Global search spend grew 13%, driven equally by click volumes and higher CPCs.
of Facebook budget
Instagram proves popular with our advertisers, capturing 20% of their total Facebook ad budgets.
of total budget
Amazon is quickly gaining a significant share of budgets for advertisers experimenting on the platform.
Search growth increased 13% year over year (YoY), up slightly from Q1’s 11% YoY growth rate. Eurozone growth continued to lead at 19%, with the UK increasing by 14%. US growth was 11%, flat from Q1 2018 rates. The higher growth rates in certain geographies and industries are likely fueled by a greater concentration of brand terms which command higher CTRs.
Spend growth was driven almost equally by increased click volume and rising CPCs, with the average global CPC increasing from $0.80 in Q2 2017 to $0.85 in Q2 2018. CPCs also show significant variation by region and industry—for example, the average CPC in the US and UK was $0.92, but much lower in the eurozone at $0.42. These rates aren’t surprising, since the eurozone has less mature markets with potentially less competition, but they’re developing at a faster rate than US markets.
Mobile share of search ads was 40% in Q2, continuing its upward trend. Mobile share is highest in eurozone countries at 46.4% and lowest in US at 38.4%. Even with continued growth, there is ample room to take advantage of the mobile opportunity.
Shopping Ads represent around 32% of retailers’ Google Ad spend and has remained roughly flat over the last five quarters. Shopping commands the biggest share in the UK at 48%, followed by 37% in eurozone countries and 27% in the US.
Marin customers who have started advertising on Amazon are allocating 24% of overall digital ad spend to the platform—Sponsored Product Ads represent 79% of that spend, with Headline Shopping Ads representing the remaining 21%. These early adopters are likely spending aggressively to determine the success of these programs, but we see this becoming an important part of the advertising mix for relevant advertisers. It’s interesting to note that CTRs are much higher on the more prominent HSAs (2.7% vs. 0.5%) although CPCs are generally higher on sponsored products ($1.58 vs. $1.24).
Each quarter, we aggregate advertising performance across our customer base, and share our results with digital marketing professionals to compare against their own initiatives. In addition to global industry trends, we explore the most compelling areas of digital marketing, including the evolution of mobile, the best use of creative for more clicks and market share, and using the right search and social tools to attract the right customers.
Benchmarks are calculated using a “same store sales” approach with only the advertisers who were clients during Q2 2018 to Q2 2018. Performance of a specific segment may be materially influenced by performance of one or two larger advertisers.
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