Advertisers Fueling Growth
The final quarter of 2023 saw a notable 17% year-on-year surge in advertising spend on Google search ads in the U.S. As more advertisers intensified their investment in Google Search ads, competition rose, contributing to a 19% increase in the Cost-Per-Click (CPC). These insights are gleaned from Tinuiti’s Q4 2023 Digital Ads Benchmark Report.
Key Metrics from the Benchmark Report
During this period, Google click growth maintained a steady trajectory at 8%, emphasizing the intensified competition. Simultaneously, the Cost-Per-Click (CPC) saw a substantial acceleration, reaching a 9% increase.
Device Influence on Ad Trends
Device selection played a pivotal role in shaping these trends. The report highlights mobile devices as the frontrunners in generating Google search ad clicks:
Mobile Search Ads:
- Ad spend witnessed a robust 19% year-on-year increase.
- Clicks experienced a commendable 10% uptick.
- Cost-Per-Click (CPC) recorded a significant 9% rise.
Desktop and Laptop Search Ads:
- Ad spend saw a substantial 15% year-on-year rise.
- Clicks increased marginally by 2%.
- Cost-Per-Click (CPC) surged by an impactful 13%.
Tablet Search Ads:
- Ad spend increased by a modest 4% year-on-year.
- Clicks faced a decline of 13%.
- Cost-Per-Click (CPC) jumped notably by 19%.
Performance Max (PMax) Insights
An intriguing aspect is the increasing adoption of Performance Max (PMax) campaigns:
- 91% of retail advertisers running Google shopping ad listings incorporated Performance Max campaigns during the peak of the holiday shopping season in Q4 2023.
- In comparison, a year earlier, 80% of retailers had integrated PMax campaigns.
- Despite a steady rise throughout 2023, the adoption of PMax campaigns appears to have plateaued.
Report Methodology
The Tinuiti Digital Ads Benchmark Report relies on anonymized performance data from advertising programs managed by Tinuiti. This data, derived from active programs with consistent strategies, represents same-client growth. It does not officially reflect any specific advertising platform’s performance or the experiences of every advertiser.
Access the Report
For detailed insights, refer to Tinuiti’s Digital Ads Benchmark Report Q4 2023 (registration required).
Key Takeaway
The notable increase in Google search ad spend, coupled with trends across other ad platforms and retail media networks, suggests that advertisers concluded a challenging 2023 with heightened confidence in the value of paid media.
Initially reported by Search Engine Land.
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