The KBB industry has long been a cornerstone of the home improvement market, driven by homeowners’ aspirations to enhance their living spaces. However, recent data from Google indicates that search volumes for popular KBB-related keywords have experienced a significant downturn. In this blog post, we will delve into the YoY search volume declines for prominent keywords, discuss the possible reasons behind this trend, and shed light on how it affects the paid landscape in the industry.
YoY Search Volume Declines
In the ever-evolving landscape of online searches, it appears that interest in KBB-related topics has dampened over the past year. Keywords such as “german kitchens,” “handleless kitchens,” and “bespoke kitchens” have experienced a staggering 39% decrease in year-on-year searches. This downturn has raised concerns about the underlying factors contributing to this shift in user behavior.
The decline in search volumes is not confined to a single quarter; rather, it seems to be an ongoing trend. During Q2, the industry experienced a significant drop compared to Q1, and the trend has continued into July. This steady decline raises questions about the current economic landscape and its potential impact on the KBB sector.
The Impact of Interest Rates
One significant factor that may be contributing to the decline in search volumes is the prevalence of high-interest rates. These high rates are driving up the costs of mortgages, credit card loans, and loan-funded home improvements. As a result, the overall affordability of KBB projects has been affected, leading to a decrease in household development applications by 17% compared to the same quarter last year.
For instance, let’s consider an example using HSBC’s loan calculator. Borrowing £150,000 to fund an extension in April 2022 would have resulted in a total interest payable of £29,971. However, with the same borrowing amount today, the interest payable has skyrocketed to £139,936. Such a significant increase in interest payments undoubtedly affects consumers’ ability to embark on costly KBB ventures.
Impact on the Paid Landscape
The reduction in search volumes has also influenced the paid landscape, making it increasingly competitive. With fewer potential customers actively searching for KBB-related products and services, businesses have to intensify their marketing efforts to reach potential leads. As the demand for advertising space rises, Cost-Per-Clicks (CPCs) have experienced an upward trend, further adding to the challenges faced by businesses in the industry. Learn more about the changes in CPCs in our blog post.
Navigating the Challenging Environment
The KBB industry is facing a challenging period as search volumes decline, largely influenced by high-interest rates impacting household finances. While this downturn may bring increased competition and higher CPCs in the paid landscape, businesses can adapt to reduce the impact of this. At Lead Wolf, we recognise the implications of these difficulties and understand that the lead-to-sale journey may have extended in the current circumstances. However, we are committed to supporting our clients by deploying combative strategies that leverage our data insights combined with their invaluable local knowledge.
If you are an existing client, we encourage you to share your local knowledge with us, as we believe incorporating these insights into your campaigns will be instrumental in overcoming the current market challenges. Please click here to share your local insights with us.