Paid search growth continued in January for internet retailers, driven by consumers in the mood for post-holiday bargains early in the month. PM Digital’s January 2012 Rewind Index, which measures monthly U.S. paid search performance for online retail clients, found that paid search revenue in January was 21% higher than one year ago. In general, sales were front-loaded during January’s first two weeks. The two peak days for the month were both Mondays, 1/2 and Martin Luther King Day (1/16). The unseasonable warmth across most of the U.S. may be partially responsible for order volume being lower in the latter half of the month as sales of winter merchandise lagged. Online retail clients continue to increase their paid search spend, mainly because clicks were up 15% year-over-year, although CPCs also inched up 2%. Average order values remained flat, but revenue growth outpaced spend and click growth anyway as conversion rates improved by a healthy 6%.
YoY Performance Metrics for January 2012


