Understanding how your competitors leverage data and manage campaigns is important, especially for competitive advertising platforms like Google Shopping.
Digital marketing software company Kenshoo has released a study outlining how 89 search marketers use product listing ads (PLAs) in their marketing campaigns. Below are some of the key findings, and how they impact your Google Shopping ads.
What Are Marketers Doing on PLAs?
Most Marketers Think PLAs Are a Good Investment
83 percent of marketers find PLA performance to be on par with, or better than, traditional text ads.
Of the Google advertisers polled, only 17 percent believe PLAs perform worse than traditional paid search text ads, while 67 percent think PLAs perform better than paid search ads.
What Does It Mean for You?
For most merchants, PLAs will bring much more traffic and spend due to the nature of the PLAs in a retail-based search on Google. Advertisers are using PLAs to generate revenue, often more than their current paid search campaigns.
If you aren't running Google Shopping ads, you're in the minority. Be sure to continue to test PLA structure, bids, and budget for optimal performance.
More Than Half of Google PLA Marketers Don't Have a Separate PLA budget
62 percent of marketers bundle PLA budgets in with their traditional search budgets, while 29 percent allocate new, incremental budgets to support PLAs.
So while 83 percent of advertisers think PLAs perform as good as or better than paid search, only just more than half of them are allocating a portion of their total paid search ad budget to Google Shopping ads.