Posts

AdWords has made a pretty massive change to the way daily ad budgets can be spent, and it could wreak havoc on advertisers’ ability to manage their budgets.

Google has always allowed campaigns to spend up to 20% over their daily budget. The idea is to provide flexibility so that you can take advantage of days where your ad performs best and minimalize waste when your ad isn’t doing well.

By the end of the month, this variance evens out so that you meet your monthly budget.

Now, AdWords has massively raised the daily overspend cap. Campaigns can now spend up to double their average daily budget.

The change doesn’t directly affect your monthly budget, and Google says you will still never be charged more than your monthly budget. In the long run, it may prove to actually be a great way to ensure advertisers reach their goals more consistently. However, it also raises a number of big questions about how ad budgets are managed.

The biggest problem how the increase could affect ad visibility. If an add sees a few days that draw in significant budget overspend early in the month, they could realistically run through their ad budget early in the month. That means ads could disappear unless you increase your budget.

The response has been overwhelmingly negative, with most of the criticism focusing on the fast roll-out and lack of opt-out. The change was applied overnight to all AdWords accounts, and advertisers cannot revert back to the earlier limit.

Like most changes on Google, we will just have to wait for time to tell whether this is a big mistake or an uncomfortable improvement.

Paid search advertising continued to rise last year, accounting for almost $35 billion in ad spend, but the IAB’s latest revenue report shows big shake-ups in where that money is going.

During 2016, desktop paid search dropped by 10 points and was down by almost $3 billion. However, mobile paid search shot up, leading to an overall increase in paid search revenues by almost $6 billion.

As such, mobile ad spending also surpassed spending on desktop search advertising for the first time ever. Throughout the year, mobile accounted for 51 percent of digital ad spend in the US. Notably, it was even higher in Q4, where it represented 53 percent.

In total, digital ad spending accounted for $72.5 billion in 2016, rising 22 percent from 2015. Mobile is largely responsible for this increase, as it grew across every digital format, including search, display, and social. Most notably, mobile video ad revenue jumped 145 percent year over year. The cumulative mobile spending across formats nearly reached $37 billion in just the last year.

Randall Rothenberg, President and CEO of IAB, best sums up the report by highlighting the versatility and ubiquity of mobile devices to reach customers no matter where they are:

“Mobile fueled the internet economy in 2016, with advertisers showing their confidence in digital to achieve their marketing goals. This increasing commitment is a reflection of brands’ ongoing marketing shift from ‘mobile-first’ to ‘mobile-only’ in order to keep pace with today’s on-the-go consumers.”

So far, 2015 is shaping up to be a huge year for the mobile internet. Between Google’s “Mobilepocalypse” and the news that searches from mobile have overtaken desktop search volume, mobile was already on the way to dominance, but a new report from IgnitionOne shows mobile search spend is also growing by leaps and bounds.

According to the recent Q2 Digital Marketing Report, paid search spending has risen 22 percent for tablets last year, and a massive 71 percent for smartphones.

Both mediums showed comparable growth in CPC and CTR (24 and 28 percent for phones, 26 and 17 percent for tablets), but smartphone clicks have outpaced those from tablets by 41 percent. The report also noted smartphone impressions had climbed 8 percent, but tablet impressions have declined by 17 percent.

“Google has incredible dominance on [the mobile] side,” says Will Margiloff, chief executive (CEO) of IgnitionOne. “But they still have, for the most part, a mobile display business and not really a native to phone and tablet business like Facebook. Google’s got their work cut out for them when it comes to mobile native or native display, and the only real player there is Facebook.”

ignitiononestudy1-370x229

The report also showed Google’s display growth was down 9 percent year-over-year while Facebook’s is up 48 percent, which gives the social platform 16 percent of the display share. In comparison, Google’s share is at 31 percent, down from 38 percent last year.

After years of debate whether another search engine could ever prove to be a meaningful challenge to Google’s market share dominance, Facebook’s recent gains suggest it may actually be social media that poses the greatest challenge to Google.

ignitiononestudy2-370x229

IgnitionOne’s research found programmatic data spend increased 33 percent year-over-year while eCPM rose 35 percent from last year. Impressions, however, have fallen 1 percent.