Definitive guide

Web Marketing Insights

Google Discovery Ads Statistics 2024 – 23 Mind-Blowing Statistics

Google Discovery Ads Statistics for 2023 are hard to find on the internet. There are a lot of click-bait titles that only lead you to content on the basics of this Google service. Thus, I’ve come up with this blog post on eight mind-blowing statistics to help business owners arrive at better decisions on which Google advertising campaign suits them for 2024.

But you might wonder why launch a Google ad campaign in the first place. So let me first give a situation of how Google is faring when it comes to its market share and ad products.

Why try Google for your online marketing goals?

According to a report released by The Social Shepherd, Google’s market share has dwindled over to Amazon for product searches in the United States. The Big Tech Company remains dominant in the United Kingdom having an 86.31% market share for search engines. This leadership in search engine usage in the UK brings opportunities for bigger online conversions and brand awareness.

Forbes, on the other hand, highlighted how 2022 was a year of discovery as people now shift to using more mobile apps in searching for what they need instead of using Google or web-based searches. This is aptly called in-app discovery.

This new behavior or phenomenon is surfacing on social media platforms Snapchat and YouTube, as per HooteSuite, to be regarded as the new search engines for Millenials from news to travel and new products. Rich, appealing video content is the thing among Netizens of today and the near future, bringing a rise to Facebook Reels, YouTube Shorts, Snapchat Discover, Instagram Reels, and what-have-yous.

This trend alongside consumer mobile data behavior from Rock Content shows that 76% of consumers love surprise discoveries through visually compelling advertising on their gadgets and phones.

From a macro perspective, such scenarios and marketing trends bring into focus the relevance of Google Discovery Ads as an important tool to be included in a company’s marketing mix for 2024. Why? Let me talk about that next.

Why Google Discovery Ads?

Discovery Ads allow businesses to leverage Google’s algorithms and artificial intelligence that predict a netizen’s behavior for online searches using their mobile phones. The ads use creative assets provided by the business that is carouseled by Google in Discover Feed, YouTube, and Gmail Promotions and Social Media Tabs.

Particularly, Google presents the creative assets to an online user who will most likely click or act on it for a purchase or service sign-up. The creative assets are visually enriched content corresponding to the behavior of a user gathered through mobile phone activity. Thus, ensuring higher conversion rates for a company availing Discovery Ads.

How high are the conversion rates? Let’s look at the statistics for a clearer picture of things.

Google Discovery Ads Statistics 2024_Ted Baker

Google Discovery Ads Statistics From Actual Case Studies

As I mentioned at the beginning of this post, it is difficult to get statistics on Discovery Ads campaigns. I instead gathered the results of eight Discovery Ads campaigns of various companies to better inspire you. Here they are:

1. Discovery Ads enabled more than 58K new email sign-ups, +26% CPL as against YouTube and 120% CPL as against Display

American digital marketing company Seer Interactive conducted a newsletter campaign for a client in 2021 using Google Discovery, Google Display, and YouTube. The campaign aims to determine which Google channel drives more conversions for email sign-ups.

The result showed that Google’s Discovery Ads led the email conversion resulting in more than 58,000 new sign-ups. The product also provided a lower cost per lead (CPL) than YouTube and Display at 26% and 120%, respectively. While garnering higher conversion rates than YouTube (84%) and Discovery (154%).

2. Discovery Ads pushed a 62% increase in ROAS and a 70% increase in revenue from effective CPC

Meanwhile, Ted Baker ran a Discovery Ads campaign in mid-2020 after the pandemic badly impacted its offline sales, which they highly depended on. The British fashion brand shifted to digital marketing solutions through Google’s Discovery Ads and Display Ads.

The Discovery Ads enabled the company to increase website traffic and acquire new customer data, which resulted in a 70% increase in revenue and a 62% increase in target revenue on ad spent (tROAS).

3. Discovery Ads achieved a 20% increase in email sign-ups with only $88 CPA

California-based FireEye ran a four-month campaign using Discovery Ads for the launching of its B2B segment product, Mandiant Advantage, which is a threat intelligence solution. The goal was to drive traffic to their website by remarketing its content and video assets.

The campaign procured 653 free signups to Mandiant Advantage at a $88 CPA, which is far below the target set by FireEye (56%). The sign-ups made up 20% of the total volume gathered for the campaign, proving that Discovery Ads were twice as effective as their previous campaign.

Google Discovery Ads Statistics 2024_Intertop

4. A 6.5X increase in the total number of conversions and a 22X decrease in CPA was experienced thanks to Discovery Ads

In addition, Ukrainian clothing and footwear lead company Intertop launched a Discovery Ads campaign for almost one month to reach its target CPA through a keyword search or via the Discovery feeds. The results showed that Discovery Ads garnered 54490 clicks, 4031246 impressions, and 1.13% CTR. This translated to a drop in CPA by 22 times, CPC by 3.5 times, CPM by 1.3 times, and costs by 3 times. While showing an increase in conversion by 6.5 times and CTR by 2.6 times.

5. Impressions increased by a minimum of 690% at 93%lower CPC with Discovery Ads

Search Engine Journal, an online marketing company, launched several Discovery Ads campaigns for one of their tech clients. The goal was to increase market scale using separate audience lists according to ad groups. SEJ banked on its product-based list and hyped its legacy audiences to arrive at a new campaign integrated into its SEM strategy.

The results made the SEJ tech client happy because the Discovery Ads campaign lowered the cost per click by 93% and the cost per visit by 70%. This is on top of increasing impressions by more than 690% when compared to their SEM campaigns.

6. It takes 10x ADB and tCPA for a minimum of 40 conversions for Discovery Ads to take effect

According to AdsLiaison, businesses who have cascaded Discovery Ads and wish to make changes to them should wait for at least 40 impressions to do so. This is on top of having an average daily budget that is 10 times more than the target cost per acquisition to ensure the Discovery Ads campaign is optimized.

This data came after Google announced in August four additional features for users of Discovery Ads. The features included more browseable ad experiences with richer details, better onboarding flow, incorporation of an insights page to monitor audience impact, and enabling the Google Ads Editor with API for campaign management.

7. Discovery Ads combined with Search ads will result in a 12% increase in conversions

PhosCreative highlighted Google’s Discovery Ads that appear on YouTube have been found more effective when merged with Search ads. The results show an 8% increase in conversion volume, a 4% decrease in cost per acquisition, and at least a 12% increase in search conversions. This enabled 85% of people on YouTube to easily undertake product-related action just within a day after a new product’s discovery.

8. A 60% increase in conversions occurs when Discovery Ads are held simultaneously with Search Ads

Finally, Periphery emphasized that Discovery Ads increased conversions by 60% when coupled with Search ads or campaigns. This phenomenon is attributed to 86% of netizens looking for purchase ideas on YouTube than they do elsewhere.

This translates to 3 billion people globally alongside 1.5 billion Gmail users, which are the exact channels Discovery Ads are shown. A conclusion Periphery came out with after making a comparative study of their three real estate projects that ran for three months with Discovery Ads and Search Ads.

The three projects showed higher conversions with Discovery Ads than Search Ads, averaging 33 points. Cost per click was relatively cheaper for Discovery Ads ranging from $0.84 to $1.11 compared to Search Ads, which ranged from $1.65 to $2.16.

Google Discovery Ads Statistics 2024_Carparts

9. In 2023, Discovery Ads earn a below-benchmark of 1.02% click-through-rate.

Medium, an online community on human storytelling, published a case study on Discovery Ads before it was integrated into the Google Demand Gen campaigns in October 2023. The case study highlighted internal findings on Discovery Ads enabling clients to have an industry-lower cost per click ($1.07).

The study involved 16,211 clicks or engagements with an interaction rate of 4.78%. The average cost was $0.38 for 3,452 clicks. Thus, the click-through rate (CTR) is 1.02% and the conversion rate is 0.10%. This resulted in a total cost of $6,109.87.

Accordingly, these led to the “organic growth” of the Google Discovery Ads’ clients. Discovery Ads became leverage for these clients to scale nonpurchase conversions that included email opt-ins, lead magnets, and submit lead forms. While acquisition audiences and retargeting helped increase muscle memory and frequency for website traffic campaigns.

10. Google Discovery Ads increased efficiency after Google Demand Gen Campaigns integration at 84% CPC.

Medium pointed out that after Google Discovery Ads was integrated into the Google Demand Gen Campaigns clients experienced 3x better click-through rates (CTR). The cost per click also became more efficient at 84%.

Click-throughs also improved by 6.8x from 15,911 impressions. A total of 882 clicks were experienced by clients, which resulted in an interaction rate of 5.54%. This means that the average cost was $0.13 and the cost of $118.69.

In gist, the click-through rate was 2.91% from 463 clicks and an average cost per click of $0.26.

11. As of March 2023, 43% of consumers look forward to discovering new brands.

ThinkGoogle revealed that the effectiveness of Google Discovery Ads has brought 43% of worldwide consumers on the lookout for new brands even if they have no plans of buying them instantly.

The said consumers are using more video ads, particularly on YouTube to discover new brands. Data show that Discovery Ads videos increased conversions by 80% as of March 2023. This phenomenon is the reason why more videos on YouTube form part of Discovery Ads now that it is part of the Demand Gen Campaigns.

12. In 2023, Google Discovery Ads helped increase revenue by 23%.

ThinkGoogle highlighted the efficiency of Google Discovery Ads in increasing revenue by citing CarParts.Com. The website used Discovery Ads in March 2023, which led them to experience a 23% increase in revenue.

CarParts.Com also experience an increase in conversion rate by 16% and an increase in return on ad spend (ROAS) by 18%. Google Discovery Ads’ responsiveness to the needs of consumers, as well as, catering to their particular interests makes such campaigns profitable.

13. 33.33% of consumers purchased a product from Google feeds that they originally had no intent to.

Google highlighted that one of the strengths of Google Discovery Ads is its ability to convince consumers to make a purchase. This is easily done since the Discovery Ads a consumer sees are based on what they look for and are interested in.

Google Ads are relevant to consumers because Google can identify interests and needs through a consumer’s online behavior. Thus, 1 in 3 consumers or 33% purchased a product from Google feeds that they never originally intended to.

Google feeds, include Gmail, Google Chrome, and YouTube. The Google Discovery Ads are integrated into the feeds such that they look like a recommended video for YouTube, a new email, or part of a news or trending item in Google Chrome.

Google Discovery Ads Statistics 2024_Google

14. Google Discovery Ads drive 91% of consumers to take immediate action on their newly-discovered product or service.

Google revealed that Discovery Ads help 63% of consumers discover new products and services. Of this 63%, 91% of consumers who discovered new brands or products in Google feeds take an immediate action.

This means that Google Discovery Ads strengthens advertisement impact on targetted consumers who have the mindset to purchase an actual product. Google Discovery Ads, after all, are seen by a particular group of people based on their online behavior.

The group of people includes those who previously purchased a similar product, visited the website of a particular company, or watched a similar company”s videos.

15. Google experienced a 12.7% increase in revenue last 2023 for its Search and Discovery Campaigns.

Last January 2024, Search Engine Land reported Google’s 4th Quarter 2023 revenue increased by 12.7% year-on-year. Google particularly achieved a $48M advertising revenue for “Google Search and other” by channel type, which included Discovery campaigns.

Google also garnered a $9.2M revenue for YouTube Ads and a $8.2M revenue for its Google Advertising Network. The Big Tech giant highlighted that, despite the financial gains for Google Search, their YouTube ads performed better at a 15.5% year-on-year increase.

16. Google Discovery Ads integrated into Demand Gen Campaigns lowers CPA by 61%.

Google recently released its observation on the benefits of rolling out the integration of Google Discovery Ads into the Demand Gen Campaigns. Accordingly, customers experience better rewards since cost per action (CPA) is 61% lower amidst click through rates (CTR) higher by 3x.

Incidents of consumers discovering new products are higher in Google Search and YouTube by 61% compared to other social media platforms. While 67% of those who discovered a new product in YouTube made an actual purchase.

17. 16% of consumers find YouTube ads more trustworthy

An Ipsos Consumer Continuous survey conducted in 25 countries including Canada, the United States, the United Kingdom, and Japan last September 8-11 2022 showed that consumers will twice likely discover new products and brands more in YouTube.

The consumers (16%) involved in the survey that was commissioned by Google perceived YouTube ads more credible, honest, and trustworthy than the videos in other social media platforms. This is the reason why, the study emphasized, consumer engagement and action are higher in YouTube.

In fact, data show that Google feeds in YouTube and YouTube Short averages 50 billion views a day. That’s a 3 billion captured audience in a month!

The Demand Gen Campaigns, which now integrate Google Discovery Ads, are more ideal then for companies looking forward to bank up on their social media campaigns in 2024.

18. Google Discovery Ads help clients decrease CPC by 4.4%.

UK-based fashion retailer MandM Direct undertook a Discovery Ads campaign in the first quarter of 2022. The company increased audience engagement in their website resulting to a higher conversion value at 14% and a 48% revenue boost for the said quarter.

In addition, their return on ad spend (ROAS) resulted to a 120% improvement at a lower cost per acquisition of 20.7%. Their cost per click was also lower by 4.4%, which made the company change their bid strategy to a ROAS target from a CPA target.

Google Discovery Ads Statistics 2024_UGG

19. In Canada, the car industry benefitted most from Google Discovery Ads with 70% of purchases generated last 2022.

The Canadian Car Industry is looking forward to rolling out more Discovery campaigns in 2024 based on their experience in 2022. Data show that most or 70% of Canadian consumers purchased a car in 2022 after discovering it online.

90% (9 out of 10) of Canadian consumers said they purchased their cars from the dealership after doing an online research. Of that group, 93% of consumers made the actual purchase in person at the dealership and 6% purchased it online.

20. 54% of Canadian consumers will buy their new cars online.

ThinkGoogle said 2022 saw a growth in online car purchases that’s 6x higher than pre-pandemic. There were 6% of Canadian car buyers in the said year and 54% of them look forward to buying their new cars also online.

The consumers said they prefer their purchase to be contactless moving forward, which means from the discovery of new products and brands to their delivery in their homes.

Data show that it takes Canadian new car buyers (45%) a month to investigate a vehicle after its discovery online before making an actual purchase.

That investigation entailed 80% search, 66% online videos, 57% visits to brand websites, 43% information check from car dealer websites, and 15% social media views.

The actual purchase is influenced mostly by video (66%). 68% of Canadian consumers said they purchased the car after seeing something they saw in a video.

While 33% said it took a visit to a car dealer’s website before they decided to make the purchase. Only 21% of consumers said they purchased after scheduling a test drive.

Of those who “saw something from a video”, 1.6x of consumers watching YouTube on Connected TV (CTV) clicked on a vehicle ad before making the purchase.

21. Discovery Ads greatly help in website visitor engagement and increase ROAS by as much as 497%.

According to Google, Australian boots manufacturer UGG tapped on Discovery ads in Christmas 2021 to bring in better sales for its diverse product range. Their method involved re-engaging former website visitors to achieve this goal.

UGG said the inspiring layouts available with Discovery ads boosted their Return On Ad Spent (ROAS) by 497% during that peak season of the year. It turned former visitors into actual customers.

Plus, it allowed them to attain a 42% higher ROAS than their usual social media target. UGG was even surprised to achieve a 46% increase in conversion rates.

22. In 2021, Discover Ads generated a minimum of 28% conversions for social strategies.

San Francisco’s renowned online ordering and delivery platform DoorDash also used Discovery ads in 2021, which enabled them to easily scale their social strategy.

The said marketing campaign not only generated them an increase of 28% in conversions but also connected them to jobseekers whom they provided economic opportunities.

23. Google Discovery Ads tied up to Performance Max and Shopping Campaigns resulted in a $693 conversion value.

Ad Click Pro ran a 12-month Google Ads campaign using Discovery, Performance Max, and Shopping for its e-commerce client based in the United States.

The campaign cost was $84.4k and generated 3.25k conversions. Overall, it had a conversion value of $693k and a Return On Ad Spent (ROAS) of more than 8.21 times their normal campaign.

Google Discovery Ads Statistics 2024_DoorDash

In A Nutshell

Google Discovery Ads provide great potential for businesses to tap new customers who are open to uncovering new products and services. It is a great opportunity to explore the popularity of YouTube, Gmail, and Discovery Feed through visually compelling creatives that uniquely convey the story of a company and its offerings to a more captive audience.

Sources Used:

FAQs

Do Discovery Ads have a recommended CTR?

Experts say that a reliable clickthrough rate (CTR) for display ads ranges from 0.2% to 0.3%. However, a higher CTR is recommended for Discovery Ads for e-commerce clients, which is 0.9%. This is most useful when a business targets particular audiences based on intent. In such cases, expect a cost per click of $0.18 and a 72% rate of conversion.

Are Google Discovery Ads more effective?

As of August 2022, data shows that Google’s Info Text Ads remain the cornerstone of their search network. These ad types appear at the top of Google Search results. Google Discovery Ads, on the other hand, are effective in mobile searches using Google’s YouTube, Gmail, and Discover Feed. The key is to have a diverse marketing mix rather than just having one whenever launching an online campaign.