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© 2019 Kenshoo. All Rights Reserved Q4 2018 January 24, 2019

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

© 2019 Kenshoo. All Rights Reserved

Q4 2018January 24, 2019

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

© 2019 Kenshoo. All Rights Reserved

Chris ‘Coz’ Costello

Senior Director of Marketing Research

[email protected]

linkedin.com/in/notabbott

@notabbott

Your Host

Controlling the presentationWatching for

inbound Slack messages

Last-minute emails

Photo by @margokr

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

© 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] if you are experiencing any issues

Webinar Information

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

© 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 2018

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

Agenda Industry Insights

Holiday Recap

Market Trends

Emerging Channels

Methodology

Q&A

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

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 2018Kenshoo has published infographics of key digital marketing trends for years In the past, there has also been a trends webinar that served a

Industry Insights

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

The Big Picture

Visual ads on mobile devices drove growth across digital marketing channels

Instagram, video and image-focused product ads pushed social ad spending higher in Q4

Mobile search shopping campaigns continued to be the fastest-growing segment across search advertising

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

© 2019 Kenshoo. All Rights Reserved

Monthly spending on Ecommerce Channel Ads (ECA) has increased by 5X since January

This includes all advertisers managing Ecommerce Ads on the Kenshoo platform

ECOMMERCEOverall 2018 Picture is Growth

0.00

1.00

2.00

3.00

4.00

5.00

6.00

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

Inde

xed

Spen

ding

Gro

wth

(Jan

201

8=1.0

0)

9

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

© 2019 Kenshoo. All Rights Reserved

The majority of Instagram spending growth is coming from advertisers who have been on Instagram for at least five quarters

For every dollar spent on Instagram from a new IG advertiser in 2018, existing IG advertisers increased their spend by $4

SOCIALExisting Advertisers Drove Instagram Growth

-20%

0%

20%

40%

60%

80%

100%

2017 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4

Per

cen

t o

f In

stag

ram

Gro

wth

Advertisers with 5 quarters of Instagram Spending All other Instagram advertisers

10

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

© 2019 Kenshoo. All Rights Reserved

3 out of every 4 search shopping impressions is on a mobile phone

Advertisers are able to leverage more searches for products AND searches for more products on mobile devices

SEARCHSearch Shopping is Mostly Mobile

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

Per

cen

tage

of S

earc

h S

ho

ppin

g Im

pres

sio

ns

Mobile Desktop/Tablet

11

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

© 2019 Kenshoo. All Rights Reserved

Pinterest spending spiked by 58% in Q4 compared to the previous quarter

Engagement with Pinterest ads increased well ahead of the holiday season, lending to the planning nature of the channel

PINTERESTEngagement Grows Ahead of the Holidays

0.50%0.53%

0.56%

0.70%0.68%

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

Ind

exed

Spe

nd

ing

Vo

lum

e (Q

4 2

01

7=

1.0

0)

Spending Click-through Rate

12

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

© 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

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

Ind

exed

Spe

nd

ing

Vo

lum

e (Q

4 2

01

7=

1.0

0)

Social Search

Mobile ads continue to grow faster than their desktop counterparts across channels

As a result, the total share of mobile spending continues to increase as well

+28%YoY

+45% YoY

13

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

© 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

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

Ind

exed

Spe

nd

ing

Vo

lum

e (Q

3 2

01

7=

1.0

0)

Social Search

Spending on Search Shopping Campaigns and Social Dynamic Product Ads increased sharply over the previous quarter

Increased shopping intent around the holidays drove both the volume and the pricing of these ads higher

+34%YoY

+39%YoY

14

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

Holiday Wrap-Up

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

© 2019 Kenshoo. All Rights Reserved

The five days between Thanksgiving and Cyber Monday are only 9% of the total days between November 1 and December 25

As a share of holiday spending, these five days constitute a much bigger share

Advertiser Focus on the “Cyber 5”

16

0%

5%

10%

15%

20%

25%

SearchShopping

Campaigns

Search Total SocialDynamic

Product Ads

Social Total EcommerceChannel Ads

Shar

e o

f 20

18

Ho

liday

spe

nd

ing

fro

m C

yber

5

Ecommerce Advertisers Only

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

© 2019 Kenshoo. All Rights Reserved

Cyber Monday was a bigger share of total spending for the Cyber 5 for overall Search and Ecommerce Ad spending

Search shopping ads, Dynamic Product Ads across Facebook and Instagram, and overall Social spending favored Black Friday

Share of Spending during Cyber 5

0% 20% 40% 60% 80% 100%

ECOMM Total

SOCIAL Total

Dynamic Product Ads (DPA)

SEARCH Total

Mobile Search

SEM Shopping Ads

Thanksgiving Black Friday Sat & Sun Cyber Monday

17

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

© 2019 Kenshoo. All Rights Reserved

Product-focused ad types for both Search and Social were key drivers for YOY spending growth

Growth for the entire holiday season was very close to “Cyber 5” growth across both channels

This implies that Cyber 5 growth is a good indicator of overall seasonal performance of these ad types

YOY Holiday Growth for Product Ads

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Search Shopping Campaigns Social Dynamic Product Ads

% S

pen

din

g In

crea

se fr

om

20

17

to

20

18

Same Store Ecommerce Advertisers Only

Cyber 5 Holiday Season

18

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

Market TrendsSocial

Q4 2018

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

© 2019 Kenshoo. All Rights Reserved

Social Trends

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

Ind

exed

Vo

lum

e (Q

4 2

01

7=

1.0

0)

Social Volume Growth

Impressions Clicks Spending

QoQ YoY

Impressions

+1% +15%

Clicks

-8% +8%

Spending

+19% +31%

20

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

© 2019 Kenshoo. All Rights Reserved

Social Trends

2.5%2.9% 2.8% 2.6% 2.4%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

Click-through Rate (CTR)

$5.73$4.85 $5.24 $5.54

$6.52

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

Average Cost per Thousand Impressions (CPM)

QoQ YoY

Click-through Rate

-8% -4%

CPM

+18% +14%

21

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

Social Summary

Social spending grew 31% compared to Q4 of 2017 as advertisers increased investment in Instagram, video and product-focused ads

Impressions grew faster year-over-year than clicks, bringing click-through rate lower, as video and Instagram growth increased the share of more passive ad units

Social product ad pricing increased faster than other ad types in Q4, as the holiday season put a premium on reaching customers with those ads

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

© 2019 Kenshoo. All Rights Reserved

Key Drivers for Social Growth

Instagram has passed Video Ads as the fastest growing segment compared to last year, while seasonality has driven Dynamic Ads for Products up compared to last quarter

+31%

+39%

+45%

+52%

+68%

+120%

+19%

+53%

+21%

+41%

+11%

+43%

+0% +20% +40% +60% +80% +100% +120% +140%

OVERALL SOCIAL

Dynamic Ads for Products

Mobile Ads

Carousel Ads

Video Ads

Instagram

Social Spending YoY Growth by Segment

QoQ

YoY

23

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

© 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%

$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 $15.00 $16.00

Clic

k-th

rou

gh R

ate

Cost per Thousand Impressions (CPM)

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018(Bubble size = Spending Volume)

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

© 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%

$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 $15.00 $16.00

Clic

k-th

rou

gh R

ate

Cost per Thousand Impressions (CPM)

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018(Bubble size = Spending Volume)

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

© 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%

$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 $15.00 $16.00

Clic

k-th

rou

gh R

ate

Cost per Thousand Impressions (CPM)

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018(Bubble size = Spending Volume)

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

© 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%

$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 $15.00 $16.00

Clic

k-th

rou

gh R

ate

Cost per Thousand Impressions (CPM)

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018(Bubble size = Spending Volume)

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

© 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%

$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 $15.00 $16.00

Clic

k-th

rou

gh R

ate

Cost per Thousand Impressions (CPM)

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018(Bubble size = Spending Volume)

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

© 2019 Kenshoo. All Rights Reserved

Instagram spending more than doubled compared to Q4 of 2017, and increased 43% over the previous quarter

Instagram Stories grew faster than Instagram feed, increasing its share from 8% of total Instagram spending to 10%

Instagram Growth

0.00

0.50

1.00

1.50

2.00

2.50

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

Ind

exed

Spe

nd

ing

Vo

lum

e (Q

3 2

01

7=

1.0

0)

Instagram Feed Instagram Stories

30

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

© 2019 Kenshoo. All Rights Reserved

Instagram by Advertiser, Year-over-year

0%

5%

10%

15%

20%

25%

30%

35%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

% o

f In

stag

ram

Spe

nd

ing

Share of Social Spend from Instagram

Q4 2017 Q4 2018

37% of Q4 2018 Instagram spending came from advertisers with at least 40% of their total Facebook spending on Instagram, up from 25% last year

37% of Q4 2018 Instagram Spending

25% of Q4 2017 Instagram Spending

31

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

© 2019 Kenshoo. All Rights Reserved

Facebook offers multiple levels of control over Instagram and Instagram Stories

• Automatic Placements and Multiple Placements extend reach of existing campaigns

• Standalone Placements allow for targeted testing and strategy

Kenshoo can help you run the right creative specifications on the right platform

Looking for tips on Instagram Stories ads? Check out our eBook

• https://kenshoo.com/stories-ads-creative-best-practices/

Marketer Tips: Instagram

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

© 2019 Kenshoo. All Rights Reserved

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

Shar

e o

f So

cial

Spe

nd

ing

Ind

exed

Spe

nd

ing

Vo

lum

e

Spending Share of Social Spending

Spending on social video ads has grown consistently over the past five quarters

As a share of total social spending, video has centered around 40% since Q2

33% of social advertisers had a majority of social spending on Video in Q4, and were responsible for 80% of social video spending in the quarter

Social Video Growth

33

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

© 2019 Kenshoo. All Rights Reserved

Marketer Tips: Social Video

The first 5-15s of your video is critical for capturing your audience’s attention

Including bright, bold text is important for getting your message across, especially when sound may be off by default

Creative bottlenecks? Consider using video templates from Facebook to animate static images and add text.

Using the Kenshoo Analysis Grid, you can create a custom audience of customers who watched a video that you can then use for retargeting

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

© 2019 Kenshoo. All Rights Reserved

A gradual shift of Dynamic Ads for Products from Facebook to Instagram could explain the downward trend in impression volume

As expected, CPM for product ads spiked sharply in Q4

80% of Q4 spending on DPA came from advertisers who spent a majority of social dollars on the ad type

Social Product Ad Trends

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

Co

st p

er T

ho

usa

nd

Impr

essi

on

s (C

PM

)

Ind

exed

Vo

lum

e (Q

3 2

01

7=

1.0

0)

Indexed Spending Indexed Impressions CPM

35

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

© 2019 Kenshoo. All Rights Reserved

Marketer Summary: Social

If you see changes in CPM or CTR over time, check your mix

• Greater share of Instagram and Video ads can result in lower click-through rates, while DPA and Carousel Ads will drive CTR higher

Instagram can help you extend your social reach, as well as satisfy specific objectives around the more visual format

Ecommerce advertisers who aren’t investing in Dynamic Product Ads may be missing a big growth opportunity

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

Market TrendsSearch

Q4 2018

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

Search Trends

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

Ind

exed

Vo

lum

e (Q

4 2

01

7=

1.0

0)

Search Volume Growth

Impressions Clicks Spending

QoQ YoY

Impressions

+31% +47%

Clicks

+16% +31%

Spending

+19% +14%

Page 38: Kenshoo Quarterly Trends Report Q1 2018Kenshoo has published infographics of key digital marketing trends for years In the past, there has also been a trends webinar that served a

Search Trends

2.5%2.7% 2.7%

2.5%2.2%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

Click-through Rate (CTR)

$0.51$0.48 $0.46 $0.44 $0.45

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

Average Cost per Click (CPC)

QoQ YoY

Click-through Rate

-12% -12%

CPC

+2% -13%

Page 39: Kenshoo Quarterly Trends Report Q1 2018Kenshoo has published infographics of key digital marketing trends for years In the past, there has also been a trends webinar that served a

Search Highlights

Seasonal increases in volume and pricing for shopping campaigns helped drive robust year-over-year growth for search ads

Investment on mobile search ads, across both keywords and shopping campaigns, grew twice as fast as the overall rate

Search shopping campaigns have lower click-through rates than keyword campaigns, so as share of impressions has shifted toward shopping, overall CTR has declined

Page 40: Kenshoo Quarterly Trends Report Q1 2018Kenshoo has published infographics of key digital marketing trends for years In the past, there has also been a trends webinar that served a

© 2019 Kenshoo. All Rights Reserved

Key Drivers for Search Growth

Advertisers ramped up spending on Search Shopping Campaigns to the tune of an 81% increase compared to Q3

+14%

+1%

+19%

+15%

+28%

+28%

+34%

+52%

+19%

+10%

+3%

+71%

+3%

+18%

+81%

+87%

+0% +10% +20% +30% +40% +50% +60% +70% +80% +90% +100%

OVERALL SEARCH

Desktop Keyword

Mobile Keyword

Desktop Shopping

Local Search

Mobile (all)

Shopping (all)

Mobile Shopping

Search Spending YoY Growth by Segment

QoQ

YoY

41

Page 41: Kenshoo Quarterly Trends Report Q1 2018Kenshoo has published infographics of key digital marketing trends for years In the past, there has also been a trends webinar that served a

© 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

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

Clic

k-th

rou

gh R

ate

Average Cost per Click (CPC)

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 (Bubble size = Spending volume)

Page 42: Kenshoo Quarterly Trends Report Q1 2018Kenshoo has published infographics of key digital marketing trends for years In the past, there has also been a trends webinar that served a

© 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

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

Clic

k-th

rou

gh R

ate

Average Cost per Click (CPC)

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 (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)

LocalTOTAL

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

Clic

k-th

rou

gh R

ate

Average Cost per Click (CPC)

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 (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)

LocalTOTAL

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

Clic

k-th

rou

gh R

ate

Average Cost per Click (CPC)

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 (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

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

Clic

k-th

rou

gh R

ate

Average Cost per Click (CPC)

Q4 2017 Q1 2017 Q2 2018 Q3 2018 Q4 2018 (Bubble size = Spending volume)

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Search Shopping Campaign Impact

As Shopping Campaign impressions increase dramatically and keyword impressions decline, the lower shopping CTR has more influence on overall search CTR

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

Clic

k-th

rou

gh R

ate

(CT

R)

Ind

exed

Impr

essi

on

Vo

lum

e (Q

4 2

01

7=

1.0

0)

Shopping Campaign Impressions

Keyword Campaign Impressions

Keyword Campaign CTR

Shopping Campaign CTR

Total Search CTR

48

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Maximize Google Shopping campaign performance by bidding separately on products based on traffic, or on traffic and performance

With Structure Optimization, Kenshoo automatically breaks out high activity products into their own product groups so you can bid more accurately

Combining Structure Optimization with Campaign Mirroring will automatically optimize your structure across publishers

Marketer Tips: Shopping Campaigns

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Mobile Share of Search

Mobile search has accounted for half of total search spending for two consecutive quarters, while the share of mobile search impressions and clicks have both increased slightly

0%

10%

20%

30%

40%

50%

60%

70%

80%

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

% o

f To

tal V

olu

me

fro

m M

ob

ile

(Sm

artp

ho

ne)

Impressions Clicks Spending

50

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Mobile Share by Advertiser

0%

5%

10%

15%

20%

25%

30%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

% of Advertisers (Count) % of Total Mobile Spending

58% of Kenshoo advertisers have at least 50% of search spending on mobile, and 79% of mobile search spending comes from those advertisers

58% of search advertisers

79% of mobile search spending

51

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Holiday price premiums stopped the overall downward trend for search click prices

Mobile CPC was flat, while Desktop and Tablet prices picked up in Q4

CPC by Device

$0.51$0.48 $0.46 $0.44 $0.45

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

$0.90

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

Ave

rage

Co

st p

er C

lick

Desktop Mobile Tablet OVERALL

52

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Searches on mobile devices conveys context for intent—”mobile moments” can change how you want to reach the consumer

Device-based bid modifiers allow marketers to target certain devices without separate campaigns

When combined with algorithmic optimization tools, marketers can tune their bids across devices based on their goals

Kenshoo Portfolio Optimization (KPO) works with bid adjustment modifiers to optimize each device towards ROAS, CPA or Traffic goals

Marketer Tips: Mobile Search

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Marketer Summary: SearchYour share of search from mobile can have a big impact on changes in CPC

• For most advertisers, mobile search clicks are less expensive than desktop, so if your mobile volumes are increasing, your CPC may be going down, and vice versa

Shopping campaigns aren’t just for your high-volume products

• Consumers are looking for more products more often, and not just for the holidays

• Expanding programs across large and unique product lines is easier than ever

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Emerging Channels

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Monthly spending on Ecommerce Channel Ads (ECA) has increased by 5X since January

This includes all advertisers managing Ecommerce Ads on the Kenshoo platform

Ecommerce Channel Advertising Trends

0.00

1.00

2.00

3.00

4.00

5.00

6.00

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

Inde

xed

Spen

ding

Gro

wth

(Jan

201

8=1.0

0)

56

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0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Spending CPC Spending CPM

Search Shopping Social Product Ads

% In

crea

se Q

3 t

o Q

4

2017 2018

Quarter-over-quarter increases in spending and cost per click for search shopping campaigns were very similar to last year

This implies that, despite the rapid growth of the Ecommerce channel, this new spending did not come at the expense of product-focused ads in Search or Social

Is Ecommerce Affecting Other Channels?

57

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Amazon offers various tools to help manage bids within your advertising campaigns

Bidding Controls•Raise or lower your bids dynamically when your ad is more or less likely to

convert to a sale, or set fixed bids based on your campaign needs •Bid by ad placement as well, increasing bids by up to 900%

Kenshoo can help you forecast, monitor, pace and auto-manage your bids with the right algorithms on the right platform

Want to learn more? See how others manage bidding and budgets on Amazon with our newest budget management case study

40% Lift in Amazon RoAS achieved with Budget Manager for Ecomm

Marketer Tips: Ecommerce

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More Ecommerce News & Analysis

kenshoo.com/blog

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Pinterest Growth

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

2.00

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

Ind

exed

Vo

lum

e (Q

4 2

01

7=

1.0

0)

Pinterest Volume Growth (same-advertiser)

Impressions Clicks Spending

QoQ YoY

Impressions

+33% +81%

Clicks

+37% +33%

Spending

+58% +60%

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On a same-advertiser basis, Hardware, Housewares and Apparel grew faster than other categories on Pinterest

Collectively, these three segments comprised 75% of Q4 Pinterest spending

Pinterest Growth by Category

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

TOTAL

Other

Apparel, Fashion & Accessories

Housewares & Home Furnishing

Hardware & Home Improvement

YOY Spending Growth

61

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Pinterest Trends

$3.03$2.55 $2.62

$3.16$3.66

$0.00

$1.00

$2.00

$3.00

$4.00

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

Average Cost per Thousand Impressions (CPM)

$0.61

$0.48 $0.47 $0.45$0.54

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

Average Cost per Click (CPC)

QoQ YoY

CPM

+16% +21%

CPC

+19% -11%

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Based on unfiltered data, Auto and Food categories captured another 10% of total Q4 Pinterest spending

This was an increase from just 3% in Q4 of last year’s

Spending across all advertisers in these two categories increased nearly 5X

Rising Pinterest Categories

0%

2%

4%

6%

8%

10%

12%

14%

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

Per

cen

t o

f To

tal (

Un

filt

ered

) Pin

tere

st S

pen

din

g

Food/Beverage/Drug Auto

63

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Pinterest has expanded campaign objectives so advertisers can scale programs within certain target goals

• Conversion Optimization allows Pinterest to “bid on your behalf to drive conversions at target average cost-per-action (CPA)”

Kenshoo can help you manage complexity in your campaign creation that can also unlock program scale

Marketer Tips: Pinterest

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Apple Search Ads

Ads for apps based on searches in the App Store

Launched beta program in October

Entirely search/keyword-driven programs

Gaming is the obvious vertical, but also finding interest in ecommerce, finance and travel

Data and performance to follow in future reports

65

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About the Data

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

October 2017 through December 2018.

Sample contains over 500 billion impressions, 14 billion clicks and $6 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.

66

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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 (Ecommerce, Pinterest) may be shown on an unfiltered basis to show dynamic of newer advertising platforms, and are labeled accordingly

67

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Q&A

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Case Studies

https://kenshoo.com/client-success/case-studies/

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Marketing Research and Analysis @ Kenshoo

Quarterly Trends Report Snapshot

kenshoo.com/digital-marketing-snapshot

AVAILABLE NOW!

Quarterly Trends Report (long form)

AVAILABLE NOW!

Other insights are posted regularly to

kenshoo.com/blog

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