Study: Search Now Accounts For 20% Of All Global Ad Spend (With Google Snaring The Lion’s Share)

Study: Search Now Accounts For 20% Of All Global Ad Spend (With Google Snaring The Lion’s Share)
SHARE
THIS



A new study has found that almost 20 per cent of ad dollars spent globally this year will be for search with Google, unsurprisingly, snaring over 85 per cent of the money.

Following an analysis of WARC’s adspend data for its 12 key markets – Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Russia, United Kingdom and United States – search advertising spend will amount to $US100.5 billion ($A133 billion) in 2018, an increase of 11 per cent from $US90.5 billion in 2017. This equates to one in five dollars spent on advertising worldwide this year.

Mobile is driving growth in the search market, eroding display’s share of advertising spend

Mobile search is expected to attract $US62.7 billion this year – 62.4 per cent of total search spend within WARC’s 12 key markets. Mobile’s share of total search spend has near doubled since 2015, driving wider sector growth.

Across mobile and desktop, paid search’s share of global advertising spend has trebled over the last decade, rising to over a fifth this year. Search’s share is expected to reach 22 per cent in the US this year, 26 per cent in China, and near 30 per cent in the UK. Most of these gains have been at the expense of display formats.

The four largest players made $101bn last year

Analysis of company reports shows that the four largest providers – Google, Baidu, Yahoo and Microsoft’s Bing – made a combined $US101 billion from paid search in 2017, of which $US10.5 billion came from outside WARC’s 12 key markets. Google dominates the landscape, drawing an estimated $US85.8bn in 2017 (up 20 per cent from 2016). Badiu ($US10 billion), Yahoo ($US3 billion) and Microsoft ($US1.8 billion) follow some way behind, but all saw revenues grow.

Google also dominates user share across desktop and mobile

Google attracts the vast majority of search revenue because it is the dominant player in terms of users. This is particularly true for mobile users, with 89.3 per cent preferring Google’s search service.

Figures from April 2018 show that Google’s share dips closer to two-thirds (66.8 per cent) in the more mature desktop market. Baidu controls a fifth (20.5 per cent), Bing takes 7.7 per cent, Yahoo 3.5 per cent, and others 1.5 per cent.

Click through and conversion rates for search ads outperform online display across all categories, though costs are often higher as a result

Data for 16 product categories show that paid search routinely outperforms online display advertising in terms of both conversion and click through (CTR) rates. On average, search ads recorded a CTR of 3.3 per cent compared to just 0.57 per cent for online display. With regard to conversion rates, search’s average is 4.32 per cent compared to display’s 1.09 per cent.

The stronger results from search advertising come at a cost for advertisers. On average, the cost per click (CPC) for search ads is over four times higher than for display, at $US3.00.

Voice and image search have room to grow

Smartphones are driving voice search, with data showing that 47 per cent of users utilise voice tech at least once a month on a global level. Of those that use voice tech at least once a week, the top six activities are search related, including online searches (60 per cent of users), finding information on a product (53 per centt), asking questions (50 per cent), asking for directions (42 per cent) and finding information on a brand or company (41 per cent).

Neurological research shows that when people ask a question involving a brand name, their brain activity demonstrates a significantly stronger emotional response compared to people typing that same brand question. This emphasises the need for brands to craft the sound of their own voices.

Image search is also gaining momentum, with half (51 per cent) of UK millennials having used the feature, while almost a fifth (17.6 per cent ) already do so regularly. Households with children also demonstrate similar adoption levels to Millennials. However, brands looking to advertise against visual search queries may have to wait sometime before digital platforms advance inventory beyond basic text-style search terms.

Commenting on the study, James McDonald, Data Editor, WARC, said: “In its function as a pull medium, search has done more than replace classified – it is steadily eating into the share of advertising expenditure going to display. Emerging formats such as mobile voice and image look likely to continue this trend. This may be a sign that brands are shifting budget; though it more likely reflects a multitude of SME advertisers who have started spending due to the accessibility of the format.”

Latest News

Women In Media Profile: Danni Wright
  • Media

Women In Media Profile: Danni Wright

We'd be headlining Danni Wright's Women in Media profile the "Wright stuff" if it wasn't utterly predictable and naff.

by B&T Magazine

B&T Magazine
Industry Generates A Record $10.5m For Social Impact
  • Media

Industry Generates A Record $10.5m For Social Impact

UnLtd, the media, marketing and creative industry’s social purpose organisation has announced a total industry contribution of $10.5m to social impact in FY18. The total value of funds, services, inventory and time donated by the media, marketing and creative industry increased by 21per cent compared to the previous financial year due to a growth in […]

Posterscope Promotes Two
  • Media

Posterscope Promotes Two

Posterscope, Dentsu Aegis Network’s specialist out-of-home agency, has promoted Ryan Hedditch to the newly created position of national head of strategy and Samantha Summers to Sydney Group Business Director. In his new role, Hedditch is charged with driving the continual improvement and transformation of the Posterscope offering to clients and partners. Summers’ promotion will see her lead […]

Outbrain Accelerates Growth With APAC Promotions
  • Media

Outbrain Accelerates Growth With APAC Promotions

Native discovery platformOutbrain has announced several movements in its regional leadership team, with plans to make more new hires. This comes on the heels of two senior appointments it made in February, after closing a record year in the region with expansion into new markets. Yoav Tourel has been promoted to head of sales for […]

Clems Syd & Extra GUM Unveil YouTube Digital Stage
  • Media

Clems Syd & Extra GUM Unveil YouTube Digital Stage

YouTube EXTRA Gum has launched EXTRA Support Acts, a program created to support Australia’s up and coming musicians by transforming pre-roll ads on YouTube into a digital support stage. It has been created in partnership with Clemenger BBDO Sydney as creative lead, Universal Music Australia and BRING for talent and music strategy and content, MediaCom and YouTube. The […]

OMD Australia Tops 2018 RECMA Rankings
  • Media

OMD Australia Tops 2018 RECMA Rankings

OMD Australia has taken the top spot for Australia’s Number 1 media agency in size, according to RECMA’s 2018 ‘Overall Activity Volume Rankings’ report released last week. Additionally, the company was named first in profile classification with a dominant profile for the 3rd consecutive year, along with vitality ranking and structure ranking. Furthermore, OMD Australia was also named […]

Nine Appoints Editor For 9Honey
  • Media

Nine Appoints Editor For 9Honey

B&T's editor coincidentally spilled honey on his shirt while typing this. And by typing, we mean copy and pasting.

Y&R Sydney Scores Best&Less   
  • Advertising
  • Media

Y&R Sydney Scores Best&Less  

Y&R wins Best&Less amid rumours the clothing shop its changing name to 'Somewhat OK&Reasonably cheap'.

Women In Media Profile: Judy Sahay
  • Media

Women In Media Profile: Judy Sahay

B&T's Women in Media profiles are like a wave washing over you. Even more so if an actual wave washes over you.

by B&T Magazine

B&T Magazine
How B2B Companies Can Use Their Customer Data More Effectively (And Why They Need To)
  • Marketing
  • Opinion

How B2B Companies Can Use Their Customer Data More Effectively (And Why They Need To)

In this opinion piece, SalesPreso co-founder and CMO Joel Thomson (pictured below) explains how B2B companies can use their data more effectively and deliver a personalised customer experience that matches their B2C counterparts. From the Cambridge Analytica scandal to the EU’s recent GDPR legislation, this year has prompted individuals all over the world to consider […]

Opinion

by B&T Magazine

B&T Magazine
M&C Saatchi Launches THIS Film Studio
  • Advertising
  • Marketing
  • Media

M&C Saatchi Launches THIS Film Studio

Not one to rest on its laurels, M&C Saatchi unveils new production studio it hasn't called 'Not One To Rest On Laurels'.

Creative Agency Launches Project Management Tool ‘Hassl’
  • Advertising
  • Technology

Creative Agency Launches Project Management Tool ‘Hassl’

Yesterday at TedX Melbourne the team behind award-winning, Melbourne-based agency Your Creative launched their new tech venture Hassl, the project management platform taking on Trello and the likes. With the belief there was a better design solution to project management, the platform has been developed over the last two years in collaboration with their clients. […]

ABC Axes Tom Ballard’s Tonightly
  • Media

ABC Axes Tom Ballard’s Tonightly

It's one of the ABC's edgier, controversial shows, but Tom Ballard's proven too edgy and controversial for ABC chiefs.

Taboola Strengthens APAC Programmatic Offering With New Partnership
  • Advertising
  • Media

Taboola Strengthens APAC Programmatic Offering With New Partnership

Global discovery platform Taboola has announced a strategic partnership with Wider Planet, Korea’s largest demand-side and data management platform. The partnership builds on Taboola’s programmatic efforts in Asia-Pacific, and will bring together Korea’s largest demand platform for agencies and brands to provide access to Taboola’s global audience through premium publisher placements. The partnership means advertisers […]

The Haus Picks Up Two New Clients
  • Marketing

The Haus Picks Up Two New Clients

The Haus announces two new client wins. Admittedly, not as good as winning three, but far better than losing four.