Not so long ago, Merkle shared a report on the state of digital marketing in 2017. It is reported that Google’s enhanced text ads have not yet helped companies achieve a “golden” CTR, and product ads continue to grow. So what are the current trends in the context advertising market? Let’s see below.
Google AdWords is growing faster
In the first quarter of 2017, spending on Google AdWords increased by 21% compared to the previous year. The growth over the same period last year was 19%. The volume of clicks increased by 20%, and the cost per click increased by 1%.
Merkle experts note that the key drivers of growth were the addition of the fourth text ad to mobile delivery, product ads in image search, launch of advertising on Google Maps.
Bets on tablets are falling, on smartphones and desktops – are growing
Ever since Google ordered advertisers to invest in advertising on tablets and smartphones separately, the amount of funds invested in advertising on the first, is steadily decreasing. So, the expenses of advertisers on advertising on smartphones and desktops increased by 51% and 12% respectively, on tablets – decreased by 23%.
The cost per click on smartphones for non-branded requests was 43% lower than on desktops. It is worth noting that in the fourth quarter of 2016 it was 51% lower
The cost per click on the tablets was 25% below the desktop.
Costs for commodity ads grow faster than text ads
At the beginning of 2017, commodity ads accounted for 52% of all clicks on search ads. In the fourth quarter of 2016, this indicator was 48%. It is also worth noting that the commercial ads accounted for 75% of the transfers received by retailers on non-brand requests.
The costs of advertisers on Google Shopping grew by 32% compared to the first quarter of last year, text ads – by 12%.
The cost of advertising the local assortment is growing
In the first quarter, Local Inventory Ads accounted for 19% of all clicks in Google Shopping on smartphones. The CTR of these ads is 19% higher than that of product ads on smartphones and desktops. However, Local Inventory Ads conversion rates are lower than those of Product Listing Ads.
Growth of CTR extended text ads is still not observed
Merkle experts did not notice the promised growth of CTR after launching extended text ads. It is noted that higher clickability rates were seen only compared to conventional text ads (shown at the bottom of the search page on desktops).
Spending on text ads grew by 12%, on non-branded – by 16%.
What trends would you note? Share your opinion in the comments.
Source: Search Engine Land