Are Your Clients Missing Out on the Power of Google Shopping Ads?

Thu May 4, 2017

Kathy Crosett

It took advertisers a while, but they’re now hooked on Google Shopping Ads. Sidecar reports that the typical marketer spent 53% of their Google AdWords budgets on shopping ads in 2016. The rest of their budgets went to text ads. So, how’s that change working for them?

Sidecar analysts note that shopping ads are yielding respectable conversion rates, especially through smartphones. Last year, the smartphone conversion rate was 1.62%. This year, shoppers who viewed Google Shopping Ads on their smartphones converted at the rate of 1.77%. Not surprisingly, marketers spent significantly more to reach shoppers on smartphones last year. About 35% of Google Shopping Ads revenue came from smartphones while only 15% came from tablet activity.

In addition, Google Shopping Ads are driving more e-commerce sales across the board. Analysts trace 16.1% of all e-commerce sales to this product, compared to 9% of sales in 2015.  The product presentation in Google Shopping Ads is clearly winning over consumers in specific categories.

For example, the ads are driving consumers to spend an average of $233.16 for home/house products and $218.05 for automotive parts/accessories. The automotive parts/accessories category also has one of the highest CTR rates – 1.59%. However, computer and electronic products aren’t far behind with a 1.44% CTR. Of course, conversion is what really matters in the e-commerce world. The apparel/accessories and food/drug categories score the highest with 4.97% and 4.96%, respectively.

Retailers are also concerned with their bottom lines. The statistic that provides the most helpful data in that regard is the Return on Ad Spend (ROAS). The top scoring categories in the Sidecar study were pet care (10.3) and sporting goods (9.33.)

If you’re helping clients with their paid search campaigns, talk with them about changing up the mix between text and shopping ads. The results may give them the sales boost they need.

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About Kathy Crosett

Kathy is the Research Director for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel.

View all posts by Kathy Crosett
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