Google SPN Ads: The 37% Gap That’s Costing Marketers

Ads on Google’s Search Partner Network (SPN) deliver a return on ad spend (ROAS) that’s 37% lower than ads shown on Google Search. This surprising insight, revealed by digital marketing expert Mike Ryan, has marketers questioning whether SPN placements are worth their budget. 

Ryan’s analysis shows that while SPN ads cost less, they convert far less effectively, leaving advertisers with a tough decision: stick with SPN for cheaper impressions or focus on better-performing placements.

What’s Behind the 37% ROAS Gap?

SPN ads, unlike Google Search ads, appear on third-party websites partnered with Google. These placements were initially designed to give advertisers visibility beyond Google’s own search results.

However, recent data shows that this broader reach doesn’t necessarily translate into effective results.

Before March 2024, SPN placements were a rarity, making up less than 0.1% of campaign impressions. After March, their presence surged, hitting a median of 5.3% across campaigns. 

Even during major shopping events like Black Friday, SPN placements accounted for 5.4% of 8.5 million Shopping impressions analyzed by Ryan. Despite their growing share, the performance metrics haven’t improved.

Why It Matters

Here’s the big takeaway: SPN might save you money up front, but it’s likely costing you in the long run. 

Ryan refers to SPN as a “budget buy”—less expensive but significantly less effective. This means advertisers may see fewer conversions, even as they save money on placement costs. 

For businesses that depend on strong ROAS to justify their ad spend, this could represent a major missed opportunity.

Ryan advises advertisers to take action, specifically to exclude SPN placements from campaigns entirely. Excluding them at the account level ensures that all campaign types—including Performance Max (PMax)—concentrate on better-performing placements.

What Could Happen Next?

If SPN continues to underperform, advertisers might start avoiding it altogether. This could push Google to improve the quality of SPN placements or rethink how it supports advertisers using the network.

On the flip side, marketers who adapt quickly by excluding SPN placements can redirect their budgets to better-performing options. 

Staying alert to changes in ad platform algorithms and placement strategies will be key for advertisers moving forward.

What Should Advertisers Do Now?

Check Your Numbers: Look at your campaigns and see how SPN placements are performing compared to Google Search.

Exclude SPN Placements: Use Ryan’s advice to exclude SPN at the account level for more control and better ROAS.

Keep Costs in Check: Make sure you’re balancing lower costs with meaningful conversions. Cheap ads that don’t convert are wasted money.

Use Analytics Tools: Dive into the data to track how different placements are impacting your campaign performance.

Stay Flexible: Digital advertising is always changing. Keep refining your strategy to stay ahead.

Key Takeaways

• SPN ads have a 37% lower ROAS than Google Search ads.
• SPN impressions jumped significantly after March 2024, now at a median of 5.3%.
• Black Friday data shows SPN affecting millions of Shopping impressions, yet still underperforming.
• Excluding SPN placements can improve campaign efficiency and overall performance.
• Regular audits and strategic adjustments are essential in today’s fast-changing ad landscape.