Today, Google search advertising is a great opportunity for advertisers to increase their visibility and the number of customers, so they continue to invest more and more money, which increases competition and, consequently, costs.
In the last quarter of 2023, Google's contextual advertising spend in the US grew by 17% year-on-year. At the same time, the growth in the number of clicks on Google maintained a steady trajectory at 8% per year, while the cost per click soared by 9% over the same period.
The choice of device plays a key role. According to the report, mobile devices continue to dominate Google search ad clicks:
It is worth noting that Google advertising for small businesses has significantly increased its effectiveness due to Performance Max campaigns. During the peak of pre-holiday shopping in late 2023, a staggering 91% of retail advertisers used this strategy. However, despite rapid growth over the past year, the use of PMax campaigns seems to have reached a saturation point.
Why does this matter? The growth in Google search ad spend, combined with a similar trend across other ad platforms and retail media networks, suggests that advertisers have shown increased confidence in paid media at the end of a rather challenging 2023.
In the digital advertising space, Google Ads has become a winning technology for those seeking to be visible and attract more customers as competition intensifies and innovative strategies are required to stay ahead of the competition. The sharp increase in ad spending, especially in the last quarter of 2023, underscores the confidence in the effectiveness of paid media despite the turbulent landscape of the past year.
Source: Search Engine Land
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