First of all, welcome back! We hope you enjoyed your long weekend of delicious food and time spent with family.
It was once again a pretty big weekend for US online retailers this year. On Black Friday alone, Google Shopping 2016 experienced some substantial growth patterns as compared to 2015.
Ads Seen & Ads Click
Of the millions of searches performed on Black Friday this year over 46% stemmed from shoppers using a computer while mobile searches accounted for just over 30% of all searches. Tablet searches for consumer products remained the minority once again in 2016 at just around 24%.
The spread itself definitely makes a lot of sense but even more substantial was the YoY growth in searches that triggered PLA’s where 2016 saw a near 20% increase as compared to 2015’s Black Friday.
A similar growth trend was found for clicks on Google Shopping ads as well. Black Friday this year experienced just shy of an 18% increase in clicks on these ads when matched up against 2015. Along that same track, Mobile device clicks on PLA’s rose YoY by the same 18% rate as total clicks.
Consumer clicks from computers jumped by roughly 12%. Tablet clicks trailed but still saw a near 10% increase YoY. On average, 3 out of 4 Black Friday Shoppers utilized either a Computer or Mobile device to search for and click on retailer ads.
Amount Spent & Amount Earned
By far the most significant growth in Google Shopping was on the side of the retailers themselves. Though there was a nominal increase in ad spend (less than .5%), revenue generated by Google Shopping campaigns rose dramatically in 2016.
The average Cost-to-Convert dropped just over 13% while total average Conversions rose by nearly 16%. There was a substantial decrease in Average CPC on Shopping Ads as well. Black Friday 2016’s Average CPC was found to be 15% less than that of 2015. US retailers spent on average $.10 less on clicks than they did in 2015.
While Conversion Rates tend to remain very steady YoY, it was once again the revenue generated from Google Shopping campaigns that so far saw the most significant change from 2015 to 2016 on Black Friday alone. E-Commerce businesses earned over 47% more revenue this year than last.
When we dug a bit deeper into ROAS (Return-On-Ad-Spend), Computers and Mobile devices were very close but Computers just edged out Mobile ROAS 3 times to 2 times.
(Revenue represented in millions USD)
It comes as no surprise that while Google Shopping itself continues to grow, retailers are experiencing phenomenal returns as a result. Today is the big day though. Cyber Monday can really mean the difference between a good year and bad year for online retailers.
There is so much more to come. Look out for the Official Black Friday Google Shopping Report which will be available for download before the end of November. On its heels we will also be releasing the Cyber Monday Report this week and a full Holiday report by early 2017.