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Page 1: Kenshoo Quarterly Trends Report Q1 2018 · 2020-01-22 · Kenshoo has published infographics of key digital marketing trends for years In the past, there has also been a trends webinar

© 2019 Kenshoo. All Rights Reserved

Q2 2019July 24, 2019

Page 2: Kenshoo Quarterly Trends Report Q1 2018 · 2020-01-22 · Kenshoo has published infographics of key digital marketing trends for years In the past, there has also been a trends webinar

© 2019 Kenshoo. All Rights Reserved

Chris ‘Coz’ Costello

➢ Senior Director of Marketing

Research

[email protected]

➢ linkedin.com/in/notabbott

➢ @notabbott

Your Host

Controlling the presentation

Are there still Prime Day deals out

there?

Last-minute emails and

Slack messages

Photo by @margokr

Page 3: Kenshoo Quarterly Trends Report Q1 2018 · 2020-01-22 · Kenshoo has published infographics of key digital marketing trends for years In the past, there has also been a trends webinar

© 2019 Kenshoo. All Rights Reserved

➢ All attendees are in listen-only mode

➢ Please submit any questions via the Q&A button on the panel at the bottom

➢ Sound issues? Participants can access audio via the telephone of computer mic & speakers

➢ Please email [email protected] you are experiencing any issues

Webinar Information

Page 4: Kenshoo Quarterly Trends Report Q1 2018 · 2020-01-22 · Kenshoo has published infographics of key digital marketing trends for years In the past, there has also been a trends webinar

© 2019 Kenshoo. All Rights Reserved

Introduction

Kenshoo has published infographics of key digital marketing trends for years

In the past, there has also been a trends webinar that served a primarily financial audience

After sharing this webinar content with marketers over time, it became obvious that a marketer-focused webinar should be the main event

This presentation will be accompanied by our regularly-scheduled quarterly infographic and a longform report that delves into the topics in this presentation

2014 2019

Page 5: Kenshoo Quarterly Trends Report Q1 2018 · 2020-01-22 · Kenshoo has published infographics of key digital marketing trends for years In the past, there has also been a trends webinar

Agenda➢ Industry Insights

➢ Market Trends

➢ Emerging Channels

➢ In The News

➢ Methodology

➢ Q&A

Page 6: Kenshoo Quarterly Trends Report Q1 2018 · 2020-01-22 · Kenshoo has published infographics of key digital marketing trends for years In the past, there has also been a trends webinar

ourY

ileageM

ayM

aryV

Always Remember as a Marketer

You may zig when everyone else zags, and you may have a very good reason for that

These trends provide context for your

performance, not judgment that any individual marketer

is doing things “right” or “wrong”

Page 7: Kenshoo Quarterly Trends Report Q1 2018 · 2020-01-22 · Kenshoo has published infographics of key digital marketing trends for years In the past, there has also been a trends webinar

Industry Insights

Page 8: Kenshoo Quarterly Trends Report Q1 2018 · 2020-01-22 · Kenshoo has published infographics of key digital marketing trends for years In the past, there has also been a trends webinar

The Big Picture

No signs of weakness in ad spending across digital advertising channels, as social, search and ecommerce spending all grew in the second quarter

Shopping ads drove impressions higher for search marketers, but slowed overall impression growth for social

Ecommerce Channel Ads saw ad spending in Q2 comparable to the holidays

Page 9: Kenshoo Quarterly Trends Report Q1 2018 · 2020-01-22 · Kenshoo has published infographics of key digital marketing trends for years In the past, there has also been a trends webinar

© 2019 Kenshoo. All Rights Reserved

As a share of total Instagram spending, the Stories format has doubled its share from 9% to 18%

During that same period, Instagram as a share of total Facebook has not changed

SOCIALStories doubles share of total Instagram spending

9

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019

Sh

are

of

Tota

l IN

ST

AG

RA

M S

pe

nd

ing

Instagram Feed Instagram Stories

Page 10: Kenshoo Quarterly Trends Report Q1 2018 · 2020-01-22 · Kenshoo has published infographics of key digital marketing trends for years In the past, there has also been a trends webinar

© 2019 Kenshoo. All Rights Reserved

Impressions from Mobile Search Shopping campaigns have doubled year-over-year, while the rest of search has remained mostly flat

As reported previously, much of this momentum comes from large, diverse e-tailers and marketplaces as they expand down the long tail of products

SEARCHMobile Shopping driving impression growth

10

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019

Ind

exe

d Im

pre

ssio

n V

olu

me

(Q2

20

18

=1

.00

)

All Other Search Ads Mobile Search Shopping

Page 11: Kenshoo Quarterly Trends Report Q1 2018 · 2020-01-22 · Kenshoo has published infographics of key digital marketing trends for years In the past, there has also been a trends webinar

© 2019 Kenshoo. All Rights Reserved

Same-advertiser spending on Ecommerce Channel Ads increased 66% year-over-year (YoY)

ECOMMERCEQ2 spending almost surpassed Q4

11

Page 12: Kenshoo Quarterly Trends Report Q1 2018 · 2020-01-22 · Kenshoo has published infographics of key digital marketing trends for years In the past, there has also been a trends webinar

© 2019 Kenshoo. All Rights Reserved

In the markets where Pinterest is available, 1 in 10 large Facebook advertisers are running Pinterest ad campaigns, and 1 in 5 Facebook advertisers in the ecommerce vertical

All of these adoption rates are at least double what they were in Q2 2018

PINTERESTBigger budgets and Ecomm go for Pinterest

12

0%

5%

10%

15%

20%

25%

All Facebook Accounts Large FB Accounts Ecommerce FB Accounts

% o

f Q

2 2

01

9 s

oci

al a

cco

un

ts r

un

nin

g P

inte

rest

Page 13: Kenshoo Quarterly Trends Report Q1 2018 · 2020-01-22 · Kenshoo has published infographics of key digital marketing trends for years In the past, there has also been a trends webinar

© 2019 Kenshoo. All Rights Reserved

CROSS-CHANNELMobile Trends

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019

Ind

exe

d S

pe

nd

ing

Vo

lum

e (Q

2 2

01

8=

1.0

0)

Social Search

Mobile ads comprised 87% of Q2 social spending and 51% of search spending

Year-over-year, spending growth for smartphones outpaced desktop in both channels

+19%YoY

+46% YoY

13

Page 14: Kenshoo Quarterly Trends Report Q1 2018 · 2020-01-22 · Kenshoo has published infographics of key digital marketing trends for years In the past, there has also been a trends webinar

© 2019 Kenshoo. All Rights Reserved

CROSS-CHANNELProduct Ad Trends

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

2.00

Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019

Ind

exe

d S

pe

nd

ing

Vo

lum

e (Q

2 2

01

8=

1.0

0)

Social Search

Shopping campaign ads comprised 46% of total Q2 search spending for Kenshoo ecommerce advertisers

For social, dynamic product ads made up 37% of the Q2 total for this industry category

+30%YoY

+37%YoY

14

Page 15: Kenshoo Quarterly Trends Report Q1 2018 · 2020-01-22 · Kenshoo has published infographics of key digital marketing trends for years In the past, there has also been a trends webinar

Market TrendsSocial

Q2 2019

Page 16: Kenshoo Quarterly Trends Report Q1 2018 · 2020-01-22 · Kenshoo has published infographics of key digital marketing trends for years In the past, there has also been a trends webinar

© 2019 Kenshoo. All Rights Reserved

Social Trends

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019

Ind

exe

d V

olu

me

(Q2

20

18

=1

.00

)

Social Volume Growth

Impressions Clicks Spending

QoQ YoY

Impressions

-2% +24%

Clicks

-7% -12%

Spending

+7% +37%

16

Page 17: Kenshoo Quarterly Trends Report Q1 2018 · 2020-01-22 · Kenshoo has published infographics of key digital marketing trends for years In the past, there has also been a trends webinar

© 2019 Kenshoo. All Rights Reserved

Social Trends

2.6% 2.5%2.2%

2.0% 1.9%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019

Click-through Rate (CTR)

$5.49 $5.70

$6.85

$5.55$6.04

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019

Average Cost per Thousand Impressions (CPM)

QoQ YoY

Click-through Rate

-5% -27%

CPM

+9% +10%

17

Page 18: Kenshoo Quarterly Trends Report Q1 2018 · 2020-01-22 · Kenshoo has published infographics of key digital marketing trends for years In the past, there has also been a trends webinar

© 2019 Kenshoo. All Rights Reserved

Social Trends (Monthly)

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

2.00

Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19

Ind

exe

d V

olu

me

(Ap

ril 2

01

8=

1.0

0)

Social Volume Growth

Impressions Clicks Spending

18

Page 19: Kenshoo Quarterly Trends Report Q1 2018 · 2020-01-22 · Kenshoo has published infographics of key digital marketing trends for years In the past, there has also been a trends webinar

Social Summary

Paid Social ad spending grew 37% over the second quarter of 2018, driven by mobile and video ads

Video, Instagram and overall branding efforts continued to have an impact on explicit engagement with social ads, driving both click volume and click-through rate lower over time

On a CPM basis, Dynamic Ads for Products were the primary driver of pricing increases

Page 20: Kenshoo Quarterly Trends Report Q1 2018 · 2020-01-22 · Kenshoo has published infographics of key digital marketing trends for years In the past, there has also been a trends webinar

© 2019 Kenshoo. All Rights Reserved

Key Social Segments by Quarter

Mobile

Dynamic Ads for Products

VideoInstagram

Carousel

TOTAL

Desktop Feed

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

$0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 $9.00 $10.00 $11.00 $12.00 $13.00 $14.00

Cli

ck-t

hro

ug

h R

ate

Cost per Thousand Impressions (CPM)

Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019(Bubble size = Spending Volume. Bubbles are not mutually exclusive.)

Page 21: Kenshoo Quarterly Trends Report Q1 2018 · 2020-01-22 · Kenshoo has published infographics of key digital marketing trends for years In the past, there has also been a trends webinar

© 2019 Kenshoo. All Rights Reserved

Key Social Segments by Quarter

Mobile

Dynamic Ads for Products

VideoInstagram

Carousel

TOTAL Desktop Feed

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

$0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 $9.00 $10.00 $11.00 $12.00 $13.00 $14.00

Cli

ck-t

hro

ug

h R

ate

Cost per Thousand Impressions (CPM)

Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019(Bubble size = Spending Volume. Bubbles are not mutually exclusive.)

Page 22: Kenshoo Quarterly Trends Report Q1 2018 · 2020-01-22 · Kenshoo has published infographics of key digital marketing trends for years In the past, there has also been a trends webinar

© 2019 Kenshoo. All Rights Reserved

Key Social Segments by Quarter

Mobile

Dynamic Ads for Products

VideoInstagram

Carousel

TOTALDesktop Feed

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

$0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 $9.00 $10.00 $11.00 $12.00 $13.00 $14.00

Cli

ck-t

hro

ug

h R

ate

Cost per Thousand Impressions (CPM)

Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019(Bubble size = Spending Volume. Bubbles are not mutually exclusive.)

Page 23: Kenshoo Quarterly Trends Report Q1 2018 · 2020-01-22 · Kenshoo has published infographics of key digital marketing trends for years In the past, there has also been a trends webinar

© 2019 Kenshoo. All Rights Reserved

Key Social Segments by Quarter

Mobile

Dynamic Ads for Products

VideoInstagram

Carousel

TOTAL Desktop Feed

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

$0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 $9.00 $10.00 $11.00 $12.00 $13.00 $14.00

Cli

ck-t

hro

ug

h R

ate

Cost per Thousand Impressions (CPM)

Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019(Bubble size = Spending Volume. Bubbles are not mutually exclusive.)

Page 24: Kenshoo Quarterly Trends Report Q1 2018 · 2020-01-22 · Kenshoo has published infographics of key digital marketing trends for years In the past, there has also been a trends webinar

© 2019 Kenshoo. All Rights Reserved

Key Social Segments by Quarter

Mobile

Dynamic Ads for Products

VideoInstagram

Carousel

TOTALDesktop Feed

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

$0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 $9.00 $10.00 $11.00 $12.00 $13.00 $14.00

Cli

ck-t

hro

ug

h R

ate

Cost per Thousand Impressions (CPM)

Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019(Bubble size = Spending Volume. Bubbles are not mutually exclusive.)

Page 25: Kenshoo Quarterly Trends Report Q1 2018 · 2020-01-22 · Kenshoo has published infographics of key digital marketing trends for years In the past, there has also been a trends webinar

© 2019 Kenshoo. All Rights Reserved

After rapid growth throughout 2018, Instagram growth is now roughly at parity with the rest of Facebook

However, as a share of total Instagram, Stories has doubled from 9% to 18%

Focus On: Instagram

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019

Ind

exe

d S

pe

nd

ing

Vo

lum

e (Q

2 2

01

8=

1.0

0)

Instagram Feed Instagram Stories

25

Page 26: Kenshoo Quarterly Trends Report Q1 2018 · 2020-01-22 · Kenshoo has published infographics of key digital marketing trends for years In the past, there has also been a trends webinar

© 2019 Kenshoo. All Rights Reserved

Q2 2018

Q3 2018

Q4 2018Q1 2019

Q2 2019

0.0%

0.1%

0.2%

0.3%

0.4%

0.5%

0.6%

0.7%

0.8%

$0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00

Cli

ck-t

hro

ug

h R

ate

(CT

R)

Cost per Thousand Impressions (CPM)

Bubble size=spending volume

26

Focus On: Instagram Stories

Instagram Stories ad spending increased 86% QoQ and 186% YoY, as the lower pricing and similar audience reach gives this placement a bit of an advantage over Instagram Feed. Lower CTRs do not impede spending growth.

Q2 2018

Q2 2019

0.0%

0.1%

0.2%

0.3%

0.4%

0.5%

0.6%

0.7%

0.8%

$0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00

Cli

ck-t

hro

ug

h R

ate

(CT

R)

Cost per Thousand Impressions (CPM)

Y-Values

Page 27: Kenshoo Quarterly Trends Report Q1 2018 · 2020-01-22 · Kenshoo has published infographics of key digital marketing trends for years In the past, there has also been a trends webinar

© 2019 Kenshoo. All Rights Reserved

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019

Sh

are

of

So

cia

l Sp

en

din

g

Ind

exe

d S

pe

nd

ing

Vo

lum

e

Spending Share of Social Spending

Social video ad spending picked up again after a small decline in Q1

Prices and volume will likely accelerate for these ads as we approach the 2020 US elections

Focus on: Social Video

27

Page 28: Kenshoo Quarterly Trends Report Q1 2018 · 2020-01-22 · Kenshoo has published infographics of key digital marketing trends for years In the past, there has also been a trends webinar

© 2019 Kenshoo. All Rights Reserved

Q2 2018

Q3 2018 Q4 2018

Q1 2019Q2 2019

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

$0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00

Cli

ck-t

hro

ug

h R

ate

(CT

R)

Cost per Thousand Impressions (CPM)

Bubble size=spending volume

28

Focus On: Social Video

Social Video ad spending grew 53% YoY and 6% QoQ. Direct engagement with these ads via user clicks continues to decline, but that may not be the best measure

Q2 2018

Q2 2019

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

$0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00

Cli

ck-t

hro

ug

h R

ate

(CT

R)

Cost per Thousand Impressions (CPM)

Y-Values

Page 29: Kenshoo Quarterly Trends Report Q1 2018 · 2020-01-22 · Kenshoo has published infographics of key digital marketing trends for years In the past, there has also been a trends webinar

© 2019 Kenshoo. All Rights Reserved

There are several possible explanations for fewer impressions in aggregate at higher unit pricing

Targeting more valuable audiences would result in this outcome, while optimizing towards either clicks or conversions makes CPM less relevant

Focus On: Product Ads

$2.58

$2.91

$4.74

$3.48

$4.06

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50

$5.00

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

2.00

Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019

Co

st p

er

Th

ou

san

d Im

pre

ssio

ns

(CP

M)

Ind

exe

d V

olu

me

(Q2

20

18

=1

.00

)

Indexed Spending Indexed Impressions CPM

29

Page 30: Kenshoo Quarterly Trends Report Q1 2018 · 2020-01-22 · Kenshoo has published infographics of key digital marketing trends for years In the past, there has also been a trends webinar

© 2019 Kenshoo. All Rights Reserved

Q2 2018Q3 2018

Q4 2018

Q1 2019Q2 2019

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

$0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00

Cli

ck-t

hro

ug

h R

ate

(CT

R)

Cost per Thousand Impressions (CPM)

Bubble size=spending volume

30

Focus On: Product Ads

Dynamic Ads for Products grew 37% YOY, while CPMs saw an increase over Q1

Q2 2018

Q2 2019

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

$0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00

Cli

ck-t

hro

ug

h R

ate

(CT

R)

Cost per Thousand Impressions (CPM)

Y-Values

Page 31: Kenshoo Quarterly Trends Report Q1 2018 · 2020-01-22 · Kenshoo has published infographics of key digital marketing trends for years In the past, there has also been a trends webinar

© 2019 Kenshoo. All Rights Reserved

Things to Remember: Social

Spending growth has continued, at a slightly higher rate than in recent quarters

The role of social ads is evolving, and with the continued rise of visual ad formats, seems to be swinging back towards branding

Measuring ROI in this environment is going to require more holistic, broader measurement than whether or not an individual social ad results directly in a conversion

Page 32: Kenshoo Quarterly Trends Report Q1 2018 · 2020-01-22 · Kenshoo has published infographics of key digital marketing trends for years In the past, there has also been a trends webinar

Market TrendsSearch

Q2 2019

Page 33: Kenshoo Quarterly Trends Report Q1 2018 · 2020-01-22 · Kenshoo has published infographics of key digital marketing trends for years In the past, there has also been a trends webinar

Search Trends

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019

Ind

exe

d V

olu

me

(Q2

20

18

=1

.00

)

Search Volume Growth

Impressions Clicks Spending

QoQ YoY

Impressions

+4% +41%

Clicks

+2% +23%

Spending

+5% +10%

Page 34: Kenshoo Quarterly Trends Report Q1 2018 · 2020-01-22 · Kenshoo has published infographics of key digital marketing trends for years In the past, there has also been a trends webinar

Search Trends

2.8% 2.7%2.4% 2.5% 2.4%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019

Click-through Rate (CTR)

$0.48 $0.46 $0.47$0.42 $0.43

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019

Average Cost per Click (CPC)

QoQ YoY

Click-through Rate

-4% -14%

CPC

+2% -10%

Page 35: Kenshoo Quarterly Trends Report Q1 2018 · 2020-01-22 · Kenshoo has published infographics of key digital marketing trends for years In the past, there has also been a trends webinar

Search Trends (Monthly)

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19

Ind

exe

d V

olu

me

(Ap

ril 2

01

8=

1.0

0)

Search Volume Growth

Impressions Clicks Spending

Page 36: Kenshoo Quarterly Trends Report Q1 2018 · 2020-01-22 · Kenshoo has published infographics of key digital marketing trends for years In the past, there has also been a trends webinar

Search Highlights

Search impressions grew 41% year-over-year, as mobile search shopping campaigns doubled the number of eyeballs reached compared to Q2 of last year

These ads are typically lower-priced than other segments, so the net result on search spending was 10% YoY, which is very much in line with historical growth rates

Lower cost-per-click and click-through rates for overall search were also driven primarily by mobile shopping ads

Page 37: Kenshoo Quarterly Trends Report Q1 2018 · 2020-01-22 · Kenshoo has published infographics of key digital marketing trends for years In the past, there has also been a trends webinar

© 2019 Kenshoo. All Rights Reserved

Key Search Segments by Quarter

Desktop Keyword

Desktop Shopping

Smartphone Keyword

Smartphone Shopping

Mobile (all)

Dynamic Search Ads

Shopping (all)

Local Search

TOTAL

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

$0.00 $0.20 $0.40 $0.60 $0.80 $1.00

Cli

ck-t

hro

ug

h R

ate

Average Cost per Click (CPC)

Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 (Bubble size = Spending volume)

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Key Search Segments by Quarter

Desktop Keyword

Desktop Shopping

Smartphone Keyword

Smartphone Shopping

Mobile (all)

Dynamic Search Ads

Shopping (all)

Local SearchTOTAL

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

$0.00 $0.20 $0.40 $0.60 $0.80 $1.00

Cli

ck-t

hro

ug

h R

ate

Average Cost per Click (CPC)

Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 (Bubble size = Spending volume)

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Key Search Segments by Quarter

Desktop Keyword

Desktop Shopping

Smartphone Keyword

Smartphone Shopping

Mobile (all)

Dynamic Search Ads

Shopping (all)

Local SearchTOTAL

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

$0.00 $0.20 $0.40 $0.60 $0.80 $1.00

Cli

ck-t

hro

ug

h R

ate

Average Cost per Click (CPC)

Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 (Bubble size = Spending volume)

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Key Search Segments by Quarter

Desktop Keyword

Desktop Shopping

Smartphone Keyword

Smartphone Shopping

Mobile (all)

Dynamic Search Ads

Shopping (all)

Local Search

TOTAL

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

$0.00 $0.20 $0.40 $0.60 $0.80 $1.00

Cli

ck-t

hro

ug

h R

ate

Average Cost per Click (CPC)

Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 (Bubble size = Spending volume)

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Key Search Segments by Quarter

Desktop Keyword

Desktop Shopping

Smartphone Keyword

Smartphone Shopping

Mobile (all)

Dynamic Search Ads

Shopping (all)

Local Search

TOTAL

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

$0.00 $0.20 $0.40 $0.60 $0.80 $1.00

Cli

ck-t

hro

ug

h R

ate

Average Cost per Click (CPC)

Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 (Bubble size = Spending volume)

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Stable QoQ cost-per-click was consistent across all devices

Desktop is the only device where CPC increased compared to last year

CPC by Device

$0.48 $0.46 $0.47

$0.42 $0.43

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

$0.90

Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019

Av

era

ge

Co

st p

er

Cli

ck

Desktop Mobile Tablet OVERALL

42

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While overall search CPC is down, 45% of Kenshoo search accounts did see year-over-year increases in CPC of over 10%

These two things can happen simultaneously if, for example, very large advertisers increase while still being below average

The median CPC change across all accounts in the sample was +2%

Focus on: CPC changes by account

43

0%

5%

10%

15%

20%

25%

30%

Decreasedover 50%

Decreased 25-50%

Decreased 10-25%

No Change (+/-10%)

Increased 10-25%

Increased 25-50%

Increased over50%

Year-over-year change in search CPC by Kenshoo account

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Focus On: Mobile Search

Mobile share has been consistently ~70% of impressions and clicks, and ~50% of spending, for several quarters.

0%

10%

20%

30%

40%

50%

60%

70%

80%

Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019

% o

f To

tal V

olu

me

fro

m M

ob

ile

(S

ma

rtp

ho

ne

)

Impressions Clicks Spending

44

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Q2 2018Q3 2018

Q4 2018Q1 2019 Q2 2019

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

$0.00 $0.05 $0.10 $0.15 $0.20 $0.25

Cli

ck-t

hro

ug

h R

ate

(CT

R)

Cost per Click (CPC)

Bubble size=spending volume

45

Focus On: Mobile Shopping

Spending on mobile shopping ads grew 45% year-over-year as large search advertisers expanded down the long tail of product listings, driving CPC down in the process

Q2 2018

Q2 2019

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

$0.00 $0.05 $0.10 $0.15 $0.20 $0.25

Cli

ck-t

hro

ug

h R

ate

(CT

R)

Cost per Click (CPC)

Y-Values

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Q2 2018

Q3 2018

Q4 2018Q1 2019

Q2 2019

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

$0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70

Cli

ck-t

hro

ug

h R

ate

(CT

R)

Cost per Click (CPC)

Bubble size=spending volume

46

Focus On: Mobile Keywords

Mobile Keywords grew slightly faster than total search at +12% YoY. High click-through rates for these ads highlight their relevance.

Q2 2018

Q2 2019

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

$0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70

Cli

ck-t

hro

ug

h R

ate

(CT

R)

Cost per Click (CPC)

Y-Values

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$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

$1.80

$2.00

0%

1%

2%

3%

4%

5%

6%

Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019

Av

era

ge

CP

C

Sh

are

of

Tota

l Se

arc

h S

pe

nd

ing

Share of Total Paid Search Average CPC

Responsive Search Ads (RSA) accounted for $1 out of every $20 spent on search in Q2 2019

As more advertisers have adopted these ads, overall CPC has largely “found its level”

One of several efforts across channels where the publisher is looking for ownership of decisioning elements

Focus on: Responsive Search Ads

47

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The State of Paid Search: How marketers are managing their programs

• Survey research of search marketers across Digiday’s subscriber base

• Investigates what factors and features are more important to marketers in a search management platform, and their influence on overall program performance

• Looks at differences by size, advertiser type and platform user type

• Go to https://kenshoo.com/insights/ to download the report

New research from Kenshoo + Digiday

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Things to Remember: Search

Search continues to grow consistently, with YoY growth ranging between 10-12% in non-holiday quarters going back to at least 2017

Changes in CPC and CTR across all of search have been driven primarily by the relative prominence of mobile shopping ads

There have been some new ad types in the ecosystem, and recent announcements point to more to come

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Emerging ChannelsQ2 2019

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Ecommerce Channel Ad Spending by Month

0.00

0.50

1.00

1.50

2.00

2.50

Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19

Ind

exe

d S

pe

nd

ing

(Ap

ril 2

01

8=

1.0

0)

On a same-advertiser basis, total monthly spending on Ecommerce Channel Ads (ECA) in June was exceeded only by the holiday-driven spike in November.

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Ecommerce Channel Advertising Trends

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019

Ind

exe

d V

olu

me

(Q2

20

18

=1

.00

)

ECA Volume Growth

Impressions Clicks Spending

QoQ YoY

Impressions

+12% +59%

Clicks

+13% +57%

Spending

+17% +66%

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Across all countries where Pinterest is available through Kenshoo, the share of all Social accounts running Pinterest programs has more than doubled in the last year

The share of Pinterest adoption is higher for Social accounts spending ~$30K per month on Facebook

The highest market penetration is among Ecommerce advertisers on Facebook, where 1 in 5 is also spending on Pinterest

Pinterest adoption for social accounts

Social Accounts Large Social Accounts Social Accounts (Ecommerce Vertical only)

53

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Nearly 4 out of 5 Pinterest ad dollars in 2018 was from Ecommerce direct advertisers

As both agencies and other industry verticals start to engage more with Pinterest ads, that share has dropped in 2019

Pinterest expanding beyond ecommerce advertisers

Ecommerce All Other Verticals

54

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Pinterest Growth (unfiltered)

0.00

0.50

1.00

1.50

2.00

2.50

Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019

Ind

exe

d V

olu

me

(Q2

20

18

=1

.00

)

Pinterest Volume Growth (all advertisers)

Impressions Clicks Spending

QoQ YoY

Impressions

-16% +22%

Clicks

-28% +19%

Spending

-10% +50%

“All in” spending growth can be volatile, and can reflect periods where adoption gets pushed hard for certain channels or publishers, which happened with Pinterest in Q2 2018.

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Pinterest Trends (unfiltered)

$2.83$3.16

$3.53$3.20

$3.46

$0.00

$1.00

$2.00

$3.00

$4.00

Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019

Average Cost per Thousand Impressions (CPM)

$0.54$0.60 $0.61

$0.54

$0.68

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019

Average Cost per Click (CPC)

QoQ YoY

CPM

+8% +22%

CPC

+26% +26%

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Things to Remember: Emerging Channels

The growth of Ecommerce Channel Ads is not limited to traditional high-demand time periods, as evidenced by ad spending on par with the holiday season

Pinterest is gaining traction among advertisers with larger social budgets, and where large advertisers go, smaller advertisers will eventually follow

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In The News

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What it Means and Why it Matters:

• Targets consumers during a different part of the Instagram experience

• The question is if the customer mindset on the Explore tab is looking for something specific, or mindlessly skimming for something to grab their attention

• Obviously, the latter case would be good for advertisers

Instagram Explore Ads

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What it means and why it matters:

• DTC put a lot of eggs in the Facebook basket out of the gate

• Now starting to diversify

• Amazon is also courting these budgets

Pinterest as DTC Channel?

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What it Means and Why it Matters:

• Enforcing copy changes forces brands to revisit their messaging

• This results in fresher copy that can have a short-term benefit on metrics like click-through rate

• These effects were seen previously in paid search, with the introduction of Expanded Text Ads (ETA)

• Requiring changes in creative could also nudge advertisers towards Facebook content creation tools

Changes to Facebook News Feed ads

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Encore: Google Adds Third-Party Sitelinks

What it means and why it matters:

•Ability to drive traffic to their products on Amazon and Best Buy allows brands that don’t sell direct to do more with paid search ads

•This could open the door to increased search spending from verticals like CPG that don’t typically invest in paid search

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About the Data

Analysis is based on advertiser campaign data managed through the Kenshoo platform on Google, Microsoft Advertising, Yahoo!, Yahoo Japan, Baidu, Yandex, Pinterest, Apple, Facebook, Instagram, Snapchat and Amazon.

April 2018 through June 2019.

Sample contains over 500 billion impressions, 13 billion clicks and $5.5 billion in advertiser spending.

For charts showing spending and impressions/clicks, volume metrics have been normalized to a factor of one based on the initial volume for the first quarter of data. Data points from subsequent quarters are based on a multiplier from the first quarter. For example, 1.6 Means that volume is 60% greater than volume on the initial quarter measured.

Ad spending and CPC are measured using Ex-FX or “Constant Currency” adjustments, where results are based on native currency and only translated to common currency after aggregation.

63

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Methodology

Starting in Q4 of 2017, our filtering methodology is as follows:

• Advertisers must have 15 consecutive months above a minimum spending threshold in the channel to be included in the analysis

• Additional outliers will be removed as necessary

Some channels/publishers (Apple Search Ads, Pinterest) may be shown on an unfiltered basis to show dynamic of newer advertising platforms, and are labeled accordingly

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Q&A

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For resources on how programs are finding success at an individual level, visit the Case Studies page

• New features may have individual impact before there is enough data to measure trends

• Read about the experiences of advertisers in specific industries across publishers and channels

• Visit https://kenshoo.com/client-success/case-studies/ for details

Case Studies

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Marketing Research and Analysis @ Kenshoo

Quarterly Trends Hub NEW!kenshoo.com/digital-trends-research

View the current infographic, long-form report and highlights, along with previous quarters, all in one place

Other insights are posted regularly to

kenshoo.com/blog

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THANK YOU!