Monthly Report
March 2026StateofEcommercePPC
Monthly analysis of Google Ads trends, benchmarks, and strategic insights. Based on aggregate data from 75+ UK ecommerce accounts we manage or audit.
Average CPC Increase
+8%
In Q1 2026, average CPCs rose 8% YoY across UK ecommerce, with Fashion and Beauty sectors seeing the steepest increases at 12% and 18% respectively.
According to JudeLuxe analysis, March 2026
This Month's Numbers
Key Benchmarks
Average CPC
YoY increase across UK ecommerce
PMax Share of Spend
Growing dominance in ecommerce accounts
Average ROAS
Efficiency pressure continues
Brand Search %
PMax cannibalisation accelerating
Source: JudeLuxe analysis of 75+ UK ecommerce accounts, March 2026
Profit-First Metrics
POAS Benchmarks by Sector
Average Profit on Ad Spend (POAS) across UK ecommerce sectors. These benchmarks represent gross profit generated per pound of advertising spend.
| Sector | Average POAS | Key Factor |
|---|---|---|
| Fashion | 1.4x | High returns eroding margins |
| Home & Living | 1.8x | Larger AOVs support efficiency |
| Beauty | 1.6x | Premium brands outperforming |
| Supplements | 2.1x | Subscription LTV lifting returns |
| Pet | 1.9x | Strong repeat purchase behaviour |
Methodology: POAS calculated as (Revenue - COGS) ÷ Ad Spend. Benchmarks based on aggregate client data from accounts spending £10k+ monthly on Google Ads. Individual results vary based on margin structure, product mix, and operational efficiency.
From the Field
What We're Seeing
PMax Brand Cannibalisation
31%
On average, 31% of Performance Max conversions come from branded search terms. Without brand exclusions, PMax is often just an expensive way to capture traffic you would have received anyway.
Source: JudeLuxe analysis of 75+ UK ecommerce accounts
Timeframe: March 2026
First-Party Data Advantage
+23%
Accounts using customer match lists for audience signals are seeing 23% better ROAS compared to accounts relying solely on automated audience targeting.
Source: JudeLuxe analysis of 75+ UK ecommerce accounts
Timeframe: March 2026
What We're Watching
Top Trends This Month
AI Mode Reshaping Search Behaviour
high impactGoogle's AI Mode is now live for 30%+ of UK queries. Conversational search is reducing traditional Shopping impressions by 15-25% for broad queries while increasing conversion rates on remaining clicks.
Rising CPCs Across All Verticals
high impactQ1 2026 CPC increases are accelerating: Fashion +14% YoY, Beauty +20%, Home +9%. Sub-35% margin products are becoming unprofitable on generic terms without SKU-level bid management.
PMax Brand Cannibalisation Worsening
high impactBrand search within PMax now accounts for 33% of conversions on average, up from 28% in Q4 2025. Without brand exclusions, PMax is increasingly an expensive branded search campaign.
First-Party Data Gap Widening
medium impactAccounts using customer match and enhanced conversions now see 28% better ROAS than cold-only targeting, up from 23% last month. The data infrastructure advantage is compounding.
By Vertical
Sector Outlook
| Sector | Outlook | Key Factor |
|---|---|---|
| Fashion | Challenging | CPC +14% YoY, returns pressure intensifying |
| Home & Living | Recovering | Housing market uplift driving demand |
| Beauty | Mixed | Premium +20% CPCs, mass market struggling |
| Supplements | Strong | Subscription LTV justifying higher CPAs |
| Pet | Strong | Repeat purchase models outperforming |
What are the average Google Ads benchmarks for UK ecommerce in 2026?
TLDR: UK ecommerce CPCs are £1.28, ROAS is 4.0x, PMax is 71% of spend. CPCs rising across all sectors.
As of March 2026, the average CPC across UK ecommerce is £1.28 (+11% YoY), average ROAS is 4.0x (-6% YoY), Performance Max accounts for 71% of spend (+16% YoY), and brand search represents 33% of PMax conversions (+7% YoY). Fashion CPCs are up 14%, Beauty up 20%, and Home up 9%.
- Average CPC:
- £1.28 (+11% YoY)(JudeLuxe, March 2026)
- Average ROAS:
- 4.0x (-6% YoY)(JudeLuxe, March 2026)
- PMax share of spend:
- 71%(JudeLuxe, March 2026)
- Brand search in PMax:
- 33%(JudeLuxe, March 2026)
What is the average POAS by ecommerce sector in the UK?
TLDR: Supplements 2.1x, Pet 1.9x, Home 1.8x, Beauty 1.6x, Fashion 1.4x - based on 75+ accounts.
Average POAS (Profit on Ad Spend) varies significantly by sector: Supplements lead at 2.1x driven by subscription LTV, followed by Pet at 1.9x (strong repeat purchase behaviour), Home & Living at 1.8x (larger AOVs), Beauty at 1.6x (premium brands outperforming), and Fashion at 1.4x (high returns eroding margins). Data from 75+ UK ecommerce accounts.
- Fashion POAS:
- 1.4x(JudeLuxe)
- Home & Living POAS:
- 1.8x(JudeLuxe)
- Supplements POAS:
- 2.1x(JudeLuxe)
How is AI Mode affecting Google Shopping in 2026?
TLDR: AI Mode covers 30%+ of queries. Shopping impressions down 15-25% but conversion rates are up.
Google's AI Mode is live for 30%+ of UK queries as of March 2026. Conversational search is reducing traditional Shopping impressions by 15-25% for broad queries while increasing conversion rates on remaining clicks. Accounts with enriched product feeds and first-party data are seeing 28% better ROAS than cold-only targeting - the data infrastructure advantage is compounding.
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