Google search ad spending in the US increased 17% year over year in the last quarter of 2023.
Google click growth was flat at 8% year-over-year, while cost per click accelerated to 9% over the same period, according to a Tinuiti Digital Ads benchmark report.
Why we care The increase in Google search ad spending suggests that people are feeling more confident in digital advertising after a rocky start to 2023 when the CPS dipped. However, it’s important to know that because more advertisers want ad space, it can cost more and be competitive.
The device matters. The report also found that mobile continues to lead the way in driving clicks on Google search ads:
Mobile search ads: Spend was up 19% year over year, clicks were up 10% and CPC was up 9%.
PC & Laptop Search Ads: Spend was up 15% year over year, clicks were up 2% and CPC was up 13%.
Tablet search ads: Spend was up 4% year over year, clicks were down 13% and CPC was down 19%.
Increase PMax. 91% of retail advertisers running shopping ad listings with Google included Performance Max campaigns in their strategies during the peak holiday shopping season in Q4 2023. Compared to a year earlier, 80% of retailers had incorporated PMax campaigns. However, despite steadily increasing throughout 2023, adoption of PMax campaigns appears to have reached a plateau.
The rise of Temu. In the last week of 2023, 90% of retailers recognized Temu as a top competitor in Google Shopping auctions. This level matches Amazon’s consistent presence over the past two years. Although Temu was not seen in these auctions until the end of 2022, his visibility increased greatly in the first half of 2023 and continued to increase throughout the year.
What is Tinuiti? Tinuiti is the largest independent performance marketing company specializing in streaming TV and dominating the trio of Google, Facebook and Amazon. Tinuiti, which manages $4 billion in digital media and has over 1,000 employees, is a major player in the digital marketing landscape.
Methodology of the report. Tinuiti’s Digital Ads Benchmark Report uses anonymized performance data from ad programs managed by Tinuiti, totaling more than $4 billion in annual digital advertising spend. The data is based on active programs with consistent strategies. All figures represent the growth of the same client and are not intended to officially reflect the performance of any specific advertising platform or the experiences of each advertiser.
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deep dive read the report in full for more information (note that this is a closed report).
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