After a slow start to the calendar year, U.S. paid search spending growth accelerated during the second quarter. Google saw a 24% increase in ad spend from Q2 of last year, as Product Listing Ads (PLAs) continue to produce huge growth, while Bing Ads search spending grew 19% from last year across Bing, Yahoo, and search partners.
Mobile traffic continues to produce strong growth, while desktop traffic continues to decline. Smartphone clicks grew by 47% year-over-year, compared to a 43% increase for tablets and a 2% decline for desktop.
Product Ads Continue to Exhibit Impressive Growth
Image-based product ads continue to see much higher growth than traditional text ads. Search advertiser spending on product ads in Q2 rose 72% over last year, while text ad spending grew just 6%. PLA share of total Google clicks remained steady from last quarter, at 26% of overall paid search clicks and 50% of non-brand clicks.
With Google’s upcoming transition to a new PLA campaign structure next month, RKG data found that conversion rates continue to be higher for PLAs, resulting in a 13% higher ROI than text ads, and suggesting continued growth opportunities for this ad format.
Google Search Partner Volume Declines, Though Opportunity May Exist to Expand PLA Presence
With Google set to disclose paid click and CPC growth by property for the first time this earnings season, RKG data from Q2 shows that the contribution of search partners is on the decline, with their share of Google ad spend declining by 5% from Q2 of 2013.
RKG data also shows that PLAs are not well-monetized on search partners, producing just 7% of total search partner clicks, compared to 26% of all clicks on Google.com. Although low, this figure is up from near zero last year, suggesting that Google may be working to increase PLA presence on search partner sites, potentially leading to further PLA growth.
For advertisers actively advertising on the Google Display Network (GDN) and running AdWords paid search ads, GDN accounted for 6% of total Google spending, the same rate as the previous quarter.
Cross-Device Reporting Gives Advertisers Better Insight Into Mobile Value
In anticipating the impact Google’s cross-device estimates may ultimately have on advertisers’ spending, RKG sees that cross-device tracking surfaces 7% more orders overall, but 14% more smartphone orders.
While smartphones produce 12% of traditionally tracked conversions, they contribute nearly 25% of cross-device orders. As improved tracking capabilities arise, advertisers will increasingly take these figures into account when setting smartphone ROI targets.
Other Notable Q2 Highlights
Organic Search & Social
Comparison Shopping Engines
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The full RKG Digital Marketing Report offers over 50 charts with additional insights and analysis on trends in paid search, SEO, social media, product listing ads, comparison shopping engines, display advertising and more.
About RKG, a
Founded in 2003, RKG is a search and digital marketing agency that combines superior marketing talent with leading-edge technology to create the industry’s most effective data-driven digital marketing solutions. RKG drives business to clients by maximizing a full range of opportunities including paid search, SEO, product listing ads, social media, display advertising and comparison shopping engine management services. In 2014, RKG became a part of Merkle, creating the largest independent search agency. RKG is headquartered in
Merkle, a technology enabled, data driven customer relationship marketing (CRM) firm, is the nation’s largest privately-held agency. For more than 25 years, Fortune 1000 companies and leading nonprofit organizations have partnered with Merkle to maximize the value of their customer portfolios. By combining a complete range of marketing, technical, analytical and creative disciplines, Merkle works with clients to design, execute and evaluate connected CRM programs. With more than 2,100 employees, the privately held corporation is headquartered in