Three out of four dollars spent on shopping campaign impressions are now on mobile devices, with mobile shopping campaign spend up 52% compared to 2018 and 87% during Q4 2018. That’s according to Kenshoo’s latest Quarterly Trends Report.
The latest findings highlight that social grew 31%, whilst search grew 14% year-on-year and eCommerce ads grew five times.
The success of mobile for shopping ads was partially driven by the fact that shoppers are able to look for items anywhere and at any time.
Meanwhile, mobile accounted for over 50% of search ad spend with Kenshoo advertisers spending even more (58%) on mobile search.
When it comes to social media ad spend, Instagram was up 120% year-on-year for Q4 2018. Stories Ads now drives 10% of the company’s ad expenditure. Kenshoo noted that 37% of Instagram ad spend is now coming from advertisers with at least 40% of their total Facebook spend on Instagram, up from 25% in 2018.
“For every dollar spent on Instagram by a new advertiser in 2018, existing advertisers increased spending by $4.00, meaning the majority of Instagram spending growth to date has come from advertisers who have been on Instagram for at least five quarters. There’s been a lot of chatter that the growth in Instagram advertising has come at the expense of Facebook, but Kenshoo advertisers still value both properties,” said Chris Costello, senior director of marketing research for Kenshoo.
“What we do see is advertisers taking advantage of targeted ad types and audiences across the Facebook ecosystem that may achieve their goals with less incremental investment, and the net result is ad revenue growth rates that largely reflect market expectations.”
However, Kenshoo cautions that Instagram is still a fairly new ad channel which means that advertisers are still testing the platform and adjusting their budgets accordingly.