1、Q2 2020 Google Ads Benchmark Report Triopoly Series 2 2 Q2 2020 Triopoly Series: Google Ads Benchmark Report While many advertisers that remained active through Q2 2020 decreased Google search spend for the quarter year over year, overall investment in Google search ads increased 19%, as some advert

2、isers focused efforts on digital promotion and took advantage of a thinner competitive landscape. This was especially true for retailers, which saw Amazon exit US Google search auctions for text ads and Shopping in mid-March across all product categories. Amazon returned to US Google text ad and Sho

3、pping auctions in mid-June after getting its fulfillment capabilities back in line with the explosion in demand, though it isnt back to the impression share levels observed earlier in 2020 for most product categories. In particular, its presence appears minimal against competitors in high-demand cat

4、egories such as CPG and health/personal care products, though its essentially back to full strength against competitors in the office supplies and sports equipment categories. Q3 will likely present a much tougher competitive landscape for many retail advertisers with Amazons return. Another meaning

5、ful shift in auction dynamics occurred with Googles move to release inventory on the Shopping tab to non-advertisers in late-April, producing free clicks for many brands that dont advertise as well as those that do. Immediately following the announcement, the average number of distinct competitors i

6、n desktop Shopping auctions rose 41% relative to the roughly year and a half prior, and many new brands are now getting free clicks from the Shopping tab. That said, the update didnt meaningfully impact advertisers ability to invest in Shopping, with spend growing 34% year over year driven by 53% cl

7、ick growth. Spend on text ads grew 11% with a 33% increase in clicks, also helped along by strong growth in online commerce. Google has steadily expanded the definition of close variants over the last couple of years, which has led to an expansion in the number of different queries more restrictive

8、match types like phrase and exact match are exposed to. In Q2 2020, more than 40% of all queries deemed exact match came from close variants, up from 12% in Q1 2016. Google Shopping now accounts for 60% of Google paid search clicks for the median retail advertiser, up from 55% last Q2. Shopping grow

9、th has outpaced text ad growth for most advertisers for several years, as iterations such as Showcase Shopping Ads, which typically show for shorter, more general queries, have allowed Google to inject Shopping ads into a wider variety of search auctions. The share of Google text ad spend attributab

10、le to targetable audiences rose from 54% in Q2 2019 to 62% in Q2 2020, while the same share rose from 50% to 52% for Shopping. Notably, the share of spend attributed to Customer Match audiences, which are based off of lists comprised of email addresses, phone numbers, and/ or physical addresses, ros

11、e across desktop, phones and tablets. The share of Google paid search clicks attributed to the Search Partner Network is now below 1% for both Shopping and text ads. Googles 2019 move to change image search from the Search Partner Network to the core search network, as well as Yahoos move around the

12、 same time to begin showing only Microsoft Ads, both contributed to a significant decline over the last 15 months. Search Partner spend share is even lower than click share, as this traffic comes with an inherent discount relative to clicks. Report Highlights 3 3 Q2 2020 Triopoly Series: Google Ads

13、Benchmark Report The Tinuiti Google Ads Benchmark Report is based on anonymized performance data from Google programs under Tinuiti management, with annual Google ad spend under management totaling over $700 million. Samples are restricted to those programs that have remained active and maintained a

14、 consistent strategy over the time periods studied. Unless otherwise noted, all figures are based on same-client growth. The trends and figures included are not meant to represent the official performance of Google advertising or the experiences of every Google advertiser. Methodology Tinuiti is a p

15、erformance and data-driven digital marketing leader focused on every aspect of the customer journey. We are the largest independent digital performance marketing agency, with more than $1.5 billion in ad spend managed across Amazon, Google and Facebook. About Tinuiti The number of advertisers deploy

16、ing Google Discovery campaigns more than doubled between January 2020 and June 2020. Announced in May 2019, Discovery campaigns allow advertisers to target placements in the Google Discover feed, YouTube home feed, and Gmail social and promotions tabs. Adoption has steadily expanded over the last ye

17、ar. Google Search 4 Q2 2020 Triopoly Series: Google Ads Benchmark Report 5 5 Q2 2020 Triopoly Series: Google Ads Benchmark Report Google spend grows 19% in Q2 after slowing to 8% in Q1, even as CPC declines. Same-store, year-over-year Google paid search spend growth accelerated to 19% in Q2 even as

18、cost per click declined 17% year over year, with click growth surging to 42%. The story was certainly not the same for all advertisers given the wide-ranging effects of COVID-19 on marketers ability to invest in paid search, and many of the brands studied decreased spend year over year. However, wit

19、h Amazon exiting ad auctions for several weeks and Walmart pulling back for a stretch in Q2, many retailers saw an opportunity to gain market share through paid search efforts and leaned into both Shopping and text ads, though Shopping was the clear primary driver of overall growth for Tinuiti adver

20、tisers. Google US Paid Search Y/Y Growth +50% 0% +25% source: anonymized Tinuiti advertiser data, 2020 25% SpendClicksCPC Q1 19 Q2 19 Q3 19 Q2 20 Q1 20 Q4 19 Q1 18 Q2 18 Q3 18 Q4 18 +42% +19% 17% While CPC declines werent uniform across all advertisers and the 17% figure was affected by a mix shift

21、towards Shopping, most advertisers saw significant declines for each device type and ad format in Q2. With Amazon returning to Google search ad auctions in mid-June, there will be stiffer competition in Q3 for the increased search interest in online commerce from consumers that has come as a result

22、of social distancing and work from home trends. The potential for a Q3 stimulus looms large, with the last stimulus leading to a significant surge in searches and purchases in mid-April around the time of initial deposits. Additionally, with the potential for brick-and-mortar shopping to pick up ste

23、am in the second half of the year relative to Q2, its possible that online shopping sees some decline in the coming months. 6 6 Q2 2020 Triopoly Series: Google Ads Benchmark Report Phone spend growth is back to 28% in Q2 2020 after slowing in Q1. Spend growth for phones across Google Shopping and te

24、xt ads rose from 11% in Q1 to 28% in Q2, while desktop spend growth rose from 14% to 19% over the same time period. Tablet spend growth continued to fall dramatically, a trend that started in Q4 2019, as these devices have taken a backseat to other device types in terms of usage in recent years. Aft

25、er four straight quarters of single digit year-over-year spend growth, desktop growth has now topped 10% two quarters in a row. Average cost per click declines significantly across all device types. With some advertisers such as Amazon pausing paid search investment in late March and into Q2, compet

26、ition in many product categories declined, as did average cost per click. While Q2 certainly presented a meaningful step down in terms of CPC declines, CPC growth actually started slowing in the second half of 2019 across device types. Google US Paid Search Y/Y Spend Growth by Device Type Q1 20 +30%

27、 60% +0% Q1 19 Q3 19 Q4 19 Q2 20 source: anonymized Tinuiti advertiser data, 2020 +28% 45% +19% Q2 19 Google US Paid Search Y/Y CPC Growth by Device Type Q1 20 +20% 40% +0% Q1 19 Q3 19 Q4 19 Q2 20 source: anonymized Tinuiti advertiser data, 2020 12% 33% 21% Q2 19 DesktopPhoneTablet DesktopPhoneTable

28、t 7 7 Q2 2020 Triopoly Series: Google Ads Benchmark Report Across device types and ad formats, Amazon paused Google search ads in the US in mid-March as it focused its operations on fulfilling orders in essential categories such as grocery, baby, health, and personal care products. While Amazon has

29、periodically paused Shopping over the last couple of years around Prime Day and during other brief periods, the move to pause text ads is the first in recent memory. Given the flood of demand Amazon saw as Americans started restricting brick-and-mortar shopping and movement in general, it made sense

30、 that the eCommerce giant wouldnt need to boost demand with paid search listings. Amazons move to pause allowed other advertisers to gain impression share as online commerce soared, and some shoppers turned to search upon finding extended delivery estimates on Amazon. In mid-June, advertisers starte

31、d to see Amazon flowing back into auctions as it appears to have brought its fulfillment capabilities in line with demand, though it remains far less visible in terms of Google Shopping and text ad impression share than it did in January 2020 in many product categories. Two categories where Amazon a

32、ppears to be roughly back on par with its impression share earlier in the year are Office Supplies and Sports Equipment. In the case of CPG and Health & Personal Care products, categories with especially high demand on Amazon ever since more restricted movement, it has only barely returned to the Sh

33、opping auction on phones and desktop devices and remains far below its early-2020 presence. Amazon is back in Google Ads after twelve straight weeks out of the auction, but with a lighter presence than in early 2020. Amazon US Google Shopping Desktop Impression Share by Product Category Amazon US Go

34、ogle Text Ads Impression Share by Product Category Phone Impression Share by Product Category ApparelBabyConsumer ElectronicsCPGCraftsFurnitureGifts Health & Personal CareHome & GardenOfficePetSports Equipment 100% week of Jan 7 2019 Feb 18Apr 1May 13Jun 24Aug 5Sep 16Oct 28Dec 9Jan 20 2020 Mar 2May

35、25Apr 13Jun 29 100% week of Jan 7 2019 Feb 18Apr 1May 13Jun 24Aug 5Sep 16Oct 28Dec 9Jan 20 2020 Mar 2May 25Apr 13Jun 29 60% week of Jan 6 2020 Jan 27Feb 17Mar 9Mar 30Apr 20May 11Jun 1Jun 22 Kitchen & RestaurantCPGApparelBabyToys & Games FurnitureGiftsHome AppliancesHome & Garden OfficePetSports Equi

36、pment source: anonymized Tinuiti advertiser data, 2020 source: anonymized Tinuiti advertiser data, 2020 source: anonymized Tinuiti advertiser data, 2020 8 8 Q2 2020 Triopoly Series: Google Ads Benchmark Report Google US Paid Search Phone CPC Relative to Desktop Median Advertiser Q2 2020Q2 2019 Phone

37、 cost per click is 43% lower than desktop in Q2 2020 for Google paid search. Phone cost per click was 43% lower than desktop for the median advertiser studied in Q2 2020, nearly identical to the median relative cost per click last year. This is certainly not the case for all advertisers and industri

38、es, and can heavily depend on the specifics of each advertisers strategy as well the expected value of phone traffic relative to desktop for different brands, since the cost of traffic by device type is within advertiser control. That said, less than 10% of advertisers studied saw phone cost per cli

39、ck equal to or higher than desktop for Q2 2020. Tablet cost per click is 35% lower than desktop across ad formats in Q2. Tablet cost per click slipped to 45% lower than desktop for Shopping ads and 29% lower than desktop for text ads in Q2 2020, continuing a trend of divergence in the two device typ

40、es that has played out over the last decade. While Google launched Enhanced Campaigns way back in 2013 with the thought that tablet and desktop performed similarly and should be grouped together for bidding and optimization purposes, by 2016 it chose to reverse that decision in light of the signific

41、ant differences in performance many advertisers see between these two device types. Desktop Baseline 60% 30% source: anonymized Tinuiti advertiser data, 2020 43% OverallShoppingText Ads 54% 35% 44% 54% 38% Google US Paid Search Tablet CPC Relative to Desktop Median Advertiser Q2 2020Q2 2019 Desktop

42、Baseline 60% 30% source: anonymized Tinuiti advertiser data, 2020 35% OverallShoppingText Ads 45% 29% 34% 20% 27% 9 9 Q2 2020 Triopoly Series: Google Ads Benchmark Report The Search Partner network now accounts for less than 1% of paid search clicks. Search Partner sites still accounted for 7% of Sh

43、opping clicks back in April 2019, but that share quickly fell with Googles move to assign the Shopping ads featured on Google image search as part of the core search network, announced in March 2019. Additionally, Yahoo announced in January 2019 that it would only serve Microsoft Ads and would be se

44、vering its relationship with Google, a change said to have rolled out through March of 2019 which also eliminated some inventory attributed to the Search Partner Network. By June 2020, Search Partner Network click share was less than 1% for both Shopping and Text Ads. Desktop maintains the highest s

45、pend share coming from Search Partners. Spend share attributed to the Search Partner Network continues to be highest on desktop, but has been in steady decline over the last fifteen months across all device types. Spend share for the Search Partner Network is lower than click share as this traffic c

46、omes with an inherent discount relative to the core search network, which helps to ensure that this traffic typically remains in line with clicks from in terms of efficiency since the Partner Network also typically converts at a lower rate. Advertisers are increasingly deploying Google Discovery cam

47、paigns. Google announced Discovery campaigns in May 2019 to allow advertisers to run campaigns across Gmail, YouTube, and the Discover Feed using audience targeting, including in-market, interest, affinity, and custom intent audiences. Adoption of these campaigns picked up throughout the first half

48、of 2020, and in June the number of advertisers deploying Discovery campaigns to some extent was 138% higher than in January 2020. Google US Paid Search Click Share from Search Parter Network 8% 0% 2% Q2 19 Q3 19 Q4 19 source: anonymized Tinuiti advertiser data, 2020 6% 4% Number of Advertisers Using

49、 Discovery Campaigns Relative to January 2020 JanuaryJune Google US Paid Search Spend Share from Search Partner Network source: anonymized Tinuiti advertiser data, 2020 ShoppingText Ads 0.9% 0.3% Q2 20 Q1 20 DesktopPhoneTablet 4% 0% 1% Q2 19 Q3 19 Q4 19 source: anonymized Tinuiti advertiser data, 2020 3% 2% 0.4% 0.3% Q2 20 Q1 20 1.2% +0% +50% +150% +100% FebruaryMarchAprilMay +138% Google Shopping Ads 10 Q2 2020 Triopoly Series: Google Ads Benchmark Report 1111 Q2 2020 Triopoly Series: Google Ads Benchmark Report Shopping Y/Y spend growt