89% with Kenshoo Custom PLA Bid Policies
Kenshoo (www.kenshoo.com), a global leader in digital marketing software, released key performance metrics based on the analysis of more than 270 million global impressions and clicks aggregated from merchants managing Google Product Listing Ads (PLAs) through Kenshoo during the first month following the release of new Kenshoo PLA functionality.
“Kenshoo was first to market among SEM platforms with a PLA solution, and they’ve continued to deliver added-value functionality,” says Daniel Laury, President and CEO at Geary LSF Group. “Through Kenshoo, our teams are able to create and manage integrated PLA campaigns that deliver strong results.”
Overall, retailers managing PLAs through Kenshoo increased sales revenue driven by PLAs by 607% during the period, while increasing spending on PLAs by 348%. Further, retailers that activated Kenshoo custom PLA bid policies saw 89% improvement in return on ad spend. As Google transitions PLAs to be the default ad type for Google Shopping, top retailers have turned their attention toward and invested heavily to optimize Google’s PLA format, expanding the role of PLAs and often making the ad type a foundational element of comprehensive search programmes.
Comparatively, Kenshoo found Google PLAs outperformed text search ads in many ways:
· Click-through rate (CTR) was 73% higher
· Conversion rate (CVR) was 35% higher
· Average cost-per-click (CPC) was 36% lower
· Return on ad spend (ROAS) was 46% higher
Kenshoo clients employing Kenshoo’s PLA bid policies boosted results further:
· CTR increased by an additional 4%
· CVR increased by an additional 34%
· Average CPC decreased by an additional 31%
· ROAS increased by an additional 89%
As Kenshoo covered in its recent quarterly report on global search advertising trends, Google Shopping moved to an all paid model in the U.S. on October 17, 2012, with the U.K. and Europe expected to follow in 2013. This means only merchants who leverage PLAs will appear in the search results, making these findings especially significant.
“Retailers using Kenshoo to manage PLAs saw impressive results leading to large increases in spend, and we expect these trends to continue in 2013 and beyond as marketers get more savvy using tools like Kenshoo to drive tangible results,” says Will Martin-Gill, General Manager of Kenshoo Enterprise and Kenshoo Local. “Marketers should consider these metrics when determining their campaign goals, especially since site traffic and sales will only continue to increase as the holiday season nears and they seek to engage consumers and expand visibility for their products.”
Kenshoo’s PLA enhancements include comprehensive product-level tracking, reporting, and management for Google Shopping as well as a custom PLA bid policy. Kenshoo’s patent-pending PLA offering eliminates the need for search marketers to manage tracking within data feeds. PLAs and Product Targets can be managed and tracked directly within the Kenshoo user interface. The Kenshoo algorithm clusters data based on historical performance and predicts PLA revenue per click to set bids. New Kenshoo reports such as the Fusion Report for Product Targets provide marketers with a holistic look at the performance of each PLA placement and its impact on sales conversions. Additionally, Kenshoo’s path-to-conversion reports show the interplay between PLAs and other channels for optimal attribution and bidding decisions. Finally, Kenshoo provides a negative keyword suggestion report for PLA campaigns to prevent irrelevant clicks, reduce costs and improve quality scores.