Google Product Listing Ads Deliver for Consumers and Retailers
August 27 2013 - 7:30AM
Marketwired
Marin Software (NYSE: MRIN), provider of a leading Revenue
Acquisition Management platform for advertisers and agencies, today
released a report showcasing the rise of Google Product Listing Ads
(PLAs). Report findings, based on the more than $4 Billion in
annualized paid search spend through Marin Software's platform,
show PLA click-through-rates (CTR) have increased each month since
February 2013 and reached record levels in July 2013 -- 21% higher
than the CTR of text ads. The high CTR of PLAs coupled with a 93%
year-over-year increase in click share indicates a dramatic
acceptance of PLAs by online shoppers. Retailers, in turn, are
responding by increasing their investment in the ad type as they
prepare for this year's holiday shopping season.
Marin Software's report, "Google Shopping Ads: Product Listing
Ads Deliver for Retailers," consists of statistics and trends
uncovered through an examination of the Marin Global Online
Advertising Index. The index consists of advertising data from
leading global brands that manage more than $4 Billion in
annualized paid search spend through Marin's platform.
News Facts:
- In October 2012, Google transitioned Google Shopping to a
sponsored format, sparking a dramatic growth in PLA impressions and
clicks. Advertisers have continued to embrace the richer and more
engaging ad type, providing online shoppers with highly relevant
and visual ad creative.
- Marin Software's report shows shoppers find PLAs much more
relevant to their product searches than they do text ads.
Year-over-year, the share of PLA clicks to standard text ads
increased 93%. Likewise, in July 2013 the CTR of PLA ads -- the
number of individuals that view an ad and subsequently click on the
ad -- was 21% higher than the CTR of text ads.
- Fueled by consumer resonance, advertisers continue to increase
their investment in PLAs. Marin Software found between October 2012
and July 2013 the share of PLA spend to standard text ads increased
59% with retailers allocating as much spend in June 2013 towards
PLAs as they did during the popular holiday shopping month of
November 2012. To win the battle for revenue, Marin foresees the
level of spend directed to PLAs increasing to further highs in Q4
2013.
- As a result of advertisers' increased investment in PLAs, Marin
Software's findings indicate the cost-per-click (CPC) of PLAs is
also on the rise. Marin found in July 2013, PLA CPCs increased 53%
year-over-year, while the CPC of standard text ads increased 10%.
Despite the rise in cost, PLA CPCs still remain lower than the CPC
of text ads. Marin believes high CTRs at low CPCs represent optimal
performance conditions for advertisers.
- PLA best practices and additional PLA data figures are
available in the full report, "Google Shopping Ads: Product Listing
Ads Deliver for Retailers."
Quotes:
- "Product Listing Ads are a break through format for
advertisers, but also a big step toward improving the online
shopping experience for users," said Matt Ackley, chief marketing
officer at Marin Software. "Google Product Listing Ads showcase
what happens when users encounter relevant, engaging ads. There is
no doubt the online shopping landscape has been significantly
changed by PLAs and we expect even more notable results this
holiday shopping season."
Resources: Google Shopping Ads: Product
Listing Ads Deliver for Retailers About Marin Software Marin
Software Blog
Forward-Looking Statements This press
release contains forward-looking statements including, among other
things, statements regarding anticipated developments in digital
advertising and the performance and impact of Google's Product
Listing Ads. These forward-looking statements are subject to the
safe harbor provisions created by the Private Securities Litigation
Reform Act of 1995. Actual results could differ materially from
those projected in the forward-looking statements as a result of
certain risk factors, including but not limited to (i) adverse
changes in general economic or market conditions; (ii) delays,
reductions or slower growth in the amount spent on online and
mobile advertising; and (iii) unforeseen developments in the
digital advertising industry generally and the PLA format
specifically. These forward looking statements are based on current
expectations and are subject to uncertainties and changes in
condition, significance, value and effect as well as other risks
detailed in documents filed with the Securities and Exchange
Commission, including our most recent reports on Form 10-Q and
current reports on Form 8-K that we may file from time to time.
Marin Software assumes no obligation to, and does not currently
intend to, update any such forward-looking statements after the
date of this release.
About Marin Software: Marin Software
provides a leading Revenue Acquisition Management platform used by
advertisers and agencies to manage more than $4 billion in
annualized ad spend. Offering an integrated platform for search,
display, social, and mobile marketing, Marin helps advertisers and
agencies improve financial performance, save time, and make better
decisions. Headquartered in San Francisco, with offices worldwide,
Marin's technology powers marketing campaigns in more than 160
countries. For more information about Marin's products, please
visit: http://www.marinsoftware.com/solutions/overview.
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Media Contact: Greg Kunkel Corporate Communications Marin
Software 415-857-7663 press@marinsoftware.com
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