Report: Product advertising is driving spend growth in search, social, marketplace
Product ad spend is outpacing overall market growth, according to a Kenshoo report.
Overall, paid search spending increased 10% year over year in the second quarter of 2019 on the Kenshoo platform, the company reported this week. Search product ad spend grew by 30% year over year, far outpacing text ad growth.
This lines up with what Merkle reported this week as well. Among its client base, Google Shopping spend grew by 38% in the second quarter, compared to overall Google search spend growth of 15% year over year.
Paid social commerce ad growth. Product ads on social are also booming. Kenshoo said social product ad spend increased by 38% year over year in the second quarter.
Why we should care. Platforms are making significant investments
The growth rates for search and social product ads “could be a signal that product advertising is starting to break out as its own discipline with bespoke budgets and managed somewhat like a single channel,” said Kenshoo. (The platform supports ads on Facebook, Instagram, Pinterest and Snapchat.)
“This influx of product ads are inherently long-tail terms with less competition and bid price as head [general] terms,” said Kenshoo. “Although individual volume on these niche terms can be low, in aggregate, they are moving the CPC and CTR industry trend averages down.”
Mobile passed 50% milestone. Mobile search click and impression share has hovered around 70% and while mobile spend share has been roughly 50% for several quarters on the Kenshoo platform. In the second quarter, mobile finally accounted for the majority of search spend, at 51%.