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The advertising market on Google continues to grow, even with the introduction of artificial intelligence. Despite the slowdown in spending, search ads, shopping ads, and Performance Max (PMax) campaigns remain stable, and cost per click (CPC) is gaining momentum.
In the third quarter of 2024, ad spend on Google search increased by 11% year-on-year, demonstrating the market’s resilience even as new AI features are introduced. Despite a slowdown in growth – down from 14% in the second quarter – the number of clicks remained stable, and CPC growth slowed to 8%, down from 12% in the previous quarter.
Shopping ads remain one of the most powerful tools on the market, showing a 16% year-over-year increase in spending in the third quarter of 2024. Click volume also grew by 6%, which is higher than the previous figures. However, the growth of CPCs in shopping campaigns slowed down slightly, which may indicate a more efficient use of the budget.
Amazon continues to hold the lead in shopping advertising with a 58% share, although this value decreased by 5% compared to the previous quarter. Interestingly, Walmart took a strong second place with a 22% share, while Temu’s presence declined. The interest of large retailers in online advertising remains unchanged.
Performance Max (PMax) campaigns have become an integral part of the advertising strategy of many brands. In the third quarter, PMax utilization among shopping advertisers reached 92%, up 1% from the previous quarter. At the same time, non-shopping campaigns in PMax now account for 29% of spending, which demonstrates the growing interest in various advertising formats.
If earlier the introduction of AI in Google caused some concern among advertisers, now they are gradually adapting to the changes. For example, mobile CTR for unbranded keywords has slightly decreased, but recovered in August-September. Shopping ads on mobile devices continue to show positive results, increasing CTR by 14% from April to September.
Although growth in Google ad spend has slowed, shopping ads and Performance Max campaigns continue to be effective and stable. Large retailers continue to dominate this segment, and innovations from Google AI no longer have as much impact as they did in the beginning. Nevertheless, mobile devices and shopping ads continue to show the best results in the face of market changes.