SEM Insights – Flower eCommerce Category
Each month, Medium Marketing will be providing a paid and organic search analysis of a specific online category with our expert advice added. This month, we are focusing on the eCommerce category for flowers and gifts in Australia, with online flower shops worth $86 million in revenue alone and showing strong growth year on year.
With the growth of digital, buying flowers online has become the norm for consumers in Australia with smaller boutique stores successfully competing with some of the largest providers. According to a leading online search intelligence platform, the estimated industry spend on paid search for the 3 months to August 31st, 2018 is just over two million dollars. In the latest 12 months to Aug18, February was the highest spend in paid search with nearly two million dollars spent in a single month. We can assume that Valentines Day is the major driver of this.
Amongst the largest spenders are easyflowers.com.au, roseonly.com.au and petals.com.au which represents more than half of the industry share of voice for paid search. This can be seen in the chart below.
In terms of performance, for August 2018, flowersforeveryone.com.au achieved the lowest CPC and highest CTR suggesting that they have a good SEM strategy. This is shown in the table below.
However when we look further into the numbers, most of the clicks and performance are coming from branded keywords (ie from paid search spend on the keywords “Flowers for Everyone”). The CPC achieved for this is $0.37 which is lowering their overall CPC and increasing CTR. If we look at the CPC for a popular keyword in this category such as “Flower Delivery Sydney”, we can see that rosesonly.com.au performs better than Flowers for Everyone in terms of CPC ($11.29) and CTR (11.13%). This can be seen in the table below.
Looking at another advertiser, Petals.com, we can see that some of their Adwords creative are performing better than others in terms of CTR and CPC.
For example the creative with 6.52% CTR is targeting the keywords “Same Day Flower Delivery”. Reasons why this may achieving a lower CTR includes:
- No ad extensions used like in some of the other creatives with high CTR.
- The copy is not relevant to the keywords so could be improved to increase relevancy score.
- Too much text could be a factor as some of the higher CTR creatives had less text to allow it to be read much more quickly.
- The nature of the keywords used could have a lower CTR than other keywords.
Of course Cost per Acquisition or CPA is the ultimate measure of which channel is driving conversions at the lowest possible price so it is important that you have your conversion tracking in place to measure this.
Compared to the share of voice of paid search, the picture of organic search looks very different in terms of who’s dominating in this space. This is shown below:
We can see from the above that the top 3 advertisers in paid search aren’t in the top 7 when it comes to share of organic clicks. While the top site in terms of organic clicks (Interflora) is not in the top 7 when it comes to paid search.
After looking at Ahrefs SEO tool we can see that the main reason why Interflora is ranking much higher
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