2. The Economics of Google Shopping.
While CPC growth in traditional
Search has stabilised over the
past year, it has continued to
grow in Shopping
3. This has occurred because Shopping currently converts at up to
2x the rate of traditional Search.
Advertisers are bidding aggressively to be present
The Economics of Google Shopping.
46 %
107 %
100 %
210 %
Desktop & Mobile
Conversion rates
Shopping
Shopping
Search
Search
4. This means that if nothing else changes, CPCs can grow by a further 43% before
returns in Shopping align with current traditional Search levels
CPCs are
22% higher
in Shopping
But the revenue
resulting from these
clicks is even higher
again - 74% more than
traditional Search.
The Economics of Google Shopping.
Cost per click Revenue per click
122%
174%43%
Shopping if
Search = 100%
5. We know that Shopping is more lucrative for Google - generating 39%
more revenue compared to when text ads are shown on their own
The Economics of Google Shopping.
6. Text ads Shopping
On Shopping, traffic & revenue react differently to higher bids so new strategies
are needed, targeting maximum bottom line profitability.
The Economics of Google Shopping.
7. By Crealytics
For more on Google
Shopping insights visit:
crealytics.com/blog
Learn more about our
Shopping product at:
Camato.io
Hinweis der Redaktion
So, as real returns on Shopping begin to decline, understanding auction dynamics becomes critical. On Shopping, our research has demonstrated that traffic & revenue react differently to higher bids than we are used to on Search. Each product has its own unique s-curve. As such, new bidding strategies, at product level, are needed, targeting maximum bottom line profitability.
Be happy to pay relatively low CPCs at the moment and avoid overbidding
Avoid to bid more when average ROAS is strong but incremental ROAS is weak
Don‘t use a fixed ROAS target for shopping. Instead target for maximum bottom line profitability
Maximise reach on mobile as long as incremental ROAS is > text ad ROAS