Facebook Beats Google in Display Growth, Yahoo Gemini Brings Big Changes

Oct 15, 2015

IgnitionOne, a marketing cloud provider, released its Q3 2015 Digital Marketing Report, highlighting trends and data for digital marketing across search, programmatic display, social, and mobile. The Q3 report demonstrated continuing trends in digital advertising metrics, marking the fourth straight quarter of growth in paid search spend in the U.S, up 12% year-over-year (YoY), as well as a 7% increase in spend for programmatic display.

Facebook continued its strong display growth, trouncing the market with a 40% increase YoY, in comparison to Google, who dropped 19%. Recent partnership changes for Yahoo and Bing are also expected to affect trends.

Shifts in user behavior from tablets/desktop to mobile phones continued to lead to an increase in mobile search spend of 56% YoY. Tablets, similar to desktops, were relatively flat. This is due to the similar ways they're now managed by users, as well as increased sophistication and interest in mobile traffic. This resulted in 64% of mobile spend share devoted to phones and 36% share going to tablets.

The addition to the marketplace of Yahoo Gemini gives Yahoo the ability sell its own mobile and native ads into its own search results while giving it more control. This has implications to the data tracked in this report and tactics for marketers as it increases fragmentation and bifurcation in the market.

Facebook continues to grow in spend, up 40% while Google display spend dropped 19%. The cost of Facebook ads also continued to climb, with eCPMs up 33% compared to last year.

When looking at display tactics in Q3, Ignition saw a slight shift toward remarketing ads (targeting ads to users who have visited a site before) when compared to last quarter, coming in at 53% of spend. This is a brief stabilization and a 50:50 mix of remarketing versus prospecting (look-a-like, contextual, custom targeting and reach).