Walmart leads the pack when it comes to paid search advertising in the grocery category.
That’s according to new research from AdGooroo. The search marketing intelligence provider analyzed 124 non-branded grocery store and grocery delivery keywords from June 2016-May 2017.
During this period, Walmart was the highest spender, investing $850,000 over a 12-month period. This was a staggering jump from only $51,000 between May 2015 and June 2016. Jet.com, which was acquired by Walmart in September, spent an additional $82,000 during the same timeframe, up from a mere $3,000 in the 12 months preceding June 2016, AdGooroo reported.
Walmart's position at the top seems to be safe for now, as Amazon ranked ninth, with $134,000 spending for the current period, while Whole Foods ranked 18th, spending $51,000 over the same time period. However, the Amazon-Whole Foods partnership, along with Amazon's strong overall search presence, should worry Walmart, the report stated.
Additional findings include:
• Aldi ranked second among all advertisers in the grocery category, spending $441,000 from June 2016 to May 2017, up from $40,000 during the preceding period. Notably, from March to May 2017, the grocer spent an average of $119,00 per month, up from an average of $9,000 per month. This suggests the company was ramping up its online presence in preparation of its US expansion.
• Safeway ($365,000), Kroger ($283,000) and Fry's ($232,000) rounded out the top five among advertisers in the category.
• Walmart also led among all advertisers in click-share, capturing a 19.1% share of total clicks on the 124 category keywords over the 12-month period.
• Aldi again ranked second, with an 11.6% click-share, followed by Kroger, which captured 7.6% of all clicks.
• Amazon ranked 9th in click-share, capturing 2.8% of all clicks while Whole Foods ranked 19th with a 1.2% click-share.