Google Product Listing Advertisement Facts
According to sales forecasts from Forrester Research Inc. U.S. online retail sales are expected to reach $294 billion for the year of 2014. This accounts for approximately 9% of all sales in the United States. Forrester projects that by 2018, online sales will account for 11% of total US retail sales, reaching a whopping $414 billion.
On that same vein, we sought to find a few facts and figures surrounding the emerging Google Product Listing Advertisement format. We have collected the following facts & figures from Marin Software’s White Paper Report representing a survey of enterprise retailers spending over $100,000 per month on Google text ads and PLAs.
- From January through December 2013, retail advertisers increased spend on PLAs by nearly 300%. Compare to January through December of 2012, where retail advertisers only spent 67% more.
- PLAs experienced a 25% growth increase overall from 2012 to 2013.
- Due to increased competition, the average Cost-Per-Click of Product Listing Advertisements rose 35%.
- From January through December, 2013, Click-Through Rate increased 6% on Product Listing Advertisements.
- Smartphone PLAs consistently outperform those on desktop. For the month of October, smartphones experienced a 33% higher CTR than those of desktops.
- Marin Predicts that by December 2014, 40% of all PLA clicks will occur on smartphones.
- Marin predicts that by December 2014, retailers will allocate one third of their entire budget toward PLA’s.
- Google has released Shopping Campaigns as part of the AdWords interface, which allows for easy grouping of products for online catalogs. The shopping campaigns provide detailed reports that allow for catalog optimizations.