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Performics Benchmarking & Industry Developments Report Q3 2013
 

Performics Benchmarking & Industry Developments Report Q3 2013

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Spend, click, CTR, CPC trends Y/Y & Q/Q in paid search, mobile and Product Listing Ads. Insights into new Q3 developments in paid search, mobile, shopping feeds, organic search, social and display

Spend, click, CTR, CPC trends Y/Y & Q/Q in paid search, mobile and Product Listing Ads. Insights into new Q3 developments in paid search, mobile, shopping feeds, organic search, social and display

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  • We’re expecting 2013 spend to peak in Q4 (when retailers do 50% of their sales)-Budgets have been flighted to Q4 to strike while the iron is hot-Clients have eased into Enhanced Campaigns and are now comfortable to get more aggressive-Clients have created compelling mobile experiences and landing pages to get aggressive in capturing the expected explosion of mobile traffic this holiday

Performics Benchmarking & Industry Developments Report Q3 2013 Performics Benchmarking & Industry Developments Report Q3 2013 Presentation Transcript

  • Q3 2013 Benchmarking & Industry Developments Paid Search Mobile Search Product Listing Ads (PLAs) Social & Display Organic Search @Performics
  • 2 Q32013Overview MOBILE SEARCH Benchmarks: Spend, Impressions, Clic ks, CTRs, CPC Google Enhanced Campaigns PRODUCT LISTING ADS Benchmarks: Spend, Clicks, CTRs, CPC PAID SEARCH Benchmarks: Spend, Clicks & CTRs, CPCs Engine Share Google Estimated Conversions SOCIAL & DISPLAY Facebook Advertiser Investment YouTube Investment Yahoo! Stream Ads LinkedIn Sponsored Updates ORGANIC SEARCH Google Secure Search Hummingbird Bing Redesign
  • Paid Search
  • Performics aggregate U.S. client base, all engines, same store +11.2% Spend +9.3% Clicks +22.1% CTRs +1.8% CPCs PaidSearchGrowth:Overview +17.9% Spend +16.0% Clicks +6.7% CTRs +1.6% CPCs
  • Spend  11.2% increase in Y/Y paid search spend – Good acceleration from slower Q2 Y/Y, which was due to caution around GEC migration, & budget preservation for high volume in Q3 & Q4 (back to school, holiday)  Spend accelerated each month in Q3, as advertisers got more aggressive with GEC mobile bid multipliers Performics aggregate U.S. client base, all engines, same store +11.2% Spend +9.3% Clicks +22.1% CTRs +1.8% CPCs +17.9% Spend +16.0% Clicks +6.7% CTRs +1.6% CPCs
  • 1. Mobile – As mobile usage soars, advertisers focus on building compelling mobile experiences to capture traffic, enabling them invest more in mobile search – GEC tablet force-in driving increased tablet spend 2. Attribution – More tools & processes to visualize the total impact of paid search (online & offline), enabling advertisers to more confidently invest in the channel 3. Omni-channel – Linking search to all other advertising (TV, OOH, video, display, gaming consoles) to create a holistic participant experience 6 PaidSearchGrowthStimulatorsQ3
  • Clicks & CTRs  Although we are seeing fewer Y/Y impressions (impressions down 10% from Q3 2012 to Q3 2013), clicks are still increasing (9.3%) – This increases CTRs (22.1% Y/Y increase)  Rising CTRs indicate that paid search advertising is becoming more effective, which is also stimulating spend Performics aggregate U.S. client base, all engines, same store +11.2% Spend +9.3% Clicks +22.1% CTRs +1.8% CPCs +17.9% Spend +16.0% Clicks +6.7% CTRs +1.6% CPCs
  • CPCs  We’ve now seen 4 consecutive quarters of CPCs rising Y/Y – Conservative bid multipliers at the start of GEC (July, Aug.), pulling down CPCs – In Sept., Y/Y CPCs accelerated : – Advertisers got more aggressive in GEC – Sept. was very competitive for back to school Performics aggregate U.S. client base, all engines, same store +11.2% Spend +9.3% Clicks +22.1% CTRs +1.8% CPCs +17.9% Spend +16.0% Clicks +6.7% CTRs +1.6% CPCs
  •  Bing/Yahoo! spend share has grown from 20% in Q3 2012 to 23% in Q3 2013:  Increased spend driven by decreasing CPCs (improved ROI): Bing/Yahoo!GainsonGoogle Performics aggregate U.S. client base, all engines, same store Decreasing CPCs driven by ad enhancements & better processes to boost relevancy (thus quality score)
  •  Measures clicks on paid search ads on one device that end in conversions on other devices (or other web browsers)  More holistic view of conversions enables us to: – Find incremental conversions; reduce the amount of lost attribution across devices & browsers – Better visualize the impact of mobile on conversion (e.g. know when someone clicks on an ad on mobile, but later converts on desktop) to more confidently dedicate budget to mobile  We found 25% more conversions for one retailer 10 GoogleLaunches“EstimatedTotalConversions” Performics Estimated Total Conversions POV
  • Mobile Search
  • MobileSpendSharePeaksinEnhancedCampaigns Performics aggregate U.S. client base, Google only (content and search partners excluded), Sept. 2013  Mobile spend share of total paid search rose significantly in Q3 due to tablet and mobile force-in in Enhanced Campaigns (GEC)  Pre-GEC (June) v. post-GEC (Sept): – Total mobile spend share rose from 22.5% in June to 27.1% in Sept. – Tablet share rose from 13.4% in June to 17.2% in Sept. – Smartphone (mobile) share rose from 9.0% in June to 9.9% in Sept. 72.9% Desktop 17.2% Tablets 9.9% Smartphones  Y/Y increases in mobile spend:  Total mobile: 59.1%  Smartphone: 58.6%  Tablets: 59.4% GEC Migration
  •  GEC tablet force-in led to an 88% increase in tablet impressions from June (pre-GEC) to Sept. (post-GEC) – Smartphone (mobile) impressions increased 44% over same period TabletImpressionsAccelerateinQ3DuetoGEC Performics aggregate U.S. client base, Google only (content and search partners excluded), Sept. 2013 0 20 40 60 80 100 120 Mobile Impressions Mobile Tablets GEC Migration
  •  Mobile (tablets + smartphones) was 37.7% of all paid search clicks in Sept., the second highest ever after Aug. (39.8%) MobileClickShareAlsoReachesNewHeights Performics aggregate U.S. client base, Google only (content and search partners excluded), Sept. 2013  YoY increases in mobile clicks:  Total mobile: 37.2%  Smartphone: 34.4%  Tablets: 40.2% 31.1% 28.5% 32.3% 33.7% 32.4% 34.7% 34.8% 34.3% 35.3% 36.4% 37.7% 39.8% 37.7% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 0 10 20 30 40 50 60 70 Mobile Clicks Mobile Tablets % Clicks from M + T GEC Migration
  •  Historically, tablets had the highest CTRs, followed by smartphones (mobile) and desktop  But, in GEC, increased tablet competition has led to lower tablet CTRs – Now smartphones enjoy the highest CTRs, followed by tablets and desktop: TabletClick-ThroughRates(CTRs)DropinGEC Performics aggregate U.S. client base, Google only (content and search partners excluded), Sept. 2013 GEC Migration
  • AfterGECMigrationDrop,MobileCPCsBounce BackinSeptember  Uncertainty at GEC migrations in July caused advertisers to be conservative with mobile bid multipliers, leading to smaller short- term mobile CPCs increases than expected  Mobile CPCs then stabilized in Sept. as advertisers became more comfortable with GEC and got more aggressive with bid multipliers  Mobile CPCs were 42% of desktop in June, falling in GEC to 39% in July and 37% in Aug., and then bouncing back up to 45% in Sept. Performics aggregate U.S. client base, Google only (content and search partners excluded), Sept. 2013 0% 10% 20% 30% 40% 50% 3/1/2013 4/1/2013 5/1/2013 6/1/2013 7/1/2013 8/1/2013 9/1/2013 Mobile CPCs (Indexed against Desktop) Mobile CPC Index
  • Product Listing Ads (Google Shopping)
  •  PLA spend has risen from 1.4% of text ad spend in Q3 ‘12 to 4.6% of text ad spend in Q3 ’13  We expect PLA spend and click share to peak during holiday 18 PLASpendShareGrowsinQ3
  •  Although PLAs are becoming richer and more visible, searchers still click at a similar rate to desktop: 19 PLAClick-ThroughRates(CTRs)MirrorTextAds
  •  PLA CPCs have remained slightly above regular text ad CPCs in Q3  We expect PLA CPCs to rise in Q4 due to holiday competition 20 PLACPCsRemainSlightlyAboveTextAds
  • Social & Display
  •  Advertiser interest is rising as Facebook has become more direct- response focused through the addition of: – Better Tracking: view-through, conversion pixels – Facebook Ad Exchange (FBX): Advertisers can now better target (e.g. by browsing history). A user’s recent browsing data is more likely to indicate intent to purchase than Facebook’s other targeting options (e.g. profile demographics or interests). – Ads that direct traffic off-site 22 FacebookAdvertiserInvestment
  •  Continuous news stream where Stream Ads appears between every 10–15 articles on Yahoo! Home, News, Travel & Finance  CPC-based; target based on DMA, city, state, gender  Stream Mail runs on top of inbox  We’re seeing higher ROI than other contextual ad types 23 Yahoo!StreamAds
  •  Ad (content) appears in news feed  Focus on relevant, helpful content  Content is not one-size fits all; it requires deep understanding of the users’ wants, needs & barriers  Leverage LinkedIn’s unique targeting capabilities (e.g. job titles, specific companies) 24 LinkedInSponsoredUpdates
  • Organic Search
  •  Google has been encrypting organic searches (keyword: “not provided”) for logged-in users, but will now encrypt organic searches conducted even when users aren't logged in – e.g. advertisers cannot see what organic keyword drove the click to their sites  Keyword information will still be passed from paid search ads  Update makes keyword data from paid search more valuable to inform organic search optimization, increasing the incentive for advertisers to take a OneSearch (paid + organic) approach 26 GoogletoEncryptAllOrganicSearchers Performics Google Secure Organic Search POV
  •  Google made an algorithm update (“Hummingbird”) that affects 90%+ of search results  Unlike Panda and Penguin, Hummingbird focuses less on the ranking algorithm and more on how queries are understood (conversational search)  So far the update hasn’t had much impact  Future keywords & content should focus more on longer queries and providing searchers with answers 27 GoogleHummingbirdAlgorithmTakesFlight Performics Google Hummingbird POV
  •  New logo, design & palette  Bing is also “stepping out of the search box” by integrating further into Win. 8, Windows Phone, Xbox, Maps, Word & Excel – Searchers now discover products & services well beyond the traditional search page – Search strategies must now extend everywhere to engage participants (xBox, Siri, Internet-connected TVs, GPS units, operating systems, apps, etc.) 28 NewBingIdentityHighlightsEvolutionofSearch Performics Bing Redesign POV
  • – Brands should claim listings & pages on sites that Snapshot pulls content from (e.g. Citysearch) – Ensure all info is accurate – Build fan bases, create content, encourage participation to show in Sidebar 29 BingEnhancesSidebar&Snapshot Sidebar (social) Snapshot (facts)
  •  Shows organic results as the searcher types  Not impacting paid search keywords  Shows on fact-based queries (places, people, things) 30 BingRollsOutPageZeroResults
  •  Bing-controlled listing pushes down traditional organic listings  Shows on queries where Bing is confident in user intent: 31 BingLaunchesPolePositions
  • BLOG.PERFORMICS.COM SLIDESHARE: PERFORMICS_US @Performics Benchmarking & Industry Developments Q3 2013