AUSTIN, Texas, Dec. 20, 2012 /PRNewswire/ -- Adlucent today unveiled new data on the growth and performance of Google Shopping Product Listing Ads (PLAs) this holiday season. The data shows that Google's recent transition to Google Shopping has driven explosive growth for the PLA search ad unit and is rapidly changing the way that shoppers engage brands through search.
Key findings from the analysis, which covers hundreds of millions of searches over the primary holiday buying weeks, include:
- Click-through rates for PLAs have been about 95% higher than text ads while CPCs have been about 7% higher.
- Retailers have allocated on average about 20% of their non-brand spend to PLAs throughout the holiday season.
- PLA conversion rates have been 123% higher than text ads, while average order values (AOVs) have been about 7% lower.
- PLAs have been effective at driving conversions on non-brand terms (i.e. Floral Lace Dress vs. Free People Dress), often a key source for new customers.
"The click-through and conversion rates for PLAs during the holiday season have exceeded our expectations," said Michael Griffin, founder and Chief Executive Officer at Adlucent. "It's exciting to see consumers respond so positively as it means a gap is being filled in their shopping and decision-making process - and that Google and advertisers are evolving and investing in relevant new channels."
Adlucent's Precision Product Matching technology and approach allows retailers to easily and successfully manage PLAs at the product level, carefully matching search queries to the right item and bid based on a deep understanding of consumer intent.
"Through Adlucent, we have been able to supercharge our PLA program by strategically focusing on the right products to showcase this holiday," said Jason Reeder, Marketing Manager at Skinit. "Adlucent was instrumental in providing a more nuanced understanding of why particular PLA images drive higher click-through and conversion rates. This insight, in combination with optimization of the top-performing products from over 500,000 SKUs, enabled us to achieve top PLA positioning, grow market share and drive our highest daily sales thus far."
Adlucent brings more than 10 years of experience in performance marketing and retail analytics to help retail brands quickly capitalize on the new market share and revenue offered by Google Shopping's PLAs. Recent successes include:
- BabyEarth Achieves Aggressive Growth with Google Shopping: Average monthly PLA revenue increases 129% under Adlucent management
- Adorama Capitalizes on Google PLAs: PLAs deliver 63% revenue contribution in one quarter for Adorama.
- Adlucent Drives Record Performance for Retailers Through Cyber Monday: Adlucent clients achieve 72% year-over-year revenue increase with 18% increase in spend on Black Friday; 41% revenue increase with 19% increase in spend on Cyber Monday.
Adlucent is a marketing technology and analytics company based in Austin, Texas, focusing solely on retail and eCommerce companies. Leveraging its Deep Search® search marketing and retail analytics platform, Adlucent's experts help the smartest retailers acquire new customers and grow revenue profitably through digital marketing. Expanding from a decade-long relationship with Amazon.com, Adlucent's current client base includes innovative retail brands such as Oriental Trading Company, Harry & David, Jewelry Television, and Free People.