Comparative Analysis of 2019 vs. 2020 Sales Trends - Impact on Your eCommerce Store

During an economic turn-point, dynamics in Google Ads have taken a turn for the unknown. And amid these changes, it’s critical for consumer brands to continue to advertise;  as marketers and the agencies they work with can continue to drive profitable growth with effective segmentation.

The key is to focus on where you’re getting the best results, and use channels that enable flexibility and target high-intent audiences.

Marketing professionals who understand this and act accordingly will have a major advantage in 2020.

Welcome to our deep dive analysis where we've delved into customer trends that have been surfacing in the last couple of months, during COVID-19.

This market study has been done with the data of + 8 Million Ad clicks and over 500 million ad impressions. 

This market study shows that sales are up this year - 1st January - 30th April 2020;  compared to 1st January - 30th April 2019.

Sales in 2019 vs. Sales in 2020(during the COVID-19 lockdown period)

This market study has been done with the data of + 8 Million Ad clicks and over 500 million ad impressions. 

This market study shows that sales are up this year, compared to 1st January - 30th April 2019, 

To our own surprise, these lockdown months have shown an increase in overall metrics and revenue.

Based on the data for multiple accounts with combined ad impressions of more than 500 million and ad clicks of more than 8 million, we have seen impressive growth in Google Ads.

Performance Impressions +95%

Clicks +30%

Revenue +35%

ROAS +10% 

We’re given to wonder, is it natural progression to see such a rise in the overall metrics? And is it just normal for so many businesses to do better from one year to the next?

Then again business outcomes are rarely that simplified.

One key factor that comes into play is that since everyone is at home and on the internet all the time, that’s one major reason that accounts for the growth in sales.

We have compiled data of all eCommerce trends that you will require to make smart decisions during these changing times. 

How sales metrics are peaking

A lot of things have changed on the forefront and back-end of the eCommerce industry, but a strategic marketing strategy will be able to keep your brand afloat, by drawing in the right clientele for your products and services.

We’ve outlined the data so you can see revenue growth from the Google Ads channel; even though the cost-per-click has gone up.

People don’t know that a high CPC in many cases can benefit your campaign more than a lower CPC. If you want to competitively beat your advertisers for ad zones that gain audiences with better conversion rates, you can do this by raising your CPC. 

You will have priority in your niche and in you and your competitor’s market.

Here is a prime example of a strategy we have implemented; and how it paid off with high returns.

 High Cost-Per-Click 

• A high CPC also has the positive side-effect of getting immediate results.
• You gain priority compared to competitors, and *whoosh* the clicks go right to your products!

Conversions

• Conversions are displayed in a 30-day format, and are looking like a definite break even.

Revenue

• Running Google Ads successfully is all about strategy, and when revenue comes in, all the meticulous planning pays off.

ROAS

Considering that the clicks and conversions were all going upward, even the progress in revenue and ROAS shows positive inclines. and profits were made.

We believe that the combination of increased conversions and high ROAS is an interesting development for marketers to take notice of; and invest in online advertising to sell their products. 

Best ad format to implement

18% of paid marketing budgets go into the paid search funnel, and out of that 76% go to Shopping Ads. 

Which is an accurate predictor of success because there’s nothing like showing users an image with a discounted offer. It’s the best case scenario for advertisers to engage with their audiences.

Customers Viewpoint and Searches

On average, Google receives over 45,000 searches every second; and we've analysed what consumers have been searching for in the last 3 months.

The searches in the Northern part of Europe show us that people are looking for items like -

• Gym equipment like elastic stretch bands
• Keyboards
• Chairs/Tables
• Tablets/Ipads
• Mixers
• Lint removers
• MCT oil
• Vacuum cleaners
• Ashwagandha and Acai powder

And all these searches are very valid during this time frame. People need good work from home set-ups and to load up on their nutrients. So it makes sense that the public at large prioritizes these products.

And as always, advertisement coupled with amazing offers helps sell products in a gainful way. 

McKinsey reports that as the COVID-19 crisis continues, “consumers increasingly expect a lengthy impact to their routines and finances”

Devices on which consumers shop affect purchases

If you are in it to take your eCommerce business to the next level, optimizing your website to include mobile and tablet-friendly features will help capitalize on conversions.

We see that the conversion rates have increased for the same number of clicks on computers during January- April.

And in 2020, we see 1.2 conversions, for the same number of clicks.

Improving your conversion rate also allows you to get more sales with the same amount of traffic. 

For example if you are spending $1,000 a month on advertising to drive X number of visitors to your site, and you double your conversion rate, you essentially double the value of your ad spend. 

That means you can cut back on your ad spend and get the same benefit as you were getting before, or invest the additional revenue into new ad programs.

Device-wise Costs

Device-wise Conversions

Device-wise Conversion Rate

Device-wise Revenue

Device-wise ROAS

Pro tip - According to eCommerce marketing statistics globally; at least 79% of smartphone users have made a purchase online using their mobile device in the last 6 months. 

Offline stores are shifting online

The unfolding economic crisis has hit small and medium-sized businesses. With lockdowns in effect all over the world, many companies have been forced to turn online, hoping to restore revenues. The eCommerce penetration in the U.S. took a steep increase from 16% at the end of 2019 to 27% at the end of April 2020. And this will be the future of shopping worldwide.

How does this impact you?

The world came to a halt, but it has also come together like never before. And while the welfare of humanity is the primary concern which we will face together; we have observed how these developments in online marketing have impacted customer trends.  

So take informed decisions and make use of the intelligence of the Google Ads platform, to keep your business up and running.

Get in touch with Keywordio, and we'll plug in all the right metrics to get your brand geared up, and convert with the right target-markets.