For the past couple of years, Google has been improving its Shopping products and many in the retail space have found that Shopping ads have become the most effective way to get valuable clicks from customers.  

Research shows that this is particularly true when it comes to broader, non-branded search terms.  Google Shopping ads (also known as Product Listing Ads or PLAs) are not only driving conversions, but they are introducing customers to brands and lucratively placing them on the path to purchasing their products through early engagement and customer acquisition.


The Proof Is in the Numbers

Text ads still dominate the overall online advertising landscape.  But when it comes to several retail-specific categories, Google Shopping ads are taking over the scene.

Search intelligence platform Adthena recently analyzed over 40 million search ads from over 260,000 global retailers.  This is what they found:

  • In Q1 2018, Google Shopping ads drove 76.4 percent of retail search ad spend in the United States (compared to 82 percent in the UK)
  • The 76.4 percent of search spend was responsible for over 85 percent of all AdWords or Google Shopping ads clicks between January and February 2018 (in the UK, both were responsible for nearly 88 percent of clicks)

The same research also found that mobile ad spend is now matching that of desktop, though desktop ads are still generating slightly more clicks than mobile.


Why Google Shopping Is Dominating Retail Search

Adthena’s VP of Marketing, Ashley Fletcher, believes that Google Shopping is dominating the retail search marketing ad space for two reasons:

  • The introduction of “carousel” Shopping ads (first introduced in October 2016)
  • The increase of Google Shopping ad reach (there has been a push to influence user higher up in the sales funnel through broader search term targeting)


Interested in Getting Started with Google Shopping Ads?

Small Screen Producer has seen first-hand just how effective Google Shopping ads can be for our clients.  But is it the right strategy for your brand?

Arrange for your free consultation with one of our friendly online marketing specialists at Small Screen Producer to learn more about how you can warm up leads and increase sales!  Contact us online or give us a call today at (281) 569-4370.