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House and Home Ads on Facebook and Google: 2021 Performance Benchmarks

The growth of e-commerce in 2020 extended into major ad platforms for house and home retailers. According to Sidecar’s 2021 Benchmarks Report, many major KPIs for home decor and furniture ads held up well and grew year over year as consumers turned their attention to their houses and gardens.

“Home decor and furnishings took off amidst the pandemic, as people invested in their homes rather than going on vacation,” says Phil Turicik, Director of Enterprise Strategy for Sidecar. “Outdoor furniture, already a popular springtime purchase for many, was an even bigger seller in 2020. People wanted to spend more time outdoors at home since travel was off the table. Average order value and return on ad spend were both very strong throughout most of 2020 for this vertical.”

House and home retailers averaged a lower cost per click in Google Shopping in 2020, at $0.60.

Let’s take a closer look at e-commerce ad performance for house/home retailers running campaigns encompassing home decor, kitchen, garden, housewares, and furniture ads.

Lower Costs for Google Ads

As COVID-19 started to unfold, house and home retailers reduced spend on Google paid search in March (-2% YoY). However, they resumed spending in April (+17% YoY) and May (+40% YoY). At the same time, search volume started soaring. All told, clicks across both Google search and shopping ads grew by 41% year over year in 2020.

That search volume contributed to lower SEM costs. Google Shopping offered the lowest cost per click (CPC) between search and social channels in 2020, at $0.60. That was a 14% decrease from 2019. Google paid search ads generated the lowest cost per acquisition (CPA) at $9.65.

Facebook and Instagram Ads Generate Strong ROAS and AOV

Home decor and furniture ads generated an especially strong return on ad spend (ROAS) and average order value (AOV) on Facebook and Instagram. Notably, Facebook ROAS averaged 14.33 for house and home retailers in 2020, a 3X increase over the previous year. Instagram ROAS was even stronger at 17.42.

House and home retailers are quite literally at home on Facebook and Instagram. The broad accessibility and visual nature of social media is ideal for house and home product catalogs. 

Growth in Search and Social Media Marketing

Moving forward, it will be key for house and home retailers to leverage proven channels and best practices to capitalize on the acceleration of e-commerce, while continuing to explore and invest in newer channels like Facebook and Instagram.

Know your industry benchmarks to identify the right goals and growth areas for your marketing campaigns. Keep this article handy, and go a layer deeper by grabbing Sidecar’s 2021 Benchmarks Report. It covers all the data you see here, as well as year-over-year percent change in these metrics and benchmarks for the retail industry as a whole.