Marketing technology firm Kenshoo has just released some new research that highlights the growth in social ad investment driven by mobile product ads. Spend on social ads grew 47% from last year during Q2 2016. Social ads attracted a 21% higher CPC thanks to high demand and value. Mobile accounted for 64% of social spending with Dynamic Products Ads on Facebook and Instagram as core formats alongside video.
Social versus search spend on smartphones and tablets
Mobile search ad and Product Listing Ad budgets climbed 63% and 71% respectively, with overall search ad spend rising 10% year-on-year. This shows a clear trend of paid search having evolved beyond desktop to reach mobile.
Having analysed 550bn impressions, 11bn clicks and $6bn in ad spending through Kenshoo’s Infinity Suite, the study also revealed that consumers are more likely to click on social ads. Click-through rates were up 17% and rising by 21% since Q2 2015 on social media.
Mobile is a key part of this with more than three out of four clicks (77%) and 49% of impressions from paid social ads coming from mobile devices.
Product ads including Dynamic Ads for Products on Facebook now make up 19% of paid social spending across eCommerce and online retail sites. Video ads are also driving growth with 19% of all spending and impressions on paid social.
Search advertising highlights
Within paid search, 41% of clicks and 30% of spend came from smartphones during the second quarter this year. CPC of search ads across all devices was significantly higher during the quarter than in Q1.
41% of clicks coming from smartphones for paid search ads
Rob Coyne, Managing Director for EMEA, Kenshoo, said:
“The study brings to light how both social and search are advancing, with a greater variety of ad types designed to help marketers’ meet specific goals all contributing to double-digit growth in spend on both channels. In social, marketers are benefiting from Dynamic Ads for retail – now also available for travel – and making increasing use of video. While in search, the majority of clicks are coming from sources other than the original desktop-focused keyword ad, with increasing use of PLAs, app ads, dynamic search ads and others. Across both channels, all of these changes are underpinned by the unstoppable march towards more mobile advertising.”