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Not so long ago, Merkle shared a report on the state of digital marketing in 2017. It is reported that Google’s enhanced text ads have not yet helped companies achieve a “golden” CTR, and product ads continue to grow. So what are the current trends in the context advertising market? Let’s see below.

Google AdWords is growing faster

In the first quarter of 2017, spending on Google AdWords increased by 21% compared to the previous year. The growth over the same period last year was 19%. The volume of clicks increased by 20%, and the cost per click increased by 1%.

Merkle experts note that the key drivers of growth were the addition of the fourth text ad to mobile delivery, product ads in image search, launch of advertising on Google Maps.

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Bets on tablets are falling, on smartphones and desktops – are growing

Ever since Google ordered advertisers to invest in advertising on tablets and smartphones separately, the amount of funds invested in advertising on the first, is steadily decreasing. So, the expenses of advertisers on advertising on smartphones and desktops increased by 51% and 12% respectively, on tablets – decreased by 23%.

The cost per click on smartphones for non-branded requests was 43% lower than on desktops. It is worth noting that in the fourth quarter of 2016 it was 51% lower

The cost per click on the tablets was 25% below the desktop.

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Costs for commodity ads grow faster than text ads

At the beginning of 2017, commodity ads accounted for 52% of all clicks on search ads. In the fourth quarter of 2016, this indicator was 48%. It is also worth noting that the commercial ads accounted for 75% of the transfers received by retailers on non-brand requests.

The costs of advertisers on Google Shopping grew by 32% compared to the first quarter of last year, text ads – by 12%.

The cost of advertising the local assortment is growing

In the first quarter, Local Inventory Ads accounted for 19% of all clicks in Google Shopping on smartphones. The CTR of these ads is 19% higher than that of product ads on smartphones and desktops. However, Local Inventory Ads conversion rates are lower than those of Product Listing Ads.

Growth of CTR extended text ads is still not observed

Merkle experts did not notice the promised growth of CTR after launching extended text ads. It is noted that higher clickability rates were seen only compared to conventional text ads (shown at the bottom of the search page on desktops).

Spending on text ads grew by 12%, on non-branded – by 16%.

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One of the reasons for the increase in advertisers’ costs on Google Adwords may be that over the past few months the share of Google search has grown significantly, while the share of Yandex has fallen dramatically. According to Liveinternet, from February to May, it fell from 55.5% to 51.7%, while Google’s share increased from 39.2% to 43.3%. In May, Google overtook Yandex for the first time. This is largely due to the growth of mobile traffic, where Google is traditionally stronger than Yandex.

Reducing the cost of advertising on tablets and desktops and their growth on smartphones is due to the fact that people as a whole have less to use tablets and desktops to access the Internet. According to Mediascope data, in March 2017, smartphone users increased 15% year-on-year, while the number of Russians using desktop computers went down by 4%, and tablets – by 8%. Tablets began to lose popularity in 2015 – according to J’son & Partners Consulting, their sales fell by 33% compared to the previous year. The main reason is that more and more powerful smartphones with a large screen began to appear on the market, which began to replace less convenient bulky tablets.

What trends would you note? Share your opinion in the comments.

Source: Search Engine Land

 

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