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Mobile ad spend on social media increases 159%

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16th Oct 2015
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If ever there was any doubt, new data from Kenshoo highlights the monopoly mobile devices are starting to wield over advertising spend on social media, and even search.   

Mobile devices accounted for 50% of all paid search clicks in Q3 of 2015, and 68% of all paid social clicks in the same time period.

The data, based on 550 billion impressions, 11 billion clicks and $6 billion (USD) in advertiser spend, found that Q3’s strong showing amounted to an increase in social ad spend of 112% year-on-year, contributing to a 159% rise in mobile advertising investment.

Overall cost-per-click (CPC) is up 21% YoY in social advertising, while spend on paid search advertising grew by 8% YoY in Q3, fuelled entirely by the 66% rise in budgets allocated to smartphone ads.

“Our data shows that mobile continues to be the most exciting area of positive change in both social and search advertising,” said Rob Coyne, Kenshoo’s managing director for EMEA.

“As consumers spend more of their time on mobile devices, marketers are developing increasingly better optimised campaigns to make the most of the opportunity. Looking ahead, we expect to see these trends continue into the 4th quarter as retailers intensify their digital marketing activity over the holiday shopping season.”

Social advertising is fast becoming a burgeoning market, with spend on social networks set to break the £1bn mark in the UK alone in 2015, and global spending expected to be somewhere around $23bn.

Facebook currently dominates the social networks for advertising spend, and eMarketer predicts it to have a stranglehold of nearly 80% of the advertising revenue driven from social by the end of the year.

Facebook also recently changed Instagram’s advertising API to allow mobile marketers to start buying Instagram ads and plan their marketing campaigns on the image-sharing network in a more automated way, a likely contribution to the marked increase in the social media spending in this quarter.

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