Predictive media-optimization-technology provider Kenshoo, a Facebook Strategic Preferred Marketing Developer, examined key metrics and benchmarks for paid search and social advertising in the first quarter.
Among the findings by Kenshoo:
- Cost per click was down 26 percent compared with the fourth quarter of 2013, but up 35 percent versus the first quarter of 2013.
- Ad spend was down 40 percent and up 37 percent, respectively.
- Ad revenue was down 31 percent and up 191 percent, respectively.
- Impressions were down 4 percent and up 39 percent, respectively.
- Clicks were down 19 percent and up 1 percent, respectively.
- Click-through rates were down 15 percent and down 27 percent, respectively.
Chief Marketing Officer Aaron Goldman said in a release accompanying the infographic below:
Social advertising is growing fast and, while paid search still commands the lion’s share of online ad budgets, both channels have proven to deliver strong return on investment. The key for marketers is to approach search and social holistically and leverage advanced cross-channel platforms to automate and optimize campaigns.
Search has long been the rock of digital marketing plans and will continue to be for its ability to capture intent and drive direct response results. The fact that search is still growing at double-digit yearly rates shows that there is plenty of opportunity out there for scale. Meanwhile, social advertising has clearly emerged as a vital always-on component of the media mix, and its triple-digit growth in revenue proves that marketers are successfully converting social engagement into tangible business outcomes.
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