According to a new report by Tinuiti, there was a 9% increase in ad spending on Google search in Q1 2025, mostly because of a rise in costs rather than a rise in click volume. The click growth on Google Search was 4% year-over-year, which is stable, while there was a 5% year-over-year increase in average costs per click. The report also stated that there was an 8% year-over-year increase in shopping ads, which is a decline from 10% in Q4 2024. The click volume was 1% in Q4 2024, which increased to 9% year-over-year in Q1 2025, while the cost per click is stable at 1% on shopping ads.
Amazon sustained its commanding position in Google Shopping auctions and made about 60% of impressions against overall retailers, which is similar to that of Q4 2024. Target had 25% impression shares in Q4 2024, which declined to 24% in Q1 2025, while Walmart maintained its share at 22%. Temu has decreased its presence on Google after the US announced tariff changes.
The report also found that 93% of the retailers who use Google shopping ads have adopted Performance Max, and now it accounts for 53% of shopping ad spending, which is a decrease from 69% in Q4 2024. The conversion rate on Performance Max is 10% lower than Standard Shopping, while the CTR is 13% higher and ROAS is 7% lower. Microsoft Search’s spending growth is 17% YoY, while it saw a growth of 5% on CTR, and 11% growth on CPC. There was also a 19% increase in CPC for brand terms, while there was a 3% increase in CPC for non-brand keywords. These latest trends show that Microsoft’s growth rate is higher than Google’s, which means that Microsoft has a stronger marketing strategy. Political strategies can also impact shopping ad trends in Q2 2025.
Read next: Meta’s Oversight Board Urges Company to Reassess Changes Made Before Trump’s Inauguration
Amazon sustained its commanding position in Google Shopping auctions and made about 60% of impressions against overall retailers, which is similar to that of Q4 2024. Target had 25% impression shares in Q4 2024, which declined to 24% in Q1 2025, while Walmart maintained its share at 22%. Temu has decreased its presence on Google after the US announced tariff changes.
The report also found that 93% of the retailers who use Google shopping ads have adopted Performance Max, and now it accounts for 53% of shopping ad spending, which is a decrease from 69% in Q4 2024. The conversion rate on Performance Max is 10% lower than Standard Shopping, while the CTR is 13% higher and ROAS is 7% lower. Microsoft Search’s spending growth is 17% YoY, while it saw a growth of 5% on CTR, and 11% growth on CPC. There was also a 19% increase in CPC for brand terms, while there was a 3% increase in CPC for non-brand keywords. These latest trends show that Microsoft’s growth rate is higher than Google’s, which means that Microsoft has a stronger marketing strategy. Political strategies can also impact shopping ad trends in Q2 2025.
Read next: Meta’s Oversight Board Urges Company to Reassess Changes Made Before Trump’s Inauguration
