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Why Google Shopping is dominating retail search marketing

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As Google has scaled up its Shopping products in recent years, there has been a growing consensus in the retail search marketing space that Shopping ads are one of the most effective ways to win valuable consumer clicks.

This is especially true of the non-branded, broader search terms that are typical of the early stages of the customer journey.

During this phase, Google Shopping ads – commonly referred to as Product Listing Ads, or PLAs – are considered to be a key means of engaging consumers early, and boosting new customer acquisition.

If the trends that we are currently seeing continue, 2018 will be a year of increased investment in Google Shopping ad formats across product-based search.

While text ads are still the most popular advertising format in many categories, retail-specific categories tell a very different story, with spend on Google Shopping ads far outstripping text ads in retail categories.

A new study by AI-powered search intelligence platform Adthena, analyzing 40 million search ads from more than 260,000 retailers, has shed light on the extent to which Google Shopping ads have come to dominate retail search marketing.

In this piece, we will look at some of the key findings from the report, explore the causes of Google Shopping’s phenomenal expansion, and consider what retailers can do to “future-proof” their search marketing strategy[1] against upcoming shifts in the market.

Content produced in collaboration with Adthena[2].

The growth of Google Shopping

The Google Shopping ad unit has evolved considerably over the past few years, with increased attention and prominence afforded to Shopping ads in the search results page. This has resulted in a rise in clicks and impressions that

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