Advertiser spending on Facebook FBX grew 48 percent while display ad spend on Google dropped 9 percent among customers using IgnitionOne’s campaign management platform, according to the company’s Q2 Digital Marketing Report. The report further added that Facebook’s share grew to 16% of spend (up from 10% a year ago). Google’s share dropped to 31% (down from 38% last year). The cost of Facebook ads also continued to climb, with eCPMs up 72% compared to last year.
1. Strong search spend growth continues
While slightly decelerating when compared to the historic high of Q1, YoY growth in U.S. spend for Q2 2015 is still the second highest growth for a quarter since 2012, coming in at an impressive 22%. Search spend has been growing due to increases in competitive pressures, as the supply of available traffic is growing at a slower rate than the demand for that traffic.
Q2 once more showed small YoY increases in clicks (6%). This is nearly all from Yahoo!/Bing, which had a 25% increase compared to Google’s 1%. The large increase in Yahoo!/Bing clicks can be attributed to the introduction of Enhanced Campaigns as well as the five-year deal Yahoo struck with Mozilla in November to become its default search engine in the U.S.
2. Mobile search growth continues to normalize
Search advertising growth continues to be driven by strong mobile device trends, though at a decelerated pace from past quarters. Spending growth YoY for tablets is up 22% and phones spend is up 71%. Impressions trends are mixed, with small YoY growth for phones (8%) and a decrease for tablets (-17%).
The share in mobile device spend shifted away from the parity we have seen in recent quarters as budget shifted more heavily towards phones, with tablets accounting for 41% of spend and phones at 59%. This is indicative of a shift in user search traffic from desktop/tablet to mobile phones combined with rising CPC’s. In addition, more demand and improved performance resulted in an overall increase in mobile search spend.
3. Yahoo/Bing lost ground to Google in Q2
While Yahoo!/Bing’s market share has grown YoY, this quarter ends their historic run as they lost ground to Google in Q2. Yahoo!/Bing dropped back to a 24.5% of share compared to Google’s 75.5% of U.S. paid search spend.
4. Programmatic display grows
Based on data from a wide set of advertisers in Q2 2015, programmatic display spend was up 33% when compared with same clients measured for Q2 2014. Compared to Q1 2015, programmatic display metrics are also very strong QoQ. Impressions are up 60% and spend is up 47%.