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Merkle Q2 2018 Digital Marketing Report Released

Today we are pleased to announce the release of the Q2 2018 Digital Marketing Report for download. As always, the report includes key trends and analyses on the most important developments taking shape across Google, Facebook, Amazon, and more.

In addition to high-level performance indicators for search, social, marketplaces, and display advertising, this edition of the report also provides data points on the Facebook Audience Network, explosive spend growth on YouTube, and the steady growth of Google Shopping variations like Local Inventory Ads and Showcase Shopping Ads. To understand how these trends and other developments should be impacting your marketing strategy, download the Q2 2018 Digital Marketing Report today.

Here is a small sampling of the highlights in the report drawn from the executive summary.

Investment growth for Google search ads decelerated for the third straight quarter, but spending still came in 18% higher Y/Y in Q2 2018. Since late 2017, search advertisers have seen average Google cost-per-click (CPC) growing faster than ad clicks, but advertisers are still generating positive returns from Google search, as the revenue per click that their Google ads produce has also increased across key segments.

Q2 2018 Google Paid Search Overall

Google Shopping ads also remain a growth engine for Google as spending on Google Shopping ads was up 31% Y/Y in Q2 2018, over five times the rate of growth for Google text ads. Impression growth for Shopping ads has been robust, likely directly cannibalizing impressions for text ads, which have shown weak to declining growth in recent quarters, even on mobile.

Instagram significantly outpaced Facebook in terms of Y/Y ad spend growth, 177% to 40%, as impressions on Instagram more than tripled. As has been the case for the last two quarters, pricing continued to drive Facebook ad spend growth, as impressions fell 17% Y/Y. YouTube ad spend grew 189% Y/Y for advertisers investing in the platform since last Q2.

Q2 2018 Instagram vs Facebook

Amazon search ads continue to grow rapidly, with Sponsored Products spend up 165% and Headline Search Ads spend up 162% Y/Y for the quarter. Sponsored Products continue to account for the vast majority of Amazon search investment with 88% spend share in Q2, and also drive the highest sales per click for advertisers among Amazon’s search formats.

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