A new report on digital advertising in Q4 2018 reveals that paid search spend grew 10% year-over-year.
Spending is highest in the financial services and retail sectors, with a growth of 25% and 12% respectively.
This data is included in the research findings from Marin Software’s Q4 2018 Digital Advertising Benchmark Report.
The report also includes data on monthly spending on eCommerce ads and paid social.
Here is a summary of key findings from the report.
Paid Search in Q4 2018
Paid search spend across all industries is up but clicks are down.
CTR fell from 3.46% in Q3 to 3.16% in Q4.
Average CPC is down slightly from $0.77 in Q3 to $0.75 in Q4.
Travel clocked the lowest global CPC in Q4 at $0.45, followed by retail at $0.48.
“Consumer confidence, strong economies, and greater competition are all contributing to higher CPCs in other sectors.”
Global CPC for all industries is illustrated in the chart below.
Mobile captured 36% of search spend share in retail and 41% of spend share across all verticals in Q4.
“Mobile continues to be a crucial touchpoint for product purchasing decisions.”
Google Shopping Ads captured 36% of search spending for all verticals.
“Shopping Ads remain retail advertisers’ bread and butter, as eCommerce search engines increasingly join the quest to deliver relevant, targeted experiences.”
Paid Social in Q4 2018
Key findings from the report related to paid social include:
- Advertisers spent larger portions of their budgets on Instagram Stories.
- Instagram received 18% of total Facebook spend.
- 34% of that Instagram spend was allocated to Instagram Stories.
- Spend on Instagram Stories was up 36% from the previous quarter.
- Dynamic Product Ads accounted for 35% of total Facebook spend in Q4.
For more information, download the full report here.