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New Kenshoo Paid Search Marketing Report Shows Overall Q3 Global Growth, Regional Cost-per-Click Inflation and Wins for the Yahoo! Bing Network, Google Product Listing Ads and Mobile Devices
Kenshoo Global Search Advertising Trends report is the first in an ongoing, quarterly series
SAN FRANCISCO, October 11, 2012 /PRNewswire/ --
(Logo:
http://photos.prnewswire.com/prnh/20120907/559592 )
Kenshoo [http://www.kenshoo.com ], a global leader in digital marketing software,
today published its inaugural quarterly report, "Kenshoo Global Search Advertising Trends
[http://www.kenshoo.com/GlobalSearchAdvertisingTrends ]." The report examines the
performance of paid search ads by analyzing aggregate campaign data across search engines
including Google, Yahoo!, Bing, Baidu, and Yahoo! Japan based on more than $3 billion in
annual paid search budgets managed through Kenshoo. Notable findings from the report
include:
Global Search Advertising Growing
Through the first three quarters of 2012, global paid search budgets were
significantly higher year-over-year (YoY). For Q3 2012, the YoY growth rate was 24
percent. The increase in global search ad spend comes despite average cost-per-click (CPC)
being relatively flat YoY, reflecting incremental budgets being allocated to paid search.
U.S., U.K., and E.U. Paid Search Average Cost-per-Click Rising
During 2012, both the U.S. and U.K., as well as the broader European Union, have shown
steady CPC increases quarter-over-quarter (QoQ). If growth rates remain consistent, CPC
rates in the U.K., which are currently at $0.45 USD, could match the U.S. CPC rate of
$0.48 by Q4 2012. With CPC rising, marketers will have to increase search ad budgets
and/or develop sophisticated optimization strategies to sustain traffic and conversion
volumes.
Yahoo! Bing Network Drives Strong Results
In the U.S., while Google delivers more overall traffic (684 percent more in Q3 2012),
the Yahoo! Bing Network (YBN) drives online sales revenue at a more efficient rate.
Specifically, the return on ad spend (ROAS) of paid search on YBN was 28 percent higher in
Q3 than that of Google and the YBN click-through rate (CTR) was 29 percent higher. As a
result, advertisers increased their YBN ad spend 10 percent quarter-over-quarter and 35
percent YoY, representing a faster rate of growth than Google.
Google Product Listing Ads Outperform Text Ads
Google Product Listing Ads (PLA) have gained significant traction and outperformed
paid search text ads in CTR (68 percent higher), conversion rate (38 percent higher) and
ROAS (25 percent higher). Google Shopping moves to an all paid model in the U.S. on
October 17, 2012, with the U.K. and Europe expected to follow in 2013. This means only
merchants who leverage PLA will be present in the search results, making these findings
especially notable.
Mobile Ads Having an Impact
Representing 13 percent of total U.S. paid search spend, mobile phones and tablets
generated 21 percent of all U.S. search advertising clicks. While mobile phones accounted
for 11 percent of all search ad clicks and six percent of all spend, these devices
returned just 0.6 percent of all conversions. Meanwhile, tablets generated 8.8 percent of
all conversions and 10 percent of total clicks while accounting for only seven percent of
total ad spend. These converging trends illustrate the impressive performance of tablet
paid search for top advertisers, as well as a move toward differentiating paid search
campaigns on mobile phones to better accommodate mobile searchers and achieve
complementary conversions that aim for something other than direct online sales.
"Through the first three quarters of 2012, we've seen strong growth in paid search
budgets as advertisers continue to generate exceptional results from this intent-driven
marketing channel," said Aaron Goldman, CMO of Kenshoo. "Marketers should closely examine
our data as well as their own campaign benchmarks to find the best performing areas and
those ripe for expansion to meet their goals. This report identifies a number of specific
opportunities, including increasing investment with the Yahoo! Bing Network, ramping up
Product Listing Ads for Google Shopping, and creating mobile campaigns with unique
targeting for different devices.
To analyze quarterly data in its historical context through the most uniform and
largest sample possible, an aggregate data set was built from Kenshoo clients who had been
active during the previous 18 months. Kenshoo clients include four of the top five U.S.
travel websites, six of the top 10 global hotel chains, seven of the top 10 global
retailers, eight of the top 10 global telecoms, 10 of the top 10 global ad agency networks
and 24 of the Fortune 50 companies.
Visit http://www.Kenshoo.com/GlobalSearchAdvertisingTrends to download the full
report, including key takeaways for marketers.
About Kenshoo
Kenshoo is a digital marketing software [http://kenshoo.com ] company that engineers
technology solutions for search marketing, social media and online advertising. Brands,
agencies and marketing providers use Kenshoo Enterprise, Kenshoo Local and Kenshoo Social
to direct more than $25 billion in annual client sales revenue. The Kenshoo Universal
Platform delivers automation, intelligence, integration and scale to make better marketing
investments. With campaigns running in more than 190 countries, Kenshoo clients include
CareerBuilder, Expedia, Facebook, KAYAK, Havas Digital, Hitwise, iREP, John Lewis,
LendingTree, Resolution Media, Sears, Starcom MediaVest Group, Tesco, Travelocity,
Walgreens, and Zappos. Kenshoo has 16 international locations and is backed by Sequoia
Capital and Arts Alliance. Please visit http://www.Kenshoo.com for more information.
Kenshoo is a trademark of Kenshoo Ltd. Other company and brand names may be trademarks
of their respective owners.
Photo:
http://photos.prnewswire.com/prnh/20120907/559592
Photo:http://photos.prnewswire.com/prnh/20120907/559592
http://photoarchive.ap.org/
Kenshoo
CONTACT: Contact: Nick Olsen, PReturn Inc., +1-312-432-9407, nolsen@preturn.com
New Kenshoo Paid Search Marketing Report Shows Overall Q3 Global Growth, Regional Cost-per-Click Inflation and Wins for the Yahoo! Bing Network, Google Product Listing Ads and Mobile Devices
Kenshoo Global Search Advertising Trends report is the first in an ongoing, quarterly series
SAN FRANCISCO, October 11, 2012 /PRNewswire/ --
(Logo:
http://photos.prnewswire.com/prnh/20120907/559592 )
Kenshoo [http://www.kenshoo.com ], a global leader in digital marketing software,
today published its inaugural quarterly report, "Kenshoo Global Search Advertising Trends
[http://www.kenshoo.com/GlobalSearchAdvertisingTrends ]." The report examines the
performance of paid search ads by analyzing aggregate campaign data across search engines
including Google, Yahoo!, Bing, Baidu, and Yahoo! Japan based on more than $3 billion in
annual paid search budgets managed through Kenshoo. Notable findings from the report
include:
Global Search Advertising Growing
Through the first three quarters of 2012, global paid search budgets were
significantly higher year-over-year (YoY). For Q3 2012, the YoY growth rate was 24
percent. The increase in global search ad spend comes despite average cost-per-click (CPC)
being relatively flat YoY, reflecting incremental budgets being allocated to paid search.
U.S., U.K., and E.U. Paid Search Average Cost-per-Click Rising
During 2012, both the U.S. and U.K., as well as the broader European Union, have shown
steady CPC increases quarter-over-quarter (QoQ). If growth rates remain consistent, CPC
rates in the U.K., which are currently at $0.45 USD, could match the U.S. CPC rate of
$0.48 by Q4 2012. With CPC rising, marketers will have to increase search ad budgets
and/or develop sophisticated optimization strategies to sustain traffic and conversion
volumes.
Yahoo! Bing Network Drives Strong Results
In the U.S., while Google delivers more overall traffic (684 percent more in Q3 2012),
the Yahoo! Bing Network (YBN) drives online sales revenue at a more efficient rate.
Specifically, the return on ad spend (ROAS) of paid search on YBN was 28 percent higher in
Q3 than that of Google and the YBN click-through rate (CTR) was 29 percent higher. As a
result, advertisers increased their YBN ad spend 10 percent quarter-over-quarter and 35
percent YoY, representing a faster rate of growth than Google.
Google Product Listing Ads Outperform Text Ads
Google Product Listing Ads (PLA) have gained significant traction and outperformed
paid search text ads in CTR (68 percent higher), conversion rate (38 percent higher) and
ROAS (25 percent higher). Google Shopping moves to an all paid model in the U.S. on
October 17, 2012, with the U.K. and Europe expected to follow in 2013. This means only
merchants who leverage PLA will be present in the search results, making these findings
especially notable.
Mobile Ads Having an Impact
Representing 13 percent of total U.S. paid search spend, mobile phones and tablets
generated 21 percent of all U.S. search advertising clicks. While mobile phones accounted
for 11 percent of all search ad clicks and six percent of all spend, these devices
returned just 0.6 percent of all conversions. Meanwhile, tablets generated 8.8 percent of
all conversions and 10 percent of total clicks while accounting for only seven percent of
total ad spend. These converging trends illustrate the impressive performance of tablet
paid search for top advertisers, as well as a move toward differentiating paid search
campaigns on mobile phones to better accommodate mobile searchers and achieve
complementary conversions that aim for something other than direct online sales.
"Through the first three quarters of 2012, we've seen strong growth in paid search
budgets as advertisers continue to generate exceptional results from this intent-driven
marketing channel," said Aaron Goldman, CMO of Kenshoo. "Marketers should closely examine
our data as well as their own campaign benchmarks to find the best performing areas and
those ripe for expansion to meet their goals. This report identifies a number of specific
opportunities, including increasing investment with the Yahoo! Bing Network, ramping up
Product Listing Ads for Google Shopping, and creating mobile campaigns with unique
targeting for different devices.
To analyze quarterly data in its historical context through the most uniform and
largest sample possible, an aggregate data set was built from Kenshoo clients who had been
active during the previous 18 months. Kenshoo clients include four of the top five U.S.
travel websites, six of the top 10 global hotel chains, seven of the top 10 global
retailers, eight of the top 10 global telecoms, 10 of the top 10 global ad agency networks
and 24 of the Fortune 50 companies.
Visit http://www.Kenshoo.com/GlobalSearchAdvertisingTrends to download the full
report, including key takeaways for marketers.
About Kenshoo
Kenshoo is a digital marketing software [http://kenshoo.com ] company that engineers
technology solutions for search marketing, social media and online advertising. Brands,
agencies and marketing providers use Kenshoo Enterprise, Kenshoo Local and Kenshoo Social
to direct more than $25 billion in annual client sales revenue. The Kenshoo Universal
Platform delivers automation, intelligence, integration and scale to make better marketing
investments. With campaigns running in more than 190 countries, Kenshoo clients include
CareerBuilder, Expedia, Facebook, KAYAK, Havas Digital, Hitwise, iREP, John Lewis,
LendingTree, Resolution Media, Sears, Starcom MediaVest Group, Tesco, Travelocity,
Walgreens, and Zappos. Kenshoo has 16 international locations and is backed by Sequoia
Capital and Arts Alliance. Please visit http://www.Kenshoo.com for more information.
Kenshoo is a trademark of Kenshoo Ltd. Other company and brand names may be trademarks
of their respective owners.
Photo:
http://photos.prnewswire.com/prnh/20120907/559592
Photo:http://photos.prnewswire.com/prnh/20120907/559592
http://photoarchive.ap.org/
Kenshoo
CONTACT: Contact: Nick Olsen, PReturn Inc., +1-312-432-9407, nolsen@preturn.com