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Merkle Q2 2019 Digital Marketing Report Released

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Merkle Q2 2019 Digital Marketing Report for download, complete with detailed analysis on trends spanning the key platforms across paid search, SEO, display advertising and paid social. This edition of the report includes commentary on the impact of Yahoo’s move to exit the Google Search Partner Network, a rebound in the growth of Google brand CPC, the continued strength of Instagram ads growth, and much more.

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Merkle Q2 2019 Digital Marketing Report Released

  1. 1. QUARTER 2 2019
  2. 2. digital.MARKETING.REPORT table of contents 03 Executive Summary 05 Paid Search 17 Organic Search & Social 21 Display & Paid Social 24 Amazon Ads
  3. 3. MERKLE digital.MARKETING.REPORT Q2 2019 3EXECUTIVE SUMMARY Total spending on US paid search ads grew 14% Y/Y in Q2 2019, as Google spend growth continued to decelerate, while spending on Microsoft Advertising benefitted from Verizon Media’s late Q1 transition to using Microsoft search ads exclusively for its properties, which include Yahoo. Google had served its Shopping ads on Yahoo since early 2016, and while the Yahoo volume was small compared to the Shopping traffic Google produces on its own properties, losing it depressed Google’s Shopping and overall search ad growth rates. On the flip side, Microsoft’s Bing Product Ad format, which picked up the Yahoo inventory, delivered its strongest desktop spending growth in over three years. Microsoft also gained search ad traffic that Yahoo was serving through its Gemini platform and was able to reverse a Y/Y spend decline in Q1 to deliver 16% overall growth in Q2. Between Microsoft and Yahoo combined, spend was 8% higher Y/Y. Despite slightly weaker results in Q2, Google Shopping remained a key driver of overall Google growth, though, as advertiser spending on Shopping grew 38% Y/Y. With Google announcing new image-focused Discovery and Gallery ads in May, Shopping and its variants like Showcase Shopping ads, have shown the potential for Google to show more visually compelling ads for a broader range of user queries and activities. One headwind Google will continue to face in the months ahead is the impact of Apple’s Intelligent Tracking Prevention (ITP) on advertisers’ ability to use remarketing lists for search ads (RLSAs). Google search ad click share for RLSAs hit a nearly two-year low in Q2 2019, as the launches of ITP iterations 2.1 and 2.2 in March and May, respectively, appeared to further diminish RLSAs on Apple devices compared to other browsers. Google advertisers have been turning to alternative audience targeting tools like Similar Audiences, which reached a new click share high of 8% at the end of the quarter. In the UK market, Google trends were more positive in Q2 2019, as spending grew 18% Y/Y on accelerating click growth. Shopping was again an important driver, as it grew to account for 72% of retailers’ Google search ad clicks in the UK, compared to 63% in the US market. Looking at organic search trends, DuckDuckGo was the only major US search engine to deliver site visit growth in Q2 2019, as organic search visits fell 6% overall. Phone organic search produced its weakest rate of growth since mid-2016 overall, but DuckDuckGo saw visits grow 64% on mobile devices. Amazon ads sales revenue growth continues to far outpace spend growth, up 102% and 53% for Sponsored Products and Sponsored Brands, respectively. Brand keywords play a crucial role on Amazon, accounting for 43% of Sponsored Products sales and 62% of Sponsored Brands sales. Spend growth for Facebook proper – excluding Instagram – grew 8% Y/Y for the quarter, as impressions were up 25%. Instagram continues to grow far faster than Facebook itself, and Instagram now accounts for 35% as much ad spend as Facebook for advertisers active on both platforms. While YouTube has experienced several spats of bad publicity over the past couple of years, advertisers continue to invest in the platform, increasing spend 43% Y/Y for the quarter.
  4. 4. MERKLE digital.MARKETING.REPORT Q2 2019 4EXECUTIVE SUMMARY paid search ·· Spending on Google search ads grew 15% Y/Y in Q2 2019, down from 16% in Q1 2019. Click growth was slightly weaker at 10% in Q2 2019, while CPC growth was steadier at 4.5%. ·· Google Shopping ad spending grew 38% in Q2 2019, down from 41% growth in Q1 2019. With Yahoo dropping Google’s ads in favor of Bing Product Ads, Shopping’s share of all Google search ad clicks fell two points between Q1 and Q2 2019. ·· Spending on desktop Google search ads grew 6% Y/Y in Q2 2019, up from 2% in Q1. Mobile spend grew 34% in Q2 2019, down from 46% a quarter earlier, as spending growth for mobile Google Shopping ads cooled to a three-quarter low. ·· Spending on Microsoft Advertising (formerly Bing Ads) search ads grew 8% Y/Y in Q2 2019, compared to the combined results of Microsoft and the Yahoo Gemini platform from a year earlier. ·· Android and iOS devices produced 68% of Google search ad clicks, but just 35% of Microsoft search ad clicks. Between mobile and desktop Safari, Apple browsers produced 49% of Google clicks. ·· Organic search produced 23% of all site visits and 21% of mobile site visits in Q2 2019. Phones and tablets produced 59% of organic search visits, compared to 65% of paid search visits. ·· DuckDuckGo organic search visits were up 49% Y/Y across all devices as the search engine saw its share of total US organic search rise from 0.4% in Q2 2018 to 0.6% in Q2 2019. ·· Site visits produced by Facebook were up 29% Y/Y, while Instagram visits rose 56%, and YouTube visits improved 22%. organic search & social amazon ads ·· Amazon Sponsored Products spend grew 12% Y/Y, with sales up 102%. The format now accounts for 86% of all non-display Amazon ads spend. ·· Top-of-search ad placements accounted for 45% of Sponsored Products spend and 88% of Sponsored Brands spend. ·· Brand keywords accounted for 62% of sales revenue attributed to Sponsored Brands and 43% for Sponsored Products, far eclipsing the 32% and 30% click shares these keywords generate for each format, respectively. display & paid social ·· Facebook spend increased 8% Y/Y, as impression growth surged to 25% Y/Y – the strongest figure observed over the past two years. ·· Instagram spend grew 85% Y/Y, with a 208% increase in impressions. For advertisers active on both Instagram and Facebook, Instagram accounted for 35% as much ad spend as Facebook proper for the quarter. ·· Advertisers remain active on YouTube, and in Q2 2019 increased ad spend 43% with a 16% increase in impressions and 24% increase in CPM.
  5. 5. MERKLE digital.MARKETING.REPORT Q2 2019 5PAID SEARCH ORGANIC SEARCH & SOCIAL DISPLAY & PAID SOCIAL AMAZON ADS Spending on Google search ads grew 15% Y/Y in Q2 2019, down from 16% in Q1 2019. Click growth was slightly weaker at 10% in Q2 2019, while CPC growth was steadier at 4.5%. Google Shopping ad spending grew 38% in Q2 2019, down from 41% growth in Q1 2019. With Yahoo dropping Google’s ads in favor of Bing Product Ads, Shopping’s share of all Google search ad clicks fell two points between Q1 and Q2 2019. Spending on desktop Google search ads grew 6% Y/Y in Q2 2019, up from 2% in Q1. Mobile spend grew 34% in Q2 2019, down from 46% a quarter earlier, as spending growth for mobile Google Shopping ads cooled to a three-quarter low. Spending on Microsoft Advertising (formerly Bing Ads) search ads grew 8% Y/Y in Q2 2019, compared to the combined results of Microsoft and the Yahoo Gemini platform from a year earlier. Android and iOS devices produced 68% of Google search ad clicks, but just 35% of Microsoft search ad clicks. Between mobile and desktop Safari, Apple browsers produced 49% of Google clicks. paid search
  6. 6. MERKLE digital.MARKETING.REPORT Q2 2019 6PAID SEARCH ORGANIC SEARCH & SOCIAL DISPLAY & PAID SOCIAL AMAZON ADS +10% +20% US Search Ad Spending Growth Remains at 14% Y/Y Total advertiser investment in paid search grew 14% Y/Y in the US market in Q2 2019, a slight deceleration compared to the previous quarter. Search ad clicks grew 9% in Q2, compared to 10% in Q1, while average CPC growth remained roughly even at just over 4% Y/Y. Q2 2019 marked the sixth quarter in a row where search ad spending growth has decelerated, following relatively strong results in late 2017. Google Shopping Spend Growth Decelerates, but Far Outpaces Text Ads Spending on Google Shopping ads grew 38% in Q2 2019, down from 41% growth in Q1 2019. Shopping click growth slowed from 33% in Q1 to 25% in Q2. Text ad spending declines stabilized at 12% in Q2 2019, in part due to a recovery in spending on advertiser brand keywords. Shopping ads continue to cannibalize text ad volume, but their growth slowed a bit as Google generated a smaller share of Shopping traffic from partners like Yahoo in Q2. Slower Shopping Click Growth Hurts Overall Google Search Spend Spending growth for Google search ads slipped a point between Q1 and Q2 2019, coming in at 15% Y/Y. Click growth was slightly weaker at 10% in Q2 2019, while CPC growth was more steady at 4.5%. Google Shopping ad click volume took a hit to start the quarter as Yahoo stopped running Google Shopping ads in favor of Bing Product Ads. Mobile Google Shopping growth was also a bit weaker generally, following two particularly strong quarters in a row. +30% Overall US Paid Search Y/Y Growth Google Overall US Paid Search Y/Y Growth +15% +4% +10% ClicksAd Spend CPC Google Shopping (PLAs) Text Ads Google Spending by Ad Format Y/Y Growth ClicksAd Spend CPC +10% +20% +30% Q4Q3Q2 Q2Q1 2018 Q1Q4 2019 +45% +15% –15% +30% +14% +9% +4% Q4Q3Q2 Q2Q1 2018 Q1Q4 2019 Q4Q3Q2 Q2Q1 2018 Q1Q4 2019 +38% –12%
  7. 7. MERKLE digital.MARKETING.REPORT Q2 2019 7PAID SEARCH ORGANIC SEARCH & SOCIAL DISPLAY & PAID SOCIAL AMAZON ADS Mobile Google Search Spend Returns to Early 2018 Growth Rates Spending on desktop Google search ads grew 6% Y/Y in Q2 2019, up from 2% in Q1. Mobile spend grew 34% in Q2 2019, down from 46% a quarter earlier, as spending growth for mobile Google Shopping ads cooled to a three-quarter low. Tablet spending fell 6% in Q2 2019, following three quarters of minimal growth. Google Non-Brand Spend Growth Slows to 14% Y/Y on Weaker Click Growth The non-brand keyword and Shopping ad segment on Google has seen less dramatic trending in CPC growth than the brand segment over the past two years and, generally, CPC growth has trended lower as traffic has shifted to mobile. In Q2 2019, non-brand CPCs rose 4%, a slight acceleration from Q1, while click growth slowed from 13% in Q1 to 10% in Q2. As a result, spending growth slipped to 14% Y/Y in Q2, from 16% a quarter earlier. Google Brand Keyword CPCs Rebound, Click Growth Improves After hitting a six-quarter low of 6% in Q1 2019, CPC growth for advertiser brand keywords rebounded in Q2 2019, hitting 11% Y/Y. That is still well below levels advertisers saw following a spike in brand CPCs in Q4 2017, but it helped drive spending growth for brand keywords back up to 21%. Brand keyword click growth also accelerated, hitting a nearly two-year high of 9%. +25% –25% +50% Google Search Spending by Device Type Y/Y Growth +34% +6% +40% +20% +10% +9% Google Brand US Paid Search Text Ads Y/Y Growth +21% +11% ClicksAd Spend CPC Google Non-Brand US Paid Search Y/Y Growth +25% +15% +5% +20% +10% ClicksAd Spend CPC Q4Q3Q2 Q2Q1 2018 Q1Q4 2019 Q4Q3Q2 Q2Q1 2018 Q1Q4 2019 Phone TabletDesktop Q4Q3Q2 Q2Q1 2018 Q1Q4 2019 –6% +30% +14% +10% +4%
  8. 8. MERKLE digital.MARKETING.REPORT Q2 2019 8PAID SEARCH ORGANIC SEARCH & SOCIAL DISPLAY & PAID SOCIAL AMAZON ADS +5% +10% Desktop Text Ads Mobile Text Ads Mobile Google Shopping Desktop Google Shopping +15% 40% 60% 100% 20% Non-Brand Overall 80% Google Shopping Share of Google Paid Search Clicks Aggregate Results - US Retail +30% +10% Google Shopping vs. Non-Brand Text Ads Revenue Per Click Phone Desktop –10% +20% +14% +5% +7% +1% +14% +4% +3% +11% 20172015 2016 2018 Q2 Q4Q3 Q2Q1 Q4Q3 Q2Q1 Q4Q3 Q2Q1 Q4Q3 Q4 Q1 Q2 Q3 Q2 2019 Q1 2014 Q3Q2Q1 Q2 2018 Q4Q2 2019 +12% Q4 2018 Q3 2018 Q  1 +12% +6% –1% +0.5% Q1 Q3 Q1 –6% Q4 Q2 2019 2019 +13% +0% +0.1% +6% Google Shopping Click Share Falls After Yahoo Switch to Bing Product Ads Google Shopping’s share of total Google search ad clicks fell nearly two points between Q1 and Q2 2019, the largest quarter-to-quarter decline Merkle has observed in the history of this report. Shopping click share was still up four points compared to a year earlier, but Yahoo dropping Google’s ads in favor of Bing Product Ads at the end of Q1 appears to have had a meaningful impact. Revenue-Per-Click Growth Trends Mixed Across Google Ad Formats Average revenue-per-click growth trends were mixed across ad formats and device types in Q2 2019. Mobile non-brand text ad revenue per click grew 13% Y/Y in Q2, up from 7% growth a quarter earlier, but desktop text ad revenue-per-click growth was flat in Q2 after increasing 3% in Q1. For Google Shopping ads, mobile revenue- per-click growth slowed from 12% in Q1 to zero growth in Q2, while desktop growth improved to 6% in Q2 from being flat in Q1. Shopping Ad Performance Weakens Slightly Compared to Text Ads Desktop Google Shopping ads produced a 12% higher average revenue per click than comparable non-brand text ads in Q2 2019, while Shopping ads performed about 6% worse on mobile than non-brand text ads by the same measure. Shopping’s relative performance was down across both device types compared to Q1, but it remained within the typical range advertisers have seen over the past two years. Generally, the performance of Shopping ads has held up well, even as the format has expanded to a broader range of queries. Non-Brand Y/Y Revenue-Per-Click Growth Google Shopping & Text Ads by Device 63% 88%
  9. 9. MERKLE digital.MARKETING.REPORT Q2 2019 9PAID SEARCH ORGANIC SEARCH & SOCIAL DISPLAY & PAID SOCIAL AMAZON ADS 20% Amazon Pushes the Gas on Its Google Shopping Ads Program Amazon, which only began running Google Shopping ads at the tail end of 2016, appeared to push the gas on the format in the weeks ahead of its two-day 2019 Prime Day. Within the home goods product category, where Amazon’s presence in Shopping auctions was the strongest out of the gate, Amazon’s impression share jumped about 20 points between early and mid-June 2019. Amazon also appears to be ramping up its Shopping ad investment in other major product categories, such as apparel. Showcase Shopping Ads See Small Share Gains as New Inventory Rolls Out With Google announcing new image- focused Discovery and Gallery ads in May, trends for Showcase Shopping ads may be helpful in assessing their potential. Among participating brands, Showcase Shopping ads have grown to account for 8.5% of all Google Shopping clicks in about two years. Google also announced in May that Showcase Shopping ads were rolling out to new inventory, including Google Images and the Discover feed, but Showcase share gains from Q1 to Q2 were fairly small. Local Inventory Ads Nearly a Quarter of Participants’ Google Shopping Clicks Among brands participating in Google’s Local Inventory Ads (LIAs) program, LIAs produced 23% of all Google Shopping ad clicks in Q2 2019. LIA click share jumped 10 points from Q1 2019, but the number of participating brands remains relatively low compared to the number running traditional Google Shopping ads. 75% Amazon Google Shopping Impression Share Home Goods Category 69% week of 50% 25% OCT 1OCT 2 APR 1JUL 3APR 3 JUL 2APR 2 Local Inventory Ad Share of Google Shopping Clicks US Retail - Participating Brands 10% 25% 15% 5% Q4Q2 Q4Q3 2018 Q1 23% Q2Q4 Q1 Q3 2017 4% Showcase Shopping Ad Share of Google Shopping Clicks US Retail - Participating Brands 10% 2% 6% 8% Q2 2019 Q3Q2Q1 Q2 2018 Q4Q4 2019 8.5% JAN 2 JAN 1 DEC 31 JUN 24 Q1 Q1
  10. 10. MERKLE digital.MARKETING.REPORT Q2 2019 10PAID SEARCH ORGANIC SEARCH & SOCIAL DISPLAY & PAID SOCIAL AMAZON ADS Showcase Shopping Ads Bring More Visual Ads to Google Search Showcase Shopping ads tend to show for queries that are shorter and less specific on average than those that trigger other Google Shopping ads. The difference in average query length isn’t huge at just 3.5 characters in Q2 2019, but Showcase Shopping ads have helped show that Google has an opportunity to serve more visually compelling ads for a broader range of search queries, an opportunity it is bringing to a wider range of advertisers with new formats like Gallery ads. Partner Share of Google Shopping Clicks Drops Sharply Google partners produced just under 4% of Google Shopping ad clicks at the end of Q2 2019, down two points from the average partner click share in Q1 2019. Yahoo dropped Google Shopping ads in favor of Bing Product Ads at the end of Q1, while Google also announced in March that Google Images would become part of its core Search Network, as opposed to being treated as a search partner. Partners still produce a larger share of Shopping clicks than text ad clicks. Click Share for Position Three and Four Text Ads Continues to Trend Down Google’s expansion of top-of-page text ad inventory on both mobile and desktop was big news to industry observers over 2015 and 2016. But over the past two years, click share from these lower position ads has been on the decline. On both mobile and desktop, the share of non-brand text ad clicks produced by position three and four ads is now lower that it was prior to the addition of a fourth top-of-page unit. 10% 5% Search Partner Share of Google Search Ad Clicks 20182016 10 20 Average Search Query Length in Characters Showcase Shopping Ads vs. Other Google Shopping Ads 15 25% 15% 5% 10% 20% Share of Non-Brand Google Text Ad Clicks from Top-of-Page Position 3 & 4 Ads Q2Q1Q4 Q4Q4 Q3 2017 Q3 Q2Q1 Q3 2016 Q2 2018 Desktop Phone Q1 Q2 Q3 Shopping Text Ads OCTJAN JULAPR JANJAN JULAPR OCTOCT JULAPR 2017 5 Showcase Shopping Ads Other Google Shopping Ads 13.5 17.1 Q4 2019 2019 APR 1% 4% Q1 12% 10% JAN
  11. 11. MERKLE digital.MARKETING.REPORT Q2 2019 11PAID SEARCH ORGANIC SEARCH & SOCIAL DISPLAY & PAID SOCIAL AMAZON ADS RLSA Share of Google Clicks Continues to Fall, Similar Audiences Rising Google search ad click share for RLSAs hit a nearly two-year low in Q2 2019, accounting for a little over 17% of all clicks. Prior to Apple’s launch of ITP 2.0, RLSA click share ran roughly 10 points higher. Helping to fill that gap, click share for Similar Audiences reached a new high of over 8% at the end of Q2 2019, but clicks tied to Google’s Seasonal Audiences product have fallen off sharply from their post-holiday shopping season highs. Traditional Keyword Clicks Steady on Google Maps At its May Marketing Live event, Google announced changes to its Local campaigns product including new inventory on Google Maps. For the past three years, Google has also populated ads on Maps by drawing listings from advertisers’ core brand keyword campaigns. These “Get Location Details” clicks, as they are reported by Google, generated about 8% of phone text ad clicks in Q2 2019, which was nearly unchanged from the prior quarter. Gap in RLSA Click Share for Safari Widens Following New ITP Iterations Apple’s launches of ITP iterations 2.1 and 2.2 in March and May, respectively, appear to be further diminishing advertiser’s ability to employ RLSA targeting on Apple devices, at least on mobile. In Q1 2019, RLSA click share ran about five points lower on mobile Apple devices using Safari 12 compared to other browsers. By the end of Q2, that gap had expanded to about nine points. The desktop Safari 12 RLSA gap is even wider, but did not expand as much in Q2. Safari 12 DesktopSafari 12 Mobile –9% –6% 2% 40% 10% Share of Google Search Ad Clicks by Audience Type 18% 8% OCTOCT JAN APR APRJUL 2017 2018 30% JAN 30% OCT 20% JUL Google Audience Click Share for Safari vs. Other Browsers –3% OCT DEC FEB 2018 JUN 2019 4% 6% 10% 2% Get Location Details Share of Google Text Ad Traffic Brick-and-Mortar Advertisers OCTJAN APR JUL 2016 2018 JAN OCTAPR JUL JAN JUL 2017 Phone Desktop Tablet APR APR 2019 APR 8% OCT 2019 –12% JAN Combined Similar AudiencesSeasonal Audiences RLSAs Customer Match APRNOV JAN MAR MAY JAN 7% 5% 1%
  12. 12. MERKLE digital.MARKETING.REPORT Q2 2019 12PAID SEARCH ORGANIC SEARCH & SOCIAL DISPLAY & PAID SOCIAL AMAZON ADS Growth Trends for Key Google Search Metrics Mixed Across Major Industries Across five major industries analyzed for this report, there was a wide range of trends for Google search spend growth and the key metrics driving it in Q2 2019. Financial services and B2B advertisers saw the largest Y/Y increases in Google spend, but both were driven by very large CPC increases, as clicks fell by nearly 11% for both. Retail and consumer goods brands saw the largest click growth at 10% Y/Y, while their CPC increases were a more modest 5%. Financial Services Sees Highest Share of Google Spend from Phones While the financial services industry saw the second-highest share of Google search ad clicks produced by phones in Q2 2019 at 67%, it saw phones account for the highest share of spend at 54%. For retail and consumer goods advertisers, phones accounted for just over 50% of Google search ad investment, the first time phones have accounted for a majority of spend. Relatively Low Mobile CPCs Not Depressing Retailers’ Phone Click Share Despite seeing a relatively large gap between phone and desktop CPCs, retail and consumer goods advertisers saw the highest share of Google search ad clicks produced by phones in Q2 2019, across five major industries. Phones produced 69% of retail and consumer goods clicks, compared to just 39% for insurance where mobile CPCs are far closer to parity with desktop. Financial ServicesB2B TravelInsurance Retail & Consumer Goods Clicks Ad Spend CPC +33% +18% +15% +4% +2% +10% +5% Google Overall Paid Search Growth by Industry Q2 2019 +32% +19% 1% +2% –11% Insurance Financial Services B2B TravelRetail & Consumer Goods Google Phone & Tablet Click Share by Industry Q2 2019 35% 3% 4% 71% 75% 73% 39% Phone Tablet 38% 43% 5% 67% 7% 69% 7% 64% Insurance Financial Services B2B TravelRetail & Consumer Goods Google Phone & Tablet Spend Share by Industry Q2 2019 5% 54% 56% 58% 38% 43% 4% 54% 6% 50% 8% 46% 19% 2% 21% Phone Tablet –6% –11% –6%
  13. 13. MERKLE digital.MARKETING.REPORT Q2 2019 13PAID SEARCH ORGANIC SEARCH & SOCIAL DISPLAY & PAID SOCIAL AMAZON ADS Google Sees Improved Click and Spend Growth in UK Market In the UK market, Google search ad spending growth jumped from 7.5% Y/Y in Q1 2019 to a little under 18% in Q2 2019. In contrast to US trends, UK click growth improved markedly from 6% Y/Y to 15% over the same period, nearly matching a recent two-year high in Q3 2018. UK CPC growth ticked up to 3% Y/Y in Q2 2019, from 1% growth a quarter earlier. Desktop Accounts for Just 16% of UK Google Search Ad Clicks Phones accounted for 72% of UK Google search ad clicks in Q2 2019, up from 70% in Q1 2019 and 63% in Q2 2018. Tablet share of UK Google search ad clicks continued to decline, falling to 12% in Q2 2019. Just 16% of Google search ad clicks in the UK were produced by desktop, a substantially lower share than the 31% of Google search ad clicks produced by desktop in the US. UKSeesHigherShareofGoogleSearchAdClicksfromShoppingAdsthanUS Among retailers, Google Shopping Ads produced 72% of all UK Google search ad clicks in Q2 2019, up two points from a quarter earlier and over 10 points from Q2 2018. Over the past few years, the UK market has typically seen a slightly higher share of Google search ad clicks from Shopping ads, but that gap widened to nine points in Q2 2019 as Shopping click share fell two points in the US. +10% –10% +20% Google Overall UK Paid Search Y/Y Growth ClicksAd Spend CPC 75% 25% 50% 2019 Q3Q2Q1 Q2Q4 2018 Q4Q3 Google Shopping Share of Google Paid Search Clicks Aggregate Results - UK Retail 30% 60% 90% Q2 2018 Q2 2017 Q2 2016 Q2 2019 Phone Tablet Combined UK Phone & Tablet Share of Google Paid Search Clicks 2019 Q4Q3Q2 Q2Q1 2018 Q1Q4 +15% +3% +18% Q1Q3Q2Q1 Q4 2017 72% 84% 72% 12%
  14. 14. MERKLE digital.MARKETING.REPORT Q2 2019 14PAID SEARCH ORGANIC SEARCH & SOCIAL DISPLAY & PAID SOCIAL AMAZON ADS Microsoft Search Ad Growth Looking Stronger After Yahoo Transition Spending on Microsoft Advertising (formerly Bing Ads) search ads grew 8% Y/Y in Q2 2019, compared to the combined results of Microsoft and the Yahoo Gemini platform from a year earlier. At the end of Q1 2019, Microsoft gained the search ad inventory Yahoo was giving to Gemini, as well as shopping ad inventory that Google was previously serving on Yahoo. All told, click growth improved from 1% in Q1 to 6% in Q2, while CPC growth rose from a 3% decline to a 2% increase. Bing Product Ad Share of Microsoft Advertising Paid Search Clicks While Bing Product Ad share of all Microsoft paid search clicks rose over two points between Q1 and Q2 2019, that may not seem like a huge jump given the improvement in spending growth rates for Product Ads. Importantly, the Product Ad traffic Microsoft gained from Yahoo coming back into the fold is relatively high quality and leans toward desktop, so the benefits to spend outweigh those to clicks. Desktop Product Ad click growth improved from 18% in Q1 2019 to 40% in Q2. Bing Product Ads Post Second Strongest Spend Growth Since 2016 Bing Product Ads spending grew 54% Y/Y in Q2 2019, the second strongest quarterly growth rate for the format since the beginning of 2016. Not coincidentally, it was Q1 2016 when it first appeared that Yahoo had shifted a significant amount of its inventory from Bing Product Ads to Google Shopping ads. Bing Product Ad spend growth soon turned negative before a jump in mobile traffic in late 2017 improved Microsoft’s results. +20% –20% +40% Ad Spend Clicks CPC +75% +25% –25% –5% +50% Bing Product Ads Text Ads 30% Bing Product Ad Share of Bing Ads Paid Search Clicks Aggregate Results - US Retail 60% Q2 2018 Q2 2017 Q2 2016 Q2 2019 Q2 2015 Non-Brand Overall Q2 2014 63% 34% 2019 Q4Q3Q2 Q2Q1 2018 Q1Q4 +54% +6% +8% +2% 2019 Q4Q3Q2 Q2Q1 2018 Q1Q4 Microsoft Advertising & Yahoo Gemini Spend by Ad Format Y/Y Growth Microsoft Advertising & Yahoo Gemini Overall US Paid Search Y/Y Growth
  15. 15. MERKLE digital.MARKETING.REPORT Q2 2019 15PAID SEARCH ORGANIC SEARCH & SOCIAL DISPLAY & PAID SOCIAL AMAZON ADS Q2 2018 Q2 2017 Q2 2016 Q2 2019 Q2 2015 Q2 2014 Q2 2013 Phone Search Ad Click Share Flat as Desktop Makes Gains for Microsoft While phone share of Google search ad clicks rose between Q1 and Q2 2019, a jump in desktop click growth on Microsoft kept overall phone click share flat between quarters at 59%. Tablet share of search clicks was down slightly to just over 6%, putting total mobile device click share at 65%. Phone click share was up roughly six points between Q2 2018 and Q2 2019. Phone and Desktop CPC Gap Persists as Conversion Differences Remain Across search ad platforms, phone CPCs for non-brand ads were 53% lower than desktop CPCs in Q2 2019, compared to a 52% gap a quarter earlier. Despite phones becoming the primary internet device for more consumers over time, this gap has persisted, in large part because there remains a large gap in conversion performance between device types. In Q2 2019, average revenue per click from phones was 65% lower than that from desktop. Microsoft Depresses Total Share of Search Spend Devoted to Mobile Phone share of total search ad spending fell by a little over a point between Q1 2019 and Q2 2019, coming in at 37%. Tablet spend share also declined between quarters, coming in at just 5%. Despite these declines, total mobile spend share was still two points higher than a year earlier. As noted above, certain industries see a higher share of search costs from mobile devices, while Microsoft also sees a significantly lower share of costs from mobile than Google. 80% 40% CPC Revenue Per Click Phone vs. Desktop - Non-Brand Paid Search Average Site Results Q2Q1Q4 Q2Q1 2018 Q3 2017 Q4 Phone & Tablet Share of Paid Search Clicks 25% 50% 75% Q2 2018 Q2 2017 Q2 2016 Q2 2019 Q2 2015 Q2 2014 Phone Tablet Combined Q2 2013 Phone & Tablet Share of Paid Search Ad Spend 25% 50% Phone Tablet Combined Q4Q2 Q3 Q1 2019 47% 35% 6% 59% 65% 5% 37% 42%
  16. 16. MERKLE digital.MARKETING.REPORT Q2 2019 16PAID SEARCH ORGANIC SEARCH & SOCIAL DISPLAY & PAID SOCIAL AMAZON ADS 100% Desktop and Phone Click Share Near Opposites for Google and Microsoft In Q2 2019, Google generated just under 63% of its search ad clicks on phones, up about half a point from a quarter earlier. Desktop accounted for just 31% of Google clicks. It is roughly the opposite for Microsoft, which saw phones produce just 27% of its clicks and desktop still holding a click share of 66%. The two platforms see more similar results from tablets, which produced 6% of Google clicks in Q2 2019 and 7% of Microsoft clicks. Google Share of Search Ad Clicks Takes Modest Hit from Q1 to Q2 2019 Google’s share of all US search ad clicks was just over 90% in Q2 2019, a decline of about one and a half points from a quarter earlier when it was still serving a large share of shopping ads on Yahoo. Google’s share of search spend did not take as large a hit, declining less than half a point between Q1 and Q2 2019. On phones, Google’s share of search spend ticked up slightly to just under 98%. Android and iOS Produce 68% of Google Search Ad Clicks, 35% of Microsoft’s As the default search provider for the primary browsers on each mobile platform, Google sees Android and iOS as its two largest sources of search ad clicks in the US, with the desktop Chrome browser a close third. For Microsoft, its own Edge and Internet Explorer browsers account for 39% of its search ad clicks, almost double the share for iOS. Traffic share produced by a browser is most comparable for desktop Safari, which accounts for a little under 5% of both Google’s and Microsoft’s search ad clicks. 90% Device Share of Paid Search Clicks by Platform Q2 2019 Microsoft Advertising Google Desktop Phone Tablet 31% 63% 6% 27% 7% 66% Browser/OS Share of US Paid Search Clicks by Platform Android Chrome Desktop Edge/IE Firefox iOS Safari Desktop Google Share of US Paid Search Q2 2019 Phone Overall 80% 92% 98% 90% 96% Spend Clicks Microsoft Advertising Google 24% 12% 23% 17% 2% 39% 2% 4% 44% 22% 5% 5%
  17. 17. MERKLE digital.MARKETING.REPORT Q2 2019 17PAID SEARCH ORGANIC SEARCH & SOCIAL DISPLAY & PAID SOCIAL AMAZON ADS Organic search produced 23% of all site visits and 21% of mobile site visits in Q2 2019. Phones and tablets produced 59% of organic search visits, compared to 65% of paid search visits. DuckDuckGo organic search visits were up 49% Y/Y across all devices as the search engine saw its share of total US organic search rise from 0.4% in Q2 2018 to 0.6% in Q2 2019. Site visits produced by Facebook were up 29% Y/Y, while Instagram visits rose 56%, and YouTube visits improved 22%. organic search & social
  18. 18. MERKLE digital.MARKETING.REPORT Q2 2019 18PAID SEARCH ORGANIC SEARCH & SOCIAL DISPLAY & PAID SOCIAL AMAZON ADS –20% –10% Organic Search Visits Fall 6% as Phone Growth Weakens Total visits to brand sites produced by organic search fell 6% Y/Y in Q2 2019, down from a 2% decline in Q1 2019. Organic search visit growth was weaker across all device types, but brands saw the biggest deceleration on phones, where visit growth slipped from 13% in Q1 2019 to 5% in Q2 2019. This was the weakest rate of growth for phone organic search since mid-2016, when Google’s expansion of mobile ad inventory severely depressed organic visit growth. Google Gains Organic Search Share Overall, DuckDuckGo Cuts into Mobile Despite a relatively weak quarter, Google did manage to gain organic search visit share across devices compared to a year earlier. In Q2 2019, Google accounted for 93% of organic search visits to brand sites, compared to 92% in Q2 2018. On mobile, however, Google’s share fell a tenth of a point over the same period, as DuckDuckGo’s share of mobile organic search roughly doubled. DuckDuckGo Only Major Engine to Deliver Organic Search Visit Growth DuckDuckGo was the only major US search engine to post positive growth in organic search visits in Q2 2019, delivering 49% more visits overall Y/Y and 64% more visits on phones and tablets. Google organic search visits fell 8%, while Yahoo and Bing saw declines of 11% and 26%, respectively. On phone and tablets, Google, Yahoo, and Bing saw smaller declines. +20% Phone Tablet Desktop Overall –17% +5% Organic Search Visits by Device Y/Y Growth Q2 2019 Q2 2018 Q3 2017Q4 2017 Q4 2018 Q1 2018 Q1 2017 –15% +10% +75% YahooGoogle Bing DuckDuckGo +50% +25% –25% Y/Y Growth in Organic Search Visits by Engine Q2 2019 MobileOverall +0% –11% –26% +49% –4% –8% +64% US Organic Search Visit Share by Engine Q2 2019 Q2 2018 93% Google 95% 95% 3% 3% Yahoo 2% 2%5% 4% Bing 2% 2% Overall Mobile 92% 0.4% 0.6% 0.3% 0.6% DuckDuck Go Google Yahoo Bing DuckDuck Go –15% –6%
  19. 19. MERKLE digital.MARKETING.REPORT Q2 2019 19PAID SEARCH ORGANIC SEARCH & SOCIAL DISPLAY & PAID SOCIAL AMAZON ADS Organic Search Cedes Site Visit Share to Paid Search, Direct The average share of site visits produced by organic search fell nearly two points between Q1 2019 and Q2 2019, coming in at 23%. Over the same period, the two biggest share gainers were paid search and direct site visits. Compared to a year earlier, though, direct site visit share was flat, while paid search was up. On mobile, organic search visit share fell a little over two points between Q1 and Q2, coming in at 21.5%. Google and DuckDuckGo Lead in Share of Organic Search from Mobile Phones and tablets produced 63% of organic search visits to brand sites from Google in Q2 2019, just ahead of the 62% of visits that mobile devices produced for DuckDuckGo. In Q4 2017, mobile’s share of DuckDuckGo was over 10 points lower than its share of Google, but DuckDuckGo saw big gains in mobile share over the first half of 2018. Bing still trails the other major search engines by a wide margin, with just 23% of its organic search visits coming from mobile in Q2 2019. Phone and Tablet Share of Organic Search Rises to 59% Phones accounted for 51% of organic search visits in Q2 2019, up a little over a point from Q1 2019 and over five points from Q2 2018. Tablet share of organic share continued to tick lower in Q2 2019, coming in at just under 8%. Between phones and tablets, mobile devices produced 59% of organic search visits in Q2 2019, compared to 65% of paid search clicks. 20% 30% Organic Search Share of All US Site Visits 10% Q4Q3Q2 Q2Q1 2018 Q1 2019 Q4 Overall Mobile Share of Each Engine’s Traffic from Mobile 35% 70% 52% 23% Mobile Share of US Organic Search Visits CombinedPhonesTablets 60% 30% 23% 21% Google Yahoo Bing DuckDuckGo 62% Q4Q3Q2 Q2Q1 2018 Q1 2019 Q4 Q4Q3Q2 Q2Q1 2018 Q1 2019 Q4 59% 51% 8% 63%
  20. 20. MERKLE digital.MARKETING.REPORT Q2 2019 20PAID SEARCH ORGANIC SEARCH & SOCIAL DISPLAY & PAID SOCIAL AMAZON ADS 6% 3% Social Media Share of Site Visits Dips from Q1, but up from 2018 Social media sites produced just over 4% of visits to brand sites in Q2 2019, a slight decline from a quarter earlier, but nearly a point higher than Q2 2018. Social media site visits delivered solid Y/Y growth, but the channel lost visit share between Q1 and Q2 to paid search and direct site visits. On mobile, social media site visit share was 5% in Q2 2019, also a small decline compared to Q1. Phones and Tablets Combine for Over 79% of Visits Produced by Social After a slight decline between Q4 2018 and Q1 2019, mobile share of site visits produced by social media reached a new all-time high of 79% in Q2 2019. As the largest social media traffic producer in the US by far, Facebook drives social media share trends, but generally sees a higher than average contribution from mobile. Facebook Visits Rebounding, but Instagram Growth Slowing After running negative in Q3 2018, Y/Y growth in site visits produced by Facebook has rebounded over the past three quarters, coming in at 29% in Q2 2019. Although it continues to outpace other major social platforms, site visit growth from Instagram has been slowing over the same period with a drop from 114% growth in Q1 2019 to 56% growth in Q2. YouTube delivered 22% visit growth in Q2 2019, while Twitter and Pinterest saw 6% and 7% growth, respectively. Mobile Share of Social Media Site Visits 80% 79% 75% 70% 60% Social Media Share of Site Visits Share of All Visits Share of Mobile Visits 3.4% 4.1% +60% +29% +40% InstagramFacebook Twitter Pinterest YouTube +56% +6% +7% 3.6% 3.4% 3.6% 4.3% 4.1% 5.0% 5.2% 4.4% 4.2% 4.6% 3.3% 4.1% 65% +20% +22% Q4Q3Q2 Q2Q1 2018 Q1 2019 Q4 Social Media Site Visit Growth Y/Y Q2 2019 Q4Q3Q2 Q2Q1 2018 Q1 2019 Q4
  21. 21. 21PAID SEARCH ORGANIC SEARCH & SOCIAL DISPLAY & PAID SOCIAL AMAZON ADSMERKLE digital.MARKETING.REPORT Q2 2019 Facebook spend increased 8% Y/Y, as impression growth surged to 25% Y/Y – the strongest figure observed over the past two years. Instagram spend grew 85% Y/Y, with a 208% increase in impressions. For advertisers active on both Instagram and Facebook, Instagram accounted for 35% as much ad spend as Facebook proper for the quarter. Advertisers remain active on YouTube, and in Q2 2019 increased ad spend 43% with a 16% increase in impressions and 24% increase in CPM. display & paid social
  22. 22. 22PAID SEARCH ORGANIC SEARCH & SOCIAL DISPLAY & PAID SOCIAL AMAZON ADSMERKLE digital.MARKETING.REPORT Q2 2019 +100% Facebook Ad Spend Excluding Instagram Up 8% Y/Y as Impressions Climb Excluding its Instagram property, Facebook ad spend increased 8% Y/Y for advertisers active on the platform since at least Q2 last year. Impressions grew 25% Y/Y, the strongest figure observed in the past two years, while CPM fell 13% Y/Y. The spend increase represents a rebound from a 2% decline in Q1 2019, though Instagram continues to grow far faster than Facebook itself. Instagram Advertisers Investing 35% as Much on the Platform as Facebook Essentially all Instagram advertisers are also actively spending on Facebook, and in Q2 2019 those brands active on both spent 35% as much on Instagram as they did on Facebook. CPM for Instagram ads continues to trend below that of Facebook, with Instagram accounting for 52% as many impressions as Facebook. Not all Facebook advertisers are active yet on Instagram, though more and more brands are wading into Instagram every quarter. Instagram Ad Spend Continues to Far Outpace that of Facebook Proper Facebook’s Instagram property continues to drive most of the ad spend growth for Facebook, with spend up 85% Y/Y for advertisers active on the platform for the past year. Impressions increased 208% Y/Y, and the June 2019 announcement that the platform would be adding inventory to the Explore tab over the coming months should help to further bolster inventory. +30% –15% 30% 60% 20% ImpressionsSpend CPM +25% +8% –13% +50% +200% ImpressionsSpend CPM +85% Spend 35% Impressions 52% Clicks 19% +15% –40% Facebook Ads Y/Y Growth Q2 2019 –50% +150% Instagram Ads Y/Y Growth Q2 2019 +208% Instagram Performance Relative to Facebook Q2 2019 - Median Advertiser
  23. 23. 23PAID SEARCH ORGANIC SEARCH & SOCIAL DISPLAY & PAID SOCIAL AMAZON ADSMERKLE digital.MARKETING.REPORT Q2 2019 –20% Mobile Up to 91% of Facebook Advertising Spend, 96% of Clicks Back in Q1 2017, the first full quarter following Facebook’s sunset of its FBX desktop retargeting solution, phones and tablets combined to account for 76% of ad spend and 79% of paid clicks on Facebook. Those shares have risen steadily and now stand at 91% of spend and 96% of clicks, as the Facebook app accounts for the vast majority of usage. YouTube Spend Up 43% with Increases in Impressions and Pricing Advertisers active on YouTube Y/Y increased spend on the platform by 43% in Q2 2019, with a 16% increase in impressions and 24% increase in CPM. Bad press surrounding the video platform has plagued it for a couple of years now, but the publicity has mostly led advertisers to more carefully target ads and take more precautions to exclude potentially damaging placements, as opposed to outright abandoning the platform. Facebook CTR Falls Y/Y for Newsfeed and Right-Hand Rail Ad Units 2018 saw four straight quarters during which CTR for Facebook ads in the Newsfeed and along the right-hand rail rose Y/Y. This followed a January 2018 update, which decluttered the Newsfeed by limiting the number of unsponsored posts from brands and publications that users were shown. However, now that that update has been lapped in year-ago comparisons, CTR is falling, down at least 20% for both page locations in Q2 2019. Facebook Ads Mobile Share 120% 60% Q1Q4Q3 Q2Q2 2018 Q2 2017 Q1 ClicksAd Spend 90% 30% 91% Q3 96% –10% –30% Newsfeed Right-Hand Rail Facebook Ads CTR Y/Y Growth Q2 2019 - Median Advertiser –22% 20% 50% YouTube Y/Y Growth Q2 2019 - Median Advertiser 40% Q4 2019 –26% Spend CPMImpressions 10% 30% 43% 16% 24% Q1
  24. 24. 24PAID SEARCH ORGANIC SEARCH & SOCIAL DISPLAY & PAID SOCIAL AMAZON ADSMERKLE digital.MARKETING.REPORT Q2 2019 amazon ads Amazon Sponsored Products spend grew 12% Y/Y, with sales up 102%. The format now accounts for 86% of all non-display Amazon ads spend. Top-of-search ad placements accounted for 45% of Sponsored Products spend and 88% of Sponsored Brands spend. Brand keywords accounted for 62% of sales revenue attributed to Sponsored Brands and 43% for Sponsored Products, far eclipsing the 32% and 30% click shares these keywords generate for each format, respectively.
  25. 25. 25PAID SEARCH ORGANIC SEARCH & SOCIAL DISPLAY & PAID SOCIAL AMAZON ADSMERKLE digital.MARKETING.REPORT Q2 2019 43% 78% 88% 89% 3% 35% 45% 15% 25% 21% Clicks 100% 20% 80% 60% 40% Top of Search Accounts for Nearly 90% of Sponsored Brands Spend Sponsored Brands (formerly known as Headline Search Ads) were once limited almost exclusively to the top of the search results, but were expanded to additional placements on the left rail and along the bottom of search results in August 2018. These other placements now account for 57% of Sponsored Brands impressions, but just 12% of spend, as top of search traffic is the most competitive to obtain and accounts for the vast majority of sales from the format. +120% Sponsored Products Share by Placement Q2 2019 Amazon Ads Y/Y Growth by Ad Format Q2 2019 +30% +60% Sponsored Products Sponsored Brands +90% Spend SalesClicks +12% –2% +58% +28% +102% +53% Impressions Spend 82% 40% Product Details Page Top of Search Other 34% Sales from Sponsored Products Ads More than Double Y/Y Advertisers investing in Sponsored Products since at least Q2 2018 saw sales attributed to the format increase 102% Y/Y, while those active on Sponsored Brands Y/Y saw sales from that format increase 53%. Spending growth has slowed for many mature advertisers, but the increase in sales highlights the significant opportunity Amazon search ads still hold, even for advertisers that have been active for some time. As the platform has grown and matured, advertisers have been able to develop more sophisticated strategies to improve ROI. Product Details Pages Account for Over 3/4 of Sponsored Products Impressions Product details pages accounted for 82% of Sponsored Products impressions, but just 40% of clicks in Q2 2019, as these placements have a significantly lower CTR than other Sponsored Products inventory. Top-of-search placements accounted for just 3% of impressions, but 35% of clicks and 45% of spend. Appearing at the top of search results is the most competitive placement to attain for Sponsored Products, but clearly provides strong value, accounting for over half of all sales attributed to the format. Clicks 100% 20% 80% 60% 40% Sponsored Brands Share by Placement Q2 2019 Impressions Sales Top of Search Other Spend 57% 22% 12% 11%
  26. 26. 26PAID SEARCH ORGANIC SEARCH & SOCIAL DISPLAY & PAID SOCIAL AMAZON ADSMERKLE digital.MARKETING.REPORT Q2 2019 Amazon Sponsored Brands Impressions Relative to January 2018 600% 400% JAN 2018 OCT 2019 JULAPR 200% JAN APR Sponsored Products Spend Share Remains Roughly Unchanged Sponsored Products accounted for 86% of non-display Amazon spend in Q2 2019, a figure that has remained essentially unchanged over the past two years. Product Display Ads, which are still restricted to Amazon vendors and are not available to sellers, continue to account for a small share of spend, though Sponsored Products ads are getting a significant portion of traffic from the product details pages where Product Display Ads get many of their impressions. Brand Keywords Account for Nearly 1/3 of Clicks for Both Ad Formats Advertiser brand keywords produced 32% of Sponsored Brands clicks and 30% of Sponsored Products clicks in Q2 2019, with roughly similar spend shares attributed to these terms as well. Particularly in the case of Sponsored Brands, branded keywords account for a much larger share of sales revenue, with clicks nearly twice as valuable as non-brand keywords. Non-brand keywords are difficult to conquest through Sponsored Brands, with the format’s top of search presence limited to one unit. Amazon Sponsored Brands Impressions Remain Elevated Sponsored Brands impressions skyrocketed with the addition of new placements in August 2018 and have remained elevated ever since, with a recent surge pushing impressions well past Q4 2018 and Q1 2019 levels. Still, even with all the additional inventory, Sponsored Products ads continue to account for the vast majority of ad spend, as the new inventory has a relatively low CTR compared to the Sponsored Brands unit long-featured at the very top of search results. Amazon Spend Share by Ad Format Q2 2019 Product Display Ads Sponsored Products Ads Sponsored Brands 86% 13% 50% 75% 25% Clicks Sales Brand Keyword Share by Amazon Ad Format Q2 2019 Sponsored Brands Sponsored Products 36% 27% 32% 30% Spend 62% 43% +543%
  27. 27. 27PAID SEARCH ORGANIC SEARCH & SOCIAL DISPLAY & PAID SOCIAL AMAZON ADSMERKLE digital.MARKETING.REPORT Q2 2019 Sponsored Brands Continue to Lag Sponsored Products in Revenue Per Click Sponsored Products ads continue to produce the highest revenue per click for advertisers, while Sponsored Brands revenue per click was 12% lower in Q2 2019 and Product Display Ads revenue per click was 23% lower. One positive Q2 development for Sponsored Brands was the May introduction of negative keywords, which should help advertisers weed out clicks from less relevant search queries, though advertisers still have no direct visibility into the search queries driving Sponsored Brands traffic. Sponsored Products Sponsored Brands Product Display Ads Sponsored Brands CTR Still Tops Sponsored Products Though Sponsored Brands ad units have been rolled out to additional placements aside from top of search, resulting in a significant decline in CTR, the ad unit still produces a meaningfully higher CTR when compared to Sponsored Products, given its continued placements at the top of search results. Product Display Ads continue to lag both of the other formats in terms of CTR. Amazon Relative CTR by Ad Format Q2 2019 - Median Advertiser Google Shopping Amazon Sponsored Products Amazon Sponsored Brands Google Shopping Conversion Rate Continues to Lag Amazon Ad Formats Amazon ad formats continue to far outstrip Google Shopping in terms of conversion rate, as the marketplace nature of Amazon and incentives for Prime subscribers to convert on Amazon produce a quick path to conversion for many ad clicks. However, it continues to be the case that not all Google advertisers are active through Amazon ads and vice versa, muddying comparisons between the two. Sponsored Products Product Display AdsSponsored Brands Relative Sales Per Click by Amazon Ad Format Q2 2019 - Median Advertiser Google Shopping vs. Amazon Relative Conversion Rate Q2 2019 –12% –23% –28% +34% +240% +165%
  28. 28. report methodology Figures are derived from samples of Merkle clients who have worked with Merkle for each marketing channel. Where applicable, these samples are restricted to those clients who 1) have maintained active programs with Merkle for at least 19 months, 2) have not significantly changed their strategic objectives or product offerings, and 3) meet a minimum ad-spend threshold. All trended figures presented in this report represent same-site changes over the given time period. Unless otherwise specified, the data points in this report are derived from the North American market region. Merkle is a leading data-driven, technology- enabled, global performance marketing agency that specializes in the delivery of unique, personalized customer experiences across platforms and devices. For more than 30 years, Fortune 1000 companies and leading nonprofit organizations have partnered with Merkle to maximize the value of their customer portfolios. The agency’s heritage in data, technology, and analytics forms the foundation for its unmatched skills in understanding consumer insights that drive people-based marketing strategies. Its combined strengths in performance media, customer experience, customer relationship management, loyalty, and enterprise marketing technology drive improved marketing results and competitive advantage. With more than 7,000 employees, Merkle is headquartered in Columbia, Maryland, with 21 additional offices in the US and 33 offices in Europe and APAC. In 2016, the agency joined the Dentsu Aegis Network. For more information, contact Merkle at 1-877-9-Merkle or visit www.merkleinc.com. about merkle BLOG EMAILWEB TWITTER contact us

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