UK fashion retailers increase online ad spend 23%

UK advertisers spent £41.2 million sponsoring apparel keywords in UK paid search between January and July 2015, an increase of 23% over the same period in 2014, when £33.6 million was spent.

The research from AdGooroo highlighted this increase goes against the grain of online advertising trends, where UK advertisers spent 11% less than the previous year. UK advertisers spent a total of £773 million on desktop text advertisements from January through to July 2015, compared to £867 million spent over the same period in 2014.

AdGooroo examined desktop text advertisement activity on the 2,288 apparel keywords on, ranked by total ad spend.

The majority of top 20 apparel advertisers in the UK are British companies including John Lewis which spent £976,000, Asos which spent £885,000 and Marks and Spencer which spent £803,000. But Amazon topped the list spending £1.6 million on apparel keywords in the first seven months of 2015.

Most of the top 20 big spenders are omnichannel retailers. The N Brown Group spent £1.9 million on apparel keywords during the period, with four websites taking position in the top 20: Simply Be (£687,000), Jacamo (£505,000), Marisota (£379,000) and Fashion World (£353,000).

Four shoe retailers also made the top 20, with Nike (£1.04 million), Schuh (£615,000), Adidas (£572,000) and Clarks (£541,000). Meanwhile, Net-a-Porter and Ted Baker represented luxury retailers with ad spend of £484,000 and £364,000 respectively.

The average cost-per-click and clickthrough rate for the apparel keyword group also increased in 2015, but not as much as ad spend. Apparel advertisers paid an average of £0.32 per click for the keyword group vs. £0.30 during 2014. Consequently, the advertisers experienced a 4.62% average clickthrough rate compared to 4.42% last year.