Global Digital Advertising Report - CMO.com - Adobe

Global Digital Advertising Report Adobe Digital Index Q3 2014

20% YoY

Table of contents Digital advertising continues to expand each year. Understanding the trends within search and social helps advertisers make educated decisions. Search

Social

Appendix

3 Key insights

13 Facebook posts by impression type

17 Predictions

4 Overall search spend by currency

14 Growth of Facebook posts

18 Methodology

5 Search engine spend by currency

15 Share of browser-referred visits

19 Tables

6 Search engine average share of spend

16 Revenue per visit (RPV) from browser-referred traffic

7 Search spend growth by industry 8 CTR growth by country and search engine 9 CTR growth by industry 10 CPC growth by country and search engine 11 CPC growth by industry 12 Google Shopping ad share of spend and spend growth

ADOBE DIGITAL INDEX | Global Digital Advertising Report Q3 2014

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Key insights Google’s search ad business performed well. Ad costs remained stable. • •

Global search spend up 22% year over year (YOY). Google’s share of search spend down 1% YOY from 71% to 70%. Google click-through rates (CTR) grew 14% YOY. Google cost per click (CPC) up 4% YOY.

Google Shopping ads outperformed search engine marketing (SEM) spend. •

Google shopping ad spend growth up 35% YOY.

Facebook is becoming a pay-to-play for brands. • •

Changes to Facebook’s algorithm: 50% decrease in organic post impressions; 5% increase in paid impressions. Media companies had largest growth in Facebook postings, up 100% YOY. Retail had largest increase in post interactions, up 13% YOY.

Google remains the dominant source of web traffic referrals. •

More than 25% of all browser visits to websites referred from Google.

•

Bing is driving higher revenue per visit (RPV) traffic than Google and Facebook.


3

SEARCH

Overall search spend by currency The amount of money allocated to search advertisement campaigns is steadily increasing, up 22% globally YOY.

Europe realized a 32% YoY boost in overall SEM spending.

The findings: •  Search advertisement spending in U.S. dollars grew 4% YOY underperforming global spending growth by 17%.

INDEX 100%

132%

122%

•  Europe realized a significant boost in overall SEM spending, up 32% YOY. Great Britain was up 8% over the same time period.

108%

104%

SEM ad spending varies across different markets. To properly allocate resources, marketing directors need to keep up with changes in SEM ad spend; otherwise, they run the risk of missing budget targets. GLOBAL

Q3 2013

E UR

US D

UK

Q3 2014

OVERALL INDEXED AVERAGE SEM SPEND GROWTH BY CURRENCY


4

SEARCH

Search engine spend by currency Overall worldwide SEM ad spend on Google rose 13% YOY, while overall spend on Yahoo! Bing grew 39% during the same time period.

Yahoo! Bing realized a 46% YoY boost in Europe.

Worldwide SEM ad spend on Google rose 13% YoY, while Yahoo! Bing grew 39% YoY.

The findings:

146% INDEX 100%

•  Yahoo! Bing realized a strong YOY uptick in search ad spending, up 46% in Europe and 39% globally. •  Global SEM ad spending on Google was up 13%, while U.S. dollar Google ad spending was near flat YOY, up 3%.

32% YoY INDEX 100%

SEM ad spend is moving to different platforms. Marketers need to make sure they are diversified across search engines.

USD

Q3 2013

100%

EUR UR

USD

Q3 2013

132% 103%

128%

EUR

139%

UK

Q3 2014

INDEXED AVERAGE YAHOO! BING SEM SPEND GROWTH BY CURRENCY

UK

Q3 2014

INDEXED AVERAGE GOOGLE SEM SPEND GROWTH BY CURRENCY


5

SEARCH

Search engine average share of spend Google remains dominant in commanding a majority of SEM spend with 70% share in the most recent quarter. Although Yahoo! Bing is slowly starting to chip away at that dominance. The findings: •  Google remains dominant in Europe and Great Britain, controlling 89% and 90% market share, respectively, in the most recent quarter.

Google controls 90% market share in Great Britain in the most recent quarter.

USD

EUR

UK

Q3 AVERAGE SHARE OF SPEND BY SEARCH ENGINE GOOGLE YAHOO! BING

Google’s share of search spend down is 1% from 71% in Q3 2013 to 70% in Q3 2014.

•  Yahoo! Bing grew global share of SEM ad spending by 3% over the past year. In Europe, the Yahoo! Bing joint venture has not gained as much share as it has in the United States. Knowing where the competition is heating up allows marketers to seek “blue ocean” opportunities in these less competitive markets. Q3 2013

Q4

Q1 2014

Q2

Q3

GLOBAL SHARE OF SEARCH SPEND BY QUARTER GOOGLE YAHOO! BING


6

SEARCH

Search spend growth by industry In the past year, search ad spending grew in the auto and retail industry, while the financial industry realized a slight decline.

Auto up 30% YoY

The findings: •  Search ad spending in the auto industry grew 30% YOY. •  During that same period, search ad spending in the financial industry declined by 9%. A record number of auto sales in 2014 is infusing the automotive industry with money to spend on advertising.

INDEX 100%

Q3 2013

Q4

Q1 2014

Q2

Q3

INDEXED AVERAGE OVERALL SPEND GROWTH BY INDUSTRY AUTO FINANCE RETAIL


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SEARCH

CTR growth by country and search engine CTRs are increasing globally, up 18% YOY. 20% YoY

The findings: •  Great Britain saw the highest increase in CTR, up 20% YOY. •  Google CTRs are making a move in 2014, up 14% over the past two quarters. Meanwhile, Yahoo! Bing CTRs spiked in Q4 2013, but have remained relatively flat since then. Marketing campaigns are becoming more effective as SEM ads become more targeted. Seeking platforms or regions with higher CTRs can help captivate larger audiences.

INDEX 100% Q3 2013

Q4

Q1 2014

Q2

Q3

INDEXED AVERAGE OVERALL CTR GROWTH BY COUNTRY

Google CTR are up 14% over the past two quarters.

UNITED STATES GREAT BRITAIN JAPAN

INDEX 100% Q3 2013

Q4

Q1 2014

Q2

Q3

INDEXED AVERAGE CTR GROWTH BY SEARCH ENGINE GOOGLE YAHOO! BING


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SEARCH

CTR growth by industry CTRs are up across several industries YOY, increasing as much as 39% in the financial industry. The findings:

Finance up 39% YoY

•  The auto and finance industries saw the highest increase in CTR YOY, up 29% and 39%, respectively. •  The heavily competitive retail industry saw a 12% increase in CTR YOY. As we move into the holiday season, we expect the travel and retail SEM space to become very competitive. Marketers in these industries need to seize every opportunity to get their message across or risk losing important revenue to competitors.

Auto up 29% YoY INDEX 100%

Q3 2013

Q4

Q1 2014

Q2

Q3

INDEXED AVERAGE OVERALL CTR GROWTH BY INDUSTRY AUTO FINANCE RETAIL TRAVEL


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SEARCH

CPC growth by country and search engine CPC rates are slowly increasing, up 4% YOY globally. 14% YoY

The findings: • CPC is up 14% YOY in Japan, while CTR is up only 12% during the same time period. • CPC on Google is up 5% YOY, while CPC on Yahoo! Bing is up 12% during the same time period.

INDEX 100% Q3 2013

Q4

Q1 2014

Q2

Q3

INDEXED AVERAGE OVERALL CPC GROWTH BY COUNTRY UNITED STATES GREAT BRITAIN JAPAN

Although CPCs are expected to rise in Q4 2014, marketers can use tools like bidding algorithms to keep costs low and still drive engagement.

CPC on Google is up 5% YoY, and on Yahoo! Bing it's up 12%.

INDEX 100% Q3 2013

Q4

Q1 2014

Q2

Q3

INDEXED AVERAGE CPC GROWTH BY SEARCH ENGINE GOOGLE YAHOO! BING


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SEARCH

CPC growth by industry Coming into the holiday season, we are seeing CPC ramping up in the retail and travel industries. The findings: •  CPC in the retail industry is up 7% YOY. •  CPC is down 3% YOY in the auto industry. CPC growth is lagging CTR grow in all industries, indicating that marketers are getting a bigger bang for their buck with their SEM campaigns.

Retail up 7% YoY

Auto down 3% YoY INDEX 100%

Finance

Q1 2014 Q3 2013

Travel

Q1 2014 Q3 2014

Q3 2013

Q1 2014 Q3 2014

Q3 2013

Q1 2014 Q3 2014

Q3 2013

Q3 2014

INDEXED AVERAGE OVERALL CPC GROWTH BY INDUSTRY


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SEARCH

Google Shopping ad share of spend and spend growth Spend on Google Shopping ads, formally known as Google Product Listing Ads, is outperforming other SEM ad spend, up 35% YOY.

Google Shopping ad spend is outperforming other SEM ad spend. Up 35% YoY.

The findings: •  Holidays in the winter and spring months are seeing a bump in shopping ad spend. Marketers need to diversify the types of ads they are using and incorporate ads that are more visual. INDEX 100% NOV 2013 SEPT 2013

JAN 2014

MAR 2014

MAY 2014

JUL 2014 SEPT 2014

INDEXED AVERAGE GOOGLE SHOPPING AD SPEND GROWTH


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SOCIAL

Facebook posts by impression type Changes from Facebook to limit posts have led marketers to increase paid impression spend. The findings: •  Facebook paid impressions are up 5% YOY. •  Facebook organic impressions are down 50% YOY.

5% YoY

100%

50% YoY

Marketers should keep an eye on how much organic post impressions have been affected over the past year and look to boost visibility with paid impressions.

NOV 2013

JAN 2014

MAR 2014

MAY 2014

JUL 2014

SEPT 2013

SEPT 2014

FACEBOOK AVERAGE POST IMPRESSION GROWTH BY TYPE AVERAGE PAID IMPRESSIONS AVERAGE ORGANIC IMPRESSIONS


13

SOCIAL

Growth of Facebook posts Posts on Facebook have increased across several industries, and post interactions are up for both financial and retail companies.

Retail up 13% YoY 4%

2%

The findings: •  The media and entertainment industry had the biggest increase in the number of Facebook posts, up 100% YOY.

RETAIL

MEDIA

FINANCIAL

TECH

TRAVEL

FACEBOOK POST INTERACTION RATE BY INDUSTRY

•  The retail industry had the largest increase in post interactions (comments, likes, shares, and other interactions), up 13% YOY. A decrease in organic impressions has led to an increase in posts as marketers look to find a balance between paid and organic posts to reach their fans.

Media up 100% YoY

100%

NOV 2013 SEPT 2013

JAN 2014

MAR 2014

MAY 2014

JUL 2014

FACEBOOK POST GROWTH BY INDUSTRY

SEPT 2014

RETAIL MEDIA FINANCIAL TRAVEL


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SOCIAL

Share of browser-referred visits LINKEDIN

REDDIT

PINTEREST

BLOGGER

STUMBLEUPON

•  Retail referred visits from Facebook are down 3% YOY.

YOUTUBE

The findings:

TUMBLR

TWITTER

FACEBOOK

Search leads in terms of traffic, but some social networks are creating surprising traffic in certain industries.

PERCENT OF BROWSER SOCIAL-REFERRED VISITS TO RETAIL

•  Retail referred visits from Twitter are up 52% YOY. •  In the United States, Google referred over 25% of all browser visits to websites in Q3. •  Facebook refers three times more visits to media sites than Yahoo! Bing. Understanding where traffic growth currently exists and where it is growing can help with creating the right marketing mix.

Facebook refers 3x more visits to media sites than Yahoo! Bing. 20%

52% YoY 10%

GOOGLE

YAHOO! BING

F ACEBOOK

T WITTER

OTHER SOCIAL

PERCENT OF TOTAL BROWSER-REFERRED VISITS BY INDUSTRY (Q3 2014)

MEDIA AND ENTERTAINMENT RETAIL OVERALL U.S. TRAFFIC


15

SOCIAL

Revenue per visit (RPV) from browser-referred traffic Search still produces a higher percentage of traffic and RPV from browser-referred traffic, but some social networks are close behind. The findings:

Highest referred RPV

•  Yahoo! Bing produces the highest referred RPV to retail sites from search and social browser-referred traffic. •  Browser-referred RPV to retail from Facebook, Tumblr, Twitter, and Pinterest all grew faster YOY than both Yahoo! Bing and Google. $2

With retail browser-referred visits, each network provides its own value to getting traffic to your site. Optimizing the traffic of each ensures the best results in busy Q4.

$1

FACEBOOK

PINTEREST

T WITTER

TUMBLR

GOOGLE

YAHOO! BING

RPV TO RETAIL FROM BROWSER REFERRERS


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ADOBE DIGITAL INDEX

Predictions • 

SEM spend will grow 20%-25% over the next year.

• 

Trends show that macroeconomic data, like weather, and unemployment, will be the next major factor for maximizing conversion rates.

• 

Mobile traffic continues to increase, and 40% of all paid search traffic will come from smartphones in a year.

• 

Google Shopping ads will grow from 15% to 25% in a year.

• 

Facebook paid impressions for retail will increase 10%-20% during Q4.


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ADOBE DIGITAL INDEX

Methodology This report is based on consumer data to brand sites during 2013 and 2014. It consists of aggregated and anonymous data from visits to websites in multiple industries and segments, captured from Adobe Social, Adobe Analytics, and Adobe Media Optimizer. Sample information includes: •  400+ billion non-app, browser referred visits •  300+ billion Facebook post impressions •  1.05+ billion search ad impressions Visit our website: adobe.ly/digitalindex Read our blog: adobe.ly/digitalindex Follow us: @adobeindex Ask a question or make a suggestion: [email protected]

ADOBE DIGITAL INDEX | U.S. Digital Video Benchmark Q1 2014

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ADOBE DIGITAL INDEX

Tables Overall Indexed Average Spend Growth by Currency Q3 2013 Q4 2013 Q1 2014 Q2 2014 GLOBAL 100% 114% 111% 116% USD 100% 103% 96% 99% EUR 100% 115% 114% 127% GBP 100% 115% 97% 118% Indexed Average Google Spend Growth by Currency Q3 2013 Q4 2013 Q1 2014 Q2 2014 USD 100% 104% 98% 97% EUR 100% 117% 116% 125% GBP 100% 119% 90% 106%

Q3 2014 122% 104% 131% 108% Q3 2014 103% 132% 100%

Indexed Average Yahoo! Bing Spend Growth by Currency Q3 2013 Q4 2013 Q1 2014 Q2 2014 USD 100% 105% 124% 133% EUR 100% 103% 110% 144% GBP 100% 109% 120% 142%

Q3 2014 128% 146% 139%

Average Share of Search Engine Spend by Quarter Q3 2013 Q4 2013 Q1 2014 Q2 2014 71% 70% 72% 71% Google 29% 30% 28% 29% Yahoo! Bing

Q3 2014 70% 30%

Indexed Average Google Shopping Ad Spend Growth (Total PLA Spend) 9/1/2013 10/1/2013 11/1/2013 !2/1/2013 1/1/2014 2/1/2014 3/1/2014 100% 116% 135% 134% 115% 116% 121% Q3 Average Share of Spend by Search Engine USD EUR Google 68.1% 88.7% Yahoo! Bing 31.9% 11.3% ADOBE DIGITAL INDEX | U.S. Digital Video Benchmark Q1 2014

Indexed Quarterly Cost Growth by Industry Q3 2013 Q4 2013 Q1 2014 Auto 100% 92% 131% Finance 100% 80% 97% Retail 100% 115% 111%

Q2 2014 136% 89% 113%

Q3 2014 130% 91% 117%

Indexed Average CTR Growth by Country Q3 2013 Q4 2013 Q1 2014 United States 100% 99% 107% Great Britain 100% 97% 103% Japan 100% 107% 107%

Q2 2014 117% 111% 111%

Q3 2014 118% 120% 112%

Indexed Average CTR Growth by Search Engine Q3 2013 Q4 2013 Q1 2014 Q2 2014 Google 100% 100% 101% 111% Yahoo! Bing 100% 108% 109% 107%

Q3 2014 114% 108%

Indexed Average CTR Growth by Industry Q3 2013 Q4 2013 Q1 2014 Auto 100% 111% 112% Finance 100% 112% 124% Retail 100% 107% 99% Travel 100% 101% 90%

Q3 2014 129% 139% 105% 126%

4/1/2014 122%

5/1/2014 135%

6/1/2014 131%

Q2 2014 140% 140% 103% 117%

7/1/2014 8/1/2014 9/1/2014 122% 132% 135%

Indexed Average CPC Growth by Country Q3 2013 Q4 2013 Q1 2014 United States 100% 106% 101% Great Britain 100% 99% 107% Japan 100% 102% 106%

Q2 2014 103% 105% 108%

Q3 2014 101% 104% 114%

Indexed Average CPC Growth by Search Engine Q3 2013 Q4 2013 Q1 2014 Q2 2014 Google 100% 104% 100% 105% Yahoo! Bing 100% 107% 110% 114%

Q3 2014 104% 112%

Indexed Average CTR Growth by Industry Q3 2013 Q4 2013 Q1 2014 Auto 100% 104% 104% 100% 131% 129% Entertainment Finance 100% 102% 100% Retail 100% 104% 98% Travel 100% 102% 106%

Q3 2014 97% 97% 98% 107.0% 106.0%

Q2 2014 101% 113% 100% 107% 108%

Facebook Post Engagement Rate by Industry Q3 2013 Q3 2014 Retail 3.70% 4.18% 113% Media 2.87% 2.42% 84% Finance 2.36% 2.37% 100% Tech 3.13% 2.89% 92% Travel 3.51% 3.49% 99%

GBP 89.8% 10.2%

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ADOBE DIGITAL INDEX

Tables Facebook average post impression growth by type 9/1/2013 10/1/2013 Average Paid Impressions 100% 146% Average Organic Impressions 100% 88%

11/1/2013 145% 86%

12/1/2013 141% 68%

1/1/2014 115% 71%

2/1/2014 121% 70%

3/1/2014 138% 69%

4/1/2014 135% 67%

5/1/2014 136% 70%

6/1/2014 96% 53%

7/1/2014 90% 57%

8/1/2014 108% 58%

9/1/2014 105% 50%

Facebook average post impression growth by type 9/1/2013 10/1/2013 Average Paid Impressions 88% 128% Average Organic Impressions 143% 126%

11/1/2013 107% 123%

12/1/2013 124% 97%

1/1/2014 101% 102%

2/1/2014 106% 100%

3/1/2014 121% 99%

4/1/2014 136% 96%

5/1/2014 120% 100%

6/1/2014 84% 76%

7/1/2014 79% 82%

8/1/2014 95% 83%

9/1/2014 92% 78%

Facebook average post growth by industry 9/1/2013 Average Posts 100% Average of Average Posts 0.8874

10/1/2013 106% 0.9407

11/1/2013 101% 0.8984

12/1/2013 99% 0.8830

1/1/2014 115% 0.8113

2/1/2014 110% 0.8646

3/1/2014 106% 0.9390

4/1/2014 107% 0.9485

5/1/2014 120% 1.0643

6/1/2014 132% 1.1752

7/1/2014 143% 1.2663

8/1/2014 155% 1.3799

9/1/2014 163% 1.45

Facebook average post growth by industry 9/1/2013 Retail 100% Media 100% Finance 100% Travel 100%

10/1/2013 113% 109% 93% 126%

11/1/2013 96% 112% 101% 105%

12/1/2013 94% 112% 109% 111%

1/1/2014 87% 107% 86% 106%

2/1/2014 84% 131% 89% 104%

3/1/2014 103% 140% 105% 110%

4/1/2014 94% 153% 104% 109%

5/1/2014 120% 163% 119% 114%

6/1/2014 141% 174% 116% 115%

7/1/2014 145% 175% 119% 134%

8/1/2014 159% 189% 135% 125%

9/1/2014 143% 200% 143% 137%

Facebook average post growth by industry 9/1/2013 Retail 0.9192 Media 0.6983 Tech 0.9313 Finance 0.9211 Travel 0.8735

10/1/2013 1.0367 0.7637 0.8662 1.0708 1.0972

11/1/2013 0.8832 0.7844 0.9399 0.9324 0.9186

12/1/2013 0.8603 0.7856 1.0139 0.9088 0.9738

1/1/2014 0.8042 0.7485 0.7997 0.7207 0.9221

2/1/2014 0.7725 0.9181 0.8261 0.9618 0.9112

3/1/2014 0.9438 0.9789 0.9768 0.8905 0.9575

4/1/2014 0.8656 1.0653 0.9700 0.9571 0.9519

5/1/2014 1.1049 1.1369 1.1069 1.0253 0.9943

6/1/2014 1.2926 1.2160 1.0822 1.0146 1.0028

7/1/2014 1.3321 1.2213 1.1068 1.5659 1.1712

8/1/2014 1.4592 1.6872 1.2576 1.5744 1.0901

9/1/2014 1.3114 1.69 1.33 1.59 1.2

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ADOBE DIGITAL INDEX | U.S. Digital Video Benchmark Q1 2014

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