Adobe Systems Incorporated : Adobe Finds Search Remains Biggest Driver of Advertising Spend While Social and Mobile Maintain Growth
04/11/2012| 12:05am US/Eastern
Findings Based on Data from Adobe Digital Index: Global Digital
Advertising Update for Q1 2012
Systems Incorporated (Nasdaq:ADBE) today released findings from its
Adobe® Digital Index, with a report focused on digital advertising
industry insights for Q1 2012, as well as an outlook for the remainder
of the year. The report shows that digital advertising continues its
rapid growth across all channels. According to the report, while
Facebook is still an emerging digital advertising channel, search
remains the biggest driver of ROI for marketers. Previous versions of
this report were published by the former Efficient Frontier, acquired
by Adobe in January 2012.
Key Report Findings for Q1 2012
Spending on mobile platforms reached eight percent of all search spend
in the United States, and 11 percent in the UK. Tablets alone account
for four percent of total search spend in the United States. Mobile
devices and tablets are lower-cost channels and ultimately contributed
to Google's Cost Per Click (CPC) decline of five percent Year over
Year (YoY). In contrast, Bing/Yahoo's CPC increased by 18 percent YoY.
Traffic on mobile devices, specifically tablets, increased four-fold
YoY, and advertisers were quick to respond, growing search investments
in mobile and tablets by 250 percent YoY.
Facebook spend has grown by 93 percent YoY and now represents three to
five percent of search spend, indicating that social continues to be a
strong, emerging digital advertising channel.
Outlook for Q2-Q4 2012
Every month Adobe analyzes advertiser data from over $2 billion in
annualized spend under management. Based on a client index from the past
three quarters (beginning in Q2 2011), some key trends are emerging:
Search spend in the United States is expected to increase at a rate of
10 to 15 percent for the rest of 2012 - consistent with macro trends.
Tablet and mobile spend will likely make up 15 to 20 percent of all
search spend by the end of 2012. Investments in tablet advertising
will grow as tablet visitors are rapidly increasing. Conversion rates
on mobile devices are comparable to desktop performance even though
mobile CPCs are 30 percent lower.
While Facebook ad CPCs have increased 40 percent Quarter over Quarter
for the past three quarters, CPCs on Facebook 'Sponsored Stories' tend
to be lower than Facebook 'Marketplace Ads', which may contribute to
temporary decreases in CPCs.
David Karnstedt, vice president and general manager, Advertising
Marketing Business, Adobe
"Investing resources in social has undoubtedly become a key focus for
marketers over the last year. While social is absolutely on the rise
and an important channel, search is still the key driver of digital
marketing ROI. With the emergence of tablets, mobile creates a new
opportunity for search investment with efficiency gains to their
overall program, at least in the short-term."
Adobe Digital Index Report: Global Digital Advertising Update
Full details of the Adobe Digital Index: Global Digital Advertising
Update, as well as previous reports, are available for download here
and on CMO.com.
The analysis of digital marketing and Facebook performance is based on
data derived from technology Adobe acquired via Efficient Frontier and
Context Optional, which is now part of the Adobe
Digital Marketing Suite. Data is based on a client index across key
verticals including retail, entertainment, CPG, and finance.
About the Adobe Digital Marketing Suite
The Adobe Digital Marketing Suite offers an integrated and open platform
for online business optimization, a strategy for using customer insight
to drive innovation throughout the business and enhance marketing
efficiency. The Suite consists of integrated applications to collect and
unleash the power of customer insight to optimize customer acquisition,
conversion and retention efforts as well as the creation and
distribution of content. For example, using the Suite, marketers can
identify the most effective marketing strategies and ad placements as
well as create relevant, personalized and consistent customer
experiences across digital marketing channels, such as onsite, display,
e-mail, social, video and mobile. The Suite enables marketers to make
quick adjustments, automate certain customer interactions and better
maximize marketing ROI, which, ultimately, can positively impact the
About Adobe Systems Incorporated
Adobe is changing the world through digital experiences. For more
information, visit www.adobe.com.
© 2012 Adobe Systems Incorporated. All rights reserved. Adobe and the
Adobe logo are either registered trademarks or trademarks of Adobe
Systems Incorporated in the United States and/or other countries. All
other trademarks are the property of their respective owners.
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Adobe Systems Incorporated
Craig Corica, 415-832-5389
Jennifer Stephens Acree, 310-780-3331
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