Paid Search is the Fastest Growing Ad Format in Retail [REPORT] via @MattGSouthern
A new report on retail digital ad spending in 2019 reveals that paid search is the fastest growing ad format.
In total, retail advertisers in the US will spend $13.12 billion on search in 2019, which is up 22.5% from last year.
In 2020, spending is projected to grow to $15.65 billion.
It’s stated in the report that retail benefits more than other sectors when it comes to Google integrating the search functions of its various products.
For example, Google search ads can be shown in Google Maps, which helps drive traffic into stores and show local stock of specific products.
Searches for products and services in other sectors don’t have that same level of integration.
eMarketer forecasts that 46.3% of retail digital ad dollars will be spent on search ads, which is higher than the industry average of 41.5%.
In 2020, eMarketer estimates that search will account for 47.3% of total retail digital ad spending.
“Retail overindexes on search because bottom-funnel search ads are essential for driving ecommerce, and Google Shopping ads have become a go-to ad product for retail advertisers. Conversion rates for retailers using Google Shopping ads range from 1.1% to 3.1%.”
That money isn’t all going toward Google Search. In fact, Amazon search was identified as a growth opportunity for retail advertising.
Many small and medium-sized retailers are said to be increasing their spending on Amazon search products.