Shoppable ads saw robust spending growth in Q2 despite the challenges of COVID-19
Overall spending for Ecommerce Ads grew both sequentially and year-over-year. Product-specific shopping ads in both Search and Social channels are up compared to last year, despite the overall channels declining over the same period as the pandemic affects total spend levels.
While year-over-year spending on a monthly basis was down in each month of Q2 for the Search and Social channels, the gap between last year and this year is narrowing in both cases.
Consumers saw a lot more product ads across all channels, as impressions for Search Shopping Campaigns, Social Dynamic Product Ads and the entire Ecommerce Ads channel served more ads than during the holiday season.
Across both Search and Social channels, tools and features that automate ad selection and optimization have made significant gains since Q2 of last year, more than doubling spending in each case.
After the vast majority of search spending in the Travel category went away in the second half of the first quarter, spending has increased every week of Q2 as the industry recovers.
RECOVERY WATCH
While year-over-year spending on a monthly basis was down in each month or Q2 for the Search and Social channels, the gap between last year and this year is narrowing in both cases.
ONLINE SHOPPING
Consumers saw a lot more product ads across all channels, as impressions for Search Shopping Campaigns, Social Dynamic Product Ads and the entire Ecommerce Ads channel served more ads than during the holiday season.
AUTOMATION
Across both Search and Social channels, tools and features that automate ad selection and optimization have made significant gains since Q2 of last year, more than doubling spending in each case.
TRAVEL SEARCH
After the vast majority of search spending in the Travel category went away in the second half of the first quarter, spending has increased every week of Q2 as the industry recovers.
Shoppable Ad Spotlight
Shoppable Ad Spotlight
Spending growth on product-specific shopping ads in the Social and Search channels drastically outperformed the rest of the channel in both cases. These product ads comprised 41% of Q2 spend for “shopping and retail” accounts across both channels.
CORE TRENDS
Social
Trends
Declining cost per thousand impressions (CPM) resulted in a decrease in total paid social spending both quarter-over-quarter (QoQ) and year-over-year (YoY), despite greater quantities of those impressions.
An increasing share of those impressions came from low-CPM ads aimed at branding and awareness, which points to more broad messaging, presumably showing empathy during the pandemic.
While average CPM was down 17% quarter-over-quarter, prices have started to rebound on a monthly basis, with June CPMs eclipsing those from March.
Impressions
QoQ
+4%
YoY
+25%
Clicks
QoQ
+9%
YoY
+33%
Spending
QoQ
-14%
YoY
-13%
CTR
QoQ
+5%
YoY
+7%
CPM
QoQ
-17%
YoY
-30%
Search
Trends
Total spending on paid search campaigns declined on both a quarter-over-quarter (QoQ) and year-over-year (YoY) basis.
Year-over-year spending was flat if the Travel category, which was the most heavily affected by the pandemic, is excluded.
Increased demand and wider distribution helped search shopping campaigns drive overall increases in search impressions and clicks, as well as lower aggregate click prices.
Impressions
QoQ
+52%
YoY
+62%
Clicks
QoQ
+22%
YoY
+28%
Spending
QoQ
-5%
YoY
-9%
CTR
QoQ
-20%
YoY
-21%
CPC
QoQ
-22%
YoY
-29%
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Social Trends