“global digital advertising report” adobe digital index’s q4 2014

Global Digital Advertising Report Adobe Digital Index Q4 2014

2 ADOBE DIGITAL INDEX | Global Digital Advertising Report Q4 2014

Table of contents Social 3 Key insights 4 Facebook post impressions

5 Black Friday Foursquare check-ins

6 Facebook post organic impressions

7 Facebook post share by post type

8 Facebook post interaction rate

9 Facebook post interaction rate by day

Search 10 Search engine marketing (SEM) spend growth

11 SEM spend growth by search engine

12 Share of spend by search engine

13 Google shopping ad spend growth

14 Share of retail clicks by ad type

15 Holiday season spend and click growth 16 Global SEM spend growth by industry

17 Daily share of SEM clicks

18 CTR growth by country and search engine

19 CTR growth by industry

20 Google U.S. CTR and CPC growth by device type

21 CPC growth by country and search engine 22 CPC growth by industry

Appendix 23 Recommendations

24 Predictions

25 Methodology

26 Tables

Key insights 1. Google Retail “Shopping Ad” spend grew dramatically during the holiday season –

outperforming “Text Ad” spend by almost 8x2. Google ads continue to be more efficiently optimized with Click-Through-Rate (CTR) growth

outpacing Cost-Per-Click (CPC) growth by more than 2x3. Advertisers should remember “Mobile Search Sundays,” “Desktop Search Mondays,” and

Facebook Fridays”4. Retailers turned to Facebook during holiday season to drive sales while marketers are

quickly adjusting to Facebook algorithm changes


SOCIAL

Facebook post impressions Retailers increased marketing efforts on Facebook during the holiday season.

The findings:


• Posts: In retail, up 64% YOY; up 31% QOQ.• Paid impressions: In retail, up 13% YOY; up 53%

QOQ.

SOCIAL

Black Friday Foursquare check-ins Consumers flocked to mass merchants and to malls this holiday season to do their shopping.

The findings: • Mass merchants led with 24% of all Black Friday retail check-ins.• Malls were second with 21%.• Specialty stores were third with 16%.


100%

DEC2013

DEC2014

MAR2014

JUN2014

SEPT2014

FACEBOOK AVERAGE ORGANIC POST IMPRESSION GROWTH

32%YOY

SOCIAL

Facebook post organic impressions Organic impressions from Facebook posts continued to drop. However, some post types did better than others.

The findings: • Organic impressions from Facebook posts were down 32% YOY.• Video posts performed the best for organic impressions, flat YOY.• Text posts were affected most by algorithm changes, down 60% YOY.


SOCIAL

Facebook post share by post type Links were on the move after updates from Facebook.

The findings: •  Link share of posts was up 68% YOY. •  Images share of posts was down 15% YOY. •  Videos share of posts was up 52% YOY.


SOCIAL

Facebook post interaction rate Post interaction rates increased in retail and for video and link-based posts.

The findings: •  Interaction rates for Facebook posts from retail brands were

up 14% YOY. •  Interaction rates for links were up 36% YOY.


2%

4%

SOCIAL

Facebook post interaction rate by day Facebook Friday—Highest percent of interaction rates, post impressions, and posts occurred on Friday.

The findings: •  Interaction rates were 15% higher on Friday than any other day of the week. •  Brand post impressions were 18% higher on Friday than any other day of the week. •  Brand posts were 28% higher on Friday than any other day of the week. •  Shares and likes happened on Friday more often than any other day of the week.


SEARCH

Search engine marketing (SEM) spend growth The amount of money being allocated to search advertisement campaigns is steadily increased, up 12% globally YOY.

The findings: •  Overall search advertisement spend in U.S. dollars grew 5% YOY. •  Europe SEM spend growth slowed in the most recent quarter,

up 17% YOY; Great Britain spend was down 3% over the same time period.


SEARCH

SEM spend growth by search engine Overall worldwide SEM ad spend on Google rose 8% YOY, while overall spend on Yahoo! Bing grew 36% during the same time period.

The findings: •  Yahoo! Bing realized a strong YOY uptick in SEM spend, up 36% globally,

outpacing Google by 3.5x. •  Global SEM ad spend on Google was up 8% YOY.


SEARCH

Share of spend by search engine Although Google was still the dominant SEM player in the United States, share of SEM spend has trended towards Yahoo! Bing over the last five quarters.

The findings: •  Google remained dominant in Europe and Great Britain,

controlling 90% and 91% of market share respectively in the most recent quarter.

•  Yahoo! Bing increased their share of SEM ad spend in the United States to 32% in the most recent quarter.


SEARCH

Google shopping ad spend growth Shopping Ads are major revenue growth drivers for Google, via USD retail ad send.

The findings: •  Google Shopping Ad spend growth up 47% YOY. •  The holiday season drove Google Shopping Ad spend growth up

53% QOQ. •  Google Text Ad spend in retail sector down 6% YOY.


SEARCH

Share of retail clicks by ad type Google shopping ads accounted for 20% of all retail SEM clicks in the United States.

The findings: •  Google text ad clicks lead the U.S. retail sector with

66% share. •  Yahoo! Bing released Product Ads in March 2014 to all US

advertisers, which in Q4 2014 represented less than 1% of U.S. retail clicks.


SEARCH

Holiday season spend and click growth Key days throughout the holiday season contributed heavily to click growth as well as spend growth.

The findings: •  Global shopping ad clicks were up 53% on Cyber Monday

over November 1, 2014; ad spend was up 53% on Singles Day. •  Text ad clicks were up 59% on Cyber Monday over

November 1, 2014; spend was up 87%.


SEARCH

Global SEM spend growth by industry Industries were affected by seasonality, with SEM spend in travel increasing in the spring and retail SEM spend growing in the holiday season.

The findings: •  SEM ad spend in the retail industry grew 7% YOY. •  During that same period, search ad spend in the travel industry

declined by 4%.


SEARCH

Daily share of SEM clicks Mobile ad clicks were more frequent during the weekend, whereas Mondays saw the highest desktop search traffic compared to all other days of the week.

The findings: •  The share of mobile ad clicks on Sunday was 17% higher than the

average day. •  On Mondays, text ad clicks are 9% higher than on the average day;

Saturdays were 11% lower.


GLOBAL SEM CTR GROWTH BY SEARCH ENGINE

SEARCH

CTR growth by country and search engine SEM marketing becomes more optimized as overall CTRs increased in the United States, up 22% YOY.

The findings: •  Japan saw the highest increase in CTR up 24% YOY. •  Global Google CTR was up 19% YOY, while Yahoo! Bing CTRs

were relatively flat over the year.


SEARCH

CTR growth by industry CTRs were up across several industries YOY, increasing as much as 36% in the financial industry.

The findings: •  The finance and travel industries saw the highest increase

in CTR YOY, up 36% and 33% respectively. •  The heavily competitive retail industry saw a 9% increase

in CTR YOY.


GOOGLE U.S. CTR GROWTH BY DEVICE TYPEGOOGLE U.S. CPC GROWTH BY DEVICE TYPE

SEARCH

Google U.S. CTR and CPC growth by device type


With programmatic buying tools across multiple platforms becoming available, mobile is the new frontier for marketers and advertisers to fully optimize.

The findings: •  For U.S., mobile devices drove higher CTR growth; up 27% YOY for

tablets and 26% for smart phones.

GLOBAL SEM CPC GROWTH BY SEARCH ENGINE

SEARCH

CPC growth by country and search engine CPC rates slowly increased and did not keep pace with CTRs.

The findings: •  CPC was up 12% YOY in Great Britain. •  Google CPC was up 8% YOY, while CPC on Yahoo! Bing was

up 7% during that same time period.


SEARCH

CPC growth by industry The holiday season saw CPC ramping up in all industries.

The findings: •  CPC in the travel industry was up 13% YOY. •  CPC was down 10% YOY in the finance industry.


ADOBE DIGITAL INDEX Recommendations 1.  Look to add links to content into brand posts in 2015 to take advantage of the growth due to

Facebook algorithm changes. Also, when looking for organic impressions, try out a video post. It is the type that has been least effected by the decrease in organic impressions.

2.  Fridays are a good day for interaction rates including likes and shares from brand Facebook followers.

3.  Monday is seeing a rise in SEM clicks, advertisers need to focus more spend on this day to drive more engagement.

4.  To remain competitive, retail advertisers need to incorporate shopping ads into their SEM strategy.


ADOBE DIGITAL INDEX Predictions 1.  Shopping ad share will decline slightly in Q1 ‘15, but will see strong growth in second half of ‘15

and comprise 30% of all SEM clicks in Q4 ‘15 2.  Non-retail advertisers will begin adopting shopping ads and see increase in visual ads 3.  SEM CTR growth will continue to outpace CPC growth due to programmatic solutions and

more advanced modeling to incorporate altering bids based on dimensions (i.e. device type, consumer demographics)

4.  Negative spread between CTR and CPC YoY growth within Yahoo!/Bing will start to narrow as advertisers take lessons learned from Google marketing

5.  Facebook organic impressions will drop nearly another 40% by ‘16. Facebook brand link and video posts will grow faster in ‘15 than image-based posts


ADOBE DIGITAL INDEX Methodology Based on consumer data to brand sites during 2013 and 2014. •  +400 billion Facebook post impressions •  +500 billion Google and Yahoo! Bing ad impressions

Composed of aggregated and anonymous data from visits to websites in multiple industries and segments.

Data captured via Adobe Marketing Cloud—Adobe Media Optimizer, and Adobe Social.

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25

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ADOBE DIGITAL INDEX | Global Digital Advertising Report Q4 2014


ADOBE DIGITAL INDEX Tables

Black Friday Foursquare check ins

Mass Merchants 24% Malls 21% Specialty and Misc. 16% Apparel 10% Hardware and Home Stores 7% Toy / Game Stores 6% Electronics 3% Sporting Goods 3% Drugstores / Pharmacies 3% Banks 3% Automotive Shops 3% Coffee Shops 2% Cosmetics Shops 2%

Facebook average organic post impression growth 12/1/14 1/1/15 2/1/15 3/1/15 4/1/15 5/1/15 6/1/15 7/1/15 8/1/15 9/1/15 10/1/15 11/1/15 12/1/15 100% 103% 99% 97% 91% 86% 71% 77% 79% 72% 71% 72% 68%

Average Share of Facebook Posts by Post Type Q4 2012 Q4 2013 Q4 2014

Image 60% 65% 55% Link 13% 16% 27% Video 7% 6% 8% Text 20% 13% 10%

Facebook post share and interaction rate by day Share of post impressions Share of posts Interaction Rate

Sunday 8.6% 10.3% 3.3% Monday 15.9% 14.6% 3.2% Tuesday 16.7% 15.3% 3.3% Wednesday 15.3% 15.7% 3.3% Thursday 15.1% 15.7% 3.4% Friday 17.6% 16.4% 3.8% Saturday 10.8% 12.0% 3.3%

Facebook share of engagement type by day Comments Likes Shares

Sunday 11.6% 12.2% 12.0% Monday 14.9% 14.6% 14.1% Tuesday 16.1% 15.0% 15.0% Wednesday 16.6% 14.2% 15.0% Thursday 14.3% 14.5% 15.1% Friday 14.1% 15.4% 15.2% Saturday 12.3% 14.1% 13.6%

Global retail shopping ad spend growth Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 100% 76% 62% 70% 73% 74% 65% 67% 86% 88% 100% 123% 144%

Global retail shopping ad spend growth 11/1/14 11/2/14 11/3/14 11/4/14 11/5/14 11/6/14 11/7/14 11/8/14 11/9/14 11/10/14 11/11/14 11/12/14 11/13/14 11/14/14 11/15/14 11/16/14 11/17/14 11/18/14

Global Shopping Ad Click Growth 100% 115% 118% 111% 116% 116% 108% 108% 127% 126% 128% 122% 118% 111% 113% 134% 132% 126% US Shopping Ad Click Growth 100% 109% 121% 112% 113% 112% 105% 99% 112% 123% 132% 118% 118% 106% 109% 124% 135% 127%

11/19/14 11/20/14 11/21/14 11/22/14 11/23/14 11/24/14 11/25/14 11/26/14 11/27/14 11/28/14 11/29/14 11/30/14 12/1/14 12/2/14 12/3/14 12/4/14 12/5/14 123% 118% 113% 114% 135% 131% 124% 124% 119% 129% 126% 144% 153% 140% 139% 134% 128% 117% 109% 102% 103% 113% 110% 103% 99% 89% 110% 112% 123% 136% 123% 118% 120% 117%

Global SEM spend growth by industry Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14

Automotive 100% 103% 101% 101% 118% 109% 105% 109% 113% 119% 103% 108% 116% Finance 100% 108% 112% 108% 107% 108% 92% 92% 101% 105% 89% 99% 100% Retail 100% 84% 81% 70% 80% 80% 81% 76% 80% 85% 85% 94% 107% Travel 100% 112% 133% 115% 119% 118% 122% 122% 127% 123% 107% 99% 96%



2014 Holiday Season daily retail click growth 11/1/14 11/2/14 11/3/14 11/4/14 11/5/14 11/6/14 11/7/14 11/8/14 11/9/14 11/10/14 11/11/14 11/12/14 11/13/14 11/14/14 11/15/14 11/16/14 11/17/14 11/18/14

US Text Ad Click Growth 100% 113% 116% 110% 112% 112% 104% 104% 115% 119% 119% 111% 107% 103% 107% 119% 124% 116% US Shopping Ad Click Growth 100% 109% 121% 112% 113% 112% 105% 99% 112% 123% 132% 118% 118% 106% 109% 124% 135% 127%

11/19/14 11/20/14 11/21/14 11/22/14 11/23/14 11/24/14 11/25/14 11/26/14 11/27/14 11/28/14 11/29/14 11/30/14 12/1/14 12/2/14 12/3/14 12/4/14 12/5/14 115% 110% 103% 108% 118% 118% 112% 107% 98% 135% 123% 130% 160% 128% 119% 114% 107% 117% 109% 102% 103% 113% 110% 103% 99% 89% 110% 112% 123% 136% 123% 118% 120% 117%

Daily share of SEM clicks Sunday Monday Tuesday Wednesday Thursday Friday Saturday

Desktop Text Ad Clicks 14% 16% 15% 15% 14% 14% 13% Desktop Shopping Ad Clicks 15% 15% 15% 14% 14% 14% 13% Mobile Ad Clicks 17% 15% 14% 14% 13% 13% 15%

SEM CTR growth by country Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14

United States 100% 100% 101% 107% 111% 113% 114% 108% 112% 116% 117% 118% 122% Great Britain 100% 104% 105% 108% 115% 119% 114% 113% 113% 117% 116% 116% 119% Japan 100% 92% 98% 102% 99% 101% 106% 99% 98% 101% 105% 114% 124%

SEM CTR growth by search engine Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14

Google 100% 96% 96% 100% 103% 105% 106% 104% 106% 109% 110% 115% 119% Yahoo! Bing 100% 102% 101% 97% 96% 97% 97% 94% 97% 102% 106% 101% 100%

SEM CTR growth by industry Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14




SEM CPC growth by country Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14

United States 100% 92% 92% 93% 95% 93% 94% 93% 93% 94% 95% 100% 103% Great Britain 100% 101% 102% 102% 102% 101% 104% 103% 97% 100% 99% 106% 112% Japan 100% 103% 111% 110% 107% 102% 101% 103% 100% 107% 102% 109% 109%

SEM CPC growth by search engine Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14

Google 100% 93% 94% 96% 98% 97% 99% 98% 97% 100% 101% 105% 108% Yahoo! Bing 100% 98% 97% 97% 100% 101% 101% 100% 96% 99% 102% 104% 107%

SEM CTR growth by industry Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14


“global digital advertising report” adobe digital index’s q4 2014

Data & Analytics

facebook posts

social facebook post

yoysocial facebook

cpc growth

post types

post type links

global sem

link share of posts