ADI - Adobe Digital Index & Branding & Communications Updates
Paid search growth momentum is slowing, according to
Adobe Digital Index’s (ADI) “Q4 2015 Digital Advertising Report.” Global
growth is down 75% year over year (YoY), which can be partially
attributed to advertisers’ new willingness to spend on mobile search.
n the fourth quarter of 2014, search engine marketing (SEM) saw a growth rate of 12% YoY. A year later (Q4 2015), that growth rate slipped to 3%. When breaking that down into North America vs. Europe, the largest declines took place in Europe—Q4 2014 SEM growth rate was 17%, while in Q4 2015 the European growth rate slipped to 5%.
Image Credits : cmo.com |
Mobile Search Wins
Advertisers are drawn to mobile because of the high content consumption levels on mobile devices, Tasker said. Also attractive is that mobile cost per click is less than desktop cost per click.According to ADI, mobile spend is now 37% of all SEM spend (up 23% YoY). The gap between consumer behavior and advertiser spend looks as if it is starting to shrink as well, since mobile browsing accounts for 41% of all site visits.
“The percentages are really close, which indicates to me that advertisers are becoming more aware of what consumers are doing, and they’re trying to align their marketing efforts accordingly,” Tasker said.
ADI’s analysis also found that smartphones are knocking it out of the park in terms of growth. Smartphones contributed most of the mobile growth in Q4 (up 51% YoY), while tablet share continued to shrink (down 9% YoY). Advertisers are also seeing more traffic as a result of their mobile SEM efforts, with clicks up 35% YoY.
Image Credits : cmo.com |
ADI also found that mobile search spend was shifting toward product listing ads (PLAs) in Q4, most likely based on holiday activity. This kind of shift happens every year, Tasker said. Overall, PLA spend grew 37%, which is much lower than the numbers reported in previous ADI reports.
Image Credits : cmo.com |
Display Advertising
In the display portion of its analysis, ADI compares the Facebook News Feed with Google’s Display Ad Network. The key finding is that Google is starting to close the display gap with Facebook.In Q3 2015, Facebook’s CTR for display ads took off. They are still growing YoY, up 36% as a result of some of the changes Facebook has made. Google, on the other hand, was a little late to the game in optimizing its display ad network, but its CTRs are also increasing rather significantly YoY (27%).
Image Credits : cmo.com |
Google’s rate is up 219% quarter over quarter, while Facebook is up 77%. Tasker said it will be interesting to see whether Google catches up with Facebook or whether either platform does something else to widen or narrow the gap.
Overall, ADI found, display costs rose, with CPMs up 6% YoY. CTRs, however, improved by 22% but are still low, according to ADI.
Image Credits : cmo.com |
Holiday Insight
ADI also looked at search’s and display’s contributions to holiday revenue. Data revealed that nearly $1 out of every $3 in revenue came from one of those two channels.During Thanksgiving weekend (Nov. 26 to 30), paid search brought in 10% more revenue than did direct traffic to websites, thus earning more. It also grew faster in terms of revenue growth than did direct traffic. Paid search was at 46%, while direct traffic was at 34%. CPCs for the holiday season were high overall. Smartphone CPCs peaked on Black Friday (a high-volume mobile shopping day), whereas desktop CPCs peaked on Cyber Monday.
Image Credits : cmo.com |
“What we are seeing here is a shift out of generic or broad-based marketing channels into channels such as email or display, which are really personalized nowadays, as advertisers increasingly cultivate a one-on-one relationship with consumers,” Tasker said. “I expect advertisers will start to allocate more budget to more personalized channels in the year to come.”
Original Source - http://www.cmo.com/articles/2016/1/28/adi-q4-2015-digital-advertising-report.html?scid=social57748576&adbid=UPDATE-c3509272-6098821857081856000&adbpl=li&adbpr=3509272
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