According to Google, approximately 80% of Showcase ad traffic to a merchant’s website comes from new visitors. If you are looking to attract new prospects, you must use Google Showcase Ads. This article provides an overview of google showcase ads, its popularity, and overview of competition from our Ad-intelligence Solution.
What are Showcase Ads?
Showcase ads are a new option for retailers to reach new customers. It provides your online store with improved visibility by allowing you to combine a selection of related products (your catalog) and present them using vivid, high-quality images, and video.
How popular are Google Showcase Ads and how are they used?
According to Google, 40% of shopping queries were general in nature (i.e., “sunglasses” or “winter boots”), which meant that the current ad format (PLAs) was not suitable for 40% of the queries on Google Shopping. Therefore, in an attempt to fulfil these queries and provide customers with more relevant information, Google started Showcase ads in 2017.
Due to pricing and the ability to target buyers early, showcase ads are becoming more popular. Since its launch, Google has expanded showcase ads to more countries.
When it comes to setting up these ads, you have the option of creating group-related products and showing them to searchers using broader terms (i.e., “hoodies” or “guitar”). These ads are often used for brand advertising and targeting keywords at the top of the funnel.
If searchers are looking for a more specific search term, such as “Nike Winter Shoes for Men”, it is still possible that your Google Ad may receive more clicks, as the customer may have already noticed your brand in showcase ads.
How does google charge for Showcase ads?
Google charges for these ads based on Cost Per Engagement. That means that you are charged only when users click on your ad and engage with the related catalogs that are displayed in the pop-up window for at least 10 seconds, or if they click on any product to get to your website page.
This charging mechanism makes it the best adoption when targeting customers using generic search terms and remarketing on keywords with buying intent. Competition for top-funnel keywords is very high. Due to their huge search volume and high bid rate, in-depth showcase ads analytics is crucial to improve overall Return on Ads Spend ( ROAS).
Our analysis of Google Showcase ads
Utilizing our GrowByData Ad Intelligence software, we collected and analyzed google showcase ads data of 287 Health & Beauty keywords (with the help of an industry-specific case study) to illustrate the competition landscape of this ad form.
The combined monthly search volume of the selected keywords, per Google keyword planner, is approximately 36 million. The ad data was collected from four different regions of the United States, three times a day at the seventh, eleventh, and fifteenth hours. A total of 190 distinct advertisers were detected in the top five positions during this period showing the competitiveness of showcase ads in this category.
Below are 4 competition insights we discovered from our Ads Intelligence. This gives you a preview of the flavor of questions you can answer with this data.
1) Most Competitive Region and Hour
The Ads data in the following graph shows that the California region is the most competitive region in the seventh hour with 71% of advertisers competing, followed by 66% of advertisers from the Virginia region competing during the fifteenth hour. The data show that the Oregon region is the least competitive
2) Top 10 Advertisers based on Keyword Impressions
Below are the top 10 competitive advertisers with the highest impression on keywords.
Sephora is the most viewed advertiser, with showcase ads seen on 98% of the keywords, followed by Walmart and Ulta Beauty (with 92% and 76% respectively).
3) Advertisers with #1 Showcase Ad position
The graph below shows the top 10 advertisers with the most percentage of first-position listings in the ad carousel. Sephora again tops the list, occupying the first ad rank position for 93% of the keywords, followed by Nordstrom with 48% and QVC.com with 38%.
4) Top 10 Competitive Keywords
The graph below shows the top keywords based on the number of advertisers competing for them. The keywords “IT Cosmetics Foundation” and “Chapstick Brands” are the most competitive on the list and had 26% of advertisers competing for them. Google accounted for a 1.45 million monthly search volume for these top 10 keywords.
Google Showcase Ads are very popular, competitive, and yet a very beneficial Ad form. It is important to have in-depth insight into ad competition landscape and dynamics. GrowByData Competitive Ad Intelligence helps boost your overall Ad campaigns and increase ROAS.