What is the Fastest Growing Format in Online Advertising?
Are your clients taking advantage of the fastest growing format in online advertising? Do you even know what that is at the moment? Even if you don’t, have no fear. eMarketer has done the research and discovered the online advertising format that is racing its way toward the top.
And the Fastest Growing Format in Online Advertising is…
According to eMarketer, search is currently the fastest growing format in online advertising. Last year, advertisers in the U.S. spent around $13.12 billion on their search efforts, which was a 22.5% increase from search spending in 2018. That accounted for roughly 46.3% of retail digital ad dollars that year. This year, businesses are expected to increase search spending yet again to $15.65 billion, or 47.3% of total retail digital ad expenditures.
Search has become the fastest growing format in online advertising for a reason. Numerous types of businesses are benefiting from being easily found online. “Retail overindexes on search because bottom-funnel search ads are essential for driving ecommerce, and Google Shopping ads have become a go-to ad product for retail advertisers,” says eMarketer. Even before search started to shoot up in the online advertising world, retailers’ conversion rates (and average order values) by business category on Google Shopping delivered results:
- Apparel and Fashion Accessories: 3.1% ($219)
- Toys and Hobby-Related Products: 2.8% ($77)
- Books, Music and Video: 2.6% ($88)
- House and Home: 2.3% ($207)
- Pet Care Products: 2.3% ($80)
- Food and Drug: 2% ($54)
And those are just a few examples.
28.8% of U.S. adults have both seen a sponsored search result within the last 30 days and have taken action because of it, according to the Sponsored Search Result Responders audience profile on AudienceSCAN from AdMall by SalesFuel. And these consumers have spending power. 45.1% of these shoppers earn over $75,000 in average household income. Also, 49.6% of these consumers are willing to pay more for higher quality on most products.
This upcoming year, Sponsored Search Result Responders plan to make a variety of purchases. When it comes to fashion and personal care, they are 54% more likely than other consumers to spend at least $500 on men’s casual and dress shoes, 40% more likely to spend at least $500 on children’s apparel and shoes and 27.9% plan to purchase cosmetics. 27.3% also plan to purchase a new smartphone, 23.3% want to invest in new athletic footwear and 23% plan to buy a new laptop or desktop computer.
Most advertisers don’t want to put all their advertising dollars in one basket. While search may be the fastest growing format in online advertising, it’s always good to use other advertising formats to influence consumers to begin their searches in the first place. Based on AudienceSCAN data, you should suggest your clients pair their search advertising efforts with TV commercials, direct mail ads, ads on social media, and email ads.
Want to make sure your client’s target audience is particularly motivated by sponsored search results? Check out their audience profiles on AudienceSCAN on AdMall by SalesFuel just to make sure (spoiler alert, almost every American is).