Nearly 80% of the retailers assign a higher advertising budget to Google Ads – as it plays a crucial role in transforming the bottom-funnel buyers.
Google, as a marketing platform, offers businesses the maximum audience exposure and different scope for interactions. The surge in a competition of Google Ads throughout 2019, pushed many e-commerce businesses and retailers to re-evaluate their marketing strategies and business models. Today, many retail marketers are increasingly investing in Google Ads for a better outcome!
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Recently, Sidecar came up with many exciting findings from the latest study. The company has published its research report titled, “2020 BENCHMARKS REPORT: GOOGLE ADS IN RETAIL”. It is the fourth comprehensive annual study and is focused on the online retail industry’s performance for Google Ads. The study has analyzed Google Ads data for the whole of 2018 and 2019 – Google shopping, as well as Google paid search Campaigns of over 300 U.S. retailers, spanning 14 different verticals. Besides, Sidecar analyzed in-depth ad spend, conversion rates, ROAS, CPC, AOV, seasonal shopping period like back-to-school, year-end holidays, and more.
Some of the principal findings from the study –
- Headway to the competitive challenge: They grew better in paid search, with saving 8% on costs YOY and driving similar revenue. Many retailers could pick up Google Shopping revenue by about 7%, with a corresponding 7% rise in spending.
- Ad spends moved: Google shopping made up to 80% of the retailers’ budgets while paid search takes up the remaining 20% of spend.
- Google Shopping impression share by Amazon topped with 60%: For the B2B, mass merchant verticals, and house & home, it was a big win in Q3 2019.
- Amazon’s impression share shifted: In 2019, it was found to move slightly in paid search, hovering about 40% or decreased for all the retailers analyzed.
- Prime Day popped with new opportunities: The YOY growth on Google Ads was seen in impressions and revenue spanning different devices – throughout the whole week of Prime Day. Besides, for mobile shopping ads, there was YOY growth across critical KPIs – 13% for revenue, 6% for clicks, and 4% for orders.
- Paid search mobile ads saw massive gains: It increased by about 25% due to the orders and a 28% rise in revenue for the YOY.
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Clearly, a large number of retailers are considering Google ads with higher hope – to attract shoppers at the top of their marketing funnel actively. And, over time, Google Ads has been manifested as a recognized advertising king by assuring marketers more purchases and fewer ads spend!
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