A new report on retail digital ad spending in 2019 reveals that paid search is the fastest growing ad format.
In total, retail advertisers in the US will spend $13.12 billion on search in 2019, which is up 22.5% from last year.
In 2020, spending is projected to grow to $15.65 billion.
It’s stated in the report that retail benefits more than other sectors when it comes to Google integrating the search functions of its various products.
For example, Google search ads can be shown in Google Maps, which helps drive traffic into stores and show local stock of specific products.
Searches for products and services in other sectors don’t have that same level of integration.
eMarketer forecasts that 46.3% of retail digital ad dollars will be spent on search ads, which is higher than the industry average of 41.5%.
In 2020, eMarketer estimates that search will account for 47.3% of total retail digital ad spending.
“Retail overindexes on search because bottom-funnel search ads are essential for driving ecommerce, and Google Shopping ads have become a go-to ad product for retail advertisers. Conversion rates for retailers using Google Shopping ads range from 1.1% to 3.1%.”
That money isn’t all going toward Google Search. In fact, Amazon search was identified as a growth opportunity for retail advertising.
Many small and medium-sized retailers are said to be increasing their spending on Amazon search products.
Pay Per Click (or PPC advertising) is a form of paid digital marketing where advertisers pay a fee each time their ad is clicked.
The term PPC can apply to paid ads on social media networks, like Facebook, Twitter and LinkedIn. However, today we’ll focus on Google Adwords which helps your ads stand out to search engine users, displaying them at the top and right-hand side of Google’s search engines. We’ll also explore Google Display Network which displays your ads on relevant websites your customers and prospects land on.
Paid Search is the Fastest Growing Ad Format in Retail [REPORT] How Does PPC Advertising Work?
Once you have an amazingly written ad spiel, you can bid on a series of search phrases or keywords you want your advert to appear for. What placement your ad gets depends on two things: your bid price and your quality score. Your bid price is how much each click will cost you – so if you bid €1.50 and 100 people click on your advert, it will cost you €150.
Your quality score is decided from a number of factors including: your land page copy, your click metrics, your website’s metrics, amongst others.
Sounds simple enough?
Not quite, to get great conversion rates (people actually buying/signing-up for your offerings) takes a lot more than getting people to click on a link.
The term PPC can apply to paid ads on social media networks, like Facebook, Twitter and LinkedIn.
However, today we’ll focus on Google Adwords which helps your ads stand out to search engine users, displaying them at the top and right-hand side of Google’s search engines.
We’ll also explore Google Display Network which displays your ads on relevant websites your customers and prospects land on.
We’ll take a look at the benefits of both services to help you decide the best fit for you business and the best way to reach your target audience.