Acceleration of Online Shopping in 2020 Yielded Robust Growth Across Digital Channels in the First Quarter of This Year, Kens…

SAN FRANCISCO, April 29, 2021 /PRNewswire/ — Kenshoo, a
global leader in marketing intelligence and activation technology,
is releasing the Q1 2021 Digital Marketing Quarterly Trends Report,
outlining the digital advertising trends that dominated the first
quarter of 2021. The sustained popularity of online shopping pushed
brands to continue investing heavily in support for their online
channels, triggering growth in spending across Paid Search, Retail
Media, and Social.

Retail Media Brings in New Players and Booming
Spending
The first quarter of 2021 proved to be strong for
Retail Media spending with new players rolling out broader
advertising capabilities for brands on their platforms. While still
the dominant force, Amazon’s share of the larger Retail Media pie
declined from 98% a year ago to 89%. Together, Instacart and
Walmart comprised 11% of total spending in Q1 with Instacart at
five percent and Walmart at six percent.

In addition to the diversification of where brands are
investing their Retail Media dollars, the amount is also up 74%
year-over-year. Clicks for Retail Media ads increased 65%
year-over-year, and impressions have grown 89% during the same time
frame.

Cost-per-click has gone up compared to the same quarter last
year (five percent) and clickthrough rates have seen an 11%
decline.

The Commerce Halo Effect and Surge in Paid Search
The
online shopping boom created a halo effect; commerce advertisers
grew Search budgets faster than the rest of the channel to match
spending increases in Retail Media to bring customers to the
ecommerce sites and convert interest into revenue. This was part of
a perfect storm of conditions that drove record growth for Paid
Search—up 46% year-over-year—and emphasized the impact of ecommerce
growth beyond the point of sale.

While the overall clickthrough rate for the search channel
dropped 12% year-over-year, keyword ads saw this rate grow
significantly, helping drive overall clicks up 66% compared to Q1
2020. Meanwhile, search shopping ads were the main component of 88%
growth in impressions. Cost-per-click across the combined keyword
and shopping segments dipped 12% year-over-year, matching the
overall change in clickthrough rate.

Social Spending Jumped in Comparison to Q1 2020
While
there was the typical seasonal slowdown after the holidays, when
looking at the numbers year-over-year, investment in social media
advertising grew 32%. Impressions and clicks both increased by 13%,
while the cost per thousand impressions (CPM) was up 17%. Two out
of every three ad dollars on Facebook were allocated to Campaign
Budget Optimization, with spending up in this segment more than
twice as much as the overall Social channel at 77%
year-over-year.

“The amount of money brands are putting into digital
advertising  is surging, and this is a trend we believe will
sustain as ecommerce continues to dominate,” comments Chris Costello, senior director of marketing
research at Kenshoo. “The growth of Retail Media and its halo
effect on Paid Search point to an increasingly interdependent
relationship between digital touchpoints for commerce advertisers.
In the months to come, more retailers will push to gain a piece of
the advertising revenue pie, and both those retailers and the
consumer brands that they sell will turn to adjacent channels to
let customers know how to find them.”

Methodology
Analysis is drawn from a population of
approximately $7B in advertising
spend, comprising more than 3,000 advertiser and agency accounts
across 40 vertical industries and over 150 countries running on the
Kenshoo platform on Google, Microsoft, Baidu, Yandex, Yahoo!
Japan, Verizon Media, Amazon,
Walmart, Instacart, Criteo, Apple Search Ads, Pinterest, Snapchat,
Facebook, Instagram and the Facebook Audience Network.

Except where noted, only advertisers with 15 consecutive months
of performance data are included and some additional outliers have
been excluded. Ad spending and pricing have been translated to USD
at the time the spending was incurred.

About Kenshoo
Kenshoo is the leading marketing
activation and intelligence platform for brands looking to drive
growth by engaging customers across digital touchpoints. Kenshoo
offers the only marketing solution that combines augmented
analytics for actionable consumer and market insights with campaign
orchestration and marketing measurement for success on Google,
Facebook, Microsoft, Amazon, Walmart, Apple Search Ads, Pinterest,
Snapchat, Instagram, Verizon Media, Instacart, Target, Yandex,
Yahoo Japan, and Baidu. Kenshoo’s machine learning algorithms
leverage market signals and internal data, enabling brands and
agencies to predict trends and keep pace with customers. Kenshoo
has seven international locations and is backed by Sequoia Capital,
Arts Alliance, Tenaya Capital, and Bain Capital Ventures. Please
visit Kenshoo.com for more information.

Kenshoo brand and product names are trademarks of Kenshoo
Ltd. Other company and brand names may be trademarks of their
respective owners.

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SOURCE Kenshoo