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.
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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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