Kenshoo, the agile marketing company, just released findings that highlight a shift towards an increase in social advertising spending. The Kenshoo Digital Marketing Snapshot: Q4 2015 found that social ad spend had increased 50% in 2015 from 2014, largely driven by Facebook Dynamic Product Ads as well as Instagram’s ad offers. Google Product Listing Ads made up 26% of all paid search impressions. Mobile was a key driver of growth, accounting for almost all of the 8% rise in spending on paid search.
Chris Costello, Director of marketing research, Kenshoo, says:
“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. 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.”
Among the key findings in the research, Kenshoo found that social advertising click-through rates also increased 64% the year over. Facebook and Instagram in particular were responsible for the push in social spend. Search click-through rates increased 17% driven by mobile.
David Gong, Director of Strategic Accounts at advertising agency PMG, adds:
“Competition really ramps up in the fourth quarter among advertisers, especially retailers .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.”
Kenshoo Search and Social Infographic