Paid search spend on Product Listing Ads rises 98% delivering 200% more clicks
London (April 20, 2016) – Spend on social advertising jumped 86% year-on-year (YoY) in the first quarter of 2016, boosted by a 122% rise in mobile ad spend, according to the latest quarterly global data from Kenshoo (www.Kenshoo.com), the global leader in agile marketing. Growing spend on Instagram ads and Facebook Dynamic Product Ads helped drive total social spend in the first quarter higher than in Q4 2015, going against the normal seasonal ad buying pattern.
In paid search advertising, much of the 13% YoY growth in spend during the quarter came from marketers investing 77% more on smartphone ads. They also spent 98% more on Product Listing Ads (PLAs) than in Q1 2015, generating three times more clicks than a year ago.
Overall, the data shows that mobile and product-focused advertising were central to driving Q1 growth in both paid search and social, with phones and tablets generating the majority of clicks through both channels.
The findings of the study are presented in a new infographic, Kenshoo Digital Marketing Snapshot: Q1 2016, highlighting key quarterly global metrics and benchmarks for social advertising and paid search based on ﬁve quarters of performance, analysing more than 500 billion impressions, 10 billion clicks and $5.5 billion (USD) in advertiser spend through the Kenshoo Infinity Suite.
Rob Coyne, Kenshoo’s Managing Director for EMEA, said: “There’s a real opportunity for advertisers to drive significant performance gains in both paid search and social advertising through harnessing new ad types such as Instagram. Marketers are showing an increasing appetite for more direct response product-focused advertising, with PLAs and Dynamic Product Ads now a key part of a strong digital marketing strategy, along with app promotion.”
Clicks from paid social ads in the first quarter increased by 54% compared to a year ago, with clicks from mobile (phones + tablets) jumping 92%. Mobile ads now account for 71% of all social clicks, 63% of spend and 46% of impressions.
Mobile App Install ads are becoming increasingly important in social, accounting for 25% of all spend (up from 20% a year ago) and 17% of clicks. For mobile app advertisers, Instagram generated 14% of total impressions and 17% of clicks in Q1 2016.
In paid search, total clicks were up 36% YoY, with impressions up 31%. Here, 29% of all spend and 40% of clicks are coming from smartphones. Mobile (phones + tablet) accounts for 52% of all clicks and 42% of spend. Desktop keywords, which are often overlooked amid the focus on mobile and product ads, grew 5% YoY in terms of both clicks and spend.
The Kenshoo Digital Marketing Snapshot: Q1 2016 infographic can be viewed at https://kenshoo.com/digital-marketing-snapshot/
Search and social 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, Yahoo!, Yahoo! Japan and the Facebook® Audience Network. Some outliers have been excluded. The resulting sample includes more than 500 billion impressions, 10 billion clicks and $5.5 billion (USD) in advertiser spend.
Kenshoo is the global leader in agile marketing. Brands, agencies and developers use the Kenshoo Infinity Suite to direct nearly £220 billion in annualised 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 Accor, GroupM, Havas Media, John Lewis, and Tesco. 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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