Marin Software Research Reveals Rapid Growth of eCommerce Ad Spend
Marketers Also Embracing New Social Ad Formats to Grow Customer Base
SAN FRANCISCO, July 30, 2019 - Marin Software, a leading provider of digital marketing software for performance-driven advertisers and agencies, today released research findings from its global Q2 2019 Digital Advertising Benchmark Report. These findings underscore the continuing growth of eCommerce advertising, while Instagram Stories are ripe for new customer acquisition opportunities.
The full research and takeaways are presented in an interactive format that allows viewers to analyze trends by region, industry, and publisher. Key findings include:
- eCommerce Continues to Thrive: 40 percent ad spend increase recorded in eCommerce advertising as Amazon maintains its healthy lead. Shopping ads represented 37 percent of total search spend share, as Google Shopping continues to be a key source of traffic and online orders for many retailers.
- Engaging Stories Format Pays Off: 45 percent of all Instagram spend occurred on Stories as advertisers and consumers embrace the ad format. Features like Instagram Story Links and Highlights are keeping social audiences engaged as Instagram becomes more of a direct selling tool.
- Search Click Volume Rises: With 13 percent YoY growth, paid search click volume has shown solid growth globally. Specific industries have seen more dramatic YoY click growth, led by Healthcare rising 30 percent, Technology up 25 percent, and Retail growing 24 percent.
- Search CPCs Dropping Across All Industries: Retail at $0.38 and travel at $0.44 recorded the lowest CPCs this quarter. Notably, healthcare saw a sharp drop, with the lowest CPCs in five quarters at $1.08. As the healthcare industry becomes more customer-centric, marketers can find good value for clicks by boosting their paid search budgets accordingly.
“Marketers are embracing newer features of well-known social media platforms, like Instagram Stories, to reach new customers and the effort is paying off,” said Wesley MacLaggan, SVP of Marketing at Marin Software. “It will also come as no surprise that eCommerce continues to grow, and the Q2 breakout star was Amazon’s Sponsored Brands, which allow brands to promote multiple products and drive customers directly to a product detail page. With 13 percent QoQ growth in sales and impressions, marketers are finding new value in the Sponsored Brands ad format. As the lines between search, social, and eCommerce continue to blur, marketers embrace the freedom to try new ad formats, while also relying on tried-and-true platforms.”
To create its Q2 2019 Digital Advertising Benchmark Report, Marin Software aggregated data from customers who invest billions of dollars in combined annualized ad spend on paid search, social, mobile, and eCommerce. Marin Software only includes those advertisers active on its platform for the past five quarters, measuring key performance indicators on a year-over-year and quarter-over-quarter basis, and removing any outliers with significant YoY or QoQ changes.
This press release contains forward-looking statements that involve risks and uncertainties, including, among other things, statements regarding Marin's business, research, and product capabilities. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors including, but not limited to, our ability to grow sales and marketing capabilities, retain and attract personnel, develop and release new features, increasing competition in our market, fluctuations in our operating results and inability to forecast financial metrics, and other general market, political, economic, and business conditions. These forward-looking statements are based on current expectations and are subject to uncertainties and changes in condition, significance, value, and effect as well as other risks and uncertainties detailed in documents filed with the Securities and Exchange Commission, including our most recent report on Form 10-K, recent reports on Form 10-Q, and current reports on Form 8-K which Marin Software may file from time to time, all of which are available free of charge at the SEC's website at www.sec.gov. Any of these risks could cause actual results to differ materially from expectations set forth in the forward-looking statements. All forward-looking statements in this press release reflect Marin Software's expectations as of July 30, 2019. Marin Software assumes no obligation to, and expressly disclaims any obligation to update, any such forward-looking statements after the date of this release.
About Marin Software
Marin Software Incorporated's (NASDAQ: MRIN) mission is to give advertisers the power to drive higher efficiency and transparency in their paid marketing programs that run on the world's largest publishers. Marin Software offers a unified SaaS ad management platform for search, social, and eCommerce advertising. We help digital marketers convert precise audiences, improve financial performance, and make better decisions. Headquartered in San Francisco with offices worldwide, Marin Software's technology powers marketing campaigns around the globe. For more information about Marin Software, please visit www.marinsoftware.com.