Retailers put 80% of search ad spend into Google Shopping

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Google Shopping is sweeping up retailers' ad dollars. (Image: Google)

It seems Google far dominates in the world of search ad spending in the retail industry. Looking at an Adthena report for the first quarter of 2018, almost 80% of all retail search ad spend is used on Google Shopping campaigns. 

Looking at both desktop and mobile, data reveled that Google Shopping ads far outweigh other platforms for advertisers in setting the stage for search, according Ashley Fletcher, Adthena’s VP of marketing,

As of 2018, Google Shopping ads now drive 76.4% of all retail search ad spend and this search spend generates 85.3% of all clicks. 

RELATED: Retailers devote 53% of AdWords budget to Google Shopping

More specifically, U.S. fashion and apparel advertisers gave the most dollars to Google Shopping ads, responsible for almost 85% of all search ad spend and winning almost 90% of all clicks. 

Mobile made up a good chunk of this spend as well, accounting for 38.6% of all retailers' search ad spend and receive almost 42% of all clicks. Looking at Google, Shopping ads on mobile accounted for 79% of all spend and won 87.2% of clicks. 

RELATED: Mobile shopping revenue jumped 45% over holidays

And a majority of the search ad spend was not on branded search terms. In the U.S., branded search terms accounted for less than 34% of Google Shopping ad spend, as opposed to more than 76% across all search. 

“This is a great way for retailers to be competitive with Amazon," Fletcher told FierceRetail. Amazon almost took in nearly 50% of all e-commerce dollars last year. Retailers need to take advantage of every opportunity to win back market share. Product listing ads are high-performers and can drive awareness and demand directly back to retailer sites.”