Retailer advertisers are set to spend $15.65bn on search next year, according to a new report by eMarketer, which found that paid search will be the fastest-growing format in 2019 as more brands tap into the power of Google to drive awareness and engagement.
The study showed that retail is going all-in on search during the next 18 months as companies will invest $13.12bn in the area by the end of this year, a marked 22.5% rise from a year ago, and will spend even more in 2020.
eMarketer found that the retail sector is particularly attached to Google as a platform for ads and content as the search engine integrates functions across its own platforms. For example, Google search ads also pop up in Google Maps, which is a very handy way to increase foot traffic and provide more relevant information for specific local products.
eMarketer expects almost half (46.3%) of digital ad dollars to be devoted to the practice of search ads in the retail industry this year. In other sectors where the level of integration is not often as extensive, the average spend amounts to 41.5%. Search is expected to take up 47.3% of retail’s ad spend online in 2020.
“Retail overindexes on search because bottom-funnel search ads are essential for driving ecommerce, and Google Shopping ads have become a go-to ad product for retail advertisers. Conversion rates for retailers using Google Shopping ads range from 1.1% to 3.1%,” eMarketer recently revealed.