Mobile, Social Ad Spend Drive Growth

It’s no secret that marketers are starting to put some serious money down on mobile marketing — eMarketer predicts that spending on mobile advertising could reach $40.24 billion in the U.S. in 2016.

Kenshoo’s latest Digital Marketing Snapshot gives a clearer sense of where that money is going and what kinds of ads are driving growth this year.

Social ad spending, driven by new ad formats like Facebook’s dynamic products ads and Instagram’s newly opened platform, increased 8% from fourth-quarter 2015 and 86% year-over-year (YoY). 

With massive increases in spend on mobile ads (77% YoY) and product ads (98%YoY), paid-search spending increased 13% YoY overall. Phones and tablets accounted for the majority of clicks on both paid search and social.

“Following a fourth quarter which demonstrated the value and performance of product-focused ad types in paid search and social during peak shopping season, marketers continued making good use of specialized ad types in Q1 to keep building momentum,” stated Chris Costello, senior director of marketing research for Kenshoo.

On the social side of things, impressions increased 6% YoY, clicks increased 54% YoY, and click-through rate (CTR) increased 45% YoY.

In paid search, impressions increased 31% YoY, clicks but increased 36% YoY, and CTR but increased 4% YoY. While paid search metrics outperformed the same quarter last year, they actually decreased from Q4, mostly due to the holiday season.

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