According to Ad Age DataCenter's ranking of Google's
25 largest U.S. search-marketing advertisers in 2013, Amazon is Google’s
biggest search ad buyer, spending $157.7 million in 2013. This is somewhat
surprising since Amazon is one of Google’s top competitors for online ad
dollars; however, it is in line with the fact that retailers typically utilize
search advertising as a primary way to drive sales.
Another interesting takeaway from the
ranking is that there are only a few retailers in the top 25, with Sears
Holdings and Wal-Mart ranking in the top 10. It was expected that more
retailers would have ranked in the top 25 ad buyers as retailers, along with
other direct-response advertisers, utilize search advertising as their primary
digital-ad format. In fact, as the article notes: “Direct-response advertising
accounted for 58.4% of U.S. digital-ad spending in 2013, according to eMarketer
estimates, and that's expected to tick up this year to 59.1%.” The article
identifies Google Shopping as the medium to which retailers are directing more
of their ad dollars toward. Google Shopping is a product-search service that
falls under the PLA category.
I personally believe that reallocating
search advertising dollars towards Google Shopping from Google Search is a
smart move for retailers, as many visitors to a Google Shopping results page
are in fact shopping for an item and are more likely to make a purchase. I will
be interested to see more data on this over the course of 2014 compared to
these 2013 results.
Amazon Tops List of Google's 25 Biggest
Search Advertisers
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