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IgnitionOne’s Q3 2015 Report: Facebook Clobbers Google in Display Growth, Yahoo Gemini Brings Big Changes

IgnitionOne’s latest report for Q3 2015 reveals trends in digital advertising metrics, marking the fourth straight quarter of growth in paid search spend in the U.S. Facebook, meanwhile, continues to outpace Google in display growth.

Key findings in the report include:

  • Search spend growth continues – U.S. paid search spend grew 12% YoY in Q3, with click-through rate (CTR) and cost-per-click (CPC) increases pointing to more expensive but efficient ads. Sophistication in mobile advertising may be a driving factor in the spend increase.
  • Mobile search sees slower growth – Shifts in user behavior from tablets/desktop to mobile phones continued to lead to an increase in mobile search spend of 56% YoY. Tablets, similar to desktops, were relatively flat. This is due to the similar ways they’re now managed by users, as well as increased sophistication and interest in mobile traffic. This resulted in 64% of mobile spend share devoted to phones and 36% share going to tablets.
  • Yahoo Gemini brings change – The addition to the marketplace of Yahoo Gemini gives Yahoo the ability sell its own Mobile and Native ads into its own search results while giving it more control. This has implications to the data tracked in this report and tactics for marketers as it increases fragmentation and bifurcation in the market.
  • Facebook outpaces Google as ad costs rise – Facebook continues to grow in spend, up 40% while Google display spend dropped 19%. The cost of Facebook ads also continued to climb, with eCPMs up 33% compared to last year.
  • Programmatic display indicates shift to remarketing – When looking at display tactics in Q3, we see a slight shift toward remarketing ads (targeting ads to users who have visited a site before) when compared to last quarter, coming in at 53% of spend. This is a brief stabilization and a 50:50 mix of remarketing versus prospecting (look-a-like, contextual, custom targeting and reach).

This is the longest continuously running quarterly report on digital marketing trends and is the latest in a series from IgnitionOne, reviewing trends across the online advertising landscape.

Download the full report

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