TECHNOLOGY

Study: Search engine giant garners most retail search ad spend

BY Deena M. Amato-McCoy

When it comes to digital shopping ad spend, Google is leading the charge.

Currently, Google Shopping, a service that allows users to search for products on e-commerce sites and compare prices between different vendors, is driving 80% of all retail search ad spend and 85% of all paid search clicks, according to “The Rise of Google Shopping, The Search Advertising Report, for Q1 2018,” from Adthena, an artificial intelligence and machine learning-based search platform.

According to the study, Google Shopping ads, commonly referred to as Product Listing Ads (PLAs), have become the most popular ad format for retailers, with ad spend now far more than text ads. In 2018, Google Shopping ads already drive 76.4% of retail search ad spend. In addition, 76.4% of search spend generated 85.3% of all clicks.

Fashion and apparel advertisers in the United States are the most dedicated users of Google Shopping ads. Their PLAs fuel 84.6% of all search ad spend in the category, and win nearly 90% (89.7%) of all clicks.

Mobility is also playing a role within PLA penetration. Mobile PLAs make up 38.6% of a retailer’s total search ad spend, and PLA mobile campaigns received 41.8% of all clicks in retail search advertising. Google shopping ads on mobile also drove 79% of device ad spend and win 87.2% of clicks.

Clicks on shopping ads are driven by non-brand search terms — but not by much. In the U.S., branded search terms fueled 33.6% of Google Shopping ad spend, as opposed to the 76.4% across all search.

“The dominance Google Shopping ads have in search is incredible,” said Ashley Fletcher, VP of marketing, Adthena. “From desktop to mobile, our data reveals that Google Shopping ads have become the most attractive units for retailer advertisers and are truly setting the stage in terms of search.”

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