COVID-19 has had a major impact on the office supplies industry. As offices closed and businesses transitioned to a complete remote environment in 2020, retailers advertising office supplies had to pivot their e-commerce strategy. Instead of targeting businesses as a whole, these retailers focused on advertising products that work-from-home customers needed throughout the pandemic.
“COVID-19 dramatically changed the market for advertisers in the office supplies vertical,” said Brice Dunn, Enterprise Customer Strategy Manager at Sidecar. “As businesses closed and employees transitioned to remote work, demand shifted from businesses to individuals. This shift had a pronounced impact on KPIs like AOV, lifetime value, and margin.”
In our 2021 Benchmarks Report, we analyzed how retailers advertising office supplies fared on Google Ads in 2020. We found positive growth trends across several KPIs on Google Shopping and Google paid search, including CPC reductions and ROAS gains. Take a look at some of our findings below.
Get more insights like this in the 2021 Benchmarks Report, available now. The report analyzed 16 retail segments across five ad platforms, including Facebook and Amazon Advertising. What’s more, it breaks down performance across three spend tiers in each ad platform. Now in its fifth year, the 2021 Benchmarks Report is the most comprehensive look at performance in the retail advertising sector.
Conversion Rate & ROAS Grow Year Over Year
The pivot to focusing advertising on individual consumers helped conversion rate and return on ad spend increase on Google in 2020. Looking at Google Shopping, conversion rate (CVR) for office supplies retailers was 3.21%, which was 20% above the retail average of 2.68%. Only Toys & Hobbies (4.21%) and Food & Drink (3.50%) retailers saw a higher CVR. Retailers advertising office supplies also saw a 5.15 ROAS on Google Shopping, a 90% year-over-year increase.
On Google paid search, office supplies CVR was 4.29% in 2020. Though lower than retail average, it was 9% higher than in 2019. Return on ad spend (ROAS) also grew 11% year over year to 5.17.
CPCs High But In Decline for Retailers Advertising Office Supplies
The office supplies vertical is traditionally a competitive space. With so many retailers in the fold, cost-per-clicks (CPCs) in the vertical are the highest recorded on Google Shopping and paid search. Despite this, there was a considerable year-over-year drop in CPCs on both ad platforms.
Retailers in the office supplies vertical averaged a CPC of $0.80 on Google Shopping in 2020. While this was considerably higher than the retail average of $0.56, it marks a 53% drop year over year. CPCs on Google paid search averaged $2.84–well above the $0.62 retail average–though 19% lower for the vertical than in 2019.
Get More Retail Performance Benchmarks Like These
The above analysis is just a snippet of what’s featured in the 2021 Benchmarks Report. Access the report now and learn how retail advertisers performed across Google, Facebook, Instagram, and Amazon in 2020.