Google search network ad spending up 20% in 2017

U.S. retailers are prioritizing text ads for Google Shopping, according to a new survey released by Sidecar. According to an analysis of the activities of more than 300 U.S. retailers, Google Search's advertising spending grew by 20 percent, while Google Shopping's advertising growth rate (34 percent) was much higher than that of text ads (2 percent).

PC-to-mobile shopping transformation accelerates

Previous data show that consumers do research on mobile devices, but buy on PCs. However, recent studies suggest that this may change. Sidecar found that the number of PC-to-mobile shopping paths nearly tripled from the same period last year. Specifically, shoppers started shopping on PCs and completed purchases on mobile phones, up 259 percent.

By contrast, while the purchase path to the PC increased by only 16%.

Mobile's share of revenue increased

Given the increasing comfort of mobile conversion, it's no surprise that revenue favors smaller screens. In fact, Google Shopping's share of mobile retailer revenue rose 19 percent, at the expense of tablets (-11%) and PCs (-8%).

Interestingly, despite the decline in tablet revenue, the return on advertising expenditure (ROAS) increased by 46 per cent.

All in all, mobile phones accounted for more than 40% of Google Shopping's revenue in the fourth quarter of 2017. Mobile phones are almost equal to the PC's share of revenue.

Overall, mobile devices (phones and tablets) account for the majority of Google Shopping's revenue.

Amazon is the main retailer of Google Shopping

Amazon has invested more in Google Shopping, although its share of key verticals started this year is fairly limited. Amazon's share of the pet care vertical reached about 50 percent in June and 40 percent in September.

Performance benchmark: Electronics advertising spending returns are among the highest

Average order value (AOV): car ($222), home/home ($205) and jewelry ($200);

CTR: Automotive (1.55%), Toys/Interests (1.42%) and Pet Care (1.32%);

Conversion rates: health/beauty (3.91%), pet care (3.81%) and mass merchants (3.43%);

Return on advertising expenditure (ROAS): toys/interests (10.25), electronics (10.13) and automobiles (8.34);

Year-over-year change in return on advertising spending: Pet Care ( .189%), Health/Beauty (+40%) and Toys/Interests (+40%).

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