Google search CPCs up 19%, pushing ad spend up 17%

The Tinuiti Digital Ads Benchmark Report for Q4 2023 shows that advertising spend on Google search ads in the U.S. increased by 17% year-on-year, with steady click growth of 8% and an acceleration in cost-per-click to 9% during the same period. The report also highlights that the mobile platform continues to drive the most ad clicks, with 19% year-on-year growth in spend, 10% growth in clicks, and a 9% increase in cost-per-click. Additionally, the report notes that 91% of retail advertisers included Performance Max campaigns in their holiday shopping strategies in Q4 2023, up from 80% the previous year, although the adoption of PMax campaigns seems to have plateaued. The report also highlights the rise of Temu as a top competitor in Google Shopping auctions, with 90% of retailers recognizing Temu in the final week of 2023. This level of recognition matches Amazon’s consistent presence over the last two years. The report utilizes anonymized performance data from advertising programs managed by Tinuiti, based on active programs with consistent strategies. The increase in Google search ad spend and the use of Performance Max campaigns and the rise of Temu as a top competitor in Google Shopping auctions suggest that advertisers felt more confident in paid media at the end of a challenging 2023.

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