Retail advertisers increased spend on Google product listing ads (PLAs) by 300 per cent in 2013, a report has revealed.
A study from Marin Software showed that advertisers allocated as much 80 per cent of their paid search budgets towards PLAs during the holiday season in 2013 after allocating only 30 per cent over the same period in 2012.
In addition, in the last quarter of 2013, desktop and tablet CPC from PLAs increased by 84 per cent.
Jon Myers, VP and MD of Marin Software, said: “We know that mobile users like to shop and research products on-the-go and given the success of these ads on desktop, we expect click-through-rates to continue increasing as mobile shoppers begin embracing this highly engaging ad format.
“With prices staying low but engagement at an all-time high, PLAs seem to be a natural choice for retailers wanting to get their products in front of eyeballs.”
In the first half of 2013, PLA CPC increased by 35 per cent and by the end of the year it had reach 141 per cent.
Based on the data, Marin projects that retailers will have allocated a third of their entire paid search budget towards PLAs by December 2014.