The eCommerce world continues to grow, making it more important than ever to stay at the forefront of all things online shopping. And if you haven’t checked out Google Shopping for your eCommerce brand, it’s a great place to start to scale your business and help drive traffic and revenue. There’s no better time than right now to dive in and start seeing results with this paid advertising platform.
So…What exactly is Google Shopping?
Google Shopping is an ad platform that offers consumers a chance to search for specific items across multiple retailers at once. It is growing in popularity, as online shoppers love the ability to type in a search term and see various options for the item they’re looking for in one place.
At CAKE, we love working with our clients to improve their strategies with this process and help them optimize ads most effectively. In doing so, we’ve compiled a few Google Shopping statistics that might interest you.
With this Google Shopping benchmark report, we’ll explore three KPIs where the platform beats out paid search. Plus, we’ll cover a few frequently asked questions about the process and discuss why these metrics even matter. Ready to see something sweet? Let’s get started!
Cost Per Click for Shopping Ads
Cost per click (CPC) is a digital marketing term that refers to how much the brand pays each time someone clicks on their ad within the platform.
For those concerned about ad spend budget, it is important to know that CPC for Google Shopping is way lower than search. However, the number of total clicks is also lower. Why?
Think about how people shop these days. When they see a large number of choices in front of them, they’re going to narrow it down to a couple immediately. eCommerce brands that see a high number of clicks are generally offering the best product in the list, while a low click rate could indicate less popularity amongst buyers.
The average CPC across all industries was $0.75, with the most expensive in the Home Goods industry at $1.06. The industry with the lowest CPC was Interior Decor + Furniture at $0.56.
The average CPC across all industries was $0.93, with the most expensive in the Apparel industry at $1.23. The industry with the lowest CPC was Skincare + Nutrition at $0.67
The average CPC across all industries was $0.71, with the most expensive in the Apparel industry at $0.85. The industry with the lowest CPC was Skincare + Nutrition at $0.57
Click-Through Rate for Shopping Ads
Keeping that information in mind, let’s go into click-through rate (CTR) metrics. In general, the CTR for Google Shopping is also generally lower and for the same reason.
Often, brands on Google Shopping compete for traffic on either identical products or those that are very similar to one another. If a customer has a chance to pick from several listings with multiple items, they’re likely going to go with either a lower price or the one that matches their needs exactly. Online brands can get quite competitive in this process, which means those with better face value to the user often earn the click.
The average CTR across all industries was 0.84%, with the most engaged being the Interior Decor + Furniture industry at 0.97%. The industry with the lowest CTR was Home Goods at 0.77%
The average CTR across all industries was 0.72%, with the most engaged being the Apparel + industry at 0.86%. The industry with the lowest CTR was Accessories at 0.46%
The average CTR across all industries was 0.67%, with the most engaged being the Skincare + Nutrition industry at 0.75%. The industry with the lowest CTR was Accessories at 0.53%
Return on Ad Spend for Shopping Ads
Just because CTR is lower, doesn’t mean that the process is pointless or won’t give you results. Many of our CAKE clients report awesome return on ad spend (ROAS) results, as those customers who click through are highly motivated to purchase.
Simply put, Google Shopping is a great bottom-of-funnel tactic, as there is a strong 1:1 relationship between the ad and the product. This means that when a customer sees an ad that accurately depicts a specific product they’re looking for, they’re much more likely to purchase in the moment.
The average ROAS across all industries was 3.35, with the most efficient being the Interior Decor + Furniture industry at 4.98. The industry with the lowest ROAS was Nutrition + Food at 1.80.
The average ROAS across all industries was 2.41, with the most efficient being the Home Goods industry at 3.98. The industry with the lowest ROAS was Apparel at 1.39
The average ROAS across all industries was 3.02, with the most efficient being the Home Goods industry at 4.28. The industry with the lowest ROAS was Accessories at 1.27
Why Does Benchmarking Matter for Shopping Ads?
Google Shopping ad benchmarks are important for eCommerce brands to pay attention to for numerous reasons.
Not only does this offer insight into how well the platform works as a marketing strategy, but it can give you an idea of what to expect when you embark on your own shopping ads journey.
As our CAKE clients continue to explore this popular channel, we will update this page to give you additional insight on what to expect based on the most recent data.
Frequently Asked Questions (FAQs)
Do you have questions about Google Shopping ads and how they can help increase sales and traffic for your eCommerce brand? We would love to help! Here are three of the most common inquiries from our clients.
Is Google Shopping New?
The answer is no. The platform first came to fruition back in 2002 and was actually named Froogle. However, it has since been revamped a few times to the iteration you can currently experience today.
Why is Google Shopping Gaining Popularity Now?
As our world continues to adjust to a post-pandemic state, many people have adopted the process of buying online into their daily lives. Not only is it far more convenient, but the range of options out there is much greater. Google understands this, which is why they’ve expanded their shopping ad platform and encouraged retailers to join.
Does Google Shopping Cost Anything to Join?
For eCommerce retailers, it does not cost anything to join Google Shopping. But, like any other form of paid advertising, there is a fee to run ads. If you are unsure how this works, please contact us, and we’ll happily discuss the process.
Conclusion: Working with CAKE for All Your Paid Advertising Needs
When it comes to today’s best eCommerce advertising options, Google Shopping is definitely something you’ll want to look into for your brand. Not only is it a good way to catch the attention of shoppers who are ready to make a purchase as soon as possible, but it is an excellent end-of-funnel strategy.
Are you ready to learn more about Google Shopping for your online brand? CAKE is your expert resource for all things paid advertising. Contact us today to start the discussion.