Advertising.com's SVP and GM of advertising sales gives advice on how to ensure strong holiday retail sales in 2006.

According to the "Holiday eSpending Report" from Nielsen//NetRatings, Goldman Sachs and Harris Interactive, 2005 online holiday spending totaled $30.1 billion-- a 30 percent increase over 2004. In addition, a KPMG study revealed that during the 2005 holiday shopping season, more than half of all U.S. consumers surveyed made an online purchase. Those are the kinds of stats retailers simply can't afford to ignore. The message is clear: if you want to maximize holiday revenue, a powerful online marketing strategy is a must.

The mass marketing opportunity afforded by web advertising is essential to building awareness of your brands as consumers choose holiday gifts. Search is also vital, driving focused buyers directly to your site. And behavioral retargeting keeps your brands top of mind as consumers compare your goods to the competition. Integration of these three strategies is crucial to a successful holiday season. By partnering with an ad network, your campaigns will run across all three channels through one centralized vendor. The question is, what's the best way to put it all in motion?

Start early, think like your buyer, and follow through
Predictions indicate that there will be more online holiday revenue at stake this year than ever before, and consequently, advertising inventory is likely to sell out faster than ever. These are two powerful reasons to get started on your online marketing plan now.

The holiday shopping season officially runs from October 29 to December 23. In the early days of the season, online consumers are in "window shopping" mode-- building preferences and favorability. They are browsing sites to decide what to purchase, then browsing again to decide where to purchase. This cycle is reflected in three distinct shopping heavy-up periods.

As consumers move from browsers to buyers, it's important that you plan your marketing efforts (and gauge your expectations) accordingly:   

1.) Start with search
Search is vital to driving site traffic. It's especially important (and successful) at the very beginning of the season as consumers are starting to search for ideas. A good approach is to begin your holiday promotions before Thanksgiving, with the actual savings opportunities beginning on Black Friday, the peak day for search according to Advertising.com's research.

To make the most of your search terms throughout the season, keep keyword coverage broad and current,   encompassing all products with lots of variations. And change your creative messaging frequently to stand out against competition by rotating offers such as buy online/pick up at store, online discounts, free shipping and other promotions.

2.) Add the web
Web campaigns are a must throughout the season, as consumers browse and shop online. According to Advertising.com research for web marketing, the highest sales days in 2005 were December 7-9, when consumers were not yet looking for specific products and were more easily influenced by ads. The beginning of the shopping season -- or the research and consideration phase of the consumer purchase cycle -- is a good time to start advertising early sales/promotions. Running these types of "early bird" specials is a great way to start building loyalty with those consumers who have not yet aligned themselves with a specific brand.

Advertising.com's research also showed that while in 2004 the third week of December represented the highest percentage of total online sales, in 2005, that peak occurred in the second week. This means the online shopping frenzies are beginning earlier. Keep this in mind when planning your campaign start dates. Working with an ad network ensures your campaigns run continuously throughout the season across a guaranteed source of inventory.

3.) Include retargeting
Adding retargeting to your web efforts will keep your brand front-of-mind as consumers move toward making a purchase. Advertising.com's research showed that the highest sales days for retargeting campaigns in 2005 were December 12-15, when consumers were researching specific products, but possibly leaving sites without making a final purchase.

Most holiday shoppers do not click and immediately purchase. There is a consideration process as they determine what they will purchase and from where.  Retargeting can be leveraged to convert users who visit a site and do not purchase, or users who visit a site and DO purchase, generating the repeat buyers that are a retailer's dream.

4.) Wrap up with search
For search, with the exception of Black Friday, the highest sales days in 2005 were later in the season, December 15-21. This illustrates that consumers stopped searching simply for ideas and began searching for specific products.

With a specific brand or product in mind, these shoppers are also looking for offers like free shipping and online coupons, so be sure your keyword coverage includes any specials you are featuring. And consider adding behavioral to your efforts to reach consumers who have conducted specific keyword searches; following up a query with a free shipping offer is a great way to turn a last-minute browser into a buyer.

One more thing: stay on top of your bids. Carefully track when ship dates are over, when offers expire and when volume drops off, and adjust bids accordingly. This will require almost 24x7 monitoring to avoid costly miscalculations.

Don't call it quits too soon. Extending your marketing plan beyond the holiday will help you capture sales from the millions of consumers who receive gift cards and cash in their stockings.

Happy holidays
With 2005's huge gains in online holiday sales expected to continue this year, the time is now to plan your online marketing strategy. Take an integrated approach and apply diverse tactics according to the consumer buying cycle-- when people are browsing vs. buying, and when they are most influenced by advertising. Use a network to get the most bang for your buck: higher reach, easier measurement, and one-stop buys can help make your 2006 holiday season your best ever.