Retailers up spend on Google PLAs after CTRs hit “record” levels, says Marin report
Retailers’ are upping their spend on Google’s paid-for Product listing Ads (PLA), which have seen a 93 per cent hike in click share compared to standard text ads year on year, according to Marin Software’s latest report.
The study, which is based on more than $4bn (£2.6bn) in yearly paid search spend from advertisers across the Marin platform, revealed that online shoppers are increasingly opting for the PLA format over standard text formats, with click-through rates (CTRs) on PLAs surging a record 21 per cent this July, compared to the CTRs of text ads.
The result is that retailers are increasing their investment in the ad type ahead of this year’s holiday shopping season, according to the report.
Google transitioned its free Google Shopping product to the paid-for format called PLAs last October, with the UK rollout following in February this year.
Between last October and this July the share of PLA spend compared to standard text ads surged 59 per cent, according to Marin, which predicts the level of spent to rise further in the fourth quarter.
This increased investment is causing cost-per-clicks (CPCs) on PLAs to rise, increasing 53 per cent year on year, while the CPC of standard text ads only rose 10 per cent over the same period.
However, despite the rise in cost, CPCs for PLAs remain lower than those of standard text ads, according to the study.
Marin Software’s chief marketing officer Matt Ackley said Product Listing Ads are a “breakthrough” format for advertisers, marking a big step toward improving the online shopping experience for users.
“Google Product Listing Ads showcase what happens when users encounter relevant, engaging ads. There is no doubt the online shopping landscape has been significantly changed by PLAs and we expect even more notable results this holiday shopping season.”
The report, called Google Shopping Ads: Product Listing Ads Deliver for Retailers, is based on the activity of advertisers which spend more than $100,000 (£64,453) a month on paid search.
Content created with:
Google is committed to helping businesses thrive in a privacy-first world. The technology giant works with thousands of businesses and agencies to help them prepare...
Find out more