An overview of the performance of Google Product Ads

Product Listing Ads have taken a lot of market away from traditional text ads since their creation by Google a little over 4 years ago, but how are they performing?

According to marketing research firm RKG, the PLA format continues to take search volume from text ads, reaching 30% of overall retailer ad clicks. Performing especially well are ads for retailers without brand recognition. In fact, non-branded Google search ads achieved 56% of all retailer clicks.

This success is most likely due in part to the fact that Google gave priority to the visual ads over traditional text ads in 2014, often displaying them above organic results.

When it comes to categories of products, electronics and sporting goods are seeing especially good results with 64% and 71% of their search ad traffic coming from PLAs. Not to be discarded however are the apparel, health & beauty and flowers & gifts categories with approximately 30% of search traffic coming from the visual ads.

Finally, when it came to actual performance over non-branded text ads, RKG found that Google PLAs produced a 130% higher click through rate, 30% improved conversion rate as well as a 9% higher return on investment.

Looking at these results, it’s hard to imagine a reason for any small retailer to decide against allocating a part of their online marketing budget to Google’s Product Listing Ads.

If you want to get started by aren’t sure how, you can send your Shoptoit product listings to Google Product Ads. Simply visit the Google PLA Settings page in your merchant account for instructions.