This shopper preference was not lost on retailers who started to shift their search advertising dollars to PLAs, which also initially happened to have lower cost-per-clicks (CPCs). As a result PLA CPCs increased dramatically, by an astounding 141% from January to December 2013 according to this same Marin Software report. This cost increase might lead retailers to rethink and refine their search marketing spend strategy. The Marin Software report highlights for retailers an opportunity in smartphones, where PLA CPCs have remained lower than their desktop and tablet counterparts, despite higher PLA CTRs.
The Marketing Charts article below provides additional insights to retailers. According to Adobe, retailers achieved a somewhat steady ROI on their PLAs despite the increased CPC: a ROI that averaged to about $9 for every dollar spent on PLA according to Kenshoo. Also according to Adobe, Google PLAs would already drive more traffic than Yahoo or Bing paid search, only a little over a year after its introduction.
As Demand Grows, Retailers Said to Generate More Paid Clicks From PLAs Than Yahoo Bing
By MarketingCharts Staff
Cost-per-click for Google product listing ads (PLAs) jumped by 80% year-over-year during Q4 2013, all the while maintaining a relatively steady ROI, according to an Adobe Digital Index analysis of almost 7 billion paid clicks. It’s the latest data set to show a rapid rise for PLAs, which Adobe says now generate more paid search clicks than Yahoo Bing for some retailers.
According to Adobe, retailers who use PLAs and standard text ads saw roughly 22% of their paid search clicks come from PLAs during the Q4 2012-Q4 2013 period, edging the share seen from Yahoo Bing (20%). (Standard Google text ads generated the remaining 58%.)
Here are some Q4 2013 PLA highlights from recent studies concerning paid search:
- According to IgnitionOne, US advertisers who used PLAs increased their Q4 2013 spending by a massive 618% year-over-year (with that high growth likely due to a small base to begin with). CTRs for product listing ads outperformed comparable rates for PPC ads for the duration of the quarter.
- Kenshoo’s retail clients upped their spending on product listing ads by 138% year-over-year in Q4, achieving a return of $8.84 for every dollar spent
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