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Global Digital Advertising Report

Adobe Digital Index Q4 2014


Table of contents

Social

3 Key insights

4 Facebook post impressions

5 Black Friday Foursquare check-ins

6 Facebook post organic impressions

7 Facebook post share by post type

8 Facebook post interaction rate

9 Facebook post interaction rate by day

Search

10 Search engine marketing (SEM) spend growth

11 SEM spend growth by search engine

12 Share of spend by search engine

13 Google shopping ad spend growth

14 Share of retail clicks by ad type

15 Holiday season spend and click growth

16 Global SEM spend growth by industry

17 Daily share of SEM clicks

18 CTR growth by country and search engine

19 CTR growth by industry

20 Google U.S. CTR and CPC growth by device type

21 CPC growth by country and search engine

22 CPC growth by industry

Appendix

23 Recommendations

24 Predictions

25 Methodology

26 Tables

ADOBE DIGITAL INDEX | Global Digital Advertising Report Q4 2014

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Key insights

1. Google Retail “Shopping Ad” spend grew dramatically during the holiday season –

outperforming “Text Ad” spend by almost 8x

2. Google ads continue to be more efficiently optimized with Click-Through-Rate (CTR) growth

outpacing Cost-Per-Click (CPC) growth by more than 2x

3. Advertisers should remember “Mobile Search Sundays,” “Desktop Search Mondays,” and

Facebook Fridays”

4. Retailers turned to Facebook during holiday season to drive sales while marketers are

quickly adjusting to Facebook algorithm changes

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SOCIAL

Facebook post impressions

Retailers increased marketing efforts on Facebook

during the holiday season.

The findings:

• Posts: In retail, up 64% YOY; up 31% QOQ.

• Paid impressions: In retail, up 13% YOY; up 53%

QOQ.

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SOCIAL

Black Friday Foursquare check-ins

Consumers flocked to mass merchants and to malls this

holiday season to do their shopping.

The findings:

• Mass merchants led with 24% of all Black Friday retail check-ins.

• Malls were second with 21%.

• Specialty stores were third with 16%.

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SOCIAL

Facebook post organic impressions

Organic impressions from Facebook posts continued to drop.

However, some post types did better than others.

The findings:

• Organic impressions from Facebook posts were down 32% YOY.

• Video posts performed the best for organic impressions, flat YOY.

• Text posts were affected most by algorithm changes, down 60% YOY.

100%

32%

YOY

DEC

2013

MAR

2014

JUN

2014

SEPT

2014

FACEBOOK AVERAGE ORGANIC POST IMPRESSION GROWTH

DEC

2014

ADOBE DIGITAL INDEX | Global Digital Advertising Report Q4 2014

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SOCIAL

Facebook post share by post type

Links were on the move after updates from Facebook.

The findings:

• Link share of posts was up 68% YOY.

• Images share of posts was down 15% YOY.

• Videos share of posts was up 52% YOY.

ADOBE DIGITAL INDEX | Global Digital Advertising Report Q4 2014

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SOCIAL

Facebook post interaction rate

Post interaction rates increased in retail and for video

and link-based posts.

The findings:

• Interaction rates for Facebook posts from retail brands were

up 14% YOY.

• Interaction rates for links were up 36% YOY.

ADOBE DIGITAL INDEX | Global Digital Advertising Report Q4 2014

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SOCIAL

Facebook post interaction rate by day

Facebook Friday—Highest percent of interaction rates, post

impressions, and posts occurred on Friday.

The findings:

• Interaction rates were 15% higher on Friday than any other day of the week.

• Brand post impressions were 18% higher on Friday than any other day of the week.

• Brand posts were 28% higher on Friday than any other day of the week.

• Shares and likes happened on Friday more often than any other day of the week.

4%

2%

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SEARCH

Search engine marketing (SEM) spend growth

The amount of money being allocated to search

advertisement campaigns is steadily increased,

up 12% globally YOY.

The findings:

• Overall search advertisement spend in U.S. dollars grew 5% YOY.

• Europe SEM spend growth slowed in the most recent quarter,

up 17% YOY; Great Britain spend was down 3% over the same

time period.

ADOBE DIGITAL INDEX | Global Digital Advertising Report Q4 2014

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SEARCH

SEM spend growth by search engine

Overall worldwide SEM ad spend on Google rose 8% YOY, while overall

spend on Yahoo! Bing grew 36% during the same time period.

The findings:

• Yahoo! Bing realized a strong YOY uptick in SEM spend, up 36% globally,

outpacing Google by 3.5x.

• Global SEM ad spend on Google was up 8% YOY.

ADOBE DIGITAL INDEX | Global Digital Advertising Report Q4 2014

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SEARCH

Share of spend by search engine

Although Google was still the dominant SEM player in

the United States, share of SEM spend has trended

towards Yahoo! Bing over the last five quarters.

The findings:

• Google remained dominant in Europe and Great Britain,

controlling 90% and 91% of market share respectively in the most

recent quarter.

• Yahoo! Bing increased their share of SEM ad spend in the

United States to 32% in the most recent quarter.

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SEARCH

Google shopping ad spend growth

Shopping Ads are major revenue growth drivers for

Google, via USD retail ad send.

The findings:

• Google Shopping Ad spend growth up 47% YOY.

• The holiday season drove Google Shopping Ad spend growth up

53% QOQ.

• Google Text Ad spend in retail sector down 6% YOY.

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SEARCH

Share of retail clicks by ad type

Google shopping ads accounted for 20% of all retail

SEM clicks in the United States.

The findings:

• Google text ad clicks lead the U.S. retail sector with

66% share.

• Yahoo! Bing released Product Ads in March 2014 to all US

advertisers, which in Q4 2014 represented less than 1% of U.S.

retail clicks.

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SEARCH

Holiday season spend and click growth

Key days throughout the holiday season contributed heavily to

click growth as well as spend growth.

The findings:

• Global shopping ad clicks were up 53% on Cyber Monday

over November 1, 2014; ad spend was up 53% on Singles Day.

• Text ad clicks were up 59% on Cyber Monday over

November 1, 2014; spend was up 87%.

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SEARCH

Global SEM spend growth by industry

Industries were affected by seasonality, with SEM spend

in travel increasing in the spring and retail SEM spend

growing in the holiday season.

The findings:

• SEM ad spend in the retail industry grew 7% YOY.

• During that same period, search ad spend in the travel industry

declined by 4%.

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SEARCH

Daily share of SEM clicks

Mobile ad clicks were more frequent during the

weekend, whereas Mondays saw the highest desktop

search traffic compared to all other days of the week.

The findings:

• The share of mobile ad clicks on Sunday was 17% higher than the

average day.

• On Mondays, text ad clicks are 9% higher than on the average day;

Saturdays were 11% lower.

ADOBE DIGITAL INDEX | Global Digital Advertising Report Q4 2014

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SEARCH

CTR growth by country and search engine

SEM marketing becomes more optimized as overall CTRs

increased in the United States, up 22% YOY.

The findings:

• Japan saw the highest increase in CTR up 24% YOY.

• Global Google CTR was up 19% YOY, while Yahoo! Bing CTRs

were relatively flat over the year.

GLOBAL SEM CTR GROWTH BY SEARCH ENGINE

ADOBE DIGITAL INDEX | Global Digital Advertising Report Q4 2014

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SEARCH

CTR growth by industry

CTRs were up across several industries YOY,

increasing as much as 36% in the financial industry.

The findings:

• The finance and travel industries saw the highest increase

in CTR YOY, up 36% and 33% respectively.

• The heavily competitive retail industry saw a 9% increase

in CTR YOY.

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SEARCH

Google U.S. CTR and CPC growth by device type

With programmatic buying tools across multiple

platforms becoming available, mobile is the new frontier

for marketers and advertisers to fully optimize.

The findings:

• For U.S., mobile devices drove higher CTR growth; up 27% YOY for

tablets and 26% for smart phones.

GOOGLE U.S. CPC GROWTH BY DEVICE TYPE

GOOGLE U.S. CTR GROWTH BY DEVICE TYPE

ADOBE DIGITAL INDEX | Global Digital Advertising Report Q4 2014

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SEARCH

CPC growth by country and search engine

CPC rates slowly increased and did not keep pace with CTRs.

The findings:

• CPC was up 12% YOY in Great Britain.

• Google CPC was up 8% YOY, while CPC on Yahoo! Bing was

up 7% during that same time period.

GLOBAL SEM CPC GROWTH BY SEARCH ENGINE

ADOBE DIGITAL INDEX | Global Digital Advertising Report Q4 2014

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SEARCH

CPC growth by industry

The holiday season saw CPC ramping up in all industries.

The findings:

• CPC in the travel industry was up 13% YOY.

• CPC was down 10% YOY in the finance industry.

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ADOBE DIGITAL INDEX

Recommendations

1. Look to add links to content into brand posts in 2015 to take advantage of the growth due to

Facebook algorithm changes. Also, when looking for organic impressions, try out a video post.

It is the type that has been least effected by the decrease in organic impressions.

2. Fridays are a good day for interaction rates including likes and shares from brand Facebook

followers.

3. Monday is seeing a rise in SEM clicks, advertisers need to focus more spend on this day to

drive more engagement.

4. To remain competitive, retail advertisers need to incorporate shopping ads into their SEM

strategy.

ADOBE DIGITAL INDEX | Global Digital Advertising Report Q4 2014

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ADOBE DIGITAL INDEX

Predictions

1. Shopping ad share will decline slightly in Q1 ‘15, but will see strong growth in second half of ‘15

and comprise 30% of all SEM clicks in Q4 ‘15

2. Non-retail advertisers will begin adopting shopping ads and see increase in visual ads

3. SEM CTR growth will continue to outpace CPC growth due to programmatic solutions and

more advanced modeling to incorporate altering bids based on dimensions (i.e. device type,

consumer demographics)

4. Negative spread between CTR and CPC YoY growth within Yahoo!/Bing will start to narrow as

advertisers take lessons learned from Google marketing

5. Facebook organic impressions will drop nearly another 40% by ‘16. Facebook brand link and

video posts will grow faster in ‘15 than image-based posts

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ADOBE DIGITAL INDEX

Methodology

Based on consumer data to brand sites during 2013 and 2014.

• +400 billion Facebook post impressions

• +500 billion Google and Yahoo! Bing ad impressions

Composed of aggregated and anonymous data from visits to websites in multiple

industries and segments.

Data captured via Adobe Marketing Cloud—Adobe Media Optimizer, and Adobe Social.

Visit our website: adobe.ly/digitalindex

Read our blog: adobe.ly/digitalindex

Follow us: @adobeindex and @adobeprimetime

Ask a question or make a suggestion: digindex@adobe.com

Adobe and the Adobe logo are either registered trademarks or trademarks of Adobe Systems Incorporated in the United States and/or other countries. All other trademarks are the property of their respective owners.

© 2015 Adobe Systems Incorporated. All rights reserved.

ADOBE DIGITAL INDEX | Global Digital Advertising Report Q4 2014

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ADOBE DIGITAL INDEX

Tables

Black Friday Foursquare check ins

Mass Merchants 24%

Malls 21%

Specialty and Misc. 16%

Apparel 10%

Hardware and Home Stores 7%

Toy / Game Stores 6%

Electronics 3%

Sporting Goods 3%

Drugstores / Pharmacies 3%

Banks 3%

Automotive Shops 3%

Coffee Shops 2%

Cosmetics Shops 2%

Average Share of Facebook Posts by Post Type

Q4 2012 Q4 2013 Q4 2014

Image 60% 65% 55%

Link 13% 16% 27%

Video 7% 6% 8%

Text 20% 13% 10%

Facebook average organic post impression growth

12/1/14 1/1/15 2/1/15 3/1/15 4/1/15 5/1/15 6/1/15 7/1/15 8/1/15 9/1/15 10/1/15 11/1/15 12/1/15

100% 103% 99% 97% 91% 86% 71% 77% 79% 72% 71% 72% 68%

Facebook post share and interaction rate by day

Share of post impressions Share of posts Interaction Rate

Sunday 8.6% 10.3% 3.3%

Monday 15.9% 14.6% 3.2%

Tuesday 16.7% 15.3% 3.3%

Wednesday 15.3% 15.7% 3.3%

Thursday 15.1% 15.7% 3.4%

Friday 17.6% 16.4% 3.8%

Saturday 10.8% 12.0% 3.3%

Facebook share of engagement type by day

Comments Likes Shares

Sunday 11.6% 12.2% 12.0%

Monday 14.9% 14.6% 14.1%

Tuesday 16.1% 15.0% 15.0%

Wednesday 16.6% 14.2% 15.0%

Thursday 14.3% 14.5% 15.1%

Friday 14.1% 15.4% 15.2%

Saturday 12.3% 14.1% 13.6%

Global retail shopping ad spend growth

Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14

100% 76% 62% 70% 73% 74% 65% 67% 86% 88% 100% 123% 144%

Global SEM spend growth by industry

Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14

Automotive 100% 103% 101% 101% 118% 109% 105% 109% 113% 119% 103% 108% 116%

Finance 100% 108% 112% 108% 107% 108% 92% 92% 101% 105% 89% 99% 100%

Retail 100% 84% 81% 70% 80% 80% 81% 76% 80% 85% 85% 94% 107%

Travel 100% 112% 133% 115% 119% 118% 122% 122% 127% 123% 107% 99% 96%

Global retail shopping ad spend growth

11/1/14 11/2/14 11/3/14 11/4/14 11/5/14 11/6/14 11/7/14 11/8/14 11/9/14 11/10/14 11/11/14 11/12/14 11/13/14 11/14/14 11/15/14 11/16/14 11/17/14 11/18/14

Global Shopping Ad Click Growth 100% 115% 118% 111% 116% 116% 108% 108% 127% 126% 128% 122% 118% 111% 113% 134% 132% 126%

US Shopping Ad Click Growth 100% 109% 121% 112% 113% 112% 105% 99% 112% 123% 132% 118% 118% 106% 109% 124% 135% 127%

11/19/14 11/20/14 11/21/14 11/22/14 11/23/14 11/24/14 11/25/14 11/26/14 11/27/14 11/28/14 11/29/14 11/30/14 12/1/14 12/2/14 12/3/14 12/4/14 12/5/14

123% 118% 113% 114% 135% 131% 124% 124% 119% 129% 126% 144% 153% 140% 139% 134% 128%

117% 109% 102% 103% 113% 110% 103% 99% 89% 110% 112% 123% 136% 123% 118% 120% 117%

ADOBE DIGITAL INDEX | Global Digital Advertising Report Q4 2014

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ADOBE DIGITAL INDEX

Tables

2014 Holiday Season daily retail click growth

11/1/14 11/2/14 11/3/14 11/4/14 11/5/14 11/6/14 11/7/14 11/8/14 11/9/14 11/10/14 11/11/14 11/12/14 11/13/14 11/14/14 11/15/14 11/16/14 11/17/14 11/18/14

US Text Ad Click Growth 100% 113% 116% 110% 112% 112% 104% 104% 115% 119% 119% 111% 107% 103% 107% 119% 124% 116%

US Shopping Ad Click Growth 100% 109% 121% 112% 113% 112% 105% 99% 112% 123% 132% 118% 118% 106% 109% 124% 135% 127%

11/19/14 11/20/14 11/21/14 11/22/14 11/23/14 11/24/14 11/25/14 11/26/14 11/27/14 11/28/14 11/29/14 11/30/14 12/1/14 12/2/14 12/3/14 12/4/14 12/5/14

115% 110% 103% 108% 118% 118% 112% 107% 98% 135% 123% 130% 160% 128% 119% 114% 107%

117% 109% 102% 103% 113% 110% 103% 99% 89% 110% 112% 123% 136% 123% 118% 120% 117%

Daily share of SEM clicks

Sunday Monday Tuesday Wednesday Thursday Friday Saturday

Desktop Text Ad Clicks 14% 16% 15% 15% 14% 14% 13%

Desktop Shopping Ad Clicks 15% 15% 15% 14% 14% 14% 13%

Mobile Ad Clicks 17% 15% 14% 14% 13% 13% 15%

SEM CTR growth by country

Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14

United States 100% 100% 101% 107% 111% 113% 114% 108% 112% 116% 117% 118% 122%

Great Britain 100% 104% 105% 108% 115% 119% 114% 113% 113% 117% 116% 116% 119%

Japan 100% 92% 98% 102% 99% 101% 106% 99% 98% 101% 105% 114% 124%

SEM CTR growth by search engine

Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14

Google 100% 96% 96% 100% 103% 105% 106% 104% 106% 109% 110% 115% 119%

Yahoo! Bing 100% 102% 101% 97% 96% 97% 97% 94% 97% 102% 106% 101% 100%

SEM CTR growth by industry

Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14

Automotive 100% 94% 95% 107% 121% 131% 123% 110% 112% 112% 117% 122% 129%

Finance 100% 114% 121% 122% 123% 130% 128% 132% 137% 139% 143% 130% 136%

Retail 100% 97% 94% 95% 95% 97% 100% 96% 96% 100% 101% 106% 109%

Travel 100% 100% 101% 106% 113% 114% 118% 119% 122% 128% 128% 133% 133%

ADOBE DIGITAL INDEX | Global Digital Advertising Report Q4 2014

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ADOBE DIGITAL INDEX

Tables

SEM CPC growth by country

Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14

United States 100% 92% 92% 93% 95% 93% 94% 93% 93% 94% 95% 100% 103%

Great Britain 100% 101% 102% 102% 102% 101% 104% 103% 97% 100% 99% 106% 112%

Japan 100% 103% 111% 110% 107% 102% 101% 103% 100% 107% 102% 109% 109%

SEM CPC growth by search engine

Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14

Google 100% 93% 94% 96% 98% 97% 99% 98% 97% 100% 101% 105% 108%

Yahoo! Bing 100% 98% 97% 97% 100% 101% 101% 100% 96% 99% 102% 104% 107%

SEM CTR growth by industry

Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14

Automotive 100% 94% 97% 96% 94% 93% 91% 88% 90% 86% 90% 97% 103%

Finance 100% 94% 86% 86% 88% 86% 90% 88% 86% 86% 87% 88% 90%

Retail 100% 89% 91% 93% 97% 98% 100% 99% 99% 103% 105% 110% 113%

Travel 100% 98% 100% 101% 101% 100% 101% 99% 96% 99% 104% 106% 113%

ADOBE DIGITAL INDEX | Global Digital Advertising Report Q4 2014

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