By Ginny Marvin
Google product listing ads continue to drive more and more traffic for retailers. In Q4, product listing ads (PLAs) drove 56 percent of non-brand clicks and 30 percent of overall Google search ad clicks, according to RKG‘s latest report, which encompasses primarily large-volume retailers.
Google gave PLAs greater prominence in 2014 by often serving them above organic listings, rather than confining them to the right rail. Retailers also continued to push heavily on the format as the ROI remained favorable compared to non-brand text ads.
Click-through rates on PLAs were 130 percent higher and conversion rates were 30 percent higher than non-brand text ads in Q4. ROI held at 9 percent above non-brand text ads even as the average order value was 12 percent lower.
Click costs on PLAs rose on higher competition during the holiday shopping season. CPC came in 5 percent higher than non-brand text ads.
Bing Ads’ nascent product ads also continue to gain click share and saw strong growth in the fourth quarter. Product ads drove 7 percent of non-brand clicks in Q4, doubling from the previous quarter. Overall, product ads accounted for 14 percent of clicks from the Yahoo Bing Network.
RKG found Bing product ads demonstrate the same performance characteristics as Google PLAs, with 9 percent better ROI and 36 percent higher conversion rates than non-brand text ads. Engagement was strong as well: CTRs were 72 percent higher than non-brand text ads.
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