Mobile ad spend booms in social and search: Kenshoo report

By Lucy Carroll | 15 October 2015

Money keeps streaming into mobile ads, with spend in the sector doubling in social advertising during the past year, according to new data from global digital marketing firm, Kenshoo.

Spending in search advertising has jumped 66% in the third quarter ending September 30, with mobile devices accounting for almost 70% of all paid social clicks and half of all paid search clicks.

In the Asia-Pacific and Japan region, spending on paid search advertising rose 13% while smartphone impressions tripled, compared to the same period last year.

“Our data shows that mobile continues to be the most exciting area of growth in both social and search advertising,” Kenshoo’s managing director for Asia-Pacific and Japan, Yukihiko Imamura, said.

“We are seeing large brand advertisers in the Asia-Pacific and Japan moving quickly to allocate more budget to mobile search advertising, and we expect social advertising to boom in 2016.”

Globally, click-through rates for social ad campaigns are steadily climbing, jumping by 174% in the past year.

Kenshoo, which tracks information spanning more than 3000 agency and advertiser accounts, said that globally, paid social advertising is up 112% in the past year, with the overall cost-per-click up about 20% despite a drop in impression levels.

Earlier this month, Kenshoo announced a partnership with Hootsuite, a platform for managing social media, to help marketers build their paid and owned social media marketing.  

With Facebook recently scrapping cost-per-click from likes, shares and comments, Kenshoo expects marketers to see improvements in campaign effectiveness in coming quarters.

“The Hootsuite and Kenshoo integration bridges the gap between paid and organic social media to help marketers execute high-performing social media strategies,” vice president of corporate and business development at Hootsuite, Kevin Zellmer, said.

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