We are once again pleased to announce the release of the quarterly Merkle Digital Marketing Report for download, complete with trends and analyses spanning paid social, paid search, SEO, Amazon ads, and more.
The Q4 2018 edition of the DMR highlights the explosive growth of Google Shopping advertisers saw during the busy holiday season, as well as the rebound of Google audience click share following a short dip at the end of Q3. To understand these and other key trends across Google, Facebook, Amazon and other key advertising platforms, download the Q4 2018 Digital Marketing Report today.
Below we share just a handful of the insights contained in the report, drawn from the executive summary.
Despite weaker Q4 results for Bing and Yahoo, the future looks brighter for Bing, as Microsoft and Verizon announced in January that Bing Ads will become the exclusive search ad provider for Yahoo. This will include the sunsetting of Yahoo Gemini, which produced 1% of search ad clicks in Q4 2018.
Yahoo will also cease running Google Shopping Ads, which it has relied on since early 2016. Google search ad partners, including Yahoo, produced roughly 7% of Google Shopping ad clicks in Q4 2018. This rate will likely fall by a point or two as Yahoo fully transitions over to Bing Product Ads in the coming months, but the impact to Google’s bottom line should be minimal, given that it likely paid a high revenue share to Yahoo. Yahoo’s earlier agreement with Microsoft gave Yahoo a 93% cut of the search ad revenues Microsoft generated on Yahoo properties.
Growth in advertiser spending on Facebook proper slowed to 10% Y/Y, driven primarily by platform maturation, as opposed to advertisers pulling back or exiting deliberately because of recent negative headlines. Facebook is now also getting significant revenue growth from Instagram, which saw a 138% increase in spend Y/Y for the quarter. Strong recent adoption of Instagram Stories played a major role in Q4 growth.