Shopping Ads’ Share of Google Ad Spend Grows in Q2
Shopping ads’ share of US Google paid search investment was more than 60% in Q2 2020, up from 57% in Q2 last year, according to a recent report [download page] from Tinuiti. At a time when e-commerce is being notably impacted by the COVID-19 pandemic, the report lays out how these changes are affecting Google Shopping Ads.
Based on anonymized performance data from Google programs under Tinuiti management, the report finds that, despite a decrease of 13% in the average cost per click of Google Shopping Ads in Q2, spend was up by 34%. Representing the strongest spend growth of the last four quarters, this rise was accompanied by a further 53% increase in clicks.
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In terms of click share by device type, little change was seen year-over-year, with phones continuing to account for the majority (73%) of Google Shopping ad clicks, up slightly from 72% in Q2 last year. With the next-largest share of clicks, desktops’ share grew from 22% to 23% y-o-y, while clicks on tablets decreased from 7% to 4% share.
These figures go some way to account for the 45% drop in US Shopping Ad spend on tablets, as well as the 37% increase in desktop spend and 46% increase in phone spend. That desktop ad spend increased in this way could also be attributed to stay-at-home directives of recent months and the shift to home working taken by many professionals.
According to the report, advertisers benefited from a surge in online shopping demand during Q2. Indeed, previous research from sources including Bazaarvoice and ENGINE Group indicates the effect that the global pandemic has had on consumer shopping habits and the potential for online shopping to become the default.
As such, it’s no surprise that the median retailer studied spent 61% of their Google paid search investment on Shopping ads, and that this spend is up from 57% in Q2 2019. Similarly, US Google Shopping Ads’ click share increased y-o-y from 55% to 60% of the total. The report also notes that key advancements – such as Showcase Shopping Ads appearing in searches of more general terms – are what has helped spur these increases.
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