2020 Google Ads Performance Benchmarks Report for Retail Now Available

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“Sidecar’s findings indicate key lessons for retailers to consider throughout 2020, specifically in the middle of the fluid environment developed by the COVID-19 break out,” discussed Mike Farrell, Senior Director of Integrated Digital Strategy at Sidecar. “2019 was more competitive than ever, yet retailers were able to successfully maintain revenue by adapting to the climate, concentrating on their audience strategy, and prioritizing incremental growth, rather than enormous increases. That muscle to adapt is the secret for keeping businesses moving and supporting customers throughout this period of volatility.”

PHILADELPHIA, March 31, 2020– Increased competitors throughout Google Ads in 2019 prompted ecommerce retailers to reconsider their methods and discover the white area, according to brand-new research study from Sidecar. The company released the research today in its 2020 Benchmarks Report: Google Ads in Retail, its fourth yearly thorough study on the retail sector’s efficiency in Google Ads.

The report analyzes Google Ads data from a representative sample of more than 300 U.S. retailers across 14 verticals that had active paid search and shopping projects for the complete years of 2018 and 2019. Sidecar’s report takes a look at seller ad spend, ROAS, conversion rates, AOV, CPC, and other crucial metrics, along with seasonal shopping periods, including year-end holidays and back-to-school. The analysis took place in January 2020. Secret highlights from the report include:

  • Retailers rose to the competitive obstacle. Sellers grew more efficient in paid search, conserving 8% on costs year over year, while driving similar earnings. Sellers were able to tick up Google Shopping revenue by 7% with a commensurate 7% increase in spend.
  • Retailer advertisement invest shifted. Google Shopping made up 80% of merchants’ budget plans in between these 2 channels, as it plays a growing function in transforming bottom-funnel buyers. While paid search comprised the remaining 20% of spend, merchants are approaching these ads with higher granularity to effectively draw in buyers at the top of the funnel.
  • Amazon’s Google Shopping impression share topped 60% for the B2B, home & & home, and mass merchant verticals in Q3 2019. Amazon’s impression share declined somewhat in Q4, letting merchants recover some exposure during a vital time of the year.
  • Amazon’s impression share moved a little in paid search in 2019, hovering around 40% or lower for all merchants evaluated. Merchants in the health & & charm and home & & home verticals saw Amazon’s impression share decline by approximately 7 to 8 percentage points in their sections over 2019. These findings reveal that paid search can be a valuable tool for merchants to manage Amazon and other rivals’ existence on the paid SERP.
  • Prime Day provides retailers new opportunities on Google Ads. Year-over-year growth was experienced in impressions and revenue throughout gadgets throughout the complete week of Prime Day on Google Shopping. For shopping ads on mobile, there was year-over-year development throughout key KPIs (4% for orders, 6% for clicks, and 13% for revenue). Furthermore, paid search mobile advertisements saw significant gains with boosts of 25% in orders and 28% in profits year over year.

New Sidecar Research Analyzes Google Shopping and Google Paid Search Campaigns of More Than 300 U.S. Retailers

Sidecar discovered the following factors that affected seller efficiency in 2019:

  • Budget shifts– Retailers straightened Google Ads invest in 2019, focusing on low-funnel activity on Google Shopping and retooling their paid search projects for cost savings.
  • Concern on efficiency– Retailers highlighted performance in paid search, in part by investing in less costly mobile ads, resulting in similar revenue acquisition year over year.
  • Competitors from Amazon– This competition decreased Google Shopping conversion rates throughout gadgets, requiring sellers to uptick invest to maintain earnings development.
  • Emphasis on audience method– Retailers increased their focus on more granular audience targeting to much better map Google Ads to all phases of the purchase funnel.
  • Unwavering attention on Google– Retailers maintained income from the longstanding Google Ads platform, and are looking for additional gains through newer advertisement platforms, such as Amazon and Pinterest.

Meanwhile, the COVID-19 break out remains a vibrant scenario that will continue to require retailers to adapt. As retailers change methods, target different audiences, and reveal brand-new methods to satisfy consumer requirements, they may arrive at approaches today that they discover should remain in their strategies beyond the COVID-19 timeframe. New online shopping behaviors– such as increased convenience– may take hold and persist as soon as the virus subsides. Versatile marketing approaches, including those that merchants carried out in 2019, will support retail companies amid continuous modifications.

Looking ahead, Google is specific to continue shaping its Google Ads platform to take on growing and competitive marketing platforms such as Facebook, Instagram, and Amazon.

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ABOUT SIDECAR

Sidecar provides performance marketing quality to brands and retailers. Sidecar’s innovative innovation and exclusive data, integrated with years of efficiency marketing know-how, help its consumers unlock the complete capacity of today’s most powerful search, shopping, social, and market channels.


Sidecar’s report looks at retailer ad invest, ROAS, conversion rates, AOV, CPC, and other key metrics, as well as seasonal shopping durations, including year-end holidays and back-to-school. Sellers grew more efficient in paid search, saving 8% on costs year over year, while driving similar revenue. Google Shopping made up 80% of merchants’ spending plans between these two channels, as it plays a growing function in converting bottom-funnel purchasers.”Sidecar’s findings indicate key lessons for sellers to think about throughout 2020, particularly amidst the fluid environment developed by the COVID-19 break out,” described Mike Farrell, Senior Director of Integrated Digital Strategy at Sidecar. Sidecar offers efficiency marketing excellence to sellers and brands.

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