IgnitionOne’s new report covering trends across digital marketing reveals growth for Q2 2015. Despite gains made by Yahoo!/Bing in previous quarters, Google reclaimed paid search market share it only recently lost. However in programmatic display, Google lost ground to Facebook, decreasing -9% year over year in spend compared to Facebook’s 48% surge.
Key findings in the report include:
Strong search spend growth continues – U.S. paid search spend grew 22% year-over-year in Q2, the third quarter in a row of strong growth. Competitive pressures and mobile search growth is driving this spend increase.
Mobile search growth continues to normalize – U.S. spending growth for tablets is up 22% and phones spend is up 71% YoY. Smartphones have seen the greatest growth and represent the majority of mobile spend this quarter with 59% of spend compared to tablets.
Yahoo!/Bing give back market share – After three quarters of growth, the Yahoo!/Bing network lost U.S. search market share in Q2, returning to 24.5% of share compared to Google’s 75.5% of U.S. paid search spend.
Facebook takes display share from Google – Facebook outpaced Google in display growth with FBX growing 48% in spend, while Google dropped -9% YoY. Facebook’s share of display spend grew to 16% (up from 10% a year ago). Google’s share dropped to 31%, down from 38% last year.
Programmatic display grows – U.S. display spend was up 33% when compared with same clients measured in Q2 2014, continuing the growth trend from past two quarters. The decrease in impressions that we have seen in past quarters due to Facebook changes, has tapered off resulting in a total drop of only 1%.
IgnitionOne just released its highly anticipated Quarterly Report. IgnitionOne’s quarterly report is the longest continuously running quarterly report on Digital Marketing trends. IgnitionOne had some extremely interesting key findings in their report. Search advertising spend is up 9% since last year. Google regained engine market share increasing their share to 79%. On the basis of the report, Roger Barnette says, “our clients closely track ROI and will follow results when deciding where to spend their next dollar.”
Just in case anyone had doubts, mobile commerce is here to stay. New research conducted by Australian Communications and Media Authority shows that mobile commerce has grown by 448% since 2010. As a matter of fact, the report shows that Australian consumers would rather shop from their mobile device. This growth of mobile commerce can be attributed to the increased ownership of smartphones worldwide. Smartphone ownership has increased 8% since May 2013. Mobile commerce is still growing and show no signs of slowing down.
Facebook has once again changed the way they track their customers. Facebook has now decided to track what users do outside of their site. This can be viewed as a huge breach in the users privacy. However, facebook claims they are doing this in order to provide more relevant advertisements to their users. Jeff Chester, executive director of the Center for Digital Democracy, explains that “Facebook is going to use multiple ways to track their users and sell them to their advertisers.”
The infographics in the article show the future of digital marketing and the trends of the industry over the past years. According to the article, “within the next 5 years, digital will account for 75% of the Marketing budget.” Email and mobile both have grown greatly in channel effectiveness since 2012. Many executives say the biggest problem with switching to digital, is “managing the change.” However, it has been proven that digital is effective, so managing the change should be worth it.
Which social media platform are advertisers spending most of their time and money on for the future? The answer is Twitter. The largest goal for marketers, when polled, was bringing “awareness and sentiment” for their brands. Facebook was by far the most dominant social media platform, where 83%, up from 70% of advertisers are now paying for ads on Facebook. However, for a future outlook, advertisers are looking at Twitter as their favored way of promotion. Youtube came behind Twitter and Facebook, falling fourth as the best ad platform for ROI.
Twitter is now growing to expand its mobile app promotion ads worldwide. The ads ultimately redirect users to download new apps or open their existing apps already downloaded on their smartphone. There is no doubt that Twitter has incredible targeting capabilities. Twitter also offers conversion tracking capabilities for its advertisers, allowing marketers to measure the impact of their campaigns. According to BIA/Kelsey, most of the credit for the success goes to Facebook’s News Feed ads and Twitter’s Promoted Tweets.
9% more was spent by U.S. Marketers this year in paid-search ads. Mobile and tablet devices made up for 27% of total search spend. Running campaigns on smartphones alone rose 173%. The article mentions IgnitionOne’s study on the move away from advertising on search partner sites. “The difference in efficiency on Google is likely due to how quality score is calculated separately for their partner sites,” per the study.
IgnitionOne is mentioned on its Q2 2014 marketing report, contributing to large improvements in innovation in paid search technology. The article also mentions different growth engines, such as Google and Facebook’s remarketing platform, Facebook Exchange. It takes note on how much mobile and tablet devices are growing in the market. Smartphone spending amazingly grew by 173%.
IgnitionOne’s new report covering trends across digital marketing reveals positive growth for digital marketing. Product listing ads (PLAs) represented a significant area of growth in the final quarter of the year coinciding with the holiday shopping season.
2013 ends with a strong Q4 for search – Ending with a robust holiday shopping season, US search saw advertising spend up 12% YoY in Q4.
Tablet growth normalizes while smartphones soar– Spending growth YoY for tablets is up 82% while smartphones spend is up 253%. The normalization for tablets is likely due to Enhanced Campaigns limiting targeting for the device type, which many advertisers had already been invested heavily in Q4 2012.
Yahoo! Bing Network holds on to share – The Yahoo! Bing Network held its ground in Q4, with 22.7% of spend vs. Google’s 77.3%, just a hair up from last quarter’s 22.6%.
Product Listing Ads (PLAs) grow in prominence – For US advertisers who leverage PLAs Q4 impressions for the ad product grew by 380%, clicks grew by 312% and spend grew by 618% compared to Q4 2012. During Q4 for these advertisers, PLAs accounted for 10% of impressions, 13% of the clicks and 16% of the total spend. PLA growth significantly outpaced traditional search PPC ads.
IgnitionOne’s complete Report can be downloaded here.
This report is the latest in a series of IgnitionOne whitepapers reviewing trends across the online advertising landscape. Previous whitepapers and quarterly reports can be downloaded at bit.ly/ignitiononeresearch
Today, IgnitionOne released its third quarter report, covering trends across digital marketing. The report reveals that US paid search spend up 13%, continuing an upswing from the second quarter. In addition, mobile search spend in the US continued to grow at an impressive rate.
Other key findings include:
US search spend grows Year over Year (YoY) – Search spend in Q3 was up 13% when compared to Q3 2012. This is a continued acceleration over the YoY growth rate of last quarter. Total search spend decreased quarter-over-quarter (QoQ), which is expected due to seasonality.
Increases in mobile advertising continue – US Mobile devices increased at a rate that drove the overall growth of search, but for the first time in 2013 the YoY percentage growth increase dipped just below triple-digits with smartphones and tablets increasing 99.7% and 97.2%, respectively.
Google Enhanced Campaigns – Google Enhanced Campaigns had a noticeable effect on cost-per-click (CPC) for search advertising on tablets which were up 32% — more than double the increase for PCs. Enhanced Campaigns also are suspected to be responsible for the drop in click-through rates (CTR) for tablets compared to last year at this time, which were down 20%. This is due to desktop campaigns running on tablets, resulting in less targeted advertising.
Travel Invests in Programmatic Display – US programmatic display for the Travel vertical had strong increases in Q3 across metrics and out-performed Retail. Travel increased YoY spend by 90% with impressions and clicks up 79% and 105%, respectively.