From an overview of our October performance metrics, to the exciting developments shaping the landscape of digital advertising, the following snapshot speaks to a month of innovation and growth in the world of Google Ads.
October Google Ads Performance
MoM Performance: PMax continues to perform well, with an 18% increase in revenue and a 15% reduction in cost-per-click (CPC). However, we anticipate that costs will start to rise as we approach Black Friday, driven by higher competition and increased demand during the holiday shopping season.
YoY Growth: This paints a more nuanced picture. Revenue has only increased by 4% compared to the same period last year, even though ad spend has risen by 17%. This discrepancy suggests that while spend is growing, the return on investment is narrowing, indicating that the cost of advertising is increasing – likely due to more competitive bidding and higher CPMs (cost per thousand impressions).
Looking Ahead: As we enter peak holiday season, we expect these pressures to intensify. With more advertisers ramping up their budgets and competition for top ad placements increasing, it’s likely that CPCs will continue to climb, which could impact the overall efficiency of PMax campaigns if not carefully managed. Brands will need to monitor performance closely and adjust bids, creatives, and targeting strategies to maintain strong return on ad spend (ROAS) as the holiday season progresses.
Google Platform Updates
ChatGPT Search Launches: OpenAI’s ChatGPT search is now live. While it's still early to gauge its full impact on Google, this AI-driven search tool offers a more conversational way for users to find information, potentially creating new opportunities for brands to optimise content for AI searches.
Video Shopping Ads in Google Search: Google is testing video shopping ads in search results, allowing users to watch product videos directly in search. Video ads typically see higher engagement than static images, so incorporating videos into your ads could improve interaction rates and boost conversions.
Performance Max Page-specific Assets: Google Ads has introduced Page-specific Assets for Performance Max campaigns. This update allows you to create ads tailored to specific webpages, improving ad relevance and performance.
Store Ratings Expanding Globally: Google is expanding store ratings to more countries, including India, Australia, Canada, and the UK. If you're based in New Zealand, this feature could be available soon, so it’s a good idea to start gathering positive reviews as these are shown to influence buying decisions.
Shopping Ads in Google Lens: By the end of 2024, shopping ads will appear alongside Lens visual search results, giving you new opportunities to reach buyers actively searching for products like yours.
For more information on the latest Google updates, contact us today.