A new report shows that paid search ads are the fastest growing way to advertise online for retailers. 

According to the findings from eMarketer, retail advertisers in the US will spend a combined $13.12 billion on search ads in 2019, up more than 20% from last year. 

In 2020, it is projected that spending will grow even more, to $15.65 billion. 

While search engine advertising is an effective advertising method for most industries, the report suggests that retailers benefit more than other sectors due to specific tools and features. For example, it cites how search ads may appear in Google Maps and show local stock of specific products, which can help drive real-world traffic and sales. 

Based on their data, the report estimates that 46.3% of digital ad spend from retailers will be used on search engine advertising, compared to the industry average of 41.5%.

Similarly, this rate is expected to grow even more in 2020 to account for 47.3% of total retail digital ad spending:

“Retail overindexes on search because bottom-funnel search ads are essential for driving ecommerce, and Google Shopping ads have become a go-to ad product for retail advertisers. Conversion rates for retailers using Google Shopping ads range from 1.1% to 3.1%.”

Part of this growth may be attributed to new burgeoning opportunities outside of Google’s search ecosystem. For example, the report identifies Amazon search as a potential driving force for future retail advertising.

Google’s highly-anticipated “gallery ads”, which were first announced back in May at the Google Marketing Live conference, are rolling out to advertisers in beta. 

The ads are stylish, image-heavy carousels with up to 8 images which appear at the very top of search results. 

Each individual image can have its own unique caption and brands can include a call-to-action button at the end of the gallery.

In the announcement, Senthil Hariramasamy, Group Product Manager at Google Ads, says advertisers “can showcase your brand with lifestyle imagery and bring visual content forward to the results page, helping you connect with consumers before they visit your site.” 

With such a visible design and placement within search engines, these ad units will likely be highly competitive. They may be worth it, though, if they lead to similarly high results. 

The ads are available to all advertisers in 11 languages, including English, German, Japanese, French, Spanish, Dutch, Portuguese, Italian, Russian, Swedish, and Polish.  

Importantly, you don’t have to create specific campaigns for your gallery ads. Instead, you can simply use the new format to create new ads within your existing campaigns.

App ads on Google’s ad network will soon be eligible to appear in some very high-profile places as the ad platform is expanding app ads to both Google’s Discover feed and within YouTube apps. 

Currently, app ads are shown across a wide variety of apps in Google’s display network, as well as the Play Store, Google search results, and in select areas of YouTube. 

With the latest announcement, however, these ads will soon be appearing in a few more areas which could be highly rewarding to advertisers. 

Google Discover

 

Starting this week, app campaigns running in the US will automatically be eligible to appear within users’ Discover feeds when they are identified as being potentially interested in your app. 

Currently, Google says the Discover feed (formerly known as just the Google Feed) connects more than 800 million people with targeted content every month. 

Over the next few months, similar ads within the Discover feed will also be available to those in Malaysia, South Africa, India, Pakistan, Brazil, Canada, Japan, and Indonesia. The company also said it hopes to make the app ads available to all markets before the end of the year. 

YouTube 

In the same announcement, Google revealed that app ads are now eligible to appear at the top of search results from YouTube’s mobile app. Within the next month, app ads will also start appearing as in-stream video ads while viewing other YouTube videos 

Along with these announcements, Google says it is exploring the possibility of allowing ads to also display ads while loading content for users:

“Our new app open ad format allows you to show ads to your users as they wait for your app to load. Designed to seamlessly integrate with your app’s branding, this format gives you new ways to earn revenue while creating a good user experience. Reach out to your account manager to get started with this format in alpha.”

Snapchat is launching a new advertising tool, called Instant Create, which promises to do all the heavy lifting of creating a Snapchat-optimized ad for you.

With the tool, you can create ads that can be published across the platform in just three steps:

  • Select an objective, such as web visits, app installs, or app visits
  • Enter your business website
  • Target your audience

From there all you have to do is review and publish your ad!

At the same time, Spachat has introduced an “Advanced Create” option which is intended to help generate multiple ad sets at a time. 

What Do The Ads Look Like?

As most of the process is automated, you may have some concerns about how your ad can be unique for your brand. 

With Instant Create, you can choose to upload your own images for your ad and work with the platform’s most popular ad template. Or, you can simply input your company’s website URL and the tool can pull photos directly from your website to fill your ad with. 

While the tool makes it easier than ever for brands with limited means to explore the idea of Snapchat advertising, brands with more experience advertising on social media will likely prefer the less restricted traditional ad creation tools.

This week Google held its annual Marketing Live event to reveal the latest innovations in online advertising, and the latest ad units aim to provide a more consistent experience across all of Google’s advertising platforms while also introducing new ways to advertise across the web.

The new ad units, including Discovery ads, Gallery ads, and Showcase Shopping ads, are all highly visual and highly automated, relying on the same automation model as Universal App Campaigns.

Here’s what you need to know about all the newest ways to advertise with Google:

Discovery Ads

Google has used the “Discovery” section of its platform to highlight content and sites it feels may be relevant to your interests. Now, brands and websites can also target this section with ads in the Discovery area, visible under the search box in the Google mobile app, in Gmail under the social promotions tabs, and in the YouTube home feed.

As Google VP of Product Management Brad Bender explained during the Marketing Live event, Discovery ads are intended to be “visually rich, mobile first, and use the ‘power of intent’”, meaning the ad service relies strongly on signals from users like past site visits, app downloads, or video views.

The company says the Discovery feed now reaches more than 800 million users around the world, making this a highly attractive area to target with ads.

Gallery Ads

Another new format introduced at the Marketing Live event is Gallery ads, which present a carousel of swipeable images at the top of mobile search results. The carousel includes between four to eight images, with up to 70 characters of copy possible for each image.

Notably, this changes the way Google charges for ads. Gallery ads are paid for on a CPC basis, which means you are charged if someone clicks on the ad. However, Google also tracks how far a person swipes through the carousel. When they wipe past the third image in the sequence, that also counts as a “click” or form of engagement. This means that you may be paying for ad interactions that do not include an actual click or landing page visit.

In testing, the search engine says Gallery ads saw “25% more interactions” compared to other search ad formats. Though, it is unclear how the actual CTR of these ads stacks up.

Increased Visibility for Showcase Shopping Ads

Showcase Shopping ads have been around since 2016 as a way for retailers to highlight a curated list of products in non-branded searches (which Google says accounts for 40% of queries).

Now Google is expanding these ads to a variety of new areas of the platform, including Google Images, the Discover feed, and the YouTube feed.

The ads include a large main image, as well as smaller images. When clicked these ads expand to showcase a variety of relevant products from the retailer, and may include other information such as store locations or in-store availability.

Google’s “Shopping Ads” will start appearing within Google Images search results by default, as the company announced recently in an email to advertisers.

In the past, it was possible to display your shopping ads in Google Images by manually opting-in to the Search Partner Network. This is because Google Images was previously a part of the Search Partner Network.

However, that has all changed. Google Images is now a part of Google’s own search network, which makes it a default placement for shopping ads.

Notably, advertisers cannot opt-out of the placement currently, which Google says is a good thing for advertisers:

“If your campaigns are not currently opted into the Search Partner Network – your ads will start showing on Google Images and as a result there may be a 3-10% increase in traffic at lower cost-per-click and comparable conversion rates.”

Meanwhile, many advertisers question whether this is actually a change for the better. While some shoppers may frequent Google Images for a variety of reasons, it seems logical that they would be less purchase-focused than users actively searching Google’s shopping results.

You can read Google’s full email announcing the change below:

Google Images is now a part of the Search Network for Shopping ads

Hello,

Google Images is a visually rich surface and a key part of millions of users’ shopping journeys every day. Users frequently turn to Google Images for idea exploration, how-to guidance, product discovery and visual imagery related to key shopping categories like fashion, home and beauty.

We are excited to announce that we will be integrating Google Images into our core Search Network in late March. This means Shopping ads, that you are already familiar with, will now automatically be eligible* to appear in Google Images results when users are searching for relevant keywords.

What this means for your Shopping campaigns:

All of your Shopping ads will be automatically eligible* to serve on Google Images. You will no longer have to opt into the Search Partner Network to show Shopping ads on Google Images.

*For Europe only: if you are unsure what surfaces your ads show on, please check with your CSS.

If your campaigns currently run on the Search Partner Network – you may see a decrease in traffic coming in from Search Partner Network and an increase in traffic coming from the Search Network. This is because Google Images was previously a part of the Search Partner Network. Note: Historical Google Images traffic will not be re-categorized from the Search Partner Network to Search Network.

If your campaigns are not currently opted into the Search Partner Network – your ads will start showing on Google Images and as a result there may be a 3-10% increase in traffic at lower cost-per-click and comparable conversion rates.

Sincerely,

The Google Ads Team

 

Facebook is making a major change to how it handles advertising budget optimization. While it may lead to better ad performance, it also gives you less control over your ad campaigns.

Starting in September, Facebook will make all ad campaigns use campaign budget optimization. In plain English, this means that you will only be able to set the overall budget for your campaign. How much is distributed to each ad set within that campaign will be determined by Facebook’s algorithms and analytics.

The main goal of the change is to automatically emphasize the best performing ad sets while minimizing wasted ad-spend on underperforming ad sets.

Currently, campaign budget optimization is available as an optional setting. However, in September it will become mandatory for all campaigns.

The implementation of campaign budget optimization across Facebook will likely have a significant impact on how brands choose to advertise, but it may pay off in the long run.

Facebook claims this form of optimization not only lowers costs but improves ad results at the same time.

In the announcement, Facebook mentions several specific benefits of campaign budget optimization:

  • Capture the most results for your budget and lower your total cost per result.
  • Save significant time with an automated process that eliminates the need to manually shift budgets between ad sets.
  • A simplified campaign management process with fewer budgets to track and re-allocate during optimization.
  • More efficient spending across audiences with a process that finds the lowest cost opportunities across all ad sets and the markets they target.

Facebook is announcing the change early to give both brands and advertisers time to begin adjusting to using campaign budget optimization. I would recommend trying it out for yourself now so that you can be prepared for when it becomes mandatory.

LinkedIn is working to make itself a worthwhile advertising platform for brands, and that includes launching new targeting options for advertisers.

Starting over the next week, advertisers will be able to target ads on LinkedIn based on users’ professional interests and behavior.

As the company says in their announcement:

“We’re excited to announce interest targeting in Campaign Manager. Interest targeting lets you reach members with relevant ads that match their professional interests — based on the content they share and engage with on LinkedIn. With these added options, you can more easily achieve your campaign objectives and grow your business.”

You can target your ads based on over 200 categories such as artificial intelligence, global economy, and customer experience.

Specifically, LinkedIn says brands can benefit from Interest Targeting in a few ways:

  • Serve relevant ads and content that match a member’s professional interests. Interest targeting can help you shape brand perception with different professional audiences by associating your brand with the topics that they care about. For example, if you sell Cloud Computing services, you can target members interested in “cloud computing” and create a campaign with Sponsored Content ads that show how your solution is helping business do more with their data.
  • Deepen your influence with the buyer committee within your target accounts. Today, many of our customers use LinkedIn’s powerful account targeting to inform their Account-Based Marketing campaigns. Now you can kick it up a notch by using account targeting along with interest targeting to reach an audience of potential buyers who have already expressed, or are likely to express, an interest in the content that’s relevant to your business.
  • Reach those interested in pursuing a certificate program. You can also use a combination of degrees and interests to reach the audiences who would be a naturally fit for higher education programs.

Interest Targeting is currently rolling out on LinkedIn and is expected to be available to all advertisers within the next week.

Pinterest Promoted Carousel Ads

Pinterest has launched a new ad format that gives advertisers the ability to promote up to 5 different products with a single ad.

The new “Promoted Carousel” ads combine 5 normal ad posts into a single ad unit, which will let viewers swipe through products or different ad experiences.

The format is built with unique slides, where each can have its own image, title, description, and landing page.

The most obvious benefit of these ads would be to highlight several different products at the same time, but advertisers could also craft these ads around highlighting different aspects of a single product.

Pins in these Promoted Carousel ads appear like any other pin, but users can swipe through each image and enlarge a specific card for a full-screen experience.

In the announcement, Pinterest says the new ads can help brands effectively raise awareness of their products and improve ad performance with better traffic results and conversions.

“This format can present a product’s numerous features, drive additional purchases by showing multiple items in a Pin or increase awareness with a multi-image brand story.”

Those given early access to Promoted Pins affirm this, saying they have seen improvements in:

  • Brand awareness
  • Ad awareness and association
  • Ad performance
  • Engagement Rates

Promoted Carousel ads began rolling out late last week and are now available for all businesses utilizing Pinterest’s self-serve ad platform.

Facebook is cracking down on brands using its advertising platform to mislead or trick users with “malicious advertisements”.

As the social network announced this week, it is reducing how often it shows ads it believes are “clickbait” or mislead users, if not outright rejecting them.

As Facebook’s self-serve ad platform has grown, it has encountered growing issues with misleading or sensational ads – including political news spreading fake news. Now, it is working to remedy the problem and ensure users can trust ads shared across the largest social network existing today.

Specifically, Facebook has announced it will be cracking down on these types of troublesome ads:

Ads that withhold information:

Facebook Bad Ads - Withholding

Clickbait has become a popular way to get clicks, but it is universally hated because the actual content on the page often doesn’t live up to what the sensational headlines promise. This has grown into deliberately sharing vague ads that often start with “You’ll never believe…” or “You’ll never guess…” Now, any ads using this strategy will be demoted or disallowed.

Engagement bait:

Facebook Bad Ads - Engagement Bait

Another popular tactic to get the ever-important likes and shares on Facebook is to specifically use ads to drive these kinds of engagement without delivering any actual content with value. Facebook has already taken steps to prevent this type of advertisement, but it has continued to run rampant across the platform. However, the company says these ads will now be disallowed or receive reduced visibility.

Sensationalized language:

Facebook Bad Ads - Sensationalized Language

Over-the-top headlines may make people more likely to click, but it leaves a bad taste in their mouth when the content is not nearly as “MIND-BLOWING” as the ad suggests.

Pages that use these strategies regularly:

To reinforce its stance on clickbait or misleading advertising, Facebook is also taking aim directly at the pages which rely on these ads. As the company explains, “multiple ads flagged with low-quality attributes may impact the performance of all ads” from any offending advertiser.

All of these types of ads have become increasingly popular because they drive engagement and traffic, but these types of engagement are arguably worthless because they don’t come from real engagement or appreciation of the ad content.