Mobile drives paid search ad spend on Google

merkle

Merkle, the data performance marketing firm, just released its new 2016 Digital Marketing Report which takes a closer look at Google search ads, Yahoo Gemini and Bing advertising as well as Facebook’s performance.

Overall, Google paid search ad spend rose 25% the year over during Q1 2016, with clicks increasing by 33% and CPC falling 6%. Much of this growth is being attributed to mobile growth. During Q3 2015, more Google ads were showing at the top of phone results, doubling mobile click growth.

Google US paid search

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Source: merkleinc.com

Google shopping ads (PLA) performed particularly well on phones with ad spend up 193% and clicks 162%. CPC was also up 12% for mobile PLAs.

Google PLA perform strongly on mobile

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Source: merkleinc.com

Search ad spend fell across Yahoo’s Gemini and Bing Ads platforms possibly due to the potential sale of its business. Ad spend was down 10% the year over, with clicks falling 14% and CPCs rising 4%.

Organic search visits dropped 7% year-on-year due to increased monetisation of mobile results to push more traffic to paid listings. During Q1 2016, organic phone visits fell 1%. Tablet visits have been steadily declining over the last 12 months, which points towards consumers opting for larger screens on smartphones instead.

Phone organic search visit growth in decline

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Source: merkleinc.com

Search ad clicks on phones grew to 39% during Q1 2016, up from 33% during Q4 2015.

Phones produced 39% of search ad clicks

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Source: merkleinc.com

Facebook ad spend grew 38% year-on-year, a decline of 44% from the previous quarter. The average CPC was 21% lower.

Facebook ad performance

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Source: merkleinc.com