Amazon and eCommerce drive 40% rise in ad spend

Anne Freier

In Mobile Advertising. July 31, 2019

eCommerce is responsible for up to 40% in the rise in ad expenditure, according to a new study by digital marketing company Marin Software released on Tuesday.

The latest Q2 2019 Digital Advertising Benchmark Report shows that Amazon remains in the lead with its Sponsored Brand ads, that allow companies to showcase multiple products at once. Sponsored Brands grew 13% in sales and impressions compared to the previous quarter.

Shopping ads represented 37% of total search spend with Google Shopping a dominant source of traffic.

Meanwhile, 45% of Instagram ad spend was attributed to Stories as more advertisers embraced the format. Story Links and Highlights were major engagement drivers.

“Marketers are embracing newer features of well-known social media platforms, like Instagram Stories, to reach new potential customers and the effort is paying off,” said Wesley MacLaggan, SVP of Marketing at Marin Software.

“It will also come as no surprise that eCommerce continues to grow, and the breakout star this quarter was Amazon’s Sponsored Brand Ads, which allows brands to promote multiple products and drive customers directly to a product detail page on the Amazon Store. With a 13 percent QoQ growth in sales and impressions, marketers continue to find new value in the platform. As the lines between search, social, and eCommerce continue to blur, marketers embrace the freedom to try new ad formats, while also relying on tried-and-true platforms,” he added.

Adoption of lead ads on Facebook jumped an impressive 153% compared to the previous year.

Paid search click volume grew 13% year-on-year worldwide. Healthcare (+30%), technology (+25%) and retail (+24%) industries noted particularly impressive growth rates.

CPCs dropped from $0.75 to $0.72 between Q1 and Q2 2019 whilst click-through rates increased to 2.97% from 2.91% affording advertisers better engagement at lower interaction costs.