Google Product Listing Ads Help Up ROI

Goldman

Digital agencies have begun to verify the benefits from Google product listing ads (PLAs). Sales revenue rose 607% for retailers managing such ads through Kenshoo, while increasing the amount spent on PLAs by 348%, according to a new report by the digital marketing company.

The report is based on analysis of more than 270 million global impressions and clicks aggregated from merchants managing PLAs through the company's platform.

Those ads triggering Kenshoo custom PLA bid policies saw 89% improvements in return on ad spend. Many retailers have begun to invest more to optimize the PLA format, expanding the role of the ads.

Some believe that voice search on mobile apps will increase the need for PLAs. Kenshoo CMO Aaron Goldman said that in order to create PLAs, search marketers must actively monitor product feeds. Having structured data and organizing products makes it easy for Google to serve it to any potential query across any device.

Overall, Kenshoo found that Google PLAs outperformed text search ads. Click-through rate (CTR) rose 73% higher; conversion rate (CVR) came in 35% higher; average cost-per-click (CPC) was 36% lower; and return on ad spend (ROAS) was 46% higher.

The company's clients using Kenshoo PLA bid policies gain an additional 4% CTR, 34% CVR, 31% average decline in CPCs, and 89% increase in ROAS.

The uptick from Google PLAs is not limited to Kenshoo clients. Adlucent client BabyEarth expanded the number of PLA targets from less than 100 to more than 10,000 within one month, growing revenue from 193% in August to 201% in September. The average monthly revenue from PLAs rose 129%.

The Search Agency also released a report this week that shows how Google PLAs grew by triple digits. Spend on Google's Product Listings rose by 378% sequentially, and share of click traffic rose 656%. PLAs experienced a 25.4% CTR and 36.5% CPC decline.

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1 comment about "Google Product Listing Ads Help Up ROI".
  1. Kevin Lee from Didit , November 2, 2012 at 9:31 a.m.
    As PLA clicks escalate in price during Q4 the ROI may drop somewhat, but any retailer not taking advantage of an automated feed management and bidding platform for PLAs and reaping the rewards is letting their competition trample them at a critical time. Of course, I have a preferred technology solution in mind ;-) but there are several that do a good job.