Welcome!

News Feed Item

Product Ads Help Google Spend Growth Remain Steady

Leading search and digital marketing agency, RKG, today released its Digital Marketing Report for the fourth quarter of 2013 (rkg.co/dmrq42013) – showing digital trends for paid search, SEO, social media, product listing ads (PLAs), display advertising, comparison shopping engine management, mobile and a special section on holiday performance. Across its client base, which includes over 40 of the IR Top 500 retailers, RKG found that search spending growth on Google increased slightly to 19% year-over-year. This growth was driven primarily by traffic increases as average cost-per-click (CPC) was up just 3% year over year in Q4.

Google PLAs played a key role in holiday performance, accounting for 23% of all Google traffic and 42% of competitive Google traffic, which excludes clicks on keywords that include a site's own brand name. By comparison, the newly minted Bing Product Ads format, which launched in Q3 as a closed beta, accounted for 7% of Bing competitive ad spend. Based on PLA success on Google, that figure is likely to rise quickly.

Compared to another similar ad format in Amazon Product Ads, Google PLAs sales volume was nine times larger among advertisers running on both platforms.

On the whole, PLA spend increased 72% year-over-year as Q4 CPC for the format surpassed those of competitive text ads for the first time, coming in 13% higher. Competition in the PLA space will likely continue to drive up CPCs as return on investment for PLAs outpaced comparable Google text ads by 18%.

Continued Growth of Mobile

The volume of smartphone and tablet searches continued to grow through the holidays, and traffic on these devices accounted for over 25% of paid search spend in Q4. Thanksgiving and Christmas Day were the largest mobile days by share of traffic in Q4 at 43% and 45% respectively, as those traveling during these holidays were probably more likely to pack only mobile devices. Eagerness for Black Friday deals may have also played a role on Thanksgiving, while searches on new mobile devices likely contributed to the increase in mobile share on Christmas.

While Q4 smartphone click traffic more than doubled year-over-year, CPC was down 8% – continuing the trend from Q3 due to the transition to the Enhanced Campaign model. Enhanced Campaigns' mobile modifiers gave advertisers greater control to hit more demanding efficiency goals on mobile devices, which have historically returned much lower revenue-per-click than desktop and tablet computers.

Mobile now accounts for a greater share of PLA traffic than Google text ad traffic, indicating that advertisers and consumers are already largely taking advantage of the product ad format on mobile devices.

The full RKG Digital Marketing Report offers over 40 charts with additional insights and analysis on paid search, search engine optimization (SEO), social media, comparison shopping engines, attribution and more.

Some highlights from the fourth quarter findings include:

  • Google paid search spending grew 19% Y/Y in Q4. Traffic growth drove those gains with paid clicks up 15% and CPCs up just 3%. Google Ad Rank changes in early Q4 may have suppressed Y/Y CPC growth.
  • Spending on Bing Ads, which includes Yahoo, grew 43% Y/Y in Q4. The platform continues to better monetize its traffic through more expansive ad matching logic. Bing’s new Product Ads format showed potential in Q4, generating 7% of non-brand ad spend for participating retailers.
  • Retailers running both Google Product Listing Ads and text ads generated 23% of their overall traffic from the PLA format, but an impressive 42% of their non-brand traffic. The average retailer found PLA CPCs outpacing non-brand text CPCs for the first time in Q4.
  • Smartphones and tablets generated a combined 32% of paid search clicks and accounted for 25% of paid search ad spend. Smartphone CPCs remained 60% lower than desktop and tablet CPCs.
  • Not Provided query share has plateaued at an average of 84% of Google search visits. Query data that remains available to site owners is skewed towards Android devices and desktop Safari users.
  • Following the release of iOS 7, site owners are no longer seeing Google organic searches being misattributed as direct site visits due to iOS not passing referrer information. In Q2 2013, 16% of Google searches were incorrectly classified by web analytics packages due to this issue.
  • For social media sites, 31% of referral traffic produced occurred on mobile devices. Compared to organic search, social media users showed a relative preference for smartphones over tablets.
  • Facebook generated 57% of social media referrals in Q4 2013, up from 55% a year earlier. Pinterest generated 14% of social media referrals, up from 9%.
  • Amazon Products Ads’ share of total CSE spending increased to 26% in Q4 2013, up from 18% a year earlier. Nextag has seen its share fall precipitously in the past year.
  • Among advertisers running both Amazon Product Ads and Google PLAs, RKG finds PLA CPCs running 22% higher than Amazon’s. For those same advertisers, Amazon Product Ads volume is 11% that of PLAs.

To download the full report, visit: rkg.co/dmrq42013

About RKG

RKG is a search and digital marketing agency that combines superior marketing talent with leading-edge technology to create the industry’s most effective data-driven digital marketing solutions. RKG drives business to clients by maximizing a full range of opportunities including paid search, SEO, product listing ads, social media, display advertising and comparison shopping engine management services. Founded in 2003, RKG partners with clients such as CareerBuilder, Drugstore.com, Express, Herman Miller, Jones Group and Urban Outfitters. In 2013, Advertising Age ranked RKG the fastest growing search agency. A privately held company, RKG is headquartered in Charlottesville, VA with offices in San Francisco, CA, Bend, OR and Boston, MA. For more information visit www.rimmkaufman.com or follow the company on Twitter @rimmkaufman.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Cloud promises the agility required by today’s digital businesses. As organizations adopt cloud based infrastructures and services, their IT resources become increasingly dynamic and hybrid in nature. Managing these require modern IT operations and tools. In his session at 20th Cloud Expo, Raj Sundaram, Senior Principal Product Manager at CA Technologies, will discuss how to modernize your IT operations in order to proactively manage your hybrid cloud and IT environments. He will be sharing bes...
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists will examine how DevOps helps to meet th...
DevOps at Cloud Expo – being held October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real r...
As DevOps methodologies expand their reach across the enterprise, organizations face the daunting challenge of adapting related cloud strategies to ensure optimal alignment, from managing complexity to ensuring proper governance. How can culture, automation, legacy apps and even budget be reexamined to enable this ongoing shift within the modern software factory?
Most technology leaders, contemporary and from the hardware era, are reshaping their businesses to do software in the hope of capturing value in IoT. Although IoT is relatively new in the market, it has already gone through many promotional terms such as IoE, IoX, SDX, Edge/Fog, Mist Compute, etc. Ultimately, irrespective of the name, it is about deriving value from independent software assets participating in an ecosystem as one comprehensive solution.
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
SYS-CON Events announced today that A&I Solutions has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 1999, A&I Solutions is a leading information technology (IT) software and services provider focusing on best-in-class enterprise solutions. By partnering with industry leaders in technology, A&I assures customers high performance levels across all IT environments including: mai...
SYS-CON Events announced today that Systena America will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Systena Group has been in business for various software development and verification in Japan, US, ASEAN, and China by utilizing the knowledge we gained from all types of device development for various industries including smartphones (Android/iOS), wireless communication, security technology and IoT serv...
Every successful software product evolves from an idea to an enterprise system. Notably, the same way is passed by the product owner's company. In his session at 20th Cloud Expo, Oleg Lola, CEO of MobiDev, will provide a generalized overview of the evolution of a software product, the product owner, the needs that arise at various stages of this process, and the value brought by a software development partner to the product owner as a response to these needs.
While some vendors scramble to create and sell you a fancy solution for monitoring your spanking new Amazon Lambdas, hear how you can do it on the cheap using just built-in Java APIs yourself. By exploiting a little-known fact that Lambdas aren’t exactly single threaded, you can effectively identify hot spots in your serverless code. In his session at 20th Cloud Expo, David Martin, Principal Product Owner at CA Technologies, will give a live demonstration and code walkthrough, showing how to ov...
Five years ago development was seen as a dead-end career, now it’s anything but – with an explosion in mobile and IoT initiatives increasing the demand for skilled engineers. But apart from having a ready supply of great coders, what constitutes true ‘DevOps Royalty’? It’ll be the ability to craft resilient architectures, supportability, security everywhere across the software lifecycle. In his keynote at @DevOpsSummit at 20th Cloud Expo, Jeffrey Scheaffer, GM and SVP, Continuous Delivery Busine...
SYS-CON Events announced today that Outscale will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Outscale's technology makes an automated and adaptable Cloud available to businesses, supporting them in the most complex IT projects while controlling their operational aspects. You boost your IT infrastructure's reactivity, with request responses that only take a few seconds.
SYS-CON Events announced today that Progress, a global leader in application development, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Enterprises today are rapidly adopting the cloud, while continuing to retain business-critical/sensitive data inside the firewall. This is creating two separate data silos – one inside the firewall and the other outside the firewall. Cloud ISVs ofte...
SYS-CON Events announced today that Interoute has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Interoute is the owner operator of Europe's largest network and a global cloud services platform, which encompasses over 70,000 km of lit fiber, 15 data centers, 17 virtual data centers and 33 colocation centers, with connections to 195 additional partner data centers. Our full-service Unifie...
SYS-CON Events announced today that CollabNet, a global leader in enterprise software development, release automation and DevOps solutions, will be a Bronze Sponsor of SYS-CON's 20th International Cloud Expo®, taking place from June 6-8, 2017, at the Javits Center in New York City, NY. CollabNet offers a broad range of solutions with the mission of helping modern organizations deliver quality software at speed. The company’s latest innovation, the DevOps Lifecycle Manager (DLM), supports Value S...