Advertisers increase spend on popular Mobile, Product and Video ads
San Francisco (October 25, 2016) – Kenshoo (www.Kenshoo.com), the global leader in agile marketing, today released a new infographic, Kenshoo Digital Marketing Snapshot: Q3 2016, highlighting how the recent developments in mobile, product-focused and video ad types, continue to influence social and search advertising trends. Social ad spending increased 45% year-over-year (YoY), buoyed by dynamic product ads – which now account for 21% of total social spending – and a 155% YoY increase in video ad spending. In search, spending on smartphone ads grew 62%, while spending on product ads increased 87%, resulting in an 11% increase in total search spend YoY.
Other key findings include:
- Social impressions increased 16% YoY and remained steady quarter-over-quarter (QoQ)
- Social clicks increased 40% YoY and 21% QoQ
- Social click-through rate (CTR) increased 21% YoY and 21% QoQ
- Social spending on mobile devices increased 61% YoY
- Mobile devices accounted for 59% of Q3 social ad spending
- Paid search impressions decreased 19% YoY and 4% QoQ
- Paid search clicks increased 11% YoY and 11% QoQ
- Paid search click-through rate increased 38% YoY and 16% QoQ
“The recent advancements in both social and search advertising are paying significant dividends for marketers. In search, product ads on both mobile and desktop, combined with Google’s Expanded Text Ads, continue to deliver valuable clicks, while the effectiveness of ads in areas like retail, travel and lead generation do the same for social,” said Chris Costello, senior director of marketing research for Kenshoo. “As publishers in both channels continue to innovate and test new offerings, they’re rapidly developing the most effective tool set for marketers to meet and exceed their goals, no matter what they might be.”
Additionally, advertisers increased CTR in Q3, likely due in part to continuing effects of Facebook removing its right rail ads earlier this year and the performance of Google’s Expanded Text Ads (ETA), which offer advertisers more prominent headlines, longer descriptions and automatic display URL inclusion. Google’s ETA accounted for 12% of total paid search clicks in Q3 2016.
The digital marketing axiom of reaching consumers ‘where they want, when they want’ has become the epicenter of publisher and ad network innovation and effectiveness. Kenshoo advertisers have had success with many of these ad innovations, further enabling them to establish and build meaningful dialog with customers and prospects in ways that suit those customers’ lifestyles.
The Kenshoo Infinity Suite leads the way in digital marketing innovation, enabling success for agile marketers by maximizing customer lifetime value. Built upon Kenshoo’s industry-leading and award-winning digital marketing platform, the Kenshoo Infinity Suite delivers infinite optimization to re-engage and grow customers across the world’s leading publishers and all devices.
Visit Kenshoo.com/Digital-Marketing-Snapshot to download the new infographic, Kenshoo Digital Marketing Snapshot: Q3 2016.
Social and search results are based on five quarters of performance data managed on the Kenshoo platform from over 3,000 advertiser and agency accounts across 20 vertical industries and over 60 countries, spanning Google, Bing, Baidu, Yandex, Yahoo!, Yahoo! Japan and the Facebook® Audience Network. Some outliers have been excluded. The resulting sample includes more than 750 billion impressions, 13 billion clicks and $6 billion (USD) in advertiser spend. Ad spending and CPC are measured using Ex-FX or “Constant Currency” adjustments, where results are based on native currency, and only translated to common currency after aggregation.
Kenshoo is the global leader in agile marketing. Brands, agencies and developers use the Kenshoo Infinity Suite to direct nearly $350 billion in annualized client sales revenue through social, search, mobile, and display advertising. Kenshoo provides leading native API solutions for ads across Facebook, FBX, Instagram, Twitter, Google, Yahoo, Yahoo Gemini, Yahoo Japan, Bing, Yandex and Baidu. Kenshoo powers digital marketing campaigns in more than 190 countries for nearly half of the Fortune 50 and all 10 top global ad agency networks. Kenshoo clients include Expedia, Facebook, Havas Media, John Lewis, Resolution Media, Sears, Starcom MediaVest Group, Tesco, Travelocity, Walgreens, and Zappos. Kenshoo has 27 international locations and is backed by Sequoia Capital, Arts Alliance, Tenaya Capital, and Bain Capital Ventures. Please visit www.Kenshoo.com for more information.
Facebook® is a registered trademark of Facebook, Inc.
Kenshoo brand and product names are trademarks of Kenshoo Ltd. Other company and brand names may be trademarks of their respective owners.