Michelle Urwin, Sr. Marketing Manager @ Kenshoo
Heavy investment in mobile product ads, video and Instagram ads delivered increased engagement in both social and search advertising in Q4 2017.
San Francisco (January 17, 2018) – Kenshoo (www.Kenshoo.com), a global leader in marketing technology, today released a new infographic, Kenshoo Digital Marketing – Quarterly Trends Report (Q4 2017), showing immersive, visual ad types resonated with advertisers and drove increased engagement among consumers during the fourth quarter holiday season, spurring spending growth in both social (39%) and paid search (12%) year-over-year (YoY). In social, video ad spending increased 93% YoY, accounting for 25% of total social spending; Instagram ad spending increased 183% YoY while driving almost four times as many clicks. In paid search, spending on Shopping Campaigns increased 34% YoY, driven by a 3-1 increase in mobile versus desktop; Expanded Texts Ads accounted for 80% of keyword clicks, nearly double their click share from Q4 2016.
Other key findings include:
*A structural decrease in low-cost desktop impression inventory had an outsized influence on the YoY change in CPM; with that inventory excluded, the increase would be a more modest 13%
“Ads with strong visual elements rose to the forefront this holiday season, driving extensive consumer engagement and investment from marketers,” said Chris Costello, Senior Director of Marketing Research for Kenshoo. “Combined with an emphasis on mobile delivery, these ads and tactics enabled marketers to ‘own the screen’ to effectively and efficiently reach holiday shoppers and other consumers in a meaningful way when and where they’re shopping.”
Highlighting the importance of both mobile and visual ads, smartphone advertising comprised 76% of total social ad spending and 44% of total search ad spending. Spending on Product Ads increased 100% for social and 34% for search YoY.
As for which key shopping dates were most popular this holiday season, social ad spending for e-commerce advertisers grew fastest during the “Cyber 5” (between Thanksgiving and Cyber Monday), while search ad spending rallied the week before Christmas. While Cyber Monday remained the biggest day overall for e-commerce ad spending, social peaked on Black Friday and search shopping campaigns remained level across Black Friday and Cyber Monday.
Kenshoo leads the way in digital marketing innovation, enabling success for marketers by maximizing customer lifetime value. Kenshoo 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 – Quarterly Trends Report (Q4 2017).
Search and social results are based on Kenshoo advertisers with 15 consecutive months of performance data taken from a population of over 3,000 advertiser and agency accounts across 20 vertical industries and over 60 countries, spanning Google, Bing, Baidu, Yandex, Yahoo!, Yahoo! Japan, Pinterest, Facebook, Instagram and the Facebook® Audience Network. Some outliers have been excluded. The resulting sample includes more than 500 billion impressions, 14 billion clicks and $6.5 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 a technology company that equips marketers with self-service applications to build their brands and generate demand by executing digital advertising across the world’s leading mobile and desktop publishers. Kenshoo offers the only marketing solution that is deeply integrated across Google, Facebook, Bing, Pinterest, Snapchat, Instagram, Yahoo, Yandex, Yahoo Japan, and Baidu through each publisher’s native APIs. Kenshoo’s solutions are architected upon the principles of agile marketing which include audience targeting, optimization algorithms, automation controls, and actionable analytics to allow marketers to quickly and efficiently keep their marketing programs in-step with the ever-changing consumer journey. Kenshoo has 27 international locations and is backed by Sequoia Capital, Arts Alliance, Tenaya Capital, and Bain Capital Ventures. Please visit Kenshoo.com for more information.
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