Mobile advertising accounted for 88% of social media expenditure and 54% of search spending in the third quarter of 2019, according to Kenshoo’s latest report.
The findings are based on the digital performance company’s own ad pool and data from 3,000 advertisers across 40 industries and 150 countries, creating a final sample of 500 billion impressions and 13 billion clicks that represent $5.5 billion in ad spend.
In Q3 2019, social ad spend rose 32% compared to the previous year, driven by video and product ads. Impressions grew faster than ad spend, which shows that advertisers are still increasing their social ad investment. Social ad clicks were up 26% quarter-on-quarter.
Spending on Instagram Feed ads has remained flat, whilst Stories ads now make up 20% of total Instagram ad spend (up from 11% in Q3 2018).
Social video ads rose 45% year-on-year and 7% quarter-on-quarter, representing 42% of total social ad spend.
Social is not only popular among brands, but also more heavily used by retailers now. The benefit of social channels is that they continue to innovate their ad products to find new and improved ways to allow marketers to engage with audiences and targeted audiences more precisely.
“As has traditionally been the case, Q3 served as the quiet before the holiday storm for social, paid search and ecommerce advertisers,” said Chris Costello, senior director of marketing research for Kenshoo.
“That said, all three grew year-over-year as advertisers laid the foundation for the heavy Q4 push. Instagram, video and product ads remained the social darlings, serving as key drivers for growth in the channel, while shopping campaigns and mobile keywords once again drove paid search growth. For eCommerce advertisers, one big, two-day sale in July drove overall spending for the month to levels just shy of last November, which sets the table for another new high going into the holidays.”
Product ads are still critical for eCommerce advertisers, accounting for 39% of Q3 search spending and 37% of social spending.
Advertisers are clearly shifting their budgets between objectives. For example, those who spent less on direct response, ended up boosting their spend on Instagram ads. Those who spent no money on direct response ads, spent up to 20% of their budgets on instagram ads.
Other platforms that are seeing increasing interest from advertisers include Pinterest which saw a 30% hike in investment.