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Sep 10th, 2013

Product Listing Ads Market Share Declines In July

Product listing ads are Google’s enhanced search advertisements. They include many features such as images or prices, and received a lot of attention from marketers during last year’s holiday season. Yet this July saw a decline to 1.05% of all ads, from 1.22% two months earlier, according to a study of advertisers carried out by Marin Software company.

However, this is due to change as this year’s holiday shopping season kicks off, and it is expected that retailers are more likely to choose richer search ads. While there was a slight decline in marketer interest, the prospects for product listing ads are good, especially since the ads seem to accumulate ever higher click-through monthly rates.

The average click-through rate of these ads reached 1.66% in July, climbing slightly from 1% in January last year. The study noted that mobile shopping is the main factor for the growing number of clicks.

Additionally, global costs per click are seeing a drastic increase, up to $1.59 in July, compared to $1.04 a year earlier. This increase in price may encourage advertisers to think more strategically about their product listing ads purchases.

The share of clicks on product listing ads compared to text ads, according to the report, shows that – while in July a slight decline was observed in enhanced search ads – the trend is towards more product listing ad clicks. They take up a 2.21% share of all clicks in July, compared to just 1.15% in July 2012. The shopping season is the period when the biggest percentage of spending goes to product listing ads, compared to text advertisements.

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Smart Traffic Blogger

A Digital Marketing Specialist at Smart Traffic. Keeping up with the latest advancements in all things SEO he is continually developing new campaigns to keep his clients ahead of the curve in online marketing.