Advertisers and Consumers Embrace Google’s Shopping Ads

Despite switch to paid commercial model, analysis of Google Product Listing Ads reveals increased advertiser investment and higher consumer click-through rate

SAN FRANCISCO, CA January 29, 2013—Marin Software, provider of a leading digital ad management platform for advertisers and agencies, today announced the results of a study on Google Product Listing Ads (PLAs). According to Marin’s findings, in the last year the click share of PLAs as a percent of total search clicks increased 210% as consumers increased their engagement with the ads, which appear as image results in Google Search and as product listings within Google Shopping. Google transitioned Google Shopping to a commercial model in October 2012, and the bet appears to be paying off with Marin finding that advertisers increased their share of search budgets directed towards PLAs by nearly 600% in the last quarter of 2012.

News Facts:

• In May 2012, Google announced their intent to transition Google Shopping to a sponsored only format raising concern whether advertisers would invest in shopping ads. According to Marin Software’s analysis, after the transition in October 2012, advertisers increased their investment in Google Product Listing Ads nearly 600%.
• Marin Software’s findings indicate users of Google search are seeing Product Listing Ads more often and are increasing their engagement with the ad format. Marin’s advertiser data reveals the share of search clicks resulting from PLAs increased 210% in the last year. Similarly, Marin found in the last quarter of 2012, the impression share of PLAs jumped 60% as holiday shoppers used the ads to make purchase decisions.
• Based on Marin’s analysis, PLAs ended 2012 with a higher click-through rate (CTR) than text ads, and an average cost which is lower than of traditional text ads. The combination of a higher CTR at a lower cost indicates favorable performance conditions for advertisers. As a result, Marin expects marketers to continue growing their investment in the ad format over time.
• Marin Software announced today a new PLA enhancement to the Marin platform that enables marketers to efficiently create and edit PLA campaigns, optimize product targets bids to maximize revenue, and generate valuable reports specific to PLA performance.
• Additional information on PLAs and Marin Software’s analysis can be read at: http://insights.marinsoftware.com/.

Quotes:

• “When Google announced their new enhanced shopping experience and the intent to transition shopping ads from organic results to paid, they took a risk that the move would alienate retailers,” said Matt Lawson, vice president of marketing and partnerships at Marin Software. “Google’s decision, however, appears to be paying off with increased user engagement and advertiser investment. During the fourth quarter of 2012, we saw some retailers allocate as much as 30% of their spend towards PLAs. Marin Software’s new PLA solution allows marketers to harness the power of the new ad format as advertisers seek to acquire revenue online.”