Retail has been undergoing a massive transformation, as many big box stores have lost market share to e-commerce giants like Amazon. Survivors like Walmart and Target had to drastically change their supply chain and distribution methods to a more online-oriented business model, while grocery stores have begun offering new services like online grocery delivery and pickup to compete with Whole Foods, also acquired by Amazon. Needless to say, with this shift in tactics comes a shift in marketing strategies as well, as more and more retailers start using PPC to advertise their products.
PPC Spending By The Numbers
According to eMarketer, paid search is expected to grow 22.5%, almost a full quarter, by the end of this year. This would amount to a total of $13.12 billion spent on retail advertising this year, and represents a significant sliver of the larger overall spend on digital advertising in general, with $28.33 billion estimated to be spent by retailers this year. To put it into perspective, that would make retail account for the largest spender for search ads this year, accounting for almost a quarter of the US market.
To make things more specific, certain types of ads within paid search are growing at a rapid rate. Digital ad spending across all channels grew by 19.1%, with two-thirds of that going towards the growing mobile advertising sector. This is in response to the increasing amount of retail purchases being made by online mobile devices, with mobile purchases growing a whopping 28.9% this year, and accounting for 37% of overall retail sales growth.
What Does This All Mean?
As more and more information is expected to be found online, business owners can count on the necessity for an online presence in their storefront and advertising efforts to only increase over the course of this year, as consumers are showing more and more to make their decisions online through information found through search engine results. Google My Business, for example, are built to provide consumers with all the relevant information to make a decision, meaning that much of your business’s success depends on how well you create your page. More crucially, Google Ads is increasingly becoming a more important way to get your business in front of browsers, proposing yourself as an attractive solution to targeted audiences. Successful implementation of both of these is key to thrive in the retail sector, in addition to the basics such as good SEO tactics and a sufficiently optimized website. Struggling with these? We can help!
With over 10 years in the business, Boston Web Marketing is New England’s largest marketing company, and has built its strong reputation on solid responses to the ever-changing digital landscape, helping our clients navigate the shifting realms of PPC, SEO, email marketing & website design. We would love to help you boost your business by using these tools. Contact us at 857-526-0096, or fill out our online inquiry form. We’d love to work with you!