Over 75 Percent of Retail Search Ad Spend Goes to Google, According to Report

Retailers put 76.4 percent of their search ad budgets toward Google Shopping ads, a new report from Adthena says.

The report — which looked at 40 million ads from 240,000 advertisers across the United States and United Kingdom — also revealed that retailers garner 85.3 percent of all clicks through these ads.

Shopping ads work by using Merchant Center product data — which contains details about products being sold — to determine where and when ads will display. Retailers are charged a cost per click for their Google Shopping ads, meaning that they are charged only when a consumer clicks on a product.

Around 40 percent of retail search ad spend comes through mobile — a number that is only growing as consumers become more comfortable shopping online.

While Google remains the most dominant force when it comes to search ads, Facebook ads remain a powerful tool for retailers. The two companies took in a combined 73 percent of all digital ads in the U.S. in 2017, maintaining an effective duopoly.

But Amazon looks to cut into both Google and Facebook’s ad dominance in the coming years, with clients tapping into Amazon’s rich data pool.

Although the e-tailer is newer to the ad business than both Google and Facebook, Amazon’s extensive sales data — and increased access to consumers near making a purchase — are leading to increased digital ad profits for Amazon.

An October 2017 e-Marketer forecast estimated that Amazon’s digital ad revenues will grow to $3.19 billion by 2019, a small number compared with Facebook’s or Google’s but a significant increase over the $1.65 billion the company brought in this year, indicating that Google and Facebook’s overwhelming dominance could be softening soon.

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