News and Press
Advertisers Increase Their Mobile Spending 171% to Reach Growing Tablet and Smartphone Market
RKG, a leading full-service digital marketing agency, released its Digital Marketing Report covering the first quarter of 2013 today. The report found consumers used tablets and smartphones to conduct 25% of their online searches in Q1, a notable post-holiday uptick from the 20% level RKG observed for the previous quarter.
For the first time, RKG found search traffic for desktop and laptops declined year over year, with clicks down 0.7%. However, as consumers have shifted their searches to tablets and smartphones, total click growth remained robust at 15%.
In order to reach this rapidly growing audience, advertisers have increased their spending on tablet and smartphone search ads by a combined 171% on a year over year basis. Tablet investment was up 162%, while smartphone spending increased 190%. Overall, search spending increased 24% in Q1, with mobile cost-per-click continuing to close the gap with desktops.
Shoppers Using Tablets to Buy, But Not at Same Rates as Computers
Although more consumers are moving toward shopping with tablet devices, tablets generated 15% lower revenue per click than traditional desktops and laptops. Once a high-converting demographic, the value of tablet traffic has fallen as lower-priced Android models have gained traffic share, but generate a revenue per click that is less than half that of the iPad. More »
Get to know RKG’s Chief Knowledge Officer, Adam Audette, in this interview titled “SEO, Parental Wisdom, & Mountain Lions! Exploring the Spectrum of Adam Audette.”
MediaPost covers RKG’s video of new CEO, George Gallate, and how RKG is digging deeper into Social:
“Recent research from RKG has indicated that the Yahoo Bing Network continues to take away market share from Google, as Bing recently pointed out to us, noting that Bing Ads have gained paid search spend share from Google four quarters in a row.”…
Read more from ‘Yahoo Is Not Pleased With Its Microsoft Search Deal’ on WebProNews here: http://www.webpronews.com/yahoo-is-not-pleased-with-its-microsoft-search-deal-2013-02
‘According to a recent report from RKG:“In late 2012, Bing Ads finally seemed to be hitting its stride. Bing’s expanded ad matching capabilities are now delivering quality traffic to advertisers at much greater rates” and “Microsoft’s ongoing efforts to bring Bing Ads’ core functionality more in line with AdWords have made it easier to manage both programs, reducing barriers to entry for smaller advertisers.”…
Read more from the Bing Ads Community Forum here: Bing Ads Forum – Positive Momentum.
RKG’s Mark Ballard is quoted in today’s article on Search Engine Land: “We love to dig into our performance data to find those niche segments that perform differently and then act upon that information,” he said. “iPad users are different from Android tablet users and we see that in the numbers. Unfortunately, it looks like we will not have that level of control or some of the other functionality we’d like to have with the initial launch of Enhanced Campaigns.”
Read the entire article here: http://searchengineland.com/googles-enhanced-campaigns-inspire-love-hate-and-hope-for-the-next-version-147896
In WebProNews’ article “Bing About To Get Google-Like Product Listing Ads,” Chris Crum covers RKG finding Bing’s Product Listing Ad testing last summer. Find the full article here: http://www.webpronews.com/bing-is-about-to-get-some-product-listing-ads-of-its-own-exclusive-2013-01
Adam Audette, RKG’s Chief Knowledge Officer, is covered in many recent publications, giving tips and talking big SEO wins. Read Adam’s interviews in the following:
Predictions & Tips for 2013 – http://www.mestreseo.com.br/predictions/2013/
Treehouse Blog – 9 SEO Leaders Reveal Most Significant Wins – http://blog.teamtreehouse.com/9-seo-leaders-reveal-their-most-significant-seo-wins
Tablets and Smartphones Driving Most of Advertisers’ Volume Growth
RKG|Rimm-Kaufman Group released its latest Digital Marketing Report covering the fourth quarter of 2012 today. The report found mobile traffic share reaching 20% of search overall, with volume split nearly evenly between smartphones and tablets.
Facing stiff holiday competition, iOS devices saw their share of mobile traffic slip slightly from quarter to quarter, but still held a commanding 73% share of mobile paid clicks in Q4. Due to the growth of mobile segment overall, iOS’ share of total paid clicks grew from 12% in Q3 to 14% in Q4.
Over the course of the quarter, the iPad’s share of tablet traffic declined from 88% to just over 84%. Kindle Fire models held a 5% share at the end of Q4, but delivered a 54% lower ROI to advertisers than the iPad. Windows 8 tablets failed to gain much traction, with less than 1% of tablet traffic.
All told, tablet spending increased 189% year-over-year, smartphone spending rose 178%, and desktop spending was up 11% among the RKG client base, which includes over 40 of the top 500 internet retailers. Tablet spending was nearly double that for smartphones due to higher average cost-per-click (CPC).
Within paid search, average cost-per-click for tablets edged up relative to desktop, with the two nearly reaching parity for the quarter. Smartphone CPCs showed similar movement, but remained 48% lower than those for desktop.
RKG finds Google poised to benefit the most from improvements in mobile CPCs among search engines, as Google generated nearly 27% of its organic searches from mobile devices in Q4. Yahoo’s mobile share hit 19%, while Bing was a distant third with just 6%.
Although mobile still proved to be a net drag on year-over-year CPC growth, Google managed to turn around its four quarter streak of CPC declines in Q4 as it faced weaker year ago comps. Google CPCs increased 3% as its ad clicks rose 14%, leading to a 19% increase in spending.
Bing and Yahoo search spending growth was particularly strong at 54%, as clicks rose 39% and CPCs were 11% higher. Bing Ads faced weak 2011 comps that showed negative growth, and it had made strides throughout the year to improve its once restrictive ad serving logic. Bing Ads has gained paid search spend share from Google in each of the last four quarters.
The full RKG report offers nearly 40 charts with additional insights and analysis on paid search, search engine optimization (SEO), social media, comparison shopping engines, multi-channel attribution and more.
Among their published fourth quarter results, RKG found:
- Paid search spending rose 23% year over year in Q4 on an 18% increase in traffic and 4% increase in CPC. This was a slight deceleration from Q3 volume growth, while average CPC rebounded from a 5% decline in Q3.
- Google Product Listing Ads generated 28% of Google non-brand clicks in Q4. PLA CPCs remained 26% lower than CPCs for competitive text ads.
- iOS 6 defaulting to secure search resulted in 10% of organic search traffic being seen as direct by analytics packages. 81% of iOS 6 visits did not pass a referrer.
- iPad delivered 7.3% of visits, followed by the iPhone at 6.7% and Android devices at 5.2%.
- Facebook remained the dominant source of referral traffic among social domains in Q4, delivering 7.4% of referrals. Pinterest was second with an average share of 3.6%.
- CPMs for the Facebook Exchange were less than half those of the average display ad. Revenue Per Click was 25% higher.
- Comparison Shopping spending increased 14% Y/Y in Q4, excluding costs associated with Google PLAs.
- Amazon Product Ads commanded 25% of CSE spend and were the largest traffic driver among paid engines.
- Holiday shoppers had an average of 4.3 marketing touches per order in Q4, up from 3.5 in Q3. At the same time, however, 75% of orders involved touches from just a single channel.
RKG is a full-service digital marketing agency that combines superior marketing talent with leading edge technology to create the industry’s most effective data-driven online marketing solutions. Founded in 2003, RKG specializes in working with clients in retail, travel, financial and B2B organizations ranging in size from small startups to Fortune 500 companies. RKG is a privately held company with offices in Charlottesville, VA; Bend, OR; Boston, MA and San Francisco, CA. For more information visit www.rimmkaufman.com or follow the company on Twitter @rimmkaufman.
RKG, along with an IR Top 200 client, are featured in the video ‘The Yahoo! Bing Network is a Search Ad Must-Buy.’
A 26-year veteran of Havas, George Gallate established one of the first global online operations in the industry.
NEW YORK—(December 13, 2012)—George Gallate, who established and ran Havas’s digital network in 1996—one of the first such networks in the advertising industry—and led its expansion globally, is joining digital-marketing and search agency RKG as CEO, effective Jan. 1st.
Gallate, most recently global chairman of Havas Worldwide Digital, will continue to be based in New York. He succeeds RKG co-founder and CEO George Michie, who will take on the role of Chief Marketing Scientist.
RKG is based in Charlottesville, VA, and has offices in Boston, San Francisco and Bend, Ore.
“RKG is a digital marketing leader. A combination of proprietary technology and some of the smartest analysts in the field gives them a deep understanding of real customer intent and the ability to create marketing programs that drive ROI,” said Gallate. “A lot of agencies talk about the intersection of search and social and using data to inform marketing. RKG is doing it.”
A privately held agency, RKG has grown 60 percent within the past year. The agency’s clients include Drugstore.com, Express, Herman Miller, Jones New York, CareerBuilder, Urban Outfitters and Zales.
Though privately held, RKG is one of Google’s largest search agencies globally. RKG’s strength in search marketing is derived from proprietary technology that uses clustering to more effectively bid on and buy search beyond simple search terms.
“Search is an absolute hot button for CMOs because it signals real customer intent, especially on a mobile device,” Gallate added. “Search is about what’s important to an individual in a particular context but social is about what’s important to that person’s family, friends and larger community. It creates a halo of intent and possibility that’s earned, not paid.”
An Australia native, Gallate, 49, began his advertising career in 1984 at Ogilvy & Mather in Sydney, the same year he graduated from the University of New South Wales. Two years later, he joined Euro RSCG Direct. He started one of Euro RSCG’s first digital agencies from his Australian base. Within 10 years he was named regional director for Euro RSCG Asia Pacific.
As early as 1995, Gallate saw the potential for using the Internet as an advertising platform because it could offer a brand-building complement to TV while combining the accountability of direct marketing.
He continued to rise through the ranks at Euro, and during his career he has lived variously in New York, Sydney, Singapore and Shanghai. In 1998, Gallate was named global brand director on the agency’s Intel account, and by 2003, he took the CEO position at Euro RSCG 4D, the digital and direct marketing arm of the agency network.
Since 2006, he has held the global chairman title at Havas Worldwide Digital, which, until March 1, 2012, was known as Euro RSCG.
Most recently Gallate won the global digital IBM and Hershey’s accounts. He also led the global integrated pitch for Intel ASUS, and was involved in Havas’s recent global win of the global Unilever data and CRM business.
“I am delighted to be partnering with George. He brings a tremendous depth of experience in working with large global clients. As the architect of Havas Worldwide Digital, his track record in innovation and driving growth is second to none,” said George Michie, the co-founder and now Chief Marketing Scientist of RKG.
RKG is a full-service digital marketing agency that combines superior marketing talent with leading edge technology to create the industry’s most effective data-driven online marketing solutions. Founded in 2003, RKG specializes in working with clients in retail, travel, financial and B2B organizations ranging in size from small startups to Fortune 500 companies. RKG is a privately held company headquartered in Charlottesville, VA with offices in San Francisco, CA, Bend, OR and Boston, MA. For more information visit www.rimmkaufman.com or follow the company on Twitter @rimmkaufman.