The Merkle Q4 Digital Marketing Report (DMR) was released earlier this quarter to highlight trends our client base observed from b2c email list October through December of 2016. In the Comparison Shopping Engine (CSE) section there was one major theme that deserves a deeper look: the decline of Connexity from both a spend share and revenue growth perspective. The Cold, Hard Facts As a refresher, the DMR called out the below performance trends for Connexity: Connexity has struggled to maintain spend share since accounting for 50% in Q1 2016. They are currently holding steady at 29%. Revenue from Connexity ads declined by 30% YOY, while revenue b2c email list driven by ads on eBay Commerce Network rose 30% YOY. eBay Commerce Network significantly outperforms Connexity on conversion rate across most product categories.
Our Q4 data very clearly illustrates that, between the two major b2c email list Comparison Shopping Engines, ECN is substantially outperforming Connexity. What Is Driving Connexity’s Decline? The overall reason for less investment in Connexity is that retailers aren’t seeing efficient returns from the engine. We are usually able to b2c email list take a client’s goals regarding ad spend to cost ratios and adjust bids or product mix on a given platform to maximize revenue. If a product, keyword, or product group is performing inefficiently, we look to reduce b2c email list bids to a level that works with our expected sales-per-click (SPC). Reduced bids should lead to lower cost-per-click (CPCs), lower click volume and, as a result, lower overall ad spend. Connexity’s platform bucks this trend in that lower CPCs do not necessarily mean lower costs or better efficiency.
The data below illustrates the b2c email list correlation between weekly CPCs and efficiency for 19 Merkle advertisers during Q4 2016. A value of 1 indicates perfect positive correlation, meaning CPCs and ad-spend-to-cost (A/S) increase together in a linear fashion. A value of -1 indicates negative correlation, or that A/S decreases (efficiency improves) linearly when CPCs rise. Overall we’d expect to see a largely positive correlation, with more aggressive bids and CPCs leading to a higher A/S, meaning less efficient performance. Exceptions might be if a retailer is already b2c email list showing very prominently, in which case higher bids won’t add much incremental traffic, or if their bids are so low that increases won’t get them anywhere close to the first few pages of results.
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