Retailers urged to rethink their search marketing strategy as Amazon’s share of Google Shopping impressions increases by 50%
Amazon: begins to dominate Google Shopping ads
With lockdown restrictions lifted, online retail’s growth trajectory has returned to pre-pandemic levels, but a much more competitive search marketing landscape means retailers and brands should rethink their strategy in line.
This recommendation comes from the Google Shopping Trends 2022 report by Leeds-based Google Shopping specialist Bidnamic, which offers insights for retailers and brands on how to achieve success with their Google Shopping campaigns.
Using a combination of owned data and external research and sources, the report addresses key issues affecting the e-commerce landscape over the past year, from supply chain issues and Amazon’s dominance to Chinese market share and changing consumer buying behavior, while looking at what 2022 has in store for us.
By combining machine learning technology with human thinking to drive sales through proprietary channels, Bidnamic managed over 2 billion automated bid changes on Google Shopping in 2021, saving online retailers countless hours. , while generating over 70 million clicks on over 29 million SKUs. He was able to bring the average cost per click (CPC) down to £0.38 for those who use their services.
By delivering 8 billion impressions to their customers, analysis showed that increased competition increased the average CPC by 50%, and 17 of the 20 categories tracked saw an increase in impressions.
Spending its way to becoming everyone’s number one competitor on Google Shopping, Amazon grew its share of total impressions on the platform by more than 50% in 2021, focusing heavily on categories that saw growth. above-average growth in demand driven by working from home, such as office supplies where the retail giant recorded 71% of impressions, compared to 54% the previous year, and cameras, with 69%, compared to 45% in 2020.
Amazon also increased its share of impressions in animal and pet supplies to 68% of impressions from locked pet owners, while the Toys & Games and Baby & Toddlers categories saw impressions jump by 48. % to 67%, with parents investing more in education and entertainment. children who have not been able to go to school, to the crèche or to the maternal assistant.
In 2022, Bidnamic expects to see advertising budgets shift towards paid search with an increase in cost per click and more shoppers turning to Google to find the best deals on products. With continued global market disruptions, Google Shopping’s proven resilience will make the platform essential for online retailers and brands.
Liam Patterson, Founder and CEO of Bidnamic, said: “This report really highlights the changes the e-commerce landscape has undergone over the past year and how quickly its growth has accelerated. While this is back to pre-pandemic levels, we obviously got to this level of online retail sales much sooner than expected. With the current uncertainty surrounding online advertising, particularly with the phasing out of third-party cookies, retailers need to ensure they push for a better understanding of the online marketing mix. With strong competitors like Amazon getting a bigger slice of the pie, channels like Google Shopping are becoming a fierce battleground and to have the best chance of winning the customer, retail advertisers need to fully optimize ads at the each product. Realistically, with thousands of products in some cases, it’s impossible for the average retailer to do this manually and this is where machine learning comes into its own. »