digital search, digital video and
digital display.
optimism index*
Retail Ad Spending Outlook of US Ad/Marketing
Executives, by Media, Fall 2012
Mobile
Digital search
Digital video
Digital display
Advanced/interactive TV
Broadcast TV
Cable TV
Magazines
National newspapers
Apparel/
fashion
61
33
46
40
21
20
15
-9
-19
Baby- or
parenthood-
related
52
40
44
47
23
13
19
5
-23
Quick-
service
restaurants
60
43
52
43
27
15
14
-2
-20
Retail
59
49
44
38
20
10
5
-6
-27
Note: *difference between the percent of respondents increasing and
those decreasing their ad spending in the next 12 months
Source: Advertiser Perceptions, "Advertiser Optimism Index Wave 18, Fall
2012," March 14, 2013
A Booz & Company analysis of data collected by the
Brand Activation Association (BAA) in March 2013 similarly
found that digital tactics were expected to have the
steepest increases among the US brand marketers and
retailers studied.
% of respondents
US Brand Manufacturers and Retailers Who Will
Increase Their Ad and Promotions Spending, by Tactic,
March 2013
Total
Mobile marketing 100%
Social media 96%
Internet ads on retailer sites 96%
Internet ads not on retailer sites 96%
Shopper marketing 96%
Paid search 89%
Brand manufacturer sites 89%
Trade promotions 52%
TV advertising 48%
Print advertising
Increase
0%-5%
26%
30%
41%
44%
52%
22%
37%
33%
33%
19%
Increase
5%+
30%
30%
26%
26%
26%
30%
26%
15%
4%
-
Increase
10%+
44%
37%
30%
26%
19%
37%
26%
4%
11%
11% 30%
Note: in the next two years
Source: Booz & Company and Brand Activation Association (BAA),
"Reimagining Shopper Marketing: Building Brands through Omnichannel
Experiences," June 6, 2013
MOBILE INVESTMENTS
ACCELERATE
Retailers are dramatically increasing their
investments in mobile and local marketing as they
race to keep up with smartphone-toting, tablet-using
consumers who consult their devices at various
stages of the purchase cycle.
“Retailers realize how important mobile devices are in
helping people research and narrow down their choices,”
said Google’s Krueger. “Mobile devices are also huge
drive-to-store tools for multichannel retailers.”
In Q1 2013, Experian Marketing Services reported that
US mobile internet users spent about 10.8% of their
total mobile time on shopping-related activities. And in a
presentation at BAA’s Omni-Channel Shopper Conference
in June 2013, Adam Grunewald from Google’s digital
research group told attendees that eight in 10 people use
their phone in a store to help them shop and that this
mobile use led to bigger purchases in the store.
As customers increasingly check and compare prices,
seek local product availability and click “buy” via
their smartphones, retail mobile marketing spending
worldwide is expected to almost double to $55 billion by
2015, according to estimates from Juniper Research.
billions
Retail Mobile Marketing Spending Worldwide,
2013 & 2015
2013
$28
2015
$55
Source: Juniper Research, "Retail mCommerce: Mobile & Tablet Marketing,
Advertising & Coupon Strategies 2013-2017" as cited in press release,
Jan 23, 2013

The Mobile Marketing Association (MMA) and
mLightenment predicted that US retail trade marketers
would collectively spend nearly $2.11 billion on US
mobile marketing this year, up significantly from around
$1.36 billion in 2012. Based on survey results, MMA and
mLightenment also expect retailers’ mobile marketing
outlays to nearly double by 2015.
millions
US Mobile Marketing Spending, by Industry, 2010-2015
Finance, insurance,
real estate
Retail trade—other
Manufacturing—other
Information
Professional, scientiﬁc
and business services
Manufacturing
—consumer
packaged goods
Retail trade
—consumer
packaged goods
Government
Transportation
and warehousing
Wholesale trade
Accommodation
and food services
Healthcare and
social assistance
Resources (agriculture,
mining, utilities,
construction)
Educational services
Arts, museums, sports
and recreation
Other
Total
2010
$470
$397
$269
$240
$152
$139
$107
$116
$93
$72
$68
$56
$42
$20
$17
$145
$2,405
2011
$784
$648
$471
$389
$245
$227
$171
$179
$156
$119
$110
$95
$74
$36
$27
$227
$3,957
2012
$1,332
$1,082
$842
$648
$407
$382
$281
$294
$266
$202
$181
$164
$132
$64
$44
$371
$6,693
2013
$2,080
$1,676
$1,373
$991
$632
$597
$433
$432
$422
$322
$281
$265
$218
$105
$67
$562
$10,456
2014
$3,032
$2,425
$2,023
$1,401
$903
$867
$625
$622
$612
$473
$403
$396
$323
$156
$95
$807
$15,162
2015
$4,017
$3,164
$2,691
$1,778
$1,163
$1,123
$804
$771
$814
$630
$512
$539
$446
$204
$120
$1,028
$19,806
Note: includes mobile media advertising, mobile-enhanced traditional
advertising and mobile CRM; numbers may not add up to total due to
rounding
Source: Mobile Marketing Association (MMA) and mLightenment, "Mobile
Marketing Economic Impact Study" in partnership with IHS Global Insight,
May 9, 2013
Though the MMA’s definition of mobile marketing is
broader than just paid advertising, the numbers serve
to illustrate the massive investment retailers are
making—and the future potential they envision—in the
mobile platform.
Tata Consultancy Services projected that by 2015, 41.5%
of marketing campaigns by retailers in North America
would be designed exclusively for mobile consumers, up
from 23.2% in 2012. Retail is above average in its use of
mobile-only campaigns, the study found, and is expected
to remain so.
Percent of Marketing Campaigns Designed Exclusively
for Mobile Consumers According to Large Companies
in North America, by Industry, 2012 vs. 2015
Projected
(2015)
Telecom services 51.8%
Travel, hospitality and leisure 47.8%
Airlines 50.0%
Automotive manufacturing 44.3%
Energy and utilities 36.5%
Retail 41.5%
Industrial manufacturing 36.5%
Media, entertainment and sports 35.8%
Computer (hardware and software) 32.9%
Government (federal, state, local) 35.0%
Banking/ﬁnancial services/insurance/
private wealth management
34.1%
Transportation logistics 31.2%
Consumer products manufacturing
(food, beverages and durables)
33.3%
Healthcare services 32.7%
Pharmaceuticals 29.1%
Other 25.1%
Average
Current
(2012)
35.0%
29.1%
27.3%
27.1%
26.3%
23.2%
20.9%
20.0%
19.9%
18.9%
18.0%
17.3%
17.2%
16.3%
15.0%
13.4%
21.4% 36.9%
Source: Tata Consultancy Services, "The New Digital Mobile Consumer:
How Large Companies Are Responding" conducted by Research Now,
Sep 26, 2012
Over the past several years, paid mobile advertising in
the retail industry has seen significant growth, both in
the US and around the world. Millennial Media reported
that global 2012 retail and restaurant advertising on its
network grew 106% year over year and accounted for the
largest share, 16%, of the network’s mobile campaigns.
% of total
Leading Industries Worldwide, Ranked by Mobile Ad
Campaigns, 2012
Retail & restaurants 16%
Telecommunications 14%
Finance 14%
Entertainment 12%
Travel 9%
Automotive 7%
CPG/FMCG 6%
Technology 3%
Education 3%
Government services2%
Other 14%
Note: based on campaigns on Millennial Media's network
Source: Millennial Media, "Scorecard for Mobile Advertising Reach and
Targeting (SMART)," March 12, 2013

An analysis of data from Adobe Media Optimizer found
that combined traffic from mobile phones and tablets
made up one in five, or 20%, of all US retail impressions
and ad spend in Q4 2012.This was up from just 10% in
Q4 2011.
TABLETS CONTRIBUTETO
MOBILE MOMENTUM
Lately, retailers have devoted particular effort
and attention to understanding the different roles
smartphones and tablets play in the retail purchase
cycle. While consumers access their phones in-store
to compare prices, redeem coupons and find retailer
locations, they seem to be using tablets in ways more
akin to desktop and laptop computers.Tablet ads,
however, appear to have significantly higher clickthrough
rates (CTRs), a lower cost per click (CPC) and a higher
return on investment (ROI). A Q4 2012 Adobe analysis of
its network advertising data found that tablet campaigns
enjoyed higher conversion rates than comparable desktop
campaigns, with CTRs that were 39% higher and CPCs
that were 16% lower.
index*
US Retail Mobile Paid Search Metrics, by Device,
Q4 2012
Mobile
191.0
46.1
Tablet
139.0
84.2
Clickthrough rate Cost per click
Note: *vs. desktop campaigns; desktop=100
Source: Adobe as cited in company blog, Jan 17, 2013
Adobe also noted growth in tablet advertising. Its
research found that mobile phones accounted for 6.6% of
US retail impressions during Q4 2012, while tablets made
up 12.1%.Tablets’ share of spending was also higher,
at 13.9%, vs. just 5.7% for mobile phones.This was an
increase from Q4 2011, when mobile phones and tablets,
taken together, accounted for approximately 10% of
retail impressions.
“I predict that 30% of all traffic will be through mobile
by the end of 2013, including 25% that will be tablet,”
said Sid Shah, Adobe’s director of business analytics, in a
January 2013 AdExchanger article.
DIRECT RESPONSE STILL
TRUMPS BRANDING
This year, eMarketer has taken a deeper dive into
US paid digital spending to determine how much
marketers in vertical industries are investing on
ads primarily focused on obtaining sales or leads
compared with those aimed at driving favorable
opinion about a brand. As a result of this analysis,
eMarketer estimates that the US retail industry
will spend 64.6% of its digital ad dollars, or
$6.09 billion, on direct-response tactics in 2013.
eMarketer includes online and mobile paid search,
classifieds, online directories, and paid ads embedded
in email messages in its definition of direct response.
The remaining 35.4%, or $3.34 billion, will go toward
brand-focused digital formats.These include online and
mobile banner ads, rich media, online video, paid social
placements, in-game ads, content sponsorships and
native ads.
billions and % of total
US Retail Industry Digital Ad Spending, by Objective,
2013
Direct response*
$6.09 (64.6%)
Total=$9.42
Branding**
$3.34 (35.4%)
of advertising on those platforms; *includes classiﬁeds & directories, email,
lead generation, mobile messaging (SMS, MMS and P2P messaging) and
search; **includes banner ads, rich media, sponsorships and video

SEARCH:TOP PRIORITY FOR
DIRECT RESPONSE
Search engine marketing (SEM) is one of the most
important components of retail industry ad spending.
A July 2013 survey by Shop.org and Forrester Research
found that US online retailers interviewed ranked paid
search across devices as one of their top marketing
priorities, with 80% of respondents reporting they
planned to increase outlays on paid search and email
in 2013.
Online, multichannel and brick-and-mortar retailers have
historically relied on paid search and SEO to drive traffic
to websites, store locations and toll-free phone numbers.
Having an effective SEM program is becoming even more
important as retailers find themselves competing directly
online with manufacturers of the products they sell. “Paid
search is a huge driver for a retail-based business,” said
Liz Ross, president of North America for media agency
BPN. “Because not only do retailers buy their own terms,
they also buy the terms of the products that sit inside
their stores.”
While Google’s Krueger said most major US retailers have
“very solid search programs,” she sees many starting
to aim their efforts higher in the funnel. “They are going
beyond the base level of bidding on their brand terms and
going to higher category terms.They want to be in the
consideration set early on, not just at the very end.”
Data released in March 2013 by AdGooroo on US paid
search spending showed that shopping and classified
industry advertisers spent nearly $498 million on online
search advertising on Google AdWords and more than
$56 million onYahoo! Bing in Q3 2012 alone.
millions
US Paid Search Ad Spending, by Search Engine
and Industry, Q3 2012
AdWords Yahoo! Bing
Shopping and classified $497.74
Financial services $418.82
Computer and internet $305.97
Business $220.42
Education $201.39
Travel $199.42
$56.05
$81.01
$42.95
$18.31
$17.50
$27.89
Note: PC data only, excludes searches via mobile devices
Source: AdGooroo, "Yahoo! Bing PPC Performance Metrics" What Search
Marketers Need to Know About 'The Other Search Engine'," March 19, 2013
Search’s influence cannot be understated. A December
2012 survey by MyBuys and the e-tailing group found that
search results, in addition to email, figured prominently
in a list of messaging vehicles that prompted US online
buyers to make a purchase.
% of respondents
Messaging Vehicles that Prompt US Online Buyers to
Make a Purchase, Dec 2012
Email from retailers where consumers shop
57%
Search results showing local product availability
53%
Personalized email from retailers where consumers shop
50%
Search results with links to retail website
47%
Online ads showing products from retailers where consumers
shopped
35%
Note: ages 18+
Source: MyBuys and the e-tailing group, "Engage Consumers & Increase
Buyer Readiness Through Customer-Centric Marketing," Feb 27, 2013
Search is also the top source of upstream, or incoming,
traffic for most retailers. For example, a July 2013
report from L2ThinkTank that focused on a sampling
of department stores’ digital activities in markets
worldwide said that search drove more than 45.1%
of upstream traffic to the store websites it studied,
topping direct access, referrals, email, social media and
display ads. L2ThinkTank also noted in a related blog post
that the top 40 global department stores “control, on
average, 48% and 36% of all first-page organic and paid
results, respectively.”
% of total referral traffic
Average Referral Traffic from Select Sources to
Department Store Websites Worldwide,
Feb-April 2013
Search 45.1%
Direct 28.2%
Referrals 17.6%
Email 6.3%
Social1.9%
Display ads0.9%
Note: n=40
Source: L2 Think Tank, "Digital IQ Index: Department Stores," July 9, 2013

Not surprisingly, AdGooroo found that mass retailers
were by far the biggest spenders in paid search, with
a combined $490 million investment in 2012. Other
top retail-related spending categories in the study
were apparel and fashion ($271 million) and consumer
electronics ($202 million).
millions
US Paid Search Ad Spending, by Retail Category, 2012
Mass retailers
$490
Apparel & fashion
$271
Consumer electronics
$202
Home improvement
$155
Stationery, greeting cards & printing
$150
Beauty & cosmetics
$101
Shoes
$100
Sporting goods
$94
Flowers & mail-order gifts
$80
Jewelry
$78
Health & pharmacy
$71
Children's goods
$55
Auction & classiﬁeds
$47
Books & magazines
$42
Grocery & food
$37
Note: Google AdWords 2012 and H2 2012Yahoo! Bing Network
Source: AdGooroo, "The Top Retailers in Paid Search 2013," April 24, 2013
Search is particularly critical to online-only merchants,
though retail chain stores, specialty retailers and other
multichannel merchants also spend heavily. Internet
Retailer’s “2013 Search Marketing Guide” said that
Amazon.com and Zappos.com were the top US retail
paid search spenders in 2012, while catalog-based Uline,
Lowe’s and JCPenney rounded out the top five.
Leading US Retailers in Paid Search,
Ranked by Spending, 2012
Spending (millions) % change
Amazon.com $3.9
Zappos.com $3.9
Uline $2.8
Lowe's $2.8
JCPenney $2.7
Top 5 average $3.2
-5.7%
106.6%
160.0%
25.1%
139.4%
53.9%
Source: Internet Retailer, "2013 Search Marketing Guide," April 2, 2013
Another report from Internet Retailer, the “Top 500
Guide,” noted that retail chains, as a category, were
the biggest spenders on monthly paid search ads,
surging ahead of web-only retailers in 2012, with 62.4%
year-over-year spending growth.
US Average Monthly Paid Search Spending
per Retailer, by Type, 2011 & 2012
Retail chains
Web-only retailers
Consumer brand manufacturers
Catalog/call center retailers
2011
$1.5
$1.7
$1.0
$0.1
2012
$2.5
$1.9
$1.1
$0.1
%
change
62.4%
10.7%
4.9%
-4.7%
# represented
in Top 500
158
195
66
81
Source: Internet Retailer, "Top 500 Guide," May 7, 2013
Retailers can justify these high levels of spending
because search advertising is working. A Q3 2013 study
by AdGooroo found that shopping/classified search
advertising had the second-highest CTR on both Google
AdWords (3.70%) andYahoo! Bing (1.13%) in Q3 2012,
while CPCs were the least expensive (72 cents and
44 cents, respectively).
Mobile search investments, in particular, are rising
dramatically. In an April 2013 Mobile Commerce Daily
webinar, Roger Barnette, president of digital marketing
solutions provider IgnitionOne, said his clients were
“quickly moving budget towards mobile search,”
according to an article on the webinar host’s website.
The story noted that retailers leading the mobile search
charge included Amazon, eBay, Apple,Target, Best Buy
and Walgreens, but that “there is still significant room
for improvement.” Mobile search, the article added, is
expected to overtake desktop search in the coming years.

A report byThe Search Agency said that mobile paid
search click share grew from 22.5% in Q1 2012 to
39.6% in Q1 2013.
% of total
US Retail Paid Search Click Share, by Device,
Q1 2012-Q1 2013
Q1 2012
77.4% 14.7% 7.8%
Q2 2012
78.7% 10.9% 10.3%
Q3 2012
75.3% 13.9% 10.8%
Q4 2012
72.8% 15.5% 11.8%
Q1 2013
60.4% 26.2% 13.4%
Desktop Smartphone Tablet
Note: numbers may not add up to 100% due to rounding
Source: The Search Agency, "State of Paid Search Report - Q1 2013,"
April 18, 2013
In polling by L2ThinkTank among specialty retailers,
nearly one-third of retail Google searches in specific
retail categories were coming from mobile devices.The
study, which included 71 US chains, found the highest
percentage of mobile searches for brand terms were
executed for watches and jewelry (33%) and beauty and
skincare (30%). Etailers clocked the lowest percentage of
mobile searches, presumably, the source said, because
searches in other categories involved local intent.
% of respondents
Monthly Google Retail Searches Conducted via
Mobile Devices According to US Specialty Retailers,
by Category, April 2013
Watches & jewelry 33%
Beauty & skincare 30%
Apparel 28%
Accessories & shoes 26%
Home & gift 22%
Etailer 19%
Source: L2 Think Tank, "Digital IQ Index: Specialty Retail," June 25, 2013
This high percentage of mobile searches has spurred
retailers to further extend and diversify their search
campaigns across mobile devices. Forrester Research and
Shop.org’s study found that 71% of retailers planned to
optimize paid search for smartphones in 2013, while 73%
said the same for tablets.
Product ListingAds Make a Big Splash
Since their introduction last year, Google’s Product
Listing Ads (PLAs) have been one of the most significant
developments in retail paid search.Though controversial
at first, the paid listings (which were previously free
as part of Google Shopping), appear to have been well
received by both advertisers and consumers. An analysis
by Marin Software found that by the end of September
2012, more than 100,000 retailers had signed on for
PLAs. Marin Software also determined that the share of
spend on PLA campaigns jumped from 0.36% in October
2012 to 2.5% in December 2012—a 600% increase.
In addition, the research found that some retailers had
earmarked up to 30% of their Google AdWords budget to
PLAs during the same time period, while the impression
share of PLAs rose 60%, most likely from increased
holiday shopping use.
In a similar look at PLAs, Adobe reported in a January
2013 blog post that by the middle of December 2012,
PLAs made up 17% of all Google ad spending and
accounted for 10.7% of overall Q4 2012 Google paid
search. In a subsequent blog post in April 2013, Adobe
noted “a clear upward trend in CPCs, driven by strong
advertiser and consumer adoption overall,” and that
these ads were “performing better than text ads” based
on CTR. But on the downside, Adobe did say that PLAs
resulted in lower average order values because they let
consumers easily find the lowest price on the search
page. Overall, however, the company observed that
retailers appeared willing to pay higher prices for PLAs
because they performed well.

AdGooroo, which began collecting and analyzing PLA
data earlier this year, said in a July 2013 blog post that
the advertisers with the most PLA impressions between
March 2013 and May 2013 were “mass retailers that carry
a wide variety of products.”The company pegged Wal-Mart
as the clear leader, followed by eBay,Target, Best Buy and
Overstock.com. Amazon.com, which is the top retail paid
search advertiser, ranked only 75th on the list.
Top 20 Product Listing Ad (PLA) Advertisers on
AdWords, Ranked by Impressions in the US, May 2013
1. Wal-Mart
2. eBay
3. Target
4. Best Buy
5. Overstock.com
6. Newegg.com
7. Macy's
8. Staples
9. The Home Depot
10. drugstore.com
11. Walgreens
12. Etsy
13. Toys "R" Us
14. Soap.com
15. Sears
16. Lowe's
17. Bhphotovideo.com
18. Rakuten.com
19. Globalindustrial.com
20. Apple
Impressions
(millions)
408.0
187.0
180.0
109.0
98.0
84.0
81.0
73.0
53.0
48.0
47.6
47.0
40.0
37.0
36.6
36.0
34.0
33.0
32.0
31.0
Unique products
advertised
129,381
479,855
39,946
6,744
74,567
47,010
29,363
28,953
33,570
23,910
13,526
109,854
15,598
13,571
49,955
16,936
22,380
37,320
33,235
822
Unique
ads*
262,588
659,333
76,387
15,179
150,565
74,646
124,859
48,219
62,258
84,972
44,209
142,956
33,767
39,882
74,659
38,435
50,852
97,924
51,681
1,803
Note: *displaying a unique product ad copy, image, name, price or URL
Source: AdGooroo as cited in company blog, July 9, 2013
Jefferies managing director Brian Pitz told WWD in July
2013 that a study by his firm found that the number
of PLA advertisers had jumped 410% between spring
2012 and June 2013, with the total number of ads up
145%. “It’s clear that these paid-for picture ads result in
significantly higher conversion rates than just ‘blue links,’”
the article said.
BRANDING CAMPAIGNS MIGRATETO
VIDEO,SOCIAL
While most retail marketers rely on direct-response
ads to drive more immediate actions, brand advertising
is experiencing a renaissance in the industry.These
efforts are primarily aimed at bolstering company
image and “selling” brand attributes that transcend
specific products.
Online and mobile brand-focused ad investments are
already significant in the retail sector. comScore Ad
Metrix reported that advertisers in the retail industry
delivered more than 433 billion display ad impressions in
the US in 2012, second only to the online media industry.
billions
Number of Online Display Ad Impressions Delivered
in the US for Select Industries, 2012
Online media 453.24
Retail 433.28
Finance 421.62
Telecom 294.25
Consumer goods 255.66
Note: read chart as saying 433.28 billion impressions delivered were from
advertisers belonging to the retail industry
Source: comScore Ad Metrix as cited in "US Digital Future in Focus 2013,"
Feb 14, 2013
Industry marketers report today’s brand-advertising mix
is evolving fairly rapidly from standard banner units—for
which investment is expected to remain flat—to richer
and more dynamic units, such as video, as well as social
display and hybrid formats that can integrate more tightly
with traditional branding workhorses likeTV and print.
“Retail has very aggressively continued to grow in the
context of display,” said Robert Dillon, director of global
display sales and strategy at Google. “This is because
retailers are willing to pursue the audience base and
to embrace the ability to serve dynamic ads, dynamic
creative and remarketing.”
Brand-focused campaigns appear to be more popular at
certain times of the year and in different sectors of the
industry. Retailers tend to do bigger brand buys, including
more video, during seasonal pushes.This differs from
their investments in search and other types of direct
response, which run more continuously throughout
the year. And while retailers of higher-value products
and those with longer sales cycles often weight their
spending mix more heavily toward search, those selling
lower-ticket, impulse-based purchases may make larger
investments in display campaigns that build awareness
and favorability and encourage multiple, repeat purchases.

DigitalVideo Engages Shoppers
Digital video is the rising star among newer digital
display formats.
While current investment remains modest, more
spending is in the pipeline. “We’re definitely shifting more
into video,” said Natalie Crain, senior director of customer
acquisition at Lands’ End. “It asks consumers to do a little
bit more with us, vs. standard display ads that can be
more easily ignored.”
Google’s Krueger said advertisers are finding money
for more video in a variety of places. “Some retailers
are adding incrementally for it, some are taking money
fromTV budgets to augment their overallTV plan with
additional reach and frequency to reach light or non-TV
viewers,” she said.
Q2 2013 statistics from Videology showed that retail
advertisers represented nearly 10% of video advertisers
on its network.
% of total
US Digital Video Advertiser Share, by Industry,
Q2 2013
Consumer goods
35%
Automotive
13%
Restaurants
9%
Retail
9%
Healthcare services
6%
Financial services
5%
Travel
5%
Educational services
4%
Entertainment
4%
Pharmaceuticals
3%
Telecom
3%
Business products
1%
Other
3%
Source: Videology, "US Video Market at a Glance Q2 2013," Aug 2013
In its an analysis of US specialty retailer digital marketing,
L2ThinkThank found that 28% of companies in its
“Digital IQ Index” were purchasing ads onYouTube.
Online ad metrics look reasonably favorable for retail
video advertising. A Q2 2012 study by VideoHub
determined that retail-related online pre-roll video ads
had a click rate of 1.12%, the second highest among
industries. However, the completion rate—which some
industry experts view as a better measure of success—
was much lower than for most other categories tracked.
Completion and Click Rate of US Online Pre-Roll*
Video Ads, by Industry, Q2 2012
Food and drink
Business and ﬁnance
Entertainment
Automotive
CPG
Computing/tech
Health and lifestyle
Travel
Telecom
Retail
Consumer electronics
Total
Completion rate
78.18%
77.79%
75.50%
73.95%
73.03%
72.66%
72.34%
69.41%
67.51%
60.47%
53.22%
71.65%
Click rate
0.48%
0.82%
0.75%
0.77%
0.51%
0.80%
0.84%
0.71%
1.20%
1.12%
0.56%
0.71%
Note: *includes both pre-roll and interactive pre-roll video ads
Source: VideoHub, "Performance Replay Report: Q1 2012," Oct 1, 2012
Nielsen research commissioned by the IAB showed
stronger results for online video when compared with
television. Retail-related online video ads outscoredTV
commercials by a large margin for general recall, brand
recall and message recall.

% of respondents
Ad Recall of US TV vs. Online Video Advertising,
by Industry, Jan 2011-March 2012
General recall Brand recall Message recall
Finance
Retail
Restaurants
Hospitality
Pharmaceuticals
Telecom
Food & beverage
Health & beauty
Technology
Automotive
71%
67%
65%
65%
63%
62%
61%
61%
60%
60%
50%
47%
47%
45%
45%
51%
46%
37%
46%
44%
53%
53%
53%
55%
49%
44%
50%
45%
44%
42%
30%
30%
32%
26%
26%
26%
30%
19%
24%
23%
43%
44%
45%
44%
36%
36%
40%
35%
32%
34%
21%
23%
24%
19%
18%
21%
23%
13%
18%
17%
Note: ages 18+; online and TV data based on responses up to 1 day post-ad
stream; limited to the same brands that streamed online and aired on TV
during the same period
Source: Nielsen, "A Comprehensive Picture of Digital Video and TV
Advertising: Viewing, Budget Share Shift and Effectiveness" commissioned
by Interactive Advertising Bureau (IAB), Feb 25, 2013
Online video ads in full episode players
TV commercials (broadcast & cable)
For more detailed information about the dynamics of
the online video advertising market, see the May 2013
eMarketer report, “Buying Online Video Advertising:
Making the Most ofYour Budget.”
One form of video-related advertising that is of growing
interest to retail brands is “shoppable video,” which
enables consumers to make online purchases from within
the video frame. Over the past few years,YouTube has
launched several products that embed ads in the videos,
including “click to buy” and “external annotations.” While
it isn’t clear that these features will become widely used,
they are something the industry is watching closely.
Retail Leads in Paid Social
eMarketer estimates that marketers in the retail industry
currently spend between 5% and 8% of their digital
budget on social media, with the majority on Facebook
andYouTube. But investment will likely grow. “The
strategic importance of social is so outsized based on
the amount of spend,” said BPN’s Ross. “But it also is
dependent on how fast the social networks innovate
against their products.”
In a short space of time, social media has made an
indelible mark on the way consumers shop and the way
the retail industry markets. In a June 2013 report, KPMG
noted that social media was the technology-related trend
with the most significant impact on retailers’ businesses,
according to US senior retail executives.
% of respondents
Technology-Related Trends that Have a Signiﬁcant
Impact on Businesses According to US Senior Retail
Executives, Spring 2013
Social media (Facebook, Twitter, Pinterest, etc.)
71%
Mobile/online shopping
52%
Mobile/online promotions and coupons
51%
Use of in-store mobile technology by store associates
32%
Waning store/brand loyalty as consumers become more
empowered
29%
Ability to scan QR codes, compare products and pricing
18%
Inﬂuence of peer rankings and reviews on consumers
17%
Mobile payments
16%
Showrooming
12%
Source: KPMG, "2013 Retail Industry Outlook Survey," June 17, 2013
In fact, presence on major social sites has become table
stakes for retailers. “Two years ago, social wasn’t even
in many marketers’ vocabulary, and certainly not a part of
their marketing mix,” Google’s Krueger noted. “Now it’s
part of everyone’s.” Results from L2ThinkTank’s study
back that point: Nearly all specialty retailers analyzed
maintained a presence on Facebook andYouTube, and
nine in 10 were active on Pinterest and Instagram as of
this year.
% of respondents
Social Networks Used by US Specialty Retailers,
2012 & 2013
2012
Facebook 98%
YouTube 93%
Pinterest 81%
Instagram 75%
Google+ 40%
Tumblr 40%
Vine -
foursquare 28%
2013
99%
99%
90%
90%
51%
44%
38%
10%
Note: 2012 n=57; 2013 n=71
Source: L2 Think Tank, "Digital IQ Index: Specialty Retail," June 25, 2013

As retailers increase their paid and owned presences on
these social networks, they are also responsible for a high
percentage of socially enabled ads—those that appear
outside social networks but encourage consumers to
engage with brands on social sites. comScore Ad Metrix
reported that the retail industry accounted for 19% of
socially enabled US ad impressions in 2012, second only
to consumer goods.
% of total
Socially Enabled Ad Impressions Delivered in the US
for Select Industries, by Share, 2012
Consumer goods
22%
Retail
19%
Online media
17%
Media &
entertainment
10%
Finance
4%
Other
28%
Source: comScore Ad Metrix as cited in "US Digital Future in Focus 2013,"
Feb 14, 2013
Retailers are also boosting their paid placements on
social networks to draw attention to their own owned
and earned content. More than half of respondents
to Shop.org and Forrester Research’s survey said they
were upping their Facebook spending, one in three were
increasing their presence on Pinterest and approximately
one-quarter were earmarking more money forTwitter,
YouTube and Instagram, according to a July 2013
MediaPost article.The majority of investment is going to
the most popular social sites. For example, electronics
retailer RadioShack turned to major social channels to help
its recently introduced branding campaign for reaching
younger shoppers. CMO Jennifer Warren explained the
rationale: “We want to be where the majority of our
audience is going to be, which is why Facebook,YouTube
andTwitter are kind of priority channels for us right now.
We’ll always want to test and learn when it comes to
other social channels. But I also think we need to focus.”
Though social ads have experienced mixed results,
some types are beginning to prove very effective for
retailers. A January 2013 study by Nanigans of more than
975 million Facebook desktop ad impressions served
to US consumers found that while ads in the sidebar
performed poorly, newsfeed ads saw a CTR more than
46 times higher, at 1.87%.The Facebook advertising
software company also found that ROI was 14% greater
for newsfeed ads, while CPC was less than one-third of
Facebook domain ads.
US Retailer Desktop Facebook Ad Metrics, Newsfeed
vs. Total Facebook, Jan 2013
CTR
Cost per click
Cost per registration
Newsfeed page
post ads
1.87%
$0.26
$4.52
Total Facebook
domain ads
0.04%
$0.82
$8.69
Note: participating retailers targeted proﬁtable customers, deﬁned as those
who generate more revenues in the long term than the cost to acquire them
Source: Nanigans as cited in company blog, Jan 28, 2013
Retailers are also devoting more budget to real-time
retargeted ads on social networks, such as Facebook
Exchange, and elsewhere. In fact, more than half of
specialty retailers in L2ThinkTank’s “Digital IQ Index”
were engaged in Facebook advertising, and two-thirds
were experimenting with Facebook Exchange.The study
also found that CTRs were up to five times as high when
dynamic Facebook retargeting ads were used.
In general, retargeting is gaining momentum: 63% of
retailer respondents to Shop.org and Forrester Research’s
survey said they planned to spend more on retargeting
this year than they had in the past.
Beyond Facebook’s universe, retailers see future potential
in targeted ads on other social networks, includingTwitter,
Pinterest, Instagram and Google+. For example, while
Twitter’s PromotedTweets have been helping retailers
increase referral traffic, the company recently announced
it planned to offer a geolocation component for those ads
by the end of 2013.The improved targeting capabilities
are expected to let brands serve up PromotedTweets to
consumers within a certain radius of their stores.

NETWORKAND PROGRAMMATIC BUYING
The use of automated systems to target and buy ad
placements has not only driven US retail ad spending
dollars to digital media, it has also given retailers a better
handle on ROI.
Retailers tend to buy a significant amount of display
advertising via ad networks and exchanges in their
quest for more targeting inventory and bigger impact.
Rather than focusing on the “big five” (Google,Yahoo!,
Facebook, Microsoft and AOL), some retailers opt for
network buys on sites directly related to the product or
business they’re advertising (also known as “endemic”
sites) to help them accomplish this. Often, they use
these venues to test targeting capabilities, new data
sets, different segments, and the latest platforms or
capabilities within those platforms.
Retailers are also heavy users of programmatic display
ad buying, according to statistics from Casale Media.
The firm’s quarterly breakouts of ad purchasing on its
Index ad-serving platform show the US retail industry
consistently tops the list—by a significant margin—in
terms of real-time bidding (RTB) impressions purchased.
Top 10 US Industries, Ranked by Share of Real-Time
Bidding (RTB) Impressions Purchased, Q1 2012-Q4 2012
Q1 2012
Retail
Financial
Telecom
Travel
Automotive
Computers
Food &
drink
Consumer
electronics
Media
Business
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
26.6%
14.1%
11.3%
11.1%
8.4%
8.2%
3.8%
3.7%
2.8%
2.0%
Q2 2012
Retail
Telecom
Financial
Automotive
Travel
Computers
Food &
drink
Media
Business
Fashion
24.6%
14.3%
12.0%
11.1%
11.0%
5.0%
4.5%
3.5%
2.3%
2.0%
Q3 2012
Retail
Telecom
Travel
Automotive
Financial
Food &
drink
Media
Health
Business
Education
31.6%
16.5%
11.4%
10.5%
9.3%
5.2%
3.0%
2.6%
2.5%
1.8%
Q4 2012
Retail
Telecom
Automotive
Financial
Travel
Food &
drink
Media
Health
Entertain-
ment
Business
35.9%
13.0%
11.0%
9.7%
7.7%
6.2%
4.0%
3.7%
2.5%
2.3%
Note: data is based on the RTB impressions purchased over the Index
ad-serving platform
Source: Casale Media, "Index Quarterly Report: Issue 2, Q3-Q4 2012,"
April 11, 2013
IgnitionOne found that US programmatic display spending
by the retail industry grew 130% year over year in
Q2 2013, with a 76% rise in impressions and a 25%
increase in clicks. As RTB technology becomes more
sophisticated, the trend toward more programmatic
buying is expected to continue.
% change vs. same period of prior year
US Programmatic Display Metric Growth for the
Retail and Travel Industries, Q2 2013
Spending
156%
130%
Impressions
80%
76%
Clicks
79%
25%
Travel Retail
Source: IgnitionOne, "Digital Marketing Report: Q2 2013," June 26, 2013

CONCLUSIONS
Retail will continue to outspend other industries on
digital advertising.The US retail industry’s sheer size
and diversity, and its ahead-of-the-curve understanding of
multichannel marketing, will keep it solidly atop the list.
Mobile is critical to the ad spending mix. Consumers
are using smartphones and tablets in nearly every
phase of the shopping and purchase cycle. Retail
marketers understand that these devices present unique
pathways to deliver specific and actionable messaging to
target audiences.
Google’s Product Listing Ads have changed the search
landscape. SEM has long been a top performer for the
industry.The introduction of Google’s new PLAs has
bolstered paid search and given retailers a new vehicle to
deliver highly visible, high-impact ads to consumers.
Branding campaigns are back. Retailers are turning to
video, social media and other dynamic display formats
to reinforce brand attributes such as service, integrity
and quality.
Social media ads are gaining traction. The jury is still
out on whether all types of social ads are performing
for retailers. But several formats, including Facebook’s
retargeting and newsfeed ads, appear to be worth
the cost.
EMARKETER INTERVIEWS
CMO One-to-One: RadioShack Rebranding Relies on
Social to ReachYounger Shoppers
Jennifer Warren
CMO
RadioShack
Interview conducted on June 5, 2013
Natalie Crain
Senior Director, Customer Acquisition
Lands’ End
Interview conducted on July 11, 2013
Robert Dillon
Director, Global Display Sales and Strategy
Google
Interview conducted on February 21, 2013
Julie Krueger
Industry Director, Retail
Google
Liz Ross
President, North America
BPN
RELATED EMARKETER REPORTS
US Retail Ecommerce: 2013 Forecast and
Comparative Estimates
Multichannel Attribution:What Retailers Need
to Know
SocialVideo:The NextWave in Digital Advertising
US Ad Spending: Mid-2013 Forecast and
Comparative Estimates
Buying OnlineVideo Advertising: Making the Most of
Your Budget
State of Mobile Search 2013: KeyTrends in Mobile
SEO and SEM

RELATED LINKS
AdGooroo
Adobe
Advertiser Perceptions
Booz & Company
BPN
Casale Media
comScore
Gartner
GoogleThink Insights
IgnitionOne
Interactive Advertising Bureau (IAB)
Internet Retailer
Kantar Media
KPMG
L2ThinkTank
Millennial Media
Mobile Marketing Association (MMA)
MyBuys
Nanigans
Nielsen
Tata Consultancy Services
the e-tailing group
The Search Agency
VideoHub
Videology
EDITORIAL AND
PRODUCTION CONTRIBUTORS
Cliff Annicelli Senior Editor
Kaitlin Carlin Copy Editor
Joanne DiCamillo Senior Production Artist
Stephanie Gehrsitz Senior Production Artist
Dana Hill Director of Production
Heather Price Copy Editor
Nicole Perrin Associate Editorial Director
Allie Smith Director of Charts

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