Google Product Listing Ads vs. Text Search Ads, November-December 2012 [CHART]

Google Product Listing Ads (PLAs) outshone text ads for retailers in Q3, and that trend followed on into the holiday season (November 1 – December 31), according to [PDF] a new study from Kenshoo. Looking at the aggregate results for PLAs versus product-related keyword campaigns for the same advertisers during the holidays, Kenshoo finds that PLAs boasted a 31% higher return on ad spend ($4.82 vs. $3.68) on the back of a 23% higher conversion rate (2.49% vs. 2.03%) and a 47% higher click-through rate (2.73% vs. 1.86%). That’s not to mention that due to a lack of competition, PLAs were 20% cheaper on a cost-per-click basis during the holiday period ($0.47 v. $0.59).

The report notes that PLAs, which became the default in the US for Google Shopping on October 17, 2012, provide “prime location on the search results page and feature the inclusion of product images.” They also appeared to have a steadier return on ad spend during the holiday season than text ads, which fluctuated more widely according to the busier shopping days. Read the rest at MarketingCharts.

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Tagged as: Chart, Click-Through Rates, Conversions, CPC, Google Product Listings, Internet Advertising Metrics, Online Advertising Metrics, Search Engine Advertising, Search Engine Advertising Metrics, Statistics