In our Q4 2017 benchmark report, we show that advertisers are investing heavily in Google Shopping ads, which increased 31% in click share year over year (YoY). Our data reveals that audience utilization remains low at 24%, despite the clear benefits of combining audiences with keyword targeting.
Also, social CPMs increased 44% YoY, indicating that competition for consumer attention is heating up among advertisers.
To create our quarterly benchmark reports, we sample the Marin Global Online Advertising Index, composed of advertisers who invest billions of dollars in annualized ad spend on the Marin platform. We analyze data from around the world to create our report.
For Q4 2017, other key findings include:
- Get the Mobile Bargain While You Can: At 53% of spend, mobile CPCs increased 25% YoY. While mobile CPCs remain discounted relative to desktop CPCs, the gap is closing rapidly. Advertisers should seize the opportunity to court customers on their preferred medium by utilizing mobile bid adjustments, but be mindful that discounted CPCs on mobile will soon dissipate.
- Social Engagement Gets More Competitive: CPMs increased 44% YoY, indicating that competition for consumer attention is heating up on social channels. Yet, click-through rates have remained relatively flat YoY, which may indicate creative personalization isn’t keeping pace with consumer expectations.
- Too Many Ad Groups Have Too Few Creative: In Q4 2017, there was a slight shift (3%) away from creative-heavy ad groups to creative-light ad groups. Advertisers have an opportunity to benefit from Google’s machine learning technology underpinning the newly released “optimize” ad rotation setting.
- Audience Utilization Remains Low: Just 24% of advertisers have an audience KPI, despite the strong campaign performance advantage that combining audiences with keyword targeting provides.
To find out how your ad campaigns measure up to industry benchmarks across channels and devices, download our Q4 2017 Digital Benchmark Report. In addition to global trends, we explore the most compelling areas of digital marketing today, and identify tactical opportunities to help you drive better performance.