|By Marketwired .||
|January 22, 2014 01:00 PM EST||
SAN FRANCISCO, CA -- (Marketwired) -- 01/22/14 -- Since switching to a purely sponsored model back in October 2012, Marin Software's data finds advertiser adoption and user response to Google Product Listing Ads (PLAs) has skyrocketed. According to a report by Marin Software (NYSE: MRIN), provider of a leading Revenue Acquisition Management platform for advertisers and agencies, advertisers increased spend on PLAs nearly 300% in 2013 and one out of every five paid shopping clicks last year was on a PLA. Marin projects by the end of 2014 retailers will allocate 33% of their entire paid search budget toward PLAs.
Marin Software's report, the first of its kind to examine PLA data spanning 15 months, consists of statistics and trends uncovered through an examination of the Marin Global Online Advertising Index. The index comprises advertising data from leading global brands that manage more than $5 Billion in annualized paid search spend through Marin's platform.
- Marin Software's data suggests consumers prefer the richer, more engaging PLAs. Marin found between January and December 2013 the average CTR of PLAs increased 6% while the CTR of standard text ads decreased 13%. In 2013, 20% of paid shopping clicks were on PLAs.
- Although, the cost per click (CPC) of PLAs increased a staggering 141% due to increased competition, the average PLA CPC remained lower than standard text ads in 2013.
- A high user response combined with low CPC creates favorable performance conditions for advertisers. Retailers responded by increasing their investment in the ad format nearly 300% between January and December 2013. Based on its data, Marin Software projects by December 2014 retailers will allocate a third of their entire paid search budget toward PLAs.
- Product Listing Ads made their debut on smartphones in October, 2013. According to Marin Software, PLAs on smartphones had a 33% higher CTR and 20% lower CPC than PLAs on desktop and tablets. Marin Software predicts by December 2014 that 40% of all PLA clicks will occur on smartphones.
- Marin Software's 2014 Annual Research Brief, "The State of Google Shopping: Mobile Shoppers & Record PLA Spend Drive Success for Retailers," outlines the key trends and projections for advertisers seeking to get the most from their search campaigns. The full report can be downloaded at: marinsoftware.com/resources/whitepapers/the-state-of-google-shopping-mobile-shoppers-record-pla-spend-drive-success-for-retailers.
This press release contains forward-looking statements including, among other things, statements regarding the growth of digital advertising generally and Google Product Listing Ads (PLAs) specifically. 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 adverse changes in general economic or market conditions; delays, reductions or slower growth in the amount spent on online and mobile advertising; and unforeseen developments in the digital advertising industry generally, technological changes; competition; and the fact that the search and mobile markets are emerging markets and rapidly evolving. 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 $5 billion in annualized ad spend. Offering an integrated platform for search, display, social, and mobile marketing, Marin helps advertisers and brands 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.
Corporate Communications, Marin Software