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Archive for ‘Analytics’

Mobile Display Goes Up, but Tablet’s on the Decline

By September 6th, 2016

Between the distant frenzy of the Q4 shopping season and the rising calm of midyear, Q2 tends to be the quietest quarter. However, this doesn’t mean there’s nothing happening. Among other things we found in our research, mobile display played a larger role this Q2—but overall, the ubiquitous move to mobile is actually slowing down. And, tablet usage continues to drop.

To create our quarterly benchmark reports, we sample the Marin Global Online Advertising Index, composed of advertisers who invest more than $7 billion in annualized ad spend on the Marin platform. We analyze data from around the world to create our report. For Q2 2016, key findings include:

  • The move to mobile is slowing down. Across search and social, the shift away from desktop has been slowing for the last two quarters. Device share is decelerating and seems to be approaching a stability point. Display is the only channel that’s still seeing strong shifts toward mobile over the past quarter for both advertisers and users.
  • Smartphone and desktop are the devices of choice. The tablet revolution never took off and continues to shrink. Instead, it was co-opted by its sibling device, the smartphone. For the foreseeable future, smartphone and desktop are the two largest winners.
  • Advertisers should continue to prioritize cross-channel, cross-device targeting. In order for advertisers to employ a robust cross-channel, cross-device marketing approach, they should continue to learn the strengths and weaknesses of these channels and devices.

For detailed information on Q2 2016 search, social, and display mobile performance and strategy recommendations, download our Performance Marketer’s Benchmark Report Q3 2016 – Vital Search, Social, and Display Performance Data by Device.

What to Expect for Shopping Ads This Holiday Season

By August 16th, 2016

Last year, we forecast that 30% of all retail paid-search spend would be on a shopping ad, and 45% of all product ad clicks would be on a smartphone—and smartphone click growth ended up being even stronger than we predicted. Looking forward, where do we see shopping ads this holiday season?

We took a look at month-over-month variations and factored in seasonal shifts in performance to forecast where we’ll be by December 2016:

  • 40% of all shopping ad dollars will be on a smartphone
  • 37% of paid search clicks will be on a shopping ad
  • Social clicks and spend share should flatten out over the year and remain at current levels

shopping-2016-blog-the-future-body-image

For more results sampled from the Marin Global Online Advertising Index—composed of advertisers who invest more than $7 billion in annualized ad spend on the Marin platform—read The State of Shopping Ads: 2016 Cross-Channel Marketing Report. With data charts on mobile, social, text versus product ads, and strategy recommendations for the 2016 holiday season, be sure to download your copy today so that you’re prepared for the Q4 rush.

Text Versus Product Ads: Shopping Peaks, Valleys, and Plateaus

By August 10th, 2016

As retail search advertisers continue to plan their campaigns for the 2016 holiday season, they’re weighing the pros and cons of text versus product ads. What’s the most effective ad type for reducing cost, increasing CTR, and maximizing returns on spend?

The answer: it depends.

Sampling the Marin Global Online Advertising Index, composed of advertisers who invest more than $7 billion in annualized ad spend on the Marin platform, we analyzed data from around the world to create our 2016 Cross-Channel Marketing Report. Here are just a few of our findings:

  • November beat December in both 2014 and 2015 for shopping ad spend.
  • Over the past two years, shopping ad spend share grew from 18% to 28%.
  • CPC between text ads and product ads remained stable year-over-year.
  • CTR between the two ad types is virtually the same.

shopping-2016-blog-text-v-product-body-image

For the full results of our research, including data charts on mobile, social, text versus product ads, and strategy recommendations for the 2016 holiday season, download The State of Shopping Ads: 2016 Cross-Channel Marketing Report.

A 2016 Social Media Shopping Spree

By August 1st, 2016

Shoppers are already prepping their lists for the holidays, and retail advertisers are close behind, on the mobile-focused, ad spend case. If smartphones were big-box retail destinations, they’d be the new “mad rush” of holiday sales.

Thankfully, when shoppers are looking for deals and information, they can now easily turn to their mobile devices.

Sampling the Marin Global Online Advertising Index, composed of advertisers who invest more than $7 billion in annualized ad spend on the Marin platform, we analyzed data from around the world to create our 2016 Cross-Channel Marketing Report. Our research uncovered some surprising things about what to expect for social advertising this 2016 shopping season.

  • Advertisers are investing big on smartphones and tablets: During Q1 2016, social ad spend on mobile devices represented 90% of ad spend.
  • Shoppers love social ads on mobile: Those ads were popular, with 95% of all clicks happening on social by way of a mobile device during the same time period.
  • This bodes quite well for Q4 2016: Social clicks and spend share should flatten out over the year and remain at current levels.

shopping-2016-blog-social-body-image

Happy shopping—and spending—in 2016.

For the full results of our research, including data charts on mobile, social, text versus product ads, and recommendations for how to stand out during the 2016 holiday season, download The State of Shopping Ads: 2016 Cross-Channel Marketing Report.

4 Tips for a Successful Back to School & Holiday Shopping Season

By July 20th, 2016

Retailers know that the second half of the year is always more important than the first. The shopping season and back to school are crucial periods for brick-and-mortar and online stores—these are times when retailers need to capture consumers with sales and promotions, so that they’ll stay longer and buy more.

With advertisers over doubling their ad spend during the holiday season compared to the rest of the year, competition remains fierce. The 2015 holidays raked in over $100 billion for ecommerce alone. How can advertisers compete within this complex online marketplace?

Launch search shopping campaigns.

During the holiday season, we expect that shopping ad clicks will spike almost 400% when compared to the beginning of the year, and will account for one of every three clicks on a search ad.

By now, all retailers should be exploring shopping campaigns for their products. Not only do shopping ads perform better for search advertisers, they’re also competitive in price and particularly effective for mobile advertising. This is especially important since smartphones are now the device of choice for most shoppers.

While Google is the biggest player in the shopping ad market, be sure to consider Bing, which offers its own shopping ad format.

Expand into cross-channel advertising.

90% of social retail clicks come from mobile.

Although search is important, it’s not the only channel where retailers should advertise. Display and social are both vital channels to consider for how they interact with potential shoppers and audiences, and they’re both much more heavily mobile than search. Combining search, social, and display allows advertisers to create a very powerful campaign that can target shoppers across channels more effectively and efficiently.

Play to device strengths.

About 40% of all retail advertising dollars will be spent on a smartphone this holiday season.

Understanding the strengths of each device is key to effectively spending advertising dollars. While desktop remains on top for converting an ad click into a purchase, the role of mobile devices in the conversion pathway is becoming better understood.

Many consumers treat mobile devices as a research tool, and while they may not convert directly to a purchase through a mobile click, there are ad types such as click-for-directions and click-to-call that contribute directly to an offline or later purchase.

Timing is everything.

Back to school clicks and conversions increased year-over-year by about 15% and 10%, respectively.

Timing campaigns appropriately allows you to reach the maximum number of people. For retailers, this is particularly important during the second half of the year. If you’re looking to reach the right audiences at the right time, be sure to take into account the day on which your campaigns go live.

The back to school click boost begins a month ahead of school, usually peaking about a week before school starts. For the holidays, it begins slightly earlier every year. We usually see consumer interest rise as soon as October ends or even slightly before, with steadily increasing impressions and clicks for retailers when compared to prior months until a peak in late November.

Read our full forecasts for this upcoming holiday season in our report, The State of Shopping Ads: 2016 Cross-Channel Marketing Report.

In the Click of It: Mobile Shopping in 2016

By July 19th, 2016

When it comes to shopping ads, Q4 and mobile go together like thumbs on a small screen (literally).

Sampling the Marin Global Online Advertising Index, composed of advertisers who invest more than $7 billion in annualized ad spend on the Marin platform, we analyzed data from around the world to create our 2016 Cross-Channel Marketing Report. Our research allowed us to make a few definitive predictions for mobile performance in the 2016 shopping season.

  • Smartphones rule clicks: By April 2016, we expect the smartphone click rate to have grown by about 200% from January 2014. Mobile will leave tablets and desktops in the dust, as they hover just around the 75% point in terms of click share. No competition, as they say.
  • Smartphones rule CTR: The same will hold true for click-through rate, with smartphones projected to dominate the scene throughout the holiday season and beyond.
  • Smartphones rule CPC: Increased mobile activity will lead to lower cost per click, allowing advertisers to allocate spend where it counts most, and to better evaluate the different strengths and weaknesses of different ad formats.

shopping-2016-blog-mobile-body-image

In sum: smartphones rule. For the full results our research, including data on social, text versus product ads, and recommendations for how to stand out during the 2016 holiday season, download The State of Shopping Ads: 2016 Cross-Channel Marketing Report.

Do Advertisers Show Dads Love on Fathers Day?

By June 15th, 2016

As Father’s Day approaches, dads everywhere are eagerly anticipating a day for themselves (bring on the socks, watches, and gadgets). If advertising dollars were any indication in 2015, how much should they really be looking forward to it this year?

Last year, we looked at Mother’s Day versus Father’s Day advertising spend and clicks, and the latter simply couldn’t hold up to the former. For 2016, we investigated whether there was a chance that consumers and advertisers would show more love to Father’s Day.

How Did Spend Correspond to Clicks?

When we looked at consumer and advertiser behavior for Mother’s Day and Father’s Day last year, we got an idea of how retailers allocated budgets. They increased spend by an average of 12% for the week leading up to Mother’s Day. In comparison, Father’s Day only saw an average of a 5% bump in advertiser budgets during the same relative time period.

On the consumer side, we saw a 3% increase in clicks for both Mother’s and Father’s Day, during the week leading up to each day. This could be due to increased consumer awareness for Father’s Day leading to a similar bump when compared to Mother’s Day. It also appears that the number of Father’s Day sales has increased compared to 2014, based on campaigns within the Marin Index.

What does this mean? While consumers paid similar online retail attention to both holidays, advertisers viewed Mother’s Day as more competitive and important. This may be explained by looking at the number of conversions for both holidays. Mother’s Day had a 10% increase in conversions versus 3% on Father’s Day.

Chart

Advertisers Should Pay More Attention to Father’s Day

While dads didn’t quite overtake moms last year, it was much closer than the year before. If the trend continues this year, it’s a good sign for dads. We’ll see this Sunday.

Perhaps this year, advertisers will devote more of their attention to Father’s Day, which is what we recommend—giving equal consideration and budget to Father’s Day, as it may shape up to be just as important as Mother’s Day in terms of sales and bringing in consumers. The two appear to be converging with each new year, and it makes sense for advertisers to adjust their spends and sales campaigns to compensate.

Identify and Convert Your Most Valuable Audiences Across Channels

By May 18th, 2016

Global mobile trends all point to the same conclusion – operating in channel-specific silos no longer works, and now’s the time for marketers to implement a strong cross-channel marketing strategy.

If you subscribe to this blog (and if you don’t, see that second little box on the right), you already know we’ve been evangelizing the message of “cross-device, cross-channel.” There’s a good reason for that.

Data Are Fundamental to Consumer Engagement

As we approach the halfway point of 2016, it’s more important than ever that marketers not only use data to understand customer behavior, but also to act on that behavior to deliver engaging, personalized experiences.

On May 25, Nitin Rabadia – our Director of Audience Marketing EMEA, APAC – will explain how to use data to win the online battle for attention and revenue. Gleaning insights from our 2016 Global Mobile Report (available with webinar registration), Nitin will field your questions and discuss:

  • How consumer behavior is affecting desktop and mobile spend
  • Recommendations for optimizing advertising across channels
  • Tactics to take advantage of customer signals
  • How to improve budgeting, bidding, and targeting decisions with full transparency

Register for the webinar today.

 

Google’s New Ad Layout: Where Are We Now?

By May 16th, 2016

A few months ago, Google veered course from how it’s historically served desktop ads. Right-hand ads were removed, while a fourth ad slot was added above the organic search results. This change aligned mobile and desktop search results, and is regarded as Google’s acknowledgement that mobile search — not desktop — is key to the company’s continued growth and success.

Google’s Initial Response

Last month, Google’s new CEO, Sundar Pichai, penned Google’s annual Founders Letter. His opening two paragraphs reinforce the importance of mobile to Google’s mission:

“When Larry and Sergey founded Google in 1998, there were about 300 million people online. By and large, they were sitting in a chair, logging on to a desktop machine, typing searches on a big keyboard connected to a big, bulky monitor. Today, that number is around 3 billion people, many of them searching for information on tiny devices they carry with them wherever they go.

In many ways, the founding mission of Google back in ’98 — ‘to organize the world’s information and make it universally accessible and useful’ — is even truer and more important to tackle today, in a world where people look to their devices to help organize their day, get them from one place to another, and keep in touch. The mobile phone really has become the remote control for our daily lives, and we’re communicating, consuming, educating, and entertaining ourselves, on our phones, in ways unimaginable just a few years ago.”

For a visual representation of this shift, Andressen Horowitz put together this great chart:

Horowitz Chart

Our Initial Reactions

When news of Google’s ad format change broke in mid-February, we offered our first reactions in a post titled, “Google’s New Ad Layout: Pros, Cons, Ins, Outs.” Our hypothesis used basic economic principles to argue that with tightened supply and constant demand, the average CPC could increase for some advertisers.

Secondly, we predicted that with fewer distractions (e.g., right-hand rail ads), advertisers with a strong product-market fit —typically in positions 1 through 3 —would have an easier time connecting with current and future customers.

What Does the Data Say About Google’s Ad Layout?

Now that some time has passed, we decided to take a look at our dataset — the Marin Global Online Advertising Index — to confirm or reject our early predictions. For this blog post, we compared performance immediately before, and immediately after, the changes went into effect.

The results were interesting. We’ll start by laying out the findings and then provide some closing thoughts.

Positions 1-3 saw little change in competition, as CPCs on these top positions declined marginally for the period. The slight dip in CPCs may be attributable to the increase in consumer propensity to click on these top positions without the distraction of ads on the right rail. This is consistent with our prediction that fewer distractions would yield better brand engagement.

Meanwhile, click-through rates (CTR) for positions 1 and 2 were largely flat, while CTR for 3 and 4 increased by +10% and +13%, respectively. Movements in positions 5 and 6 were particularly noteworthy. Position 5 had significant increases in CTR +10% and CPC +6%, while position 6 had material declines in CTR -20%, yet CPC increased marginally.

An Analysis of Our Predictions

So, how did our predictions stack up?

We were delighted to see economic theory in action (and our hypothesis confirmed) with observed CPCs increasing on tightened supply, and the revised layout of prime real estate favoring established brands.

In this new frontier, positions 4 to 5 appear to be the proving ground for new market entrants. Our secondary hypothesis — that less distraction would increase advertisers’ ability to connect with their (potential) customers — played out by the significantly higher engagement rate on top ad slots.

Other useful takeaways from this analysis pertain to advertisers fighting for position in the lower ad slots. In particular, position 6 appears to be a questionable strategy given the significantly lower engagement rate, while position 4 and position 5 are clearly the most competitive positions for advertisers who don’t have the quality score or brand recognition to lock in the top positions.

The Bottom Line

These results provide a teaser of things to come. As mentioned, we’re looking at two small datasets to give you a quick pulse on the immediate before and after results. Check back for future follow-up posts, as we dig deeper into the Marin Software Online Advertising Index to understand the more nuanced effects of Google’s ad format change on particular industries and geographies.

The Continuing Adventures of Cross-Channel Marketing: The Latest Performance Data

By May 12th, 2016

When we looked at performance marketing data from the first quarter of 2016, one thing became clear: cross-channel, cross-device targeting remains the most powerful differentiator for profitable marketing strategies.

To create our quarterly benchmark reports, we sample the Marin Global Online Advertising Index, composed of advertisers who invest more than $7 billion in annualized ad spend on the Marin platform. We analyze data from around the world to create our report. For Q1 2016, key findings include:

  • All mobile, all the time. Advertisers and consumers are continuing to shift towards a more mobile ecosystem.
  • Cross-channel and cross device remain important. It’s important for marketers to adopt and maintain a more holistic and complete approach to digital marketing that targets across all channels and devices.
  • Every channel has its strengths and weaknesses. Not only should marketers become adept at recognizing each channel’s weaknesses, but even more importantly, they should start using all three channels and devices to their best strengths.

For detailed information on Q1 2016 search, social, and display mobile performance – including detailed data charts with YoY performance and up-to-date recommendations – download our Performance Marketer’s Benchmark Report Q2 2016 – Vital Search, Social, and Display Performance Data by Device.

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