New bidding strategies for social ads drive greater number of clicks as total reach becomes more focused
San Francisco (January 20, 2016) – Kenshoo (www.Kenshoo.com), the global leader in agile marketing, today released a new infographic, Kenshoo Digital Marketing Snapshot: Q4 2015, highlighting the changing landscape of social and search advertising as new social ad types move to the front lines and search spend continues to shift performance for marketers. Social ad spend increased 50% year-over-year (YoY) driven by the introduction of Facebook Dynamic Product Ads and Instagram ads; Google Product Listing Ads accounted for 26% of all paid search impressions after accounting for only 8% last year. Mobile continued to serve as the primary growth driver in both channels and accounts for nearly all of the 8% spend growth in paid search YoY.
More key findings in the research; overall:
- Social impressions increased 4% QoQ but decreased 21% YoY
- Social clicks decreased 16% QoQ but increased 30% YoY
- Social click-through rate decreased 20% QoQ but increased 64% YoY
- Paid search impressions increased 8% QoQ and 12% YoY
- Paid search clicks increased 13% QoQ and 32% YoY
- Paid search click-through rate increased 5% QoQ and 17% YoY
“The fourth quarter has long been about holiday sales, and the reliance on Product Listing Ads and Dynamic Product ads this season highlights the importance marketers placed on direct response ad types,” said Chris Costello, director of marketing research for Kenshoo. “On top of the new social ad types, changes in bidding strategies in the social channel refocused advertisers on smaller quantities of highly targeted clicks to drive downstream actions rather than engagement; this aligned with retailer sales goals during the holiday shopping season across all digital efforts to drive healthy performance improvements.”
“Competition really ramps up in the fourth quarter among advertisers, especially retailers,” said David, Gong, Director of Strategic Accounts, PMG. “Because of that, it’s critical that we find new efficiencies via emerging tactics and products; otherwise the increased ad spend necessary to compete in the market becomes a sunk cost. Fortunately, Kenshoo’s industry-leading technology enables us to identify and capitalize on those efficiencies for fully optimized and effective campaigns.”
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 all channels and devices.
Visit Kenshoo.com/Digital-Marketing-Snapshot to download the new infographic, Kenshoo Digital Marketing Snapshot: Q4 2015.
Social and search results are based on five quarters of performance data from over 3,000 Kenshoo advertiser and agency accounts across 20 vertical industries and over 60 countries, spanning Google, Bing, Baidu, Yahoo!, Yahoo! Japan and the Facebook® Audience Network. Some outliers have been excluded. The resulting sample includes more than 550 billion impressions, 11 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, 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 CareerBuilder, 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.
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