Dive Brief:

• Seventy-five percent of people think paid search ads make it easier to find the information they search for on a website or search engine, per findings of a new survey by B2B research, ratings and reviews firm Clutch. Seventy-seven percent say they are confident in their ability to identify paid search ads, and 33% said the top reason they click on a paid search ad is if it directly responds to information they are searching for online.
• Respondents say they were more likely to click on text ads (49%) than shopping/product listing ads (31%) or video ads (19%). Sixty-three percent of people click on Google ads, compared to 14% for Amazon, 9% for YouTube and 6% for Bing. The top reason for clicking on Amazon or YouTube ads, according to 33% of respondents, was because the ad mentioned a brand they are familiar with. 
• More than half, or 55%, who click on Google search ads prefer text ads, while 50% of those who click on Amazon ads prefer shopping/product listing ads and 36% of those who click on YouTube ads favor video ads. Bing has a higher click-through rate for paid search ads than Google. 

Dive Insight:

The new Clutch survey underscores the value of well-executed paid search campaigns in helping drive clicks and engagement. It also shows that consumers recognize ads and are willing to engage with ads when they offer relevant, high-quality information that’s useful to them. Paid search campaigns could likely work best for recognizable brands, as more than one-third of consumers are more likely to click on an ad for a brand with which they are familiar. 

The research is the latest to emphasize that paid search campaigns can offer big returns if done well. The findings align with an Adthena study released in August that revealed 76% of consumers said they made purchases via paid search ads for summer travel, and more than half found the ads helpful.

Marketers should note the Clutch finding that a consumer’s preferred paid search ad format varies depending on which site they’re using. Creating video ads best reach YouTube audiences, and product listing or shopping ads best reach Amazon shoppers. More brands are investing in sponsored placements on Amazon to stand out on the platform, an effort that appears to be paying off. Over Thanksgiving weekend, orders on Amazon generated by ads increased 54% this year, jumping from 16.3% in 2017 to 25.1% in 2018, according to a Quartile study. 

Google continues to dominate paid search, with 63% of the Clutch survey respondents saying they click ads from the search engine. The volume of paid clicks on Google properties increased 62% from a year ago as of Q3 2018 and grew 10% from Q2. But, cost-per-click continues to decline, down 28% from a year ago and 7% from the previous quarter. Amazon could be encroaching on Google’s lead, as some marketers are reportedly moving up to 50% to 60% of the search budgets usually allocated to Google toward Amazon.