Investment in social advertising in the second quarter this year has taken a 47% year-on-year uptick according to Kenshoo, driven by a proliferation of mobile and dynamic product ads.
According to the agile marketing company, this comes as social ads attract a 21% increase in cost-per-click (CPC), as the ad format becomes increasingly “specialised”.
Casting an eye over data deriving from over 3000 advertisers and agencies across multiple markets – including companies such as Google, Bing and Yahoo! – Kenshoo found mobile to be the driving force behind the climbing figures.
In fact, the study claims that more than three out of four (77%) of clicks on social ads, derive from smartphones and tablets, while the platform also accounts for 49% of impressions.
As a result, nearly two thirds (64%) of spend on the channel is directed at mobile, owed to the success of Dynamic Product Ads (DPAs) on Facebook and Instagram, taking over 19% of e-commerce paid social budgets, while the former’s move towards video is increasingly siphoning marketing budget.
Mobile’s increasing surge to the forefront of digital advertising has also left its mark on search advertising spend, thanks to a majority of clicks (62%) and views (60%) occurring outside of the traditional keyword-based desktop ads, on Product Listing Ads, app ads and dynamic search ads.
“The study brings to light how both social and search are advancing, with a greater variety of ad types designed to help marketers’ meet specific goals, all contributing to double-digit growth in spend on both channels,” said Rob Coyne, Kenshoo’s EMEA managing director.
The results point out that the growth path for social and search ads is paved by mobile and dynamic product ads, while video is catching up quickly, according to Coyne.
“Across both channels, all of these changes are underpinned by the unstoppable march towards more mobile advertising.”
For more details, have a look at Kenshoo’s infographics below.