Mobile now makes up 51% of search ad spend

Paid search advertising increased 10% during the second quarter 2019, up 10% year-on-year, according to the latest Kenshoo Q2 2019 Quarterly Trends Report.

Clicks and impressions outgrew spending between Q2 2018 and 2019, whilst CPC was down 10% due to mobile and product ads which carry a lower cost.

Similarly, CTR dropped 14% due to low-priced mobile ads, but impressions jumped 41%.

In Q2 2019, mobile ad spend was responsible for 51% of search expenditure and 70% of impressions and clicks.

Chris Costello, senior director of marketing research for Kenshoo, explained that “the doubling of impressions for mobile search shopping campaigns compared to Q2 of last year shows how eCommerce marketers are using broad coverage to drive overall search growth.”

Ads within that space are usually more cost-effective, “but the important message is to appear in the search results across all of your products, so as not to miss any potential conversions.”

Meanwhile, social ad spend jumped 37% during the quarter as publishers drive more innovative ad offerings. Social impressions rose 24% whilst clicks dropped by 12%.

Expenditure on Instagram Stories grew 186% compared to Q2 2018. However, Instagram main feed performance slowed to 21%, below that of Facebook’s News Feed.

“Video, Instagram and an increasingly visual ad experience continue to impact direct engagement with social ads, driving both click volume and click-through rate lower over time,” Costello added.

Video ads continued to be a main driver for social ad spend (up 53% year-on-year). Despite the higher production costs involved, the format is a favourite among larger brands and advertisers as it offers higher engagement rates.

Pinterest was an emerging channel in Q2 2019 with the percentage of social advertisers utilising the platform via Kenshoo doubling (up 8%). Back in Q2 2018, 20% of Pinterest advertisers were non-eCommerce marketers. In Q2 2019, this has grown to 30% underlining the company’s efforts to diversify its advertising portfolio.

Overall, eCommerce channel ads in Q2 2019 approached Q4 2018 levels, suggesting that Q4 2019 could be even higher.

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